(215 ILCS 100/1) (from Ch. 73, par. 1601)Sec. 1. 
		Short title. 
		This Act may be cited as the Reinsurance Intermediary Act.
		(Source: P.A. 87-108.) (215 ILCS 100/5) (from Ch. 73, par. 1605)Sec. 5. 
		Definitions."Actuary" means a person who is a member in good standing of the American
Academy of Actuaries."Controlling person" means any person, firm, association, or corporation
that directly or indirectly has the power to direct or cause to be
directed the management, control, or activities of the reinsurance intermediary."Director" means the Director of the Department of Insurance."Insurer" means any person, firm, association, or corporation duly
licensed in this State under the applicable provisions of law as an insurer."Licensed producer" means an agent, broker, or reinsurance intermediary
licensed under the applicable provision of the insurance law."Reinsurance intermediary" means an intermediary broker or a manager."Intermediary broker" means any person, other than an officer or employee
of the ceding insurer, firm, association, or corporation, who solicits,
negotiates, or places reinsurance cessions or retrocessions on behalf of a
ceding insurer without the authority or power to bind reinsurance on behalf
of the insurer."Intermediary manager" means any person, firm, association, or
corporation that has authority to bind or manages all or part of the
assumed reinsurance business of a reinsurer (including the management of a
separate division, department, or underwriting office) and acts as an agent
for the reinsurer.  However, the following persons shall not be considered
an intermediary manager, with respect to the reinsurer, for the purposes of this Act:(1) An employee of the reinsurer.(2) A U.S. Manager of the United States branch of an     alien reinsurer.(3) An underwriting manager that, under a contract,     manages all the reinsurance operations of the reinsurer, is under common control with the reinsurer, subject to Article VIII 1/2 of the Illinois Insurance Code, and whose compensation is not based on the volume of premiums written.(4) The manager of a group, association, pool, or     organization of insurers that engage in joint underwriting or joint reinsurance and who are subject to examinations by the insurance regulatory authority of the state in which the manager's principal business office is located."Reinsurer" means any person, firm, association, or corporation duly
licensed in this State under the applicable provisions of law as an
insurer with the authority to assume reinsurance."To be in violation" means that the reinsurance intermediary, insurer, or
reinsurer for whom the reinsurance intermediary was acting failed to
substantially comply with the provisions of this Act."Qualified United States financial institution" means an institution that:(1) is organized or (in the case of a U.S. office of     a foreign banking organization) licensed under the laws of the United States or any state thereof;(2) is regulated, supervised, and examined by federal     or state authorities having regulatory authority over banks and trust companies; and(3) has been determined by either the Director or the     Securities Valuation Office of the National Association of Insurance Commissioners to meet the standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the Director.		(Source: P.A. 87-108.) (215 ILCS 100/10) (from Ch. 73, par. 1610)Sec. 10. Licensure.(a) No person, firm, association, or corporation that maintains an office,
officer, director, agent, or employee, directly or indirectly, in this State
shall act as an intermediary broker unless licensed as an insurance producer
in this State.  No person, firm, association, or corporation that does not
maintain an office, officer, director, agent, or employee in this State
shall act as an intermediary broker in this State unless licensed as an
insurance producer in this State, unless licensed as an insurance producer
in another state that has a law substantially similar to this law, or unless
licensed in this State as a nonresident reinsurance intermediary.(b) No person, firm, association, or corporation shall act as an
intermediary
manager, except in compliance with this subsection, as follows:(1) For a reinsurer domiciled in this State, unless     the intermediary manager is a licensed producer in this State.(2) In this State, if the intermediary manager     maintains an office, either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation, in this State, unless the intermediary manager is a licensed producer in this State.(3) In another state for a nondomestic insurer,     unless the intermediary manager is a licensed producer in this State or another state having a law substantially similar to this law or the person is licensed in this State as a nonresident reinsurance intermediary.(c) The Director may require an intermediary manager subject to subsection (b) to:(1) file a bond in an amount and from an insurer     acceptable to the Director for the protection of the reinsurer; and(2) maintain an errors and omissions policy in an     amount acceptable to the Director.(d) The Director may issue a reinsurance intermediary license to any
person, firm, association, or corporation that has complied with the
requirements of this Act.  Any license issued to a firm or association will
authorize all the members of the firm or association and any designated
employees to act as reinsurance intermediaries under the license.  All of
those persons shall be named in the application and any supplements
thereto.  Any license issued to a corporation shall authorize all of the
officers and any designated employees and directors thereof to act as
reinsurance intermediaries on behalf of the corporation, and all of those
persons shall be named in the application and any supplements thereto.If the applicant for a reinsurance intermediary license is a nonresident,
the applicant, as a condition precedent to receiving or holding a license,
shall designate the Director as agent for service of process in the manner,
and with the same legal effect, provided in the Illinois Insurance Code for designation of
service of process upon unauthorized insurers.  The applicant shall also
furnish the Director with the name and address of a resident of this State
upon whom notices or orders of the Director or process affecting the
nonresident reinsurance intermediary may be served.  The licensee shall
promptly notify the Director in writing of every change in its designated
agent for service of process.  The change shall not become effective until
acknowledged by the Director.(e) The Director may refuse to issue a reinsurance intermediary license
if, in his judgment, the applicant, any one named on the application or any
member, principal, officer, or director of the applicant is not
trustworthy; or that any controlling person of the applicant is not
trustworthy to act as a reinsurance intermediary; or any of the foregoing
has given cause for revocation or suspension of that kind of license or
has failed to comply with any prerequisite for the issuance of the license.
 Upon written request therefor, the Director will furnish a summary of the
basis for refusal to issue a license, which document shall be privileged
and not subject to the Freedom of Information Act.(f) Licensed attorneys at law of this State, when acting in their
professional capacity as an attorney, shall be exempt from this Section.(g) All licenses issued under this Act shall terminate 24 months following
the date of issuance and may be renewed by providing to the Director
satisfactory evidence that the reinsurance intermediary continues to meet the
requirements of this Section and upon payment of the fees specified in Section
408 of the Illinois Insurance Code.
(Source: P.A. 100-201, eff. 8-18-17.) (215 ILCS 100/15) (from Ch. 73, par. 1615)Sec. 15. 
		Required contract provisions; reinsurance intermediary brokers. 
		Transactions between an intermediary broker and the insurer it represents
in that capacity shall be entered into only under a written contract,
specifying the responsibilities of each party.  The contract shall, at a
minimum, contain provisions that:(1) The insurer may terminate the intermediary     broker's authority at any time.(2) The intermediary broker will render accounts to     the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges, and other fees received by, or owing to, the intermediary broker and remit all funds due to the insurer within 30 days of receipt.(3) All funds collected for the insurer's account     will be held by the intermediary broker in a fiduciary capacity in a bank that is a qualified U.S. financial institution as defined in this Act.(4) The intermediary broker will comply with Section     20 of this Act.(5) The intermediary broker will comply with the     written standards established by the insurer for the cession or retrocession of all risks.(6) The intermediary broker will disclose to the     insurer any relationship with any reinsurer to which business will be ceded or retroceded.		(Source: P.A. 87-108.) (215 ILCS 100/20) (from Ch. 73, par. 1620)Sec. 20. Books and records; reinsurance intermediary brokers.(a) For at least 10 years after expiration of each contract of
reinsurance transacted by it, the intermediary broker shall keep a complete
record for each transaction showing:(1) The type of contract, limits, underwriting     restrictions, classes or risks, and territory.(2) Period of coverage, including effective and     expiration dates, cancellation provisions, and notice required of cancellations.(3) Reporting and settlement requirements of balances.(4) Rate used to compute the reinsurance premium.(5) Names and addresses of assuming reinsurers.(6) Rates of all reinsurance commissions, including     the commissions on any retrocessions handled by the intermediary broker.(7) Related correspondence and memoranda.(8) Proof of placement.(9) Details regarding retrocessions handled by the     intermediary broker including the identity of retrocessionaires and percentage of each contract assumed or ceded.(10) Financial records including, but not limited to,     premium and loss accounts.(11) When an intermediary broker procures a     reinsurance contract on behalf of a licensed ceding insurer:(A) directly from any assuming reinsurer, written         evidence that the assuming reinsurer has agreed to assume the risk;(B) if placed through a representative of the         assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.(b) The insurer shall have access and the right to copy and audit all
accounts and records maintained by the intermediary broker related to its
business in a form
usable by the insurer.
(Source: P.A. 98-756, eff. 7-16-14.) (215 ILCS 100/25) (from Ch. 73, par. 1625)Sec. 25. 
		
		Duties of insurers utilizing the services of a reinsurance
intermediary broker.(a) An insurer shall not engage the services of any person, firm,
association, or corporation to act as an intermediary broker on its behalf
unless the person is licensed as required by Section 10 of this Act.(b) An insurer may not employ an individual who is employed by an
intermediary broker with which it transacts business, unless the
intermediary broker is under common control with the insurer and subject to
the Holding Company Act.(c) The insurer shall annually obtain a copy of statements of the
financial condition of each intermediary broker with which it transacts business.
		(Source: P.A. 87-108.) (215 ILCS 100/30) (from Ch. 73, par. 1630)Sec. 30. 
		Required contract provisions; reinsurance intermediary managers. 
		Transactions between an intermediary manager and the reinsurer it
represents in that capacity shall only be entered into under a written
contract specifying the responsibilities of each party that
shall be approved by the reinsurer's board of directors.  At least 30 days
before the reinsurer assumes or cedes business through the producer, a true
copy of the approved contracts shall be filed with the Director for
approval.  The contract shall, at a minimum, contain provisions that:(1) The reinsurer may terminate the contract for     cause upon written notice to the intermediary manager.  The reinsurer may immediately suspend the authority of the intermediary manager to assume or cede business during the pendency of any dispute regarding the cause for termination.(2) The intermediary manager will render accounts to     the reinsurer accurately detailing all material transactions, including information necessary to support all commissions, charges, and other fees received by, or owing to, the intermediary manager and remit all funds due under the contract to the reinsurer on not less than a monthly basis.(3) All funds collected for the reinsurer's account     will be held by the intermediary manager in a fiduciary capacity in a bank that is a qualified U.S. financial institution as defined in this Act.  The intermediary manager may retain no more than 3 months estimated claims payments and allocated loss adjustment expenses.  The intermediary manager shall maintain a separate bank account for each reinsurer that it represents.(4) The contract cannot be assigned in whole or in     part by the intermediary manager.(5) The intermediary manager will  comply with the     written underwriting and rating standards established by the insurer for the acceptance, rejection, or cession of all risks.(6) Sets forth the rates, terms, and purposes of     commissions, charges, and other fees that the intermediary manager may levy against the reinsurer.(7) If the contract permits the intermediary manager     to settle claims on behalf of the reinsurer:(A) All claims will be reported to the reinsurer         in a timely manner.(B) A copy of the claim file will be sent to the         reinsurer at its request or as soon as it becomes known that the claim:(i) has the potential to exceed the lesser of             an amount determined by the Director or the limit set by the reinsurer;(ii) involves a coverage dispute;(iii) may exceed the intermediary manager's             claims settlement authority;(iv) is open for more than 6 months; or(v) is closed by payment of the lesser of an             amount set by the Director or an amount set by the reinsurer.(C) All claim files will be the joint property of         the reinsurer and intermediary manager.  However, upon an order of liquidation of the reinsurer the files shall become the sole property of the reinsurer or its estate; the intermediary manager shall have reasonable access to and the right to copy the files on a timely basis.(D) Any settlement authority granted to the         intermediary manager may be terminated for cause upon the reinsurer's written notice to the intermediary manager or upon the termination of the contract.  The reinsurer may suspend the settlement authority during the pendency of the dispute regarding the cause of termination.(8) If the contract provides for a sharing of interim     profits by the intermediary manager, that the interim profits will not be paid until one year after the end of each underwriting period for property business and 5 years after the end of each underwriting period for casualty business (or a later period set by the Director for specified lines of insurance) and not until the adequacy of reserves on remaining claims has been verified according to subsection (c) of Section 45.(9) The intermediary manager will annually provide     the reinsurer with a statement of its financial condition prepared by an independent certified accountant.(10) The reinsurer shall periodically (at least     semiannually) conduct an on-site review of the underwriting and claims processing operations of the intermediary manager.(11) The intermediary manager will disclose to the     reinsurer any relationship it has with any insurer before ceding or assuming any business with that insurer under contract.(12) Within the scope of its actual or apparent     authority, the acts of the intermediary manager shall be deemed to be the acts of the reinsurer on whose behalf it is acting.		(Source: P.A. 87-108.) (215 ILCS 100/35) (from Ch. 73, par. 1635)Sec. 35. 
		Books and records; reinsurance intermediary managers.(a) For at least 10 years after expiration of each contract of
reinsurance transacted by it, the intermediary manager shall keep a complete
record for each transaction showing:(1) The type of contract, limits, underwriting     restrictions, classes or risks, and territory.(2) Period of coverage, including effective and     expiration dates, cancellation provisions and notice required of cancellation, and disposition of outstanding reserves on covered risks.(3) Reporting and settlement requirements of balances.(4) Rate used to compute the reinsurance premium.(5) Names and addresses of reinsurers.(6) Rates of all reinsurance commissions, including     the commissions on any retrocessions handled by the intermediary manager.(7) Related correspondence and memoranda.(8) Proof of placement.(9) Details regarding retrocessions handled by the     intermediary manager as permitted by subsection (d) of Section 45, including the identity of retrocessionaires and percentage of each contract assumed or ceded.(10) Financial records including, but not limited to,     premium and loss accounts.(11) When the intermediary manager places a     reinsurance contract on behalf of a ceding insurer:(A) directly from any assuming reinsurer, written         evidence that the assuming reinsurer has agreed to assume the risk;(B) if placed through a representative of the         assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.(b) The reinsurer will have access and the right to copy all accounts
and records maintained by the intermediary manager related to its business
in a form usable by the reinsurer.
		(Source: P.A. 87-108.) (215 ILCS 100/40) (from Ch. 73, par. 1640)Sec. 40. 
		Prohibited acts. 
		An intermediary manager shall not:(1) Cede retrocessions on behalf of the reinsurer,     except that it may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for those retrocessions.  The guidelines shall include a list of reinsurers with which automatic agreements are in effect, and for each reinsurer, the coverages and amounts or percentages that may be reinsured and commission schedules.(2) Commit the reinsurer to participate in     reinsurance syndicates.(3) Appoint any producer without assuring that the     producer is lawfully licensed to transact the type of reinsurance for which he is appointed.(4) Without prior approval of the reinsurer, pay or     commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or 1% of the reinsurer's policyholder's surplus as of December 31 of the last complete calendar year.(5) Collect any payment from a retrocessionaire or     commit the reinsurer to any claim settlement with a retrocessionaire without prior approval of the reinsurer.  If prior approval is given, a report must be promptly forwarded to the reinsurer.(6) Jointly employ an individual who is employed by     the reinsurer unless the intermediary manager is under common control with the reinsurer subject to Article VIII 1/2 of the Illinois Insurance Code.(7) Appoint an intermediary sub-manager.
		(Source: P.A. 87-108.) (215 ILCS 100/45) (from Ch. 73, par. 1645)Sec. 45. Duties of reinsurers utilizing the services of a reinsurance
intermediary manager.(a) A reinsurer shall not engage the services of any person, firm,
association, or corporation to act as an intermediary manager on its behalf
unless the person is licensed as required by Section 10.(b) The reinsurer shall annually obtain a copy of statements, audited by
an independent certified public accountant in a form acceptable to the
Director, of the financial condition of each intermediary manager that the
reinsurer has contracted.(c) If an intermediary manager establishes loss reserves, the reinsurer
shall annually obtain the opinion of an actuary attesting to the adequacy
of loss reserves established for losses incurred and outstanding on
business produced by the intermediary manager.  This opinion shall be in
addition to any other required loss reserve certification.(d) Binding authority for all retrocessional contracts or participation
in reinsurance syndicates shall rest with an officer of the reinsurer who
shall not be affiliated with the intermediary manager.(e) Within 30 days of termination of a contract with an intermediary
manager, the reinsurer shall provide written notification of termination to the Director.(f) A reinsurer shall not appoint to its board of directors, any
officer, director, employee, controlling shareholder, or subproducer of its
intermediary manager.  This subsection shall not apply to relationships
governed by the Holding Company Act.
(Source: P.A. 98-756, eff. 7-16-14.) (215 ILCS 100/50) (from Ch. 73, par. 1650)Sec. 50. 
		Examination authority.(a) A reinsurance intermediary shall be subject to examination by the
Director.  The Director shall have access to all books, bank accounts, and
records of the reinsurance intermediary in a form usable to the Director.(b) An intermediary manager may be examined as if it were the reinsurer.
		(Source: P.A. 87-108.) (215 ILCS 100/55) (from Ch. 73, par. 1655)Sec. 55. 
		Penalties and liabilities.(a) If the Director determines that a reinsurance intermediary has not
materially complied with this Act or any regulation or
Order promulgated hereunder, after notice and opportunity to be heard, the
Director may order a penalty in an amount not exceeding $100,000 for each
separate violation and may order the revocation or suspension of the
reinsurance intermediary's license.  If it is found that because of the
material noncompliance the insurer or reinsurer has suffered any loss or
damage, the Director may maintain a civil action brought by or on behalf of the
reinsurer or insurer and its policyholders and creditors for recovery of
compensatory damages for the benefit of the reinsurer or insurer and its
policyholders and creditors or seek other appropriate relief.
		This subsection (a) shall not be construed to prevent any other person from
taking civil action against a reinsurance intermediary.(b) If an Order of Rehabilitation or Liquidation of the
insurer is entered
under Article XIII of the Illinois Insurance Code and the receiver appointed
under that Order determines that the reinsurance intermediary or any other
person has not materially complied with this Act or any regulation or Order
promulgated hereunder and the insurer has suffered any loss or damage
therefrom,
the receiver may maintain a civil action for recovery of damages or other
appropriate sanctions for the benefit of the insurer.(c) The decision, determination, or order of the Director under
subsection (a) of this Section shall be subject to judicial review under
the Administrative Review Law.(d) Nothing contained in this Act shall affect the right of the
Director
to impose any other penalties provided in the Illinois Insurance Code.(e) Nothing contained in this Act is intended to or shall in any
manner
limit or restrict the rights of policyholders, claimants, creditors, or
other third parties or confer any rights to those persons.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 100/60) (from Ch. 73, par. 1660)Sec. 60. 
		Rules and regulations. 
		The Director may adopt reasonable
rules and regulations for the implementation and administration of the
provisions of this Act.
		(Source: P.A. 87-108.)
(215 ILCS 105/1) (from Ch. 73, par. 1301)Sec. 1. 
		Short title. 
		This Act shall be known and may be cited as the
Comprehensive Health Insurance Plan Act.
		(Source: P.A. 84-1478.) (215 ILCS 105/1.1) (from Ch. 73, par. 1301.1)Sec. 1.1. 
The General Assembly hereby makes the following findings and
declarations:(a) The Comprehensive Health Insurance Plan is     established as a State program that is intended to provide an alternate market for health insurance for certain uninsurable Illinois residents, and further is intended to provide an acceptable alternative mechanism as described in the federal Health Insurance Portability and Accountability Act of 1996 for providing portable and accessible individual health insurance coverage for federally eligible individuals as defined in this Act.(b) The State of Illinois may subsidize the cost of     health insurance coverage offered by the Plan.  However, since the State has only a limited amount of resources, the General Assembly declares that it intends for this program to provide portable and accessible individual health insurance coverage for every federally eligible individual who qualifies for coverage in accordance with Section 15 of this Act, but does not intend for every eligible person who qualifies for Plan coverage in accordance with Section 7 of this Act to be guaranteed a right to be issued a policy under this Plan as a matter of entitlement.(c) The Comprehensive Health Insurance Plan Board     shall operate the Plan in a manner so that the estimated cost of the program during any fiscal year will not exceed the total income it expects to receive from policy premiums, investment income, assessments, or fees collected or received by the Board and other funds which are made available from appropriations for the Plan by the General Assembly for that fiscal year.With the implementation of the federal Patient Protection and Affordable Care Act, the Plan shall discontinue as the alternative market for health insurance for certain Illinois residents and discontinue as the alternative mechanism, as described in the federal Health Insurance Portability and Accountability Act of 1996, effective no later than January 1, 2022. (Source: P.A. 102-159, eff. 7-23-21.) (215 ILCS 105/2) (from Ch. 73, par. 1302)Sec. 2. Definitions.   As used in this Act, unless the context otherwise
requires:"Plan administrator" means the insurer or third party
administrator designated under Section 5 of this Act."Benefits plan" means the coverage to be offered by the Plan to
eligible persons and federally eligible individuals pursuant to this Act."Board" means the Illinois Comprehensive Health Insurance Board."Church plan" has the same meaning given that term in the federal Health
Insurance Portability and Accountability Act of 1996."Continuation coverage" means continuation of coverage under a group health
plan or other health insurance coverage for former employees or dependents of
former employees that would otherwise have terminated under the terms of that
coverage pursuant to any continuation provisions under federal or State law,
including the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA),
as amended, Sections 367.2, 367e, and 367e.1 of the Illinois Insurance Code, or
any
other similar requirement in another State."Covered person" means a person who is and continues to remain eligible for
Plan coverage and is covered under one of the benefit plans offered by the
Plan."Creditable coverage" means, with respect to a federally eligible
individual, coverage of the individual under any of the following:(A) A group health plan.(B) Health insurance coverage (including group health     insurance coverage).(C) Medicare.(D) Medical assistance.(E) Chapter 55 of title 10, United States Code.(F) A medical care program of the Indian Health     Service or of a tribal organization.(G) A state health benefits risk pool.(H) A health plan offered under Chapter 89 of title     5, United States Code.(I) A public health plan (as defined in regulations     consistent with Section 104 of the Health Care Portability and Accountability Act of 1996 that may be promulgated by the Secretary of the U.S. Department of Health and Human Services).(J) A health benefit plan under Section 5(e) of the     Peace Corps Act (22 U.S.C. 2504(e)).(K) Any other qualifying coverage required by the     federal Health Insurance Portability and Accountability Act of 1996, as it may be amended, or regulations under that Act."Creditable coverage" does not include coverage consisting solely of coverage
of excepted benefits, as defined in Section 2791(c) of title XXVII of
the
Public Health Service Act (42 U.S.C. 300 gg-91), nor does it include any
period
of coverage under any of items (A) through (K) that occurred before a break of
more than 90 days or, if the individual has

been certified as eligible pursuant to the federal Trade Act
of 2002, a
break of more than 63 days during all of which the individual was not covered
under any of items (A) through (K) above.Any period that an individual is in a waiting period for
any coverage under a group health plan (or for group health insurance
coverage) or is in an affiliation period under the terms of health insurance
coverage offered by a health maintenance organization shall not be taken into
account in determining if there has been a break of more than 90
days in any
creditable coverage."Department" means the Illinois Department of Insurance."Dependent" means an Illinois resident: who is a spouse; or who is claimed
as a dependent by the principal insured for purposes of filing a federal income
tax return and resides in the principal insured's household, and is a resident
unmarried child under the age of 19 years; or who is an unmarried child who
also is a full-time student under the age of 23 years and who is financially
dependent upon the principal insured; or who is a child of any age and who is
a person with a disability and financially dependent upon the
principal insured."Direct Illinois premiums" means, for Illinois business, an insurer's direct
premium income for the kinds of business described in clause (b) of Class 1 or
clause (a) of Class 2 of Section 4 of the Illinois Insurance Code, and direct
premium income of a health maintenance organization or a voluntary health
services plan, except it shall not include credit health insurance as defined
in Article IX 1/2 of the Illinois Insurance Code."Director" means the Director of the Illinois Department of Insurance."Effective date of medical assistance" means the date that eligibility for medical assistance for a person is approved by the Department of Human Services or the Department of Healthcare and Family Services, except when the Department of Human Services or the Department of Healthcare and Family Services determines eligibility retroactively.  In such circumstances, the effective date of the medical assistance is the date the Department of Human Services or the Department of Healthcare and Family Services determines the person to be eligible for medical assistance. As it pertains to Medicare, the effective date is 24 months after the entitlement date as approved by the Social Security Administration, except when eligibility is made retroactive to a prior date. In such circumstances, the effective date of Medicare is the date on the Notice of Award letter issued by the Social Security Administration."Eligible person" means a resident of this State who qualifies
for Plan coverage under Section 7 of this Act."Employee" means a resident of this State who is employed by an employer
or has entered into
the employment of or works under contract or service of an employer
including the officers, managers and employees of subsidiary or affiliated
corporations and the individual proprietors, partners and employees of
affiliated individuals and firms when the business of the subsidiary or
affiliated corporations, firms or individuals is controlled by a common
employer through stock ownership, contract, or otherwise."Employer" means any individual, partnership, association, corporation,
business trust, or any person or group of persons acting directly or indirectly
in the interest of an employer in relation to an employee, for which one or
more
persons is gainfully employed."Family" coverage means the coverage provided by the Plan for the
covered person and his or her eligible dependents who also are
covered persons."Federally eligible individual" means an individual resident of this State:(1)(A) for whom, as of the date on which the     individual seeks Plan coverage under Section 15 of this Act, the aggregate of the periods of creditable coverage is 18 or more months or, if the individual has been certified as eligible pursuant to the federal Trade Act of 2002,  3 or more months, and (B) whose most recent prior creditable coverage was under group health insurance coverage offered by a health insurance issuer, a group health plan, a governmental plan, or a church plan (or health insurance coverage offered in connection with any such plans) or any other type of creditable coverage that may be required by the federal Health Insurance Portability and Accountability Act of 1996, as it may be amended, or the regulations under that Act;(2) who is not eligible for coverage under (A) a     group health plan (other than an individual who has been certified as eligible pursuant to the federal Trade Act of 2002), (B) part A or part B of Medicare due to age (other than an individual who has been certified as eligible pursuant to the federal Trade Act of 2002), or (C) medical assistance, and does not have other health insurance coverage (other than an individual who has been certified as eligible pursuant to the federal Trade Act of 2002);(3) with respect to whom (other than an individual     who has been certified as eligible pursuant to the federal Trade Act of 2002) the most recent coverage within the coverage period described in paragraph (1)(A) of this definition was not terminated based upon a factor relating to nonpayment of premiums or fraud;(4) if the individual (other than an individual who     has been certified as eligible pursuant to the federal Trade Act of 2002) had been offered the option of continuation coverage under a COBRA continuation provision or under a similar State program, who elected such coverage; and(5) who, if the individual elected such continuation     coverage, has exhausted such continuation coverage under such provision or program.However, an individual who has been certified as
eligible
pursuant to the
federal Trade Act of 2002

shall not be required to elect
continuation
coverage under a COBRA continuation provision or under a similar state
program."Group health insurance coverage" means, in connection with a group health
plan, health insurance coverage offered in connection with that plan."Group health plan" has the same meaning given that term in the federal
Health
Insurance Portability and Accountability Act of 1996."Governmental plan" has the same meaning given that term in the federal
Health
Insurance Portability and Accountability Act of 1996."Health insurance coverage" means benefits consisting of medical care
(provided directly, through insurance or reimbursement, or otherwise and
including items and services paid for as medical care) under any hospital and
medical expense-incurred policy,
certificate, or
contract provided by an insurer, non-profit health care service plan
contract, health maintenance organization or other subscriber contract, or
any other health care plan or arrangement that pays for or furnishes
medical or health care services whether by
insurance or otherwise.  Health insurance coverage shall not include short
term,
accident only,
disability income, hospital confinement or fixed indemnity, dental only,
vision only, limited benefit, or credit
insurance, coverage issued as a supplement to liability insurance,
insurance arising out of a workers' compensation or similar law, automobile
medical-payment insurance, or insurance under which benefits are payable
with or without regard to fault and which is statutorily required to be
contained in any liability insurance policy or equivalent self-insurance."Health insurance issuer" means an insurance company, insurance service,
or insurance organization (including a health maintenance organization and a
voluntary health services plan) that is authorized to transact health
insurance
business in this State.  Such term does not include a group health plan."Health Maintenance Organization" means an organization as
defined in the Health Maintenance Organization Act."Hospice" means a program as defined in and licensed under the
Hospice Program Licensing Act."Hospital" means a duly licensed institution as defined in the
Hospital Licensing Act,
an institution that meets all comparable conditions and requirements in
effect in the state in which it is located, or the University of Illinois
Hospital as defined in the University of Illinois Hospital Act."Individual health insurance coverage" means health insurance coverage
offered to individuals in the individual market, but does not include
short-term, limited-duration insurance."Insured" means any individual resident of this State who is
eligible to receive benefits from any insurer (including health insurance
coverage offered in connection with a group health plan) or health
insurance issuer as
defined in this Section."Insurer" means any insurance company authorized to transact health
insurance business in this State and any corporation that provides medical
services and is organized under the Voluntary Health Services Plans Act or
the Health Maintenance Organization
Act."Medical assistance" means the State medical assistance or medical
assistance no grant (MANG) programs provided under
Title XIX of the Social Security Act and
Articles V (Medical Assistance) and VI (General Assistance) of the Illinois
Public Aid Code (or any successor program) or under any
similar program of health care benefits in a state other than Illinois."Medically necessary" means that a service, drug, or supply is
necessary and appropriate for the diagnosis or treatment of an illness or
injury in accord with generally accepted standards of medical practice at
the time the service, drug, or supply is provided. When specifically
applied to a confinement it further means that the diagnosis or treatment
of the covered person's medical symptoms or condition cannot be
safely
provided to that person as an outpatient. A service, drug, or supply shall
not be medically necessary if it: (i) is investigational, experimental, or
for research purposes; or (ii) is provided solely for the convenience of
the patient, the patient's family, physician, hospital, or any other
provider; or (iii) exceeds in scope, duration, or intensity that level of
care that is needed to provide safe, adequate, and appropriate diagnosis or
treatment; or (iv) could have been omitted without adversely affecting the
covered person's condition or the quality of medical care; or
(v) involves
the use of a medical device, drug, or substance not formally approved by
the United States Food and Drug Administration."Medical care" means the ordinary and usual professional services rendered
by a physician or other specified provider during a professional visit for
treatment of an illness or injury."Medicare" means coverage under both Part A and Part B of Title XVIII of
the Social Security
Act, 42 U.S.C. Sec. 1395, et seq."Minimum premium plan" means an arrangement whereby a specified
amount of health care claims is self-funded, but the insurance company
assumes the risk that claims will exceed that amount."Participating transplant center" means a hospital designated by the
Board as a preferred or exclusive provider of services for one or more
specified human organ or tissue transplants for which the hospital has
signed an agreement with the Board to accept a transplant payment allowance
for all expenses related to the transplant during a transplant benefit period."Physician" means a person licensed to practice medicine pursuant to
the Medical Practice Act of 1987."Plan" means the Comprehensive Health Insurance Plan
established by this Act."Plan of operation" means the plan of operation of the
Plan, including articles, bylaws and operating rules, adopted by the Board
pursuant to this Act."Provider" means any hospital, skilled nursing facility, hospice, home
health agency, physician, registered pharmacist acting within the scope of that
registration, or any other person or entity licensed in Illinois to furnish
medical care."Qualified high risk pool" has the same meaning given that term in the
federal Health
Insurance Portability and Accountability Act of 1996."Resident" means a person who is and continues to be legally domiciled
and physically residing on a permanent and full-time basis in a
place of permanent habitation
in this State
that remains that person's principal residence and from which that person is
absent only for temporary or transitory purpose."Skilled nursing facility" means a facility or that portion of a facility
that is licensed by the Illinois Department of Public Health under the
Nursing Home Care Act or a comparable licensing authority in another state
to provide skilled nursing care."Stop-loss coverage" means an arrangement whereby an insurer
insures against the risk that any one claim will exceed a specific dollar
amount or that the entire loss of a self-insurance plan will exceed
a specific amount."Third party administrator" means an administrator as defined in
Section 511.101 of the Illinois Insurance Code who is licensed under
Article XXXI 1/4 of that Code.

(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 105/3) (from Ch. 73, par. 1303)Sec. 3. Operation of the Plan.a. There is hereby created an Illinois Comprehensive Health Insurance Plan.b. The Plan shall operate subject to the supervision and control of
the Board.  The Board is created as a political subdivision and body
politic and corporate and, as such, is not a State agency.  The Board shall
consist of 10 public members, appointed by the Governor with the
advice and consent of the Senate.Initial members shall be appointed to the Board by the Governor as
follows: 2 members to serve until July 1, 1988, and until their successors
are appointed and qualified; 2 members to serve until July 1, 1989, and
until their successors are appointed and qualified; 3 members to serve
until July 1, 1990, and until their successors are appointed and qualified;
and 3 members to serve until July 1, 1991, and until their successors are
appointed and qualified. As terms of initial members expire, their
successors shall be appointed for terms to expire the first day in July 3
years thereafter, and until their successors are appointed and qualified.Any vacancy in the Board occurring for any reason other than the
expiration of a term shall be filled for the unexpired term in the same
manner as the original appointment.Any member of the Board may be removed by the Governor for neglect of
duty, misfeasance, malfeasance, or nonfeasance in office.In addition, a representative of the
Governor's Office of Management and Budget, a representative of the Office
of the Attorney General and the Director or the Director's designated
representative shall be members of the Board.  Four members of the General
Assembly, one each appointed by the President and Minority Leader of the
Senate and by the Speaker and Minority Leader of the House of
Representatives, shall serve as nonvoting members of the Board.  At least
2 of the public members shall be individuals reasonably expected to qualify
for coverage under the Plan, the parent or spouse of such an
individual, or a surviving family member of an individual who could have
qualified for the Plan during his lifetime. The Director or Director's
representative shall be the chairperson of the Board.  Members of the Board
shall receive no compensation, but shall be reimbursed for reasonable
expenses incurred in the necessary performance of their duties.c. The Board shall make an annual report in September and
shall file the report with the Secretary of the Senate and the Clerk of
the House of Representatives.  The report shall summarize the activities of
the Plan in the preceding calendar year, including net written and earned
premiums, the expense of administration, the paid and incurred
losses for the year and other information as may be requested by the
General Assembly. The report shall also include analysis and
recommendations regarding utilization review, quality assurance and access
to cost effective quality health care.d. In its plan of operation the Board shall:(1) Establish procedures for selecting a Plan     administrator in accordance with Section 5 of this Act.(2) Establish procedures for the operation of the     Board.(3) Create a Plan fund, under management of the     Board, to fund administrative, claim, and other expenses of the Plan.(4) Establish procedures for the handling and     accounting of assets and monies of the Plan.(5) Develop and implement a program to publicize the     existence of the Plan, the eligibility requirements and procedures for enrollment and to maintain public awareness of the Plan.(6) Establish procedures under which applicants and     participants may have grievances reviewed by a grievance committee appointed by the Board.  The grievances shall be reported to the Board immediately after completion of the review.  The Department and the Board shall retain all written complaints regarding the Plan for at least 3 years.  Oral complaints shall be reduced to written form and maintained for at least 3 years.(7) Provide for other matters as may be necessary and     proper for the execution of its powers, duties and obligations under the Plan.e. No later than 5 years after the Plan is operative the Board and
the Department shall conduct cooperatively a study of the Plan and the
persons insured by the Plan to determine: (1) claims experience including a
breakdown of medical conditions for which claims were paid; (2) whether
availability of the Plan affected employment opportunities for
participants; (3) whether availability of the Plan affected the receipt of
medical assistance benefits by Plan participants; (4) whether a change
occurred in the number of personal bankruptcies due to medical or other
health related costs; (5) data regarding all complaints received about the
Plan including its operation and services; (6) and any other significant
observations regarding utilization of the Plan.  The study shall culminate
in a written report to be presented to the Governor, the President of the
Senate, the Speaker of the House and the chairpersons of the House and
Senate Insurance Committees.  The report shall be filed with the
Secretary of the Senate and the Clerk of the House of Representatives.  The
report shall also be available to members of the general public upon request.(e-5) The Board shall conduct a feasibility study of establishing a small employer health insurance pool in which employers may provide affordable health insurance coverage to their employees. The Board may contract with a private entity or enter into intergovernmental agreements with State agencies for the completion of all or part of the study. The study shall:(i) Analyze other states' experience in establishing     small employer health insurance pools;(ii) Assess the need for a small employer health     insurance pool, including the number of individuals who might benefit from it;(iii) Recommend means of establishing a small     employer health insurance pool; and(iv) Estimate the cost of providing a small employer     health insurance pool through the Illinois Comprehensive Health Insurance Plan or another, public or private entity.The Board may accept donations, in trust, from any legal source, public or private, for deposit into a trust account specifically created for expenditure, without the necessity of being appropriated, solely for the purpose of conducting all or part of the study.
The Board shall issue a report with recommendations to the Governor and the General Assembly by January 1, 2005.
As used in this subsection e-5, "small employer" means an employer having between one and 50 employees.f. The Board may:(1) Prepare and distribute certificate of eligibility     forms and enrollment instruction forms to insurance producers and to the general public in this State.(2) Provide for reinsurance of risks incurred by the     Plan and enter into reinsurance agreements with insurers to establish a reinsurance plan for risks of coverage described in the Plan, or obtain commercial reinsurance to reduce the risk of loss through the Plan.(3) Issue additional types of health insurance     policies to provide optional coverages as are otherwise permitted by this Act including a Medicare supplement policy designed to supplement Medicare.(4) Provide for and employ cost containment measures     and requirements including, but not limited to, preadmission certification, second surgical opinion, concurrent utilization review programs, and individual case management for the purpose of making the pool more cost effective.(5) Design, utilize, contract, or otherwise arrange     for the delivery of cost effective health care services, including establishing or contracting with preferred provider organizations, health maintenance organizations, and other limited network provider arrangements.(6) Adopt bylaws, rules, regulations, policies and     procedures as may be necessary or convenient for the implementation of the Act and the operation of the Plan.(7) Administer separate pools, separate accounts, or     other plans or arrangements as required by this Act to separate federally eligible individuals or groups of federally eligible individuals who qualify for Plan coverage under Section 15 of this Act from eligible persons or groups of eligible persons who qualify for Plan coverage under Section 7 of this Act and apportion the costs of the administration among such separate pools, separate accounts, or other plans or arrangements.g. The Director may, by rule, establish additional powers and duties of
the Board and may adopt rules for any other purposes, including the
operation of the Plan, as are necessary or proper to implement this Act.h. The Board is not liable for any obligation of the Plan.  There is no
liability on the part of any member or employee of the Board, the
Department, or the Director, both as regulator and as rehabilitator or liquidator, and no cause of action of any nature may arise against them,
for any action taken or omission made by them in the performance of their
powers and duties under this Act, unless the action or omission
constitutes willful or wanton misconduct. The Board may provide in its
bylaws or rules for indemnification of, and legal representation for, its
members and employees.i. There is no liability on the part of any insurance producer for the
failure of any applicant to be accepted by the Plan unless the failure of
the applicant to be accepted by the Plan is due to an act or omission by
the insurance producer which constitutes willful or wanton misconduct.j.    Not later than 60 days after the effective date of this amendatory Act of the 102nd General Assembly, the Board shall develop a plan of rehabilitation or liquidation and dissolution, including the consent of a majority of the Board to the entry of an order of rehabilitation or liquidation, to wind down the affairs of the Plan, including details for the transition to other health plans of any persons currently enrolled in the Plan, for presentation to and approval by the Director. Upon the Director's approval of the plan of rehabilitation or liquidation and dissolution, the Director shall thereafter report to the Attorney General of this State, whose duty it shall be to file a complaint for rehabilitation or liquidation of the Plan pursuant to the provisions of Article XIII of the Illinois Insurance Code. Upon entry of a final Order of Rehabilitation or Liquidation and the Director's appointment as statutory rehabilitator or liquidator, the Director shall begin to administer and oversee the wind-down and dissolution of the Plan in accordance with the provisions of Article XIII. (Source: P.A. 102-159, eff. 7-23-21.) (215 ILCS 105/4) (from Ch. 73, par. 1304)Sec. 4. Powers and authority of the board. The board shall have the
general powers and authority granted under the laws of this State to
insurance companies licensed to transact health and accident insurance and
in addition thereto, the specific authority to:a. Enter into contracts as are necessary or proper to     carry out the provisions and purposes of this Act, including the authority, with the approval of the Director, to enter into contracts with similar plans of other states for the joint performance of common administrative functions, or with persons or other organizations for the performance of administrative functions including, without limitation, utilization review and quality assurance programs, or with health maintenance organizations or preferred provider organizations for the provision of health care services.b. Sue or be sued, including taking any legal actions     necessary or proper.c. Take such legal action as necessary to:(1) avoid the payment of improper claims against         the plan or the coverage provided by or through the plan;(2) to recover any amounts erroneously or         improperly paid by the plan;(3) to recover any amounts paid by the plan as a         result of a mistake of fact or law; or(4) to recover or collect any other amounts,         including assessments, that are due or owed the Plan or have been billed on its or the Plan's behalf.d. Establish appropriate rates, rate schedules, rate     adjustments, expense allowances, agents' referral fees, claim reserves, and formulas and any other actuarial function appropriate to the operation of the plan. Rates and rate schedules may be adjusted for appropriate risk factors such as age and area variation in claim costs and shall take into consideration appropriate risk factors in accordance with established actuarial and underwriting practices.e. Issue policies of insurance in accordance with the     requirements of this Act.f. Appoint appropriate legal, actuarial and other     committees as necessary to provide technical assistance in the operation of the plan, policy and other contract design, and any other function within the authority of the plan.g. Borrow money to effect the purposes of the     Illinois Comprehensive Health Insurance Plan.  Any notes or other evidence of indebtedness of the plan not in default shall be legal investments for insurers and may be carried as admitted assets.h. Establish rules, conditions and procedures for     reinsuring risks under this Act.i. Employ and fix the compensation of employees. Such     employees may be paid on a warrant issued by the State Treasurer pursuant to a payroll voucher certified by the Board and drawn by the Comptroller against appropriations or trust funds held by the State Treasurer.j. Enter into intergovernmental cooperation     agreements with other agencies or entities of State government for the purpose of sharing the cost of providing health care services that are otherwise authorized by this Act for children who are both plan participants and eligible for financial assistance from the Division of Specialized Care for Children of the University of Illinois.k. Establish conditions and procedures under which     the plan may, if funds permit, discount or subsidize premium rates that are paid directly by senior citizens, as defined by the Board, and other plan participants, who are retired or unemployed and meet other qualifications.l. Establish and maintain the Plan Fund authorized in     Section 3 of this Act, which shall be divided into separate accounts, as follows:(1) accounts to fund the administrative, claim,         and other expenses of the Plan associated with eligible persons who qualify for Plan coverage under Section 7 of this Act, which shall consist of:(A) premiums paid on behalf of covered             persons;(B) appropriated funds and other revenues             collected or received by the Board;(C) reserves for future losses maintained by             the Board; and(D) interest earnings from investment of the             funds in the Plan Fund or any of its accounts other than the funds in the account established under item (2) of this subsection;(2) an account, to be denominated the federally         eligible individuals account, to fund the administrative, claim, and other expenses of the Plan associated with federally eligible individuals who qualify for Plan coverage under Section 15 of this Act, which shall consist of:(A) premiums paid on behalf of covered             persons;(B) assessments and other revenues collected             or received by the Board;(C) reserves for future losses maintained by             the Board;(D) interest earnings from investment of the             federally eligible individuals account funds; and(E) grants provided pursuant to the federal             Trade Act of 2002; and(3) such other accounts as may be appropriate.m. Charge and collect assessments paid by insurers     pursuant to Section 12 of this Act and recover any assessments for, on behalf of, or against those insurers.(Source: P.A. 100-201, eff. 8-18-17.) (215 ILCS 105/5) (from Ch. 73, par. 1305)Sec. 5. Plan administrator.a. The Board shall select a Plan administrator through a competitive bidding
process to administer the Plan.  The Board shall evaluate bids submitted under
this Section based on criteria established by the Board which shall include:(1) The Plan administrator's proven ability to handle     other large group accident and health benefit plans.(2) The efficiency and timeliness of the Plan     administrator's claim processing procedures.(3) An estimate of total net cost for administering     the Plan, including any discounts or income the Plan could expect to receive or benefit from.(4) The Plan administrator's ability to apply     effective cost containment programs and procedures and to administer the Plan in a cost-efficient manner.(5) The financial condition and stability of the Plan     administrator.b. The Plan administrator shall serve for a period of 5 years subject to
removal for cause and subject to the terms, conditions and limitations of the
contract between the Board and the Plan administrator.  At least one year
prior to the expiration of each 5-year period of service by the current Plan
administrator, the Board shall begin to advertise for bids to serve as the
Plan administrator for the succeeding 5-year period.  Selection of the Plan
administrator for the succeeding period shall be made at least 6 months prior
to the end of the current 5-year period. Notwithstanding any other provision of this subsection, the Board at its option may extend the term of a Plan administrator contract for a period not to exceed 3 years.c. The Plan administrator shall perform such functions relating to the Plan
as may be assigned to it including:(1) establishment of a premium billing procedure for     collection of premiums from Plan participants.  Billings shall be made on a periodic basis as determined by the Board;(2) payment and processing of claims and various cost     containment functions; and(3) other functions to assure timely payment of     benefits to participants under the Plan, including:(a) making available information relating to the         proper manner of submitting a claim for benefits under the Plan and distributing forms upon which submissions shall be made, and(b) evaluating the eligibility of each claim for         payment under the Plan.The Plan administrator shall be governed by the requirements of
Part 919 of Title 50 of the Illinois Administrative Code, promulgated by
the Department of Insurance, regarding the handling of claims under this
Act.d. The Plan administrator shall submit regular reports to the Board
regarding the operation of the Plan.  The frequency, content and form of the
report shall be as determined by the Board.e. The Plan administrator shall pay or be reimbursed for claims expenses
from the premium payments received from or on behalf of Plan participants.  If
the Plan administrator's payments or reimbursements for claims expenses exceed
the portion of premiums allocated by the Board for payment of claims expenses,
the Board shall provide additional funds to the Plan administrator for payment
or reimbursement of such claims expenses.f. The Plan administrator shall be paid as provided in the
contract between the Board and the Plan administrator.
(Source: P.A. 100-201, eff. 8-18-17.) (215 ILCS 105/6) (from Ch. 73, par. 1306)Sec. 6. 
		Contents of Plan. 
		The Plan shall include, but is not limited
to, the following:a. Schedules of premiums and benefits, limitations,     exclusions, deductibles, coinsurance payments, and other policy terms and conditions established in accordance with appropriate actuarial principles and all the requirements of this Act.b. Procedures for applicants and participants to     submit grievances under Section 3 of this Act.		(Source: P.A. 87-560.) (215 ILCS 105/7) (from Ch. 73, par. 1307)Sec. 7. Eligibility.a. Except as provided in subsection (e) of this Section or in Section
15 of this Act, any person who is either a citizen of the United States or an individual lawfully admitted for permanent residence and who has been for a period
of at least 180 days and continues to be a resident of this State shall be
eligible for Plan coverage under this Section if evidence is provided of:(1) A notice of rejection or refusal to issue     substantially similar individual health insurance coverage for health reasons by a health insurance issuer;(2) A refusal by a health insurance issuer to issue     individual health insurance coverage except at a rate exceeding the applicable Plan rate for which the person is responsible; or(3) The absence of available health insurance     coverage for a person under 19 years of age.A rejection or refusal by a group health plan or health insurance issuer
offering only
stop-loss or excess of loss insurance or contracts,
agreements, or other arrangements for reinsurance coverage with respect
to the applicant shall not be sufficient evidence under this subsection.b. The Board shall promulgate a list of medical or health conditions for
which a person who is either a citizen of the United States or an individual lawfully admitted for permanent residence and a resident of this State
would be eligible for Plan coverage without applying for
health insurance coverage pursuant to subsection a. of this Section.
Persons who
can demonstrate the existence or history of any medical or health
conditions on the list promulgated by the Board shall not be required to
provide the evidence specified in subsection a. of this Section.  The list
shall be effective
on the first day of the operation of the Plan and may be amended from time
to time as appropriate.c. Family members of the same household who each are covered
persons are
eligible for optional family coverage under the Plan.d. For persons qualifying for coverage in accordance with Section 7 of
this Act, the Board shall, if it determines that such appropriations as are
made pursuant to Section 12 of this Act are insufficient to allow the Board
to accept all of the eligible persons which it projects will apply for
enrollment under the Plan, limit or close enrollment to ensure that the
Plan is not over-subscribed and that it has sufficient resources to meet
its obligations to existing enrollees.  The Board shall not limit or close
enrollment for federally eligible individuals.e. A person shall not be eligible for coverage under the Plan if:(1) He or she has or obtains other coverage under a     group health plan or health insurance coverage substantially similar to or better than a Plan policy as an insured or covered dependent or would be eligible to have that coverage if he or she elected to obtain it.  Persons otherwise eligible for Plan coverage may, however, solely for the purpose of having coverage for a pre-existing condition, maintain other coverage only while satisfying any pre-existing condition waiting period under a Plan policy or a subsequent replacement policy of a Plan policy.(1.1) His or her prior coverage under a group health     plan or health insurance coverage, provided or arranged by an employer of more than 10 employees was discontinued for any reason without the entire group or plan being discontinued and not replaced, provided he or she remains an employee, or dependent thereof, of the same employer.(2) He or she is a recipient of or is approved to     receive medical assistance, except that  a person may continue to receive medical assistance through the medical assistance no grant program, but only while satisfying the requirements for a preexisting condition under Section 8, subsection f. of this Act.  Payment of premiums pursuant to this Act shall be allocable to the person's spenddown for purposes of the medical assistance no grant program, but that person shall not be eligible for any Plan benefits while that person remains eligible for medical assistance.  If the person continues to receive or be approved to receive medical assistance through the medical assistance no grant program at or after the time that requirements for a preexisting condition are satisfied, the person shall not be eligible for coverage under the Plan. In that circumstance, coverage under the Plan shall terminate as of the expiration of the preexisting condition limitation period.  Under all other circumstances, coverage under the Plan shall automatically terminate as of the effective date of any medical assistance.(3) Except as provided in Section 15, the person has     previously participated in the Plan and voluntarily terminated Plan coverage, unless 12 months have elapsed since the person's latest voluntary termination of coverage.(4) The person fails to pay the required premium     under the covered person's terms of enrollment and participation, in which event the liability of the Plan shall be limited to benefits incurred under the Plan for the time period for which premiums had been paid and the covered person remained eligible for Plan coverage.(5) The Plan has paid a total of $5,000,000  in     benefits on behalf of the covered person.(6) The person is a resident of a public institution.(7) The person's premium is paid for or reimbursed     under any government sponsored program or by any government agency or health care provider, except as an otherwise qualifying full-time employee, or dependent of such employee, of a government agency or health care provider or, except when a person's premium is paid by the U.S. Treasury Department pursuant to the federal Trade Act of 2002.(8) The person has or later receives other benefits     or funds from any settlement, judgement, or award resulting from any accident or injury, regardless of the date of the accident or injury, or any other circumstances creating a legal liability for damages due that person by a third party, whether the settlement, judgment, or award is in the form of a contract, agreement, or trust on behalf of a minor or otherwise and whether the settlement, judgment, or award is payable to the person, his or her dependent, estate, personal representative, or guardian in a lump sum or over time, so long as there continues to be benefits or assets remaining from those sources in an amount in excess of $300,000.(9) Within the 5 years prior to the date a person's     Plan application is received by the Board, the person's coverage under any health care benefit program as defined in 18 U.S.C. 24, including any public or private plan or contract under which any medical benefit, item, or service is provided, was terminated as a result of any act or practice that constitutes fraud under State or federal law or as a result of an intentional misrepresentation of material fact; or if that person knowingly and willfully obtained or attempted to obtain, or fraudulently aided or attempted to aid any other person in obtaining, any coverage or benefits under the Plan to which that person was not entitled.f. The Board or the administrator shall require verification of
residency and may require any additional information or documentation, or
statements under oath, when necessary to determine residency upon initial
application and for the entire term of the policy.g. Coverage shall cease (i) on the date a person is no longer a
resident of Illinois, (ii) on the date a person requests coverage to end,
(iii) upon the death of the covered person, (iv) on the date State law
requires cancellation of the policy, or (v) at the Plan's option, 30 days
after the Plan makes any inquiry concerning a person's eligibility or place
of residence to which the person does not reply.h. Except under the conditions set forth in subsection g of this
Section, the coverage of any person who ceases to meet the
eligibility requirements of this Section shall be terminated at the end of
the current policy period for which the necessary premiums have been paid.(Source: P.A. 102-1030, eff. 5-27-22.) (215 ILCS 105/7.1)Sec. 7.1. 
		Premiums.(a) The Board shall establish premium rates for coverage as provided in
subsection (d) of this Section.(b) Separate schedules of premium rates based on sex, age, geographical
location, and benefit plan shall apply for individual risks.(c) The Board may provide for separate premium rates for optional family
coverage for the spouse or one or more dependents who reside together in any
eligible individual's or eligible person's household.  The rates for each
spouse or dependent who
qualifies to be covered under this optional family coverage shall be such
percentage of the applicable individual Plan rate as the Board, in accordance
with appropriate actuarial principles, shall establish.(d) The Board, with the assistance of the Director and in accordance with
appropriate actuarial principles, shall determine a standard risk rate by using
the average rates that individual standard risks in this State are charged by
at least 5 of the largest health insurance issuers providing individual health
insurance coverage to residents of Illinois that is substantially similar to
the coverage offered by the Plan.  In determining the average rate or charges
of those health insurance issuers, the rates charged by those issuers
shall be actuarially adjusted to determine the rate or charge that would have
been charged for benefits similar to those provided by the Plan.  The standard
risk rates
shall be established using reasonable actuarial techniques and shall reflect
anticipated claims experience, expenses, and other appropriate risk factors for
such coverage.(e) Rates for Plan coverage shall not be less than 125% nor more than 150%
of
rates established as applicable for individual standard risks pursuant to
subsection (d).
		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 105/8) (from Ch. 73, par. 1308)Sec. 8. Minimum benefits.a. Availability. The Plan shall offer in a periodically renewable policy major medical expense coverage to every eligible
person who is not eligible for Medicare.  Major medical
expense coverage offered by the Plan shall pay an eligible person's
covered expenses, subject to limit on the deductible and coinsurance
payments authorized under paragraph (4) of subsection d of this Section,
up to a lifetime benefit limit of $5,000,000.  The maximum
limit under this subsection shall not be altered by the Board, and no
actuarial equivalent benefit may be substituted by the Board.
Any person who otherwise would qualify for coverage under the Plan, but
is excluded because he or she is eligible for Medicare, shall be eligible
for any separate Medicare supplement policy or policies which the Board may
offer.b. Outline of benefits.  Covered expenses shall be
limited to the usual and customary charge, including negotiated fees, in
the locality for the following services and articles when prescribed by a
physician and determined by the Plan to be medically necessary
for the following areas of services, subject to such separate deductibles,
co-payments, exclusions, and other limitations on benefits  as the Board shall
establish and approve, and the other provisions of this Section:(1) Hospital services, except that any services     provided by a hospital that is located more than 75 miles outside the State of Illinois shall be covered only for a maximum of 45 days in any calendar year.  With respect to covered expenses incurred during any calendar year ending on or after December 31, 1999, inpatient hospitalization of an eligible person for the treatment of mental illness at a hospital located within the State of Illinois shall be subject to the same terms and conditions as for any other illness.(2) Professional services for the diagnosis or     treatment of injuries, illnesses or conditions, other than dental and mental and nervous disorders as described in paragraph (17), which are rendered by a physician, or by other licensed professionals at the physician's direction. This includes reconstruction of the breast on which a mastectomy was performed; surgery and reconstruction of the other breast to produce a symmetrical appearance; and prostheses and treatment of physical complications at all stages of the mastectomy, including lymphedemas.(2.5) Professional services provided by a physician     to children under the age of 16 years for physical examinations and age appropriate immunizations ordered by a physician licensed to practice medicine in all its branches.(3) (Blank).(4) Outpatient prescription drugs that by law require     a prescription written by a physician licensed to practice medicine in all its branches subject to such separate deductible, copayment, and other limitations or restrictions as the Board shall approve, including the use of a prescription drug card or any other program, or both.(5) Skilled nursing services of a licensed skilled     nursing facility for not more than 120 days during a policy year.(6) Services of a home health agency in accord with a     home health care plan, up to a maximum of 270 visits per year.(7) Services of a licensed hospice for not more than     180 days during a policy year.(8) Use of radium or other radioactive materials.(9) Oxygen.(10) Anesthetics.(11) Orthoses and prostheses other than dental.(12) Rental or purchase in accordance with Board     policies or procedures of durable medical equipment, other than eyeglasses or hearing aids, for which there is no personal use in the absence of the condition for which it is prescribed.(13) Diagnostic x-rays and laboratory tests.(14) Oral surgery (i) for excision of partially or     completely unerupted impacted teeth when not performed in connection with the routine extraction or repair of teeth; (ii) for excision of tumors or cysts of the jaws, cheeks, lips, tongue, and roof and floor of the mouth; (iii) required for correction of cleft lip and palate and other craniofacial and maxillofacial birth defects; or (iv) for treatment of injuries to natural teeth or a fractured jaw due to an accident.(15) Physical, speech, and functional occupational     therapy as medically necessary and provided by appropriate licensed professionals.(16) Emergency and other medically necessary     transportation provided by a licensed ambulance service to the nearest health care facility qualified to treat a covered illness, injury, or condition, subject to the provisions of the Emergency Medical Systems (EMS) Act.(17) Outpatient services for diagnosis and treatment     of mental and nervous disorders provided that a covered person shall be required to make a copayment not to exceed 50% and that the Plan's payment shall not exceed such amounts as are established by the Board.(18) Human organ or tissue transplants specified by     the Board that are performed at a hospital designated by the Board as a participating transplant center for that specific organ or tissue transplant.(19) Naprapathic services, as appropriate, provided     by a licensed naprapathic practitioner.c. Exclusions.  Covered expenses of the Plan shall not
include the following:(1) Any charge for treatment for cosmetic purposes     other than for reconstructive surgery when the service is incidental to or follows surgery resulting from injury, sickness or other diseases of the involved part or surgery for the repair or treatment of a congenital bodily defect to restore normal bodily functions.(2) Any charge for care that is primarily for rest,     custodial, educational, or domiciliary purposes.(3) Any charge for services in a private room to the     extent it is in excess of the institution's charge for its most common semiprivate room, unless a private room is prescribed as medically necessary by a physician.(4) That part of any charge for room and board or for     services rendered or articles prescribed by a physician, dentist, or other health care personnel that exceeds the reasonable and customary charge in the locality or for any services or supplies not medically necessary for the diagnosed injury or illness.(5) Any charge for services or articles the provision     of which is not within the scope of licensure of the institution or individual providing the services or articles.(6) Any expense incurred prior to the effective date     of coverage by the Plan for the person on whose behalf the expense is incurred.(7) Dental care, dental surgery, dental treatment,     any other dental procedure involving the teeth or periodontium, or any dental appliances, including crowns, bridges, implants, or partial or complete dentures, except as specifically provided in paragraph (14) of subsection b of this Section.(8) Eyeglasses, contact lenses, hearing aids or their     fitting.(9) Illness or injury due to acts of war.(10) Services of blood donors and any fee for failure     to replace the first 3 pints of blood provided to a covered  person each policy year.(11) Personal supplies or services provided by a     hospital or nursing home, or any other nonmedical or nonprescribed supply or service.(12) Routine maternity charges for a pregnancy,     except where added as optional coverage with payment of an additional premium for pregnancy resulting from conception occurring after the effective date of the optional coverage.(13) (Blank).(14) Any expense or charge for services, drugs, or     supplies that are: (i) not provided in accord with generally accepted standards of current medical practice; (ii) for procedures, treatments, equipment, transplants, or implants, any of which are investigational, experimental, or for research purposes; (iii) investigative and not proven safe and effective; or (iv) for, or resulting from, a gender transformation operation.(15) Any expense or charge for routine physical     examinations or tests except as provided in item (2.5) of subsection b of this Section.(16) Any expense for which a charge is not made in     the absence of insurance or for which there is no legal obligation on the part of the patient to pay.(17) Any expense incurred for benefits provided under     the laws of the United States and this State, including Medicare, Medicaid, and other medical assistance, maternal and child health services and any other program that is administered or funded by the Department of Human Services, Department of Healthcare and Family Services, or Department of Public Health, military service-connected disability payments, medical services provided for members of the armed forces and their dependents or employees of the armed forces of the United States, and medical services financed on behalf of all citizens by the United States.(18) Any expense or charge for in vitro     fertilization, artificial insemination, or any other artificial means used to cause pregnancy.(19) Any expense or charge for oral contraceptives     used for birth control or any other temporary birth control measures.(20) Any expense or charge for sterilization or     sterilization reversals.(21) Any expense or charge for weight loss programs,     exercise equipment, or treatment of obesity, except when certified by a physician as morbid obesity (at least 2 times normal body weight).(22) Any expense or charge for acupuncture treatment     unless used as an anesthetic agent for a covered surgery.(23) Any expense or charge for or related to organ or     tissue transplants other than those performed at a hospital with a Board approved organ transplant program that has been designated by the Board as a preferred or exclusive provider organization for that specific organ or tissue transplant.(24) Any expense or charge for procedures,     treatments, equipment, or services that are provided in special settings for research purposes or in a controlled environment, are being studied for safety, efficiency, and effectiveness, and are awaiting endorsement by the appropriate national medical specialty college for general use within the medical community.d. Deductibles and coinsurance.The Plan coverage defined in Section 6 shall provide for a choice
of
deductibles per individual as authorized by the Board.  If 2 individual members
of the same family
household, who are both covered persons under the Plan, satisfy the
same applicable deductibles, no other member of that family who is
also a covered person under the Plan shall be
required to
meet any deductibles for the balance of that calendar year.  The
deductibles must be applied first to the authorized amount of covered expenses
incurred by the
covered person.  A mandatory coinsurance requirement shall be imposed at
the rate authorized by the Board in excess of the mandatory
deductible, the coinsurance
in the aggregate not to exceed such amounts as are authorized by the Board
per annum.  At its discretion the Board may, however, offer catastrophic
coverages or other policies that provide for larger deductibles with or
without coinsurance requirements.  The deductibles and coinsurance
factors may be adjusted annually according to the Medical Component of the
Consumer Price Index.e. Scope of coverage.(1) In approving any of the benefit plans to be     offered by the Plan, the Board shall establish such benefit levels, deductibles, coinsurance factors, exclusions, and limitations as it may deem appropriate and that it believes to be generally reflective of and commensurate with health insurance coverage that is provided in the individual market in this State.(2) The benefit plans approved by the Board may also     provide for and employ various cost containment measures and other requirements including, but not limited to, preadmission certification, prior approval, second surgical opinions, concurrent utilization review programs, individual case management, preferred provider organizations, health maintenance organizations, and other cost effective arrangements for paying for covered expenses.f. Preexisting conditions.(1) Except for federally eligible individuals     qualifying for Plan coverage under Section 15 of this Act or eligible persons who qualify for the waiver authorized in paragraph (3) of this subsection, Plan coverage shall exclude charges or expenses incurred during the first 6 months following the effective date of coverage as to any condition for which medical advice, care or treatment was recommended or received during the 6 month period immediately preceding the effective date of coverage.(2) (Blank).(3) Waiver: The preexisting condition exclusions as     set forth in paragraph (1) of this subsection shall be waived to the extent to which the eligible person (a) has satisfied similar exclusions under any prior individual health insurance policy that was involuntarily terminated because of the insolvency of the issuer of the policy and (b) has applied for Plan coverage within 90 days following the involuntary termination of that individual health insurance coverage.(4) Waiver: The preexisting condition exclusions as     set forth in paragraph (1) of this subsection shall be waived to the extent to which the eligible person (a) has satisfied the exclusion under prior Comprehensive Health Insurance Plan coverage that was involuntarily terminated because of meeting a lower lifetime benefit limit and (b) has reapplied for Plan coverage within 90 days following an increase in the lifetime benefit limit set forth in Section 8 of this Act.g. Other sources primary;  nonduplication of benefits.(1) The Plan shall be the last payor of benefits     whenever any other benefit or source of third party payment is available.  Subject to the provisions of subsection e of Section 7, benefits otherwise payable under Plan coverage shall be reduced by all amounts paid or payable by Medicare or any other government program or through any health insurance coverage or group health plan, whether by insurance, reimbursement, or otherwise, or through any third party liability, settlement, judgment, or award, regardless of the date of the settlement, judgment, or award, whether the settlement, judgment, or award is in the form of a contract, agreement, or trust on behalf of a minor or otherwise and whether the settlement, judgment, or award is payable to the covered person, his or her dependent, estate, personal representative, or guardian in a lump sum or over time, and by all hospital or medical expense benefits paid or payable under any worker's compensation coverage, automobile medical payment, or liability insurance, whether provided on the basis of fault or nonfault, and by any hospital or medical benefits paid or payable under or provided pursuant to any State or federal law or program.(2) The Plan shall have a cause of action against any     covered person or any other person or entity for the recovery of any amount paid to the extent the amount was for treatment, services, or supplies not covered in this Section or in excess of benefits as set forth in this Section.(3) Whenever benefits are due from the Plan because     of sickness or an injury to a covered person resulting from a third party's wrongful act or negligence and the covered person has recovered or may recover damages from a third party or its insurer, the Plan shall have the right to reduce benefits or to refuse to pay benefits that otherwise may be payable by the amount of damages that the covered person has recovered or may recover regardless of the date of the sickness or injury or the date of any settlement, judgment, or award resulting from that sickness or injury.During the pendency of any action or claim that is     brought by or on behalf of a covered person against a third party or its insurer, any benefits that would otherwise be payable except for the provisions of this paragraph (3) shall be paid if payment by or for the third party has not yet been made and the covered person or, if incapable, that person's legal representative agrees in writing to pay back promptly the benefits paid as a result of the sickness or injury to the extent of any future payments made by or for the third party for the sickness or injury.  This agreement is to apply whether or not liability for the payments is established or admitted by the third party or whether those payments are itemized.Any amounts due the Plan to repay benefits may be     deducted from other benefits payable by the Plan after payments by or for the third party are made.(4) Benefits due from the Plan may be reduced or     refused as an offset against any amount otherwise recoverable under this Section.h. Right of subrogation; recoveries.(1) Whenever the Plan has paid benefits because of     sickness or an injury to any covered person resulting from a third party's wrongful act or negligence, or for which an insurer is liable in accordance with the provisions of any policy of insurance, and the covered person has recovered or may recover damages from a third party that is liable for the damages, the Plan shall have the right to recover the benefits it paid from any amounts that the covered person has received or may receive regardless of the date of the sickness or injury or the date of any settlement, judgment, or award resulting from that sickness or injury.  The Plan shall be subrogated to any right of recovery the covered person may have under the terms of any private or public health care coverage or liability coverage, including coverage under the Workers' Compensation Act or the Workers' Occupational Diseases Act, without the necessity of assignment of claim or other authorization to secure the right of recovery.  To enforce its subrogation right, the Plan may (i) intervene or join in an action or proceeding brought by the covered person or his personal representative, including his guardian, conservator, estate, dependents, or survivors, against any third party or the third party's insurer that may be liable or (ii) institute and prosecute legal proceedings against any third party or the third party's insurer that may be liable for the sickness or injury in an appropriate court either in the name of the Plan or in the name of the covered person or his personal representative, including his guardian, conservator, estate, dependents, or survivors.(2) If any action or claim is brought by or on behalf     of a covered person against a third party or the third party's insurer, the covered person or his personal representative, including his guardian, conservator, estate, dependents, or survivors, shall notify the Plan by personal service or registered mail of the action or claim and of the name of the court in which the action or claim is brought, filing proof thereof in the action or claim.  The Plan may, at any time thereafter, join in the action or claim upon its motion so that all orders of court after hearing and judgment shall be made for its protection.  No release or settlement of a claim for damages and no satisfaction of judgment in the action shall be valid without the written consent of the Plan to the extent of its interest in the settlement or judgment and of the covered person or his personal representative.(3) In the event that the covered person or his     personal representative fails to institute a proceeding against any appropriate third party before the fifth month before the action would be barred, the Plan may, in its own name or in the name of the covered person or personal representative, commence a proceeding against any appropriate third party for the recovery of damages on account of any sickness, injury, or death to the covered person.  The covered person shall cooperate in doing what is reasonably necessary to assist the Plan in any recovery and shall not take any action that would prejudice the Plan's right to recovery.  The Plan shall pay to the covered person or his personal representative all sums collected from any third party by judgment or otherwise in excess of amounts paid in benefits under the Plan and amounts paid or to be paid as costs, attorneys fees, and reasonable expenses incurred by the Plan in making the collection or enforcing the judgment.(4) In the event that a covered person or his     personal representative, including his guardian, conservator, estate, dependents, or survivors, recovers damages from a third party for sickness or injury caused to the covered person, the covered person or the personal representative shall pay to the Plan from the damages recovered the amount of benefits paid or to be paid on behalf of the covered person.(5) When the action or claim is brought by the     covered person alone and the covered person incurs a personal liability to pay attorney's fees and costs of litigation, the Plan's claim for reimbursement of the benefits provided to the covered person shall be the full amount of benefits paid to or on behalf of the covered person under this Act less a pro rata share that represents the Plan's reasonable share of attorney's fees paid by the covered person and that portion of the cost of litigation expenses determined by multiplying by the ratio of the full amount of the expenditures to the full amount of the judgement, award, or settlement.(6) In the event of judgment or award in a suit or     claim against a third party or insurer, the court shall first order paid from any judgement or award the reasonable litigation expenses incurred in preparation and prosecution of the action or claim, together with reasonable attorney's fees.  After payment of those expenses and attorney's fees, the court shall apply out of the balance of the judgment or award an amount sufficient to reimburse the Plan the full amount of benefits paid on behalf of the covered person under this Act, provided the court may reduce and apportion the Plan's portion of the judgement proportionate to the recovery of the covered person.  The burden of producing evidence sufficient to support the exercise by the court of its discretion to reduce the amount of a proven charge sought to be enforced against the recovery shall rest with the party seeking the reduction.  The court may consider the nature and extent of the injury, economic and non-economic loss, settlement offers, comparative negligence as it applies to the case at hand, hospital costs, physician costs, and all other appropriate costs. The Plan shall pay its pro rata share of the attorney fees based on the Plan's recovery as it compares to the total judgment.  Any reimbursement rights of the Plan shall take priority over all other liens and charges existing under the laws of this State with the exception of any attorney liens filed under the Attorneys Lien Act.(7) The Plan may compromise or settle and release any     claim for benefits provided under this Act or waive any claims for benefits, in whole or in part, for the convenience of the Plan or if the Plan determines that collection would result in undue hardship upon the covered person.(Source: P.A. 96-791, eff. 9-25-09; 96-938, eff. 6-24-10; 97-813, eff. 7-13-12.) (215 ILCS 105/8.5)Sec. 8.5. 
		(Repealed). 
		(Source: P.A. 89-514, eff. 7-17-96.  Repealed by P.A. 91-639, eff.
8-20-99.) (215 ILCS 105/8.6)Sec. 8.6. 
		Managed Care Reform and Patient Rights Act. 
		The Plan is
subject to
the provisions of the Managed Care Reform and Patient Rights Act.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 105/8.7)Sec. 8.7. 
		Drug formulary; notice. 
		The Plan must comply with Section
155.37 of the Illinois Insurance Code.
		(Source: P.A. 92-440, eff. 8-17-01.) (215 ILCS 105/9) (from Ch. 73, par. 1309)Sec. 9. 
		Taxation. 
		The Plan and the Board established pursuant to this Act shall
be exempt from payment of all fees and all taxes levied by
the State or any of its subdivisions.
		(Source: P.A. 85-702.) (215 ILCS 105/10) (from Ch. 73, par. 1310)Sec. 10. 
		Collective action. 
		Participation in the operation of the Plan,
the establishment of rates, forms or procedures, or any other joint or
collective action required by this Act shall not be the basis of any legal
action, criminal or civil liability or penalty against the Plan, the Plan
administrator, the Board
or any of its members, employees, contractors, or consultants.
		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 105/11) (from Ch. 73, par. 1311)Sec. 11. 
		Plan notice. 
		On and after the date the Illinois
Comprehensive Health Insurance Plan
becomes operational as provided in this Act, every insurer licensed to
issue, and which issues for delivery, policies of accident and health
insurance in this
State shall include a notice of the existence of the Illinois Comprehensive
Health
Insurance Plan in any rejection of any application for individual health
insurance
coverage as defined in this Act  for reasons of the health of the applicant
or any other
person proposed for insurance in such application.  Such notice shall be in
substantially the form and content prescribed by the Director.
		(Source: P.A. 91-735, eff. 6-2-00.) (215 ILCS 105/12) (from Ch. 73, par. 1312)Sec. 12. 
		Deficit or surplus.a. If premiums or other receipts by the
Board exceed the amount required for the
operation
of the Plan, including actual losses and administrative
expenses of the Plan, the Board shall direct that the excess be held at
interest, in a bank designated by the Board, or used to offset future
losses or to reduce Plan premiums.  In this
subsection, the term "future losses" includes reserves for incurred but not
reported claims.b. Any deficit incurred or expected to be incurred on behalf of eligible
persons who qualify for Plan coverage under Section 7 of this Act shall be
recouped by an
appropriation made by the General Assembly.c. For the purposes of this Section, a deficit shall be incurred when
anticipated losses and incurred but not reported claims expenses exceed
anticipated income from earned premiums net of administrative expenses.d. Any deficit incurred or expected to be incurred on behalf of federally
eligible individuals who qualify for Plan coverage under Section 15 of this Act
shall be recouped by an assessment of all insurers made in accordance with the
provisions of this Section.  The Board shall within 90 days of the effective
date of this amendatory Act of 1997 and within the first quarter of each fiscal
year thereafter assess all insurers for the anticipated deficit in accordance
with the provisions of this Section.  The Board may also make additional
assessments no more than 4 times a year to fund unanticipated deficits,
implementation expenses, and cash flow needs.e. An insurer's assessment shall be determined by multiplying the total
assessment, as determined in subsection d. of this Section, by a fraction, the
numerator of which equals that insurer's direct Illinois premiums during the
preceding calendar year and the denominator of which equals the total of all
insurers' direct Illinois premiums.  The Board may exempt those insurers whose
share as determined under this subsection would be so minimal as to not exceed
the estimated cost of levying the assessment.f. The Board shall charge and collect from each insurer the amounts
determined to be due under this Section.  The assessment shall be billed by
Board invoice based upon the insurer's direct Illinois premium income as shown
in its annual
statement for the preceding calendar year as filed with the Director.  The
invoice shall be due upon
receipt and must be paid no later than 30 days after receipt by the insurer.g. When an insurer fails to pay the full amount of any assessment of $100 or
more
due under this Section there shall be added to the amount due as a penalty the
greater of $50 or an amount equal to 5% of the deficiency for each month or
part of a month that the deficiency remains unpaid.h. Amounts collected under this Section shall be paid to the Board for
deposit into the Plan Fund authorized by Section 3 of this Act.i. An insurer may petition the Director for an abatement or deferment of
all or part of an assessment imposed by the Board.  The Director may abate or
defer, in whole or in part, the assessment if, in the opinion of the Director,
payment of the assessment would endanger the ability of the insurer to fulfill
its contractual obligations.  In the event an assessment against an insurer is
abated or deferred in whole or in part, the amount by which the assessment is
abated or deferred shall be assessed against the other insurers in a manner
consistent with the basis for assessments set forth in this subsection.  The
insurer receiving a deferment shall remain liable to the Plan for the
deficiency for 4 years.j. The Board shall establish procedures for appeal by any insurer subject
to assessment pursuant to this
Section.  Such procedures shall require that:(1) Any insurer that wishes to appeal all or any part     of an assessment made pursuant to this Section shall first pay the amount of the assessment as set forth in the invoice provided by the Board within the time provided in subsection f. of this Section. The Board shall hold such payments in a separate interest-bearing account. The payments shall be accompanied by a statement in writing that the payment is made under appeal. The statement shall specify the grounds for the appeal. The insurer may be represented in its appeal by counsel or other representative of its choosing.(2) Within 90 days following the payment of an     assessment under appeal by any insurer, the Board shall notify the insurer or representative designated by the insurer in writing of its determination with respect to the appeal and the basis or bases for that determination unless the Board notifies the insurer that a reasonable amount of additional time is required to resolve the issues raised by the appeal.(3) The Board shall refer to the Director any     question concerning the amount of direct Illinois premium income as shown in an insurer's annual statement for the preceding calendar year on file with the Director on the invoice date of the assessment.  Unless additional time is required to resolve the question, the Director shall within 60 days report to the Board in writing his determination respecting the amount of direct Illinois premium income on file on the invoice date of the assessment.(4) In the event the Board determines that the     insurer is entitled to a refund, the refund shall be paid within 30 days following the date upon which the Board makes its determination, together with the accrued interest. Interest on any refund due an insurer shall be paid at the rate actually earned by the Board on the separate account.(5) The amount of any such refund shall then be     assessed against all insurers in a manner consistent with the basis for assessment as otherwise authorized by this Section.(6) The Board's determination with respect to any     appeal received pursuant to this subsection shall be a final administrative decision as defined in Section 3-101 of the Code of Civil Procedure.  The provisions of the Administrative Review Law shall apply to and govern all proceedings for the judicial review of final administrative decisions of the Board.(7) If an insurer fails to appeal an assessment in     accordance with the provisions of this subsection, the insurer shall be deemed to have waived its right of appeal.The provisions of this subsection apply to all assessments made in any
calendar year ending on or after December 31, 1997.
		(Source: P.A. 90-30, eff. 7-1-97; 90-567, eff. 1-23-98.) (215 ILCS 105/13) (from Ch. 73, par. 1313)Sec. 13. 
		Civil actions; availability of remedies; costs; attorney
fees.(1) No civil action against the Plan or Board shall be allowed unless
the party commencing the action has first filed a grievance and received a
final decision thereon in accordance with the procedures established under
paragraph (6) of subsection d of Section 3 of this Act.  Any applicable
time limitation for the filing of civil actions against the Plan or the
Board shall commence upon the issuance of the Board's final decision.(2) In any action by or against the Plan wherein there is in issue the
liability of the Plan on a policy or policies of insurance issued under
this Act or the amount of the loss payable thereunder, or for an
unreasonable delay in settling a claim, and it appears to the court that
such action or delay is vexatious and unreasonable, the court may allow as
part of the taxable costs in the action reasonable attorney fees, other
costs, plus an amount not to exceed any one of the following amounts:(a) 25% of the amount which the court or jury finds     such party is entitled to recover against the Plan, exclusive of all costs;(b) $25,000;(c) the excess of the amount which the court or jury     finds such party is entitled to recover, exclusive of costs, over the amount, if any, which the Plan offered to pay in settlement of the claim prior to the action.(3) Where there are several policies insuring the same insured against
the same loss whether issued by the same or by different companies, the
court may fix the amount of the allowance so that the total attorney fees
on account of one loss shall not be increased by reason of the fact that
the insured brings separate suits on such policies.
		(Source: P.A. 87-560.) (215 ILCS 105/14) (from Ch. 73, par. 1314)Sec. 14. 
		Confidentiality.(a) All steps necessary under State and
Federal law to protect confidentiality
of applicants and covered persons shall be undertaken by the Board to
prevent the identification of individual
records of persons covered under the Plan, rejected by the
Plan, or who
become ineligible for further participation in the Plan.  Procedures shall be
written by the Board
to assure the confidentiality
of records of persons covered under, rejected by, or who become
ineligible for further participation in, the Plan when gathering and submitting
data to the Board or any other entity.(b) The information submitted to the Board
by hospitals pursuant to this Act
shall be privileged and confidential,
and shall not be disclosed in any manner.  The foregoing includes, but shall
not be limited to, disclosure, inspection or copying under the
Freedom of Information Act, the State Records Act, and paragraph (1) of Section
404
of the Illinois Insurance Code.  However, the prohibitions stated in this
subsection shall not apply to the compilations of information assembled
by the Board pursuant to subsections c. and e. of
Section 3 of this Act.
		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 105/14.05)(This Section was renumbered as Section 15 in P.A. 97-333.)Sec. 14.05. (Renumbered).

					(Source: P.A. 95-331, eff. 8-21-07. Renumbered by P.A. 97-333, eff. 8-12-11.) (215 ILCS 105/15)Sec. 15. Alternative portable coverage for federally eligible individuals.(a) Notwithstanding the requirements of subsection a of Section 7 and
except as otherwise provided in this Section, any
federally eligible individual for whom a Plan
application, and such enclosures and supporting documentation as the Board may
require, is received by the Board within 90 days after the
termination of prior
creditable coverage shall qualify to enroll in the Plan under the
portability provisions of this Section.A federally eligible person who has
been certified as eligible pursuant to the federal Trade
Act of 2002

and whose Plan application and enclosures and supporting
documentation as the Board may require is received by the Board within 63 days
after the termination of previous creditable coverage shall qualify to enroll
in the Plan under the portability provisions of this Section.(b) Any federally eligible individual seeking Plan coverage under this
Section must submit with his or her application evidence, including acceptable
written certification of previous creditable coverage, that will establish to
the Board's satisfaction, that he or she meets all of the requirements to be a
federally eligible individual and is currently and
permanently residing in this State (as of the date his or her application was
received by the Board).(c) Except as otherwise provided in this Section, a period of creditable
coverage shall not be counted, with respect to
qualifying an applicant for Plan coverage as a federally eligible individual
under this Section, if after such period and before the application for Plan
coverage was received by the Board, there was at least a 90-day
period during
all of which the individual was not covered under any creditable coverage.For a federally eligible person who has
 been certified as eligible
pursuant to the federal Trade Act of 2002, a period of creditable
coverage shall not be counted, with respect to qualifying an applicant for Plan
coverage as a federally eligible individual under this Section, if after such
period and before the application for Plan coverage was received by the Board,
there was at
least a 63-day period during all of which the individual was not covered under
any creditable coverage.(d) Any federally eligible individual who the Board determines qualifies for
Plan coverage under this Section shall be offered his or her choice of
enrolling in one of alternative portability health benefit plans which the
Board
is authorized under this Section to establish for these federally eligible
individuals
and their dependents.(e) The Board shall offer a choice of health care coverages consistent with
major medical coverage under the alternative health benefit plans authorized by
this Section to every federally eligible individual.
The coverages to be offered under the plans, the schedule of
benefits, deductibles, co-payments, exclusions, and other limitations shall be
approved by the Board.  One optional form of coverage shall be comparable to
comprehensive health insurance coverage offered in the individual market in
this State or a standard option of coverage available under the group or
individual health insurance laws of the State.  The standard benefit plan that
is
authorized by Section 8 of this Act may be used for this purpose.  The Board
may also offer a preferred provider option and such other options as the Board
determines may be appropriate for these federally eligible individuals who
qualify for Plan coverage pursuant to this Section.(f) Notwithstanding the requirements of subsection f of Section 8, any
Plan coverage
that is issued to federally eligible individuals who qualify for the Plan
pursuant
to the portability provisions of this Section shall not be subject to any
preexisting conditions exclusion, waiting period, or other similar limitation
on coverage.(g) Federally eligible individuals who qualify and enroll in the Plan
pursuant
to this Section shall be required to pay such premium rates as the Board shall
establish and approve in accordance with the requirements of Section 7.1 of
this Act.(h) A federally eligible individual who qualifies and enrolls in the Plan
pursuant to this Section must satisfy on an ongoing basis all of the other
eligibility requirements of this Act to the extent not inconsistent with the
federal Health Insurance Portability and Accountability Act of 1996 in order to
maintain continued eligibility
for coverage under the Plan.(i)      New enrollment and policy renewals are discontinued on December 31, 2021. (Source: P.A. 102-159, eff. 7-23-21.) (215 ILCS 105/16)Sec. 16. Cessation of operations.(a)   Except as otherwise provided in this Section, the insurance operations of the Plan authorized by this Act shall cease on December 31, 2021.(b)    Coverage under the Plan does not apply to services provided on or after January 1, 2022.(c)    The Plan shall cease providing coverage for participants enrolled prior to January 1, 2022 at 11:59 p.m. on December 31, 2021.(d)    A claim for payment under the Plan must be submitted within 180 days after January 1, 2022 and paid in accordance with the provisions of Article XIII of the Illinois Insurance Code.(e)   Any claim or grievance shall be resolved by the court supervising the Plan's Article XIII rehabilitation or liquidation proceedings.(f)   Balance billing by a health care provider that is not a member of the provider network used by the Plan is prohibited.(g)   The Board shall, not later than 60 days after the effective date of this amendatory Act of the 102nd General Assembly, submit to the Director a plan of rehabilitation or liquidation and dissolution, which must provide for, but shall not be limited to, the following:(1)   continuity of care for an individual who is     covered under the Plan and is an inpatient on January 1, 2022;(2)    a final accounting of assessments;(3)   resolution of any net asset deficiency;(4)   cessation of all liability of the Plan; and(5)    final dissolution of the Plan.(h)    The plan of rehabilitation or liquidation and dissolution may provide that, with the approval of the Director, a power or duty of the Plan may be delegated to a person that is to perform functions similar to the functions of the Plan.(i)   Upon entry of an Order of Rehabilitation or Liquidation against the Plan, the court supervising the rehabilitation or liquidation proceedings shall have the jurisdiction to issue injunctions as set forth in Section 189 of the Illinois Insurance Code, including, but not limited to, the restraining of all persons, companies, and entities from bringing or further prosecuting all actions and proceedings at law or in equity or otherwise, whether in this State or elsewhere, against the Plan or its assets or property or the Director except insofar as those actions or proceedings arise in or are brought in the rehabilitation or liquidation proceedings.(j)    Upon the entry of an order of rehabilitation or liquidation, the rights and liabilities of the Plan and of its policyholders and all other persons interested in its assets shall be fixed as of the date of entry of the order directing rehabilitation or liquidation, or such later date as may be provided by order of the court supervising the rehabilitation or liquidation proceedings.(k)      Upon the satisfaction of all claims allowed in the rehabilitation or liquidation proceedings, including the costs and expenses of administering the rehabilitation or liquidation, any remaining funds shall be distributed as follows:(1)   for the accounts described in paragraph (2) of     subsection (l) of Section 4, all funds shall be refunded on a pro rata basis to the insurers that were assessed based on the most recent deficit projections of the Plan's operation pursuant to Section 12 and to covered persons where appropriate; and(2)   for all other accounts, all remaining funds     shall be released and deposited into the Insurance Producer Administration Fund for use by the Department for initiatives to support the Illinois Health Benefits Exchange.(l)   Upon the entry of an Order of Rehabilitation or Liquidation against the Plan, if the Director determines the Plan is holding any surplus funds in a segregated account associated with persons who qualified for coverage under Section 7 that are no longer required for the purposes for which they were acquired and are restricted from any other use, the Director may petition the court for such funds to be released and placed as follows:(1)   the first $10,000,000 shall be deposited into     the Insurance Producer Administration Fund for use by the Department for initiatives to support the Illinois Health Benefits Exchange; and(2)   the remainder shall be deposited into the     Parity Advancement Fund. (Source: P.A. 102-159, eff. 7-23-21.) (215 ILCS 105/17)Sec. 17. Transfer of the Illinois Comprehensive Health Insurance Plan.(a)     Upon entry of an Order of Rehabilitation or Liquidation against the Plan all powers, duties, rights, and responsibilities of the Plan and the Board shall be transferred to and vested in the Director, as rehabilitator or liquidator, who is authorized to wind down the affairs of the Plan in accordance with Article XIII of the Illinois Insurance Code.(b)     The Director, as rehabilitator or liquidator, shall act on behalf of the Plan and the Board and shall have the power and duty to receive and answer correspondence, and shall evaluate all claims that are timely filed in the rehabilitation or liquidation proceedings and is authorized to make distribution from any unencumbered funds of the Plan's rehabilitation or liquidation estate upon all such claims as are allowed in the proceedings consistent with subsection (1) of Section 205 of the Illinois Insurance Code. Timely filed claims of vendors allowed in the rehabilitation or liquidation proceedings that are not capable of being discharged, in full, from the assets of the rehabilitation or liquidation estate may be presented to the Court of Claims.(c)     All books, records, papers, documents, property (real and personal), contracts, causes of action, and pending business pertaining to the powers, duties, rights, and responsibilities transferred by this amendatory Act of the 102nd General Assembly from the Plan and the Board to the Director, as rehabilitator or liquidator, including, but not limited to, material in electronic or magnetic format and necessary computer hardware and software, shall be transferred to the Director, as rehabilitator or liquidator. Records shall be maintained as required by the federal Health Insurance Portability and Accountability Act of 1996, as now or hereafter amended, unless otherwise ordered by the court supervising the rehabilitation or liquidation proceedings.(d)     The rights of the employees in the State of Illinois and its agencies under the Personnel Code and applicable collective bargaining agreements or under any pension, retirement, or annuity plan shall not be affected by this amendatory Act of the 102nd General Assembly.(e)    Upon entry of an Order of Rehabilitation or Liquidation against the Plan, all unexpended appropriations and balances and other funds available for use by the Plan and the Board shall be transferred to and vested in the Director, as rehabilitator or liquidator. Except as provided in subsection (l) of Section 16, unexpended balances so transferred shall be distributed in accordance with Article XIII of the Illinois Insurance Code for paying the Director's administrative expenses incurred in connection with winding down the affairs of the Plan.(f)    Whenever reports or notices are, on the effective date of this amendatory Act of the 102nd General Assembly, required to be made or given or papers or documents furnished or served by any person to or upon the Plan or the Board in connection with any of the powers, duties, rights, and responsibilities transferred by this amendatory Act of the 102nd General Assembly, the same shall be made, given, furnished, or served in the same manner to or upon the Director, as rehabilitator or liquidator.(g)    This amendatory Act of the 102nd General Assembly does not affect any act done, ratified, or canceled or any right occurring or established or any action or proceeding had or commenced in the administrative, civil, or criminal cause by the Plan or the Board prior to the entry of an Order of Rehabilitation or Liquidation against the Plan; such actions or proceedings may be prosecuted and continued by the Director, as rehabilitator or liquidator.
(Source: P.A. 102-159, eff. 7-23-21.) (215 ILCS 105/99)Sec. 99. This Act takes effect July 1, 1987.(Source: P.A. 97-333, eff. 8-12-11.)
(215 ILCS 106/1)Sec. 1. 
		Short title. 
		This Act may be cited as the
Children's Health Insurance Program Act.
		(Source: P.A. 90-736, eff. 8-12-98.) (215 ILCS 106/5)Sec. 5. 
		Legislative intent. 
		The General Assembly finds that, for the
economic and social benefit of all citizens of the State, it is important to
enable low-income children of this State, to the extent funding permits, to
access health benefits coverage, especially preventive health care.  The
General Assembly recognizes that assistance to help families purchase health
benefits for low-income children must be provided in a fair and equitable
fashion and must treat all children at the same income level in a similar
fashion.  The State of Illinois should help low-income families transition from
a health care system where government partners with families to provide health
benefits to low-income children to a system where families with higher incomes
eventually transition into private or employer based health plans.  This Act is
not intended to create an entitlement.
		(Source: P.A. 90-736, eff. 8-12-98.) (215 ILCS 106/6)Sec. 6. Act inoperative. This Act is inoperative if (i) the Department of Healthcare and Family Services receives federal approval to make children younger than 19 who have countable income at or below 313% of the federal poverty level eligible for medical assistance under Article V of the Illinois Public Aid Code and (ii) the Department, upon federal approval, transitions children eligible for health care benefits under this Act into the medical assistance program established under Article V of the Illinois Public Aid Code.
(Source: P.A. 102-43, eff. 7-6-21.) (215 ILCS 106/7)Sec. 7. Eligibility verification. Notwithstanding any other provision of this Act, with respect to applications for benefits provided under the Program, eligibility shall be determined in a manner that ensures program integrity and that complies with federal law and regulations while minimizing unnecessary barriers to enrollment. To this end, as soon as practicable, and unless the Department receives written denial from the federal government, this Section shall be implemented:(a) The Department of Healthcare and Family Services or its designees shall:(1) By no later than July  1, 2011, require      verification of, at a minimum, one month's income from all sources required for determining the eligibility of applicants to the Program. Such verification shall take the form of pay stubs, business or income and expense records for self-employed persons, letters from employers, and any other valid documentation of income including data obtained electronically by the Department or its designees from other sources as described in subsection (b) of this Section. A month's income may be verified by a single pay stub with the monthly income extrapolated from the time period covered by the pay stub.(2) By no later than  October 1, 2011, require     verification of, at a minimum, one month's income from all sources required for determining the continued eligibility of recipients at their annual review of eligibility under the Program. Such verification shall take the form of pay stubs, business or income and expense records for self-employed persons, letters from employers, and any other valid documentation of income including data obtained electronically by the Department or its designees from other sources as described in subsection (b) of this Section. A month's income may be verified by a single pay stub with the monthly income extrapolated from the time period covered by the pay stub. The Department shall send a notice to the recipient at least 60 days prior to the end of the period of eligibility that informs them of the requirements for continued eligibility. Information the Department receives prior to the annual review, including information available to the Department as a result of the recipient's application for other non-health care benefits, that is sufficient to make a determination of continued eligibility for medical assistance or for benefits provided under the Program may be reviewed and verified, and subsequent action taken including client notification of continued eligibility for medical assistance or for benefits provided under the Program. The date of client notification establishes the date for subsequent annual eligibility reviews. If a recipient does not fulfill the requirements for continued eligibility by the deadline established in the notice, a notice of cancellation shall be issued to the recipient and coverage shall end no later than the last day of the month following the last day of the eligibility period. A recipient's eligibility may be reinstated without requiring a new application if the recipient fulfills the requirements for continued eligibility prior to the end of the third month following the last date of coverage (or longer period if required by federal regulations). Nothing in this Section shall prevent an individual whose coverage has been cancelled from reapplying for health benefits at any time.(3) By no later than July  1, 2011, require      verification  of  Illinois  residency.(b) The  Department  shall  establish  or  continue  cooperative

arrangements with the Social Security Administration, the

 Illinois  Secretary  of  State,  the  Department  of  Human  Services,

the Department of Revenue, the Department of Employment Security,  and  any  other  appropriate  entity  to  gain  electronic

access,  to  the  extent  allowed  by  law,  to  information  available to  those  entities  that  may  be  appropriate  for  electronically

verifying  any  factor  of  eligibility  for  benefits  under  the

Program.  Data  relevant  to  eligibility  shall  be  provided  for  no

other  purpose  than  to  verify  the  eligibility  of  new applicants or current recipients of health benefits under the Program. Data will be requested or provided for any new applicant or current recipient only insofar as that individual's circumstances are relevant to that individual's  or another individual's eligibility.(c) Within 90 days of the effective date of this amendatory Act of the 96th General Assembly, the Department of Healthcare and Family Services shall send notice to current recipients informing them of the changes regarding their eligibility verification.
(Source: P.A. 101-209, eff. 8-5-19; 101-649, eff. 7-7-20.) (215 ILCS 106/8)Sec. 8. COVID-19 public health emergency. Notwithstanding any other provision of  this Act, the Department may take necessary actions to address the COVID-19 public health emergency to the extent such actions are required, approved, or authorized by the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services. Such actions may continue throughout the public health emergency and for up to 12 months after the period ends, and may include, but are not limited to: accepting an applicant's or recipient's attestation of income, incurred medical expenses, residency, and insured status when electronic verification is not available; eliminating resource tests for some eligibility determinations; suspending  redeterminations; suspending changes that would adversely affect an applicant's or recipient's eligibility; phone or verbal approval by an applicant to submit an application in lieu of applicant signature; allowing adult presumptive eligibility; allowing presumptive eligibility for children, pregnant women, and adults as often as twice per calendar year; paying for additional services delivered by telehealth; and suspending premium and co-payment requirements.The Department's authority under this Section shall only extend to encompass, incorporate, or effectuate the terms, items, conditions, and other provisions approved, authorized, or required by the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services, and shall not extend beyond the time of the COVID-19 public health emergency and up to 12 months after the period expires. 
(Source: P.A. 101-649, eff. 7-7-20.) (215 ILCS 106/10)Sec. 10. Definitions. As used in this Act:"Benchmarking" means health benefits coverage as defined in Section
2103 of the Social Security Act."Child" means a person under the age of 19."Department" means the Department of Healthcare and Family Services."Medical assistance" means health care benefits provided under Article V
of the Illinois Public Aid Code."Medical visit" means a hospital, dental, physician, optical, or other
health care visit where services are provided pursuant to this Act."Program" means the Children's Health Insurance Program, which includes
subsidizing the cost of privately sponsored health insurance and purchasing
or providing health care benefits for eligible children."Resident" means a person who meets the residency requirements as
defined in Section 5-3 of the Illinois Public Aid Code.
					(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 106/15)Sec. 15. Operation of the Program. There is hereby created a
Children's Health Insurance Program.  The Program shall operate subject
to appropriation and shall be administered by the Department of Healthcare and Family Services.  The Department shall have the powers and authority granted to the
Department under the Illinois Public Aid Code, including, but not limited to, Section 11-5.1 of the Code.  The Department may contract
with a Third Party Administrator or other entities to administer and oversee
any portion of this Program. Beginning October 1, 2013, the determination of eligibility under this Act shall comply with the requirements of 42 U.S.C. 1397bb(b)(1)(B)(v) and applicable federal regulations.  If changes made to this Section require federal approval, they shall not take effect until such approval has been received. 
(Source: P.A. 98-104, eff. 7-22-13.) (215 ILCS 106/20)Sec. 20. Eligibility.(a) To be eligible for this Program, a person must be a person who
has a child eligible under this Act and who is eligible under a waiver
of federal requirements pursuant to an application made pursuant to
subdivision (a)(1) of Section 40 of this Act or who is a child who:(1) is a child who is not eligible for medical     assistance;(2) is a child whose annual household income, as     determined by the Department, is above 133% of the federal poverty level and at or below 200% of the federal poverty level;(3) is a  resident of the State of Illinois; and(4) is a child who is either a United States citizen     or included in one of the following categories of non-citizens:(A) unmarried dependent children of either a         United States Veteran honorably discharged or a person on active military duty;(B) refugees under Section 207 of the Immigration         and Nationality Act;(C) asylees under Section 208 of the Immigration         and Nationality Act;(D) persons for whom deportation has been         withheld under Section 243(h) of the Immigration and Nationality Act;(E) persons granted conditional entry under         Section 203(a)(7) of the Immigration and Nationality Act as in effect prior to April 1, 1980;(F) persons lawfully admitted for permanent         residence under the Immigration and Nationality Act; and(G) parolees, for at least one year, under         Section 212(d)(5) of the Immigration and Nationality Act.Those children who are in the categories set forth in subdivisions
(4)(F) and (4)(G) of this subsection, who enter the United States on or
after August 22, 1996, shall not be eligible for 5 years beginning on the
date the child entered the United States.(b) A child who is determined to be eligible for assistance may remain
eligible for 12 months, provided the child maintains his or
her residence in the State, has not yet attained 19 years of age, and is not
excluded pursuant to subsection (c).  A child who has been determined to
be eligible for assistance must reapply or otherwise establish eligibility
at least annually.
An eligible child shall be required, as determined by the
Department by rule, to report promptly those changes in income and other
circumstances that affect eligibility.  The eligibility of a child may be
redetermined based on the information reported or may be terminated based on
the failure to report or failure to report accurately.  A child's responsible
relative or caretaker may also be held liable to the Department for any
payments made by the Department on such child's behalf that were inappropriate.
An applicant shall be provided with notice of these obligations.(c) A child shall not be eligible for coverage under this Program if:(1) the premium required pursuant to Section 30 of     this Act has not been paid.  If the required premiums are not paid the liability of the Program shall be limited to benefits incurred under the Program for the time period for which premiums had been paid.  Re-enrollment shall be completed prior to the next covered medical visit and the first month's required premium shall be paid in advance of the next covered medical visit. The Department shall promulgate rules regarding grace periods, notice requirements, and hearing procedures pursuant to this subsection;(2) the child is an inmate of a public institution or     a patient in an institution for mental diseases; or(3) the child is a member of a family that is     eligible for health benefits covered under the State of Illinois health benefits plan on the basis of a member's employment with a public agency.(Source: P.A. 96-1272, eff. 1-1-11.) (215 ILCS 106/21)Sec. 21. Presumptive eligibility. Beginning on the effective date of this amendatory Act of the 96th General Assembly and except where federal law requires presumptive eligibility, no adult may be presumed eligible for health care coverage under the Program, and the Department may not cover any service rendered to an adult unless the adult has completed an application for benefits, all required verifications have been received and the Department or its designee has found the adult eligible for the date on which that service was provided. Nothing in this Section shall apply to pregnant women.
(Source: P.A. 96-1501, eff. 1-25-11.) (215 ILCS 106/22)Sec. 22. 
		Enrollment in program. 
		The Department shall develop procedures
to allow community providers, schools, youth service agencies, employers,
labor unions, local chambers of commerce, and religious organizations to
assist in enrolling children in the Program.
		(Source: P.A. 91-470, eff. 8-10-99; 91-471, eff. 8-10-99; 92-16, eff.
6-28-01.) (215 ILCS 106/23)Sec. 23. Care coordination.(a) At least 50% of recipients eligible for comprehensive medical benefits in all medical assistance programs or other health benefit programs administered by the Department, including the Children's Health Insurance Program Act and the Covering ALL KIDS Health Insurance Act, shall be enrolled in a care coordination program by no later than  January  1,  2015.  For  purposes  of  this  Section,  "coordinated care"  or "care coordination" means delivery  systems where recipients will receive their care from providers who participate under contract in integrated delivery systems that are responsible for providing or arranging the majority of care, including primary care physician services, referrals from primary care physicians, diagnostic and treatment services, behavioral health services, in-patient and outpatient hospital services, dental services, and rehabilitation and long-term care services. The Department shall designate or contract for such integrated delivery systems (i) to ensure enrollees have a choice of systems and of primary care providers within such systems; (ii) to ensure that enrollees receive quality care in a culturally and linguistically appropriate manner; and (iii) to ensure that coordinated care programs meet the diverse needs of enrollees with developmental, mental health, physical, and age-related disabilities.(b) Payment for such coordinated care shall be based on arrangements where the State pays for performance related to health care outcomes, the use of evidence-based practices, the use of primary care delivered through comprehensive medical homes, the use of electronic medical records, and the appropriate exchange of health information electronically made either on a capitated basis in which a fixed monthly premium per recipient is paid and full financial risk is assumed for the delivery of services, or through other risk-based payment arrangements.(c) To qualify for compliance with this Section, the 50% goal shall be achieved by enrolling medical assistance enrollees from each medical assistance enrollment category, including parents, children, seniors, and people with disabilities to the extent that current State Medicaid payment laws would not limit federal matching funds for recipients in care coordination programs. In addition, services must be more comprehensively defined and more risk shall be assumed than in the Department's primary care case management program as of the effective date of this amendatory Act of the 96th General Assembly.(d) The  Department  shall  report to the General Assembly  in  a  separate  part  of  its  annual medical assistance program report, beginning April, 2012  until  April,  2016,  on  the  progress  and  implementation  of  the  care coordination  program  initiatives  established by the  provisions  of  this  amendatory  Act  of  the  96th  General  Assembly. The Department shall include in its April 2011 report a full analysis of federal laws or regulations regarding upper payment limitations to providers and the necessary revisions or adjustments in rate methodologies and payments to providers under this Code that would be necessary to implement coordinated care with full financial risk by a party other than the Department. 
(Source: P.A. 96-1501, eff. 1-25-11.) (215 ILCS 106/25)Sec. 25. Health benefits for children.(a) The Department shall, subject to appropriation, provide health
benefits coverage to eligible children by:(1) Until December 31, 2013 and providing that no     application for such coverage shall be accepted after September 30, 2013, subsidizing the cost of privately sponsored health insurance, including employer based health insurance, to assist families to take advantage of available privately sponsored health insurance for their eligible children; and(2) Purchasing, until December 31, 2013,  or     providing health care benefits for eligible children.  The health benefits provided under this subdivision (a)(2) shall, subject to appropriation and without regard to any applicable cost sharing under Section 30, be identical to the benefits provided for children under the State's approved plan under Title XIX of the Social Security Act.  Providers under this subdivision (a)(2) shall be subject to approval by the Department to provide health care under the Illinois Public Aid Code and shall be reimbursed at the same rate as providers under the State's approved plan under Title XIX of the Social Security Act.  In addition, providers may retain co-payments when determined appropriate by the Department.(b) The subsidization provided pursuant to subdivision (a)(1) shall be
credited to the family of the eligible child.(c) The Department is prohibited from denying coverage to a child who is
enrolled in a privately sponsored health insurance plan pursuant to subdivision
(a)(1) because the plan does not meet federal benchmarking standards
or cost sharing and contribution requirements.
To be eligible for inclusion in the Program, the plan shall contain
comprehensive major medical coverage which shall consist of physician and
hospital inpatient services.
The Department is prohibited from denying coverage to a child who is enrolled
in a privately sponsored health insurance plan pursuant to subdivision (a)(1)
because the plan offers benefits in addition to physician and hospital
inpatient services.(d) The total dollar amount of subsidizing coverage per child per month
pursuant to subdivision (a)(1) shall be equal to the average dollar payments,
less premiums incurred, per child per month pursuant to subdivision (a)(2).
The Department shall set this amount prospectively based upon the prior fiscal
year's experience adjusted for incurred but not reported claims and estimated
increases or decreases in the cost of medical care.  Payments obligated before
July 1, 1999, will be computed using State Fiscal Year 1996 payments for
children eligible for Medical Assistance and income assistance under the Aid to
Families with Dependent Children Program, with appropriate adjustments for cost
and utilization changes through January 1, 1999.  The Department is
prohibited from providing a subsidy pursuant to subdivision (a)(1) that is more
than the individual's monthly portion of the premium.(e) An eligible child may obtain immediate coverage under this Program
only once during a medical visit.  If coverage lapses, re-enrollment shall be
completed in advance of the next covered medical visit and the first month's
required premium shall be paid in advance of any covered medical visit.(f) In order to accelerate and facilitate the development of networks to
deliver services to children in areas outside counties with populations
in
excess of 3,000,000, in the event less than 25% of the eligible
children in a county or contiguous counties has enrolled with a Health
Maintenance Organization pursuant to Section 5-11 of the Illinois Public Aid
Code, the Department may develop and implement demonstration projects to create
alternative networks designed to enhance enrollment and participation in the
program.  The Department shall prescribe by rule the criteria, standards, and
procedures for effecting demonstration projects under this Section.(g) On and after July 1, 2012, the Department shall reduce any rate of reimbursement for services or other payments or alter any methodologies authorized by this Act or the Illinois Public Aid Code to reduce any rate of reimbursement for services or other payments in accordance with Section 5-5e of the Illinois Public Aid Code. (Source: P.A. 97-689, eff. 6-14-12; 98-104, eff. 7-22-13.) (215 ILCS 106/26)Sec. 26. Moratorium on eligibility expansions.  Beginning on the effective date of this amendatory Act of the 96th General  Assembly, there shall be a 2-year moratorium on the expansion of eligibility through increasing financial eligibility standards, or through increasing income disregards, or through the creation of new programs that would add new categories of eligible individuals under the medical assistance program under the Illinois Public Aid Code in addition to those categories covered on January 1, 2011. This moratorium shall not apply to expansions required as a federal condition of State participation in the medical assistance program.
(Source: P.A. 96-1501, eff. 1-25-11.) (215 ILCS 106/30)Sec. 30. Cost sharing.(a) Children enrolled in a health benefits program pursuant to subdivision
(a)(2) of Section 25 and persons enrolled in a health benefits waiver program pursuant to Section 40 shall be subject to the following cost sharing
requirements:(1) There shall be no co-payment required for     well-baby or well-child care, including age-appropriate immunizations as required under federal law.(2) Health insurance premiums for family members,     either children or adults, in families whose household income is above 150% of the federal poverty level shall be payable monthly, subject to rules promulgated by the Department for grace periods and advance payments, and shall be as follows:(A) $15 per month for one family member.(B) $25 per month for 2 family members.(C) $30 per month for 3 family members.(D) $35 per month for 4 family members.(E) $40 per month for 5 or more family members.(3) Co-payments for children or adults in families     whose income is at or below 150% of the federal poverty level, at a minimum and to the extent permitted under federal law, shall be $2 for all medical visits and prescriptions provided under this Act and up to $10 for emergency room use for a non-emergency situation as defined by the Department by rule and subject to federal approval.(4) Co-payments for children or adults in families     whose income is above 150% of the federal poverty level, at a minimum and to the extent permitted under federal law shall be as follows:(A) $5 for medical visits.(B) $3 for generic prescriptions and $5 for brand         name prescriptions.(C) $25 for emergency room use for a         non-emergency situation as defined by the Department by rule.(5) (Blank).(6) Co-payments shall be maximized to the extent     permitted by federal law and are subject to federal approval.(b) (Blank).
(Source: P.A. 97-74, eff. 6-30-11; 98-104, eff. 7-22-13.) (215 ILCS 106/31)Sec. 31. Health care provider participation in State Employees Deferred Compensation Plan. Notwithstanding any other provision of law, a health care provider who participates under the Program may elect, in lieu of receiving direct payment for  services provided under the Program, to participate in the State Employees Deferred Compensation Plan adopted under Article 24 of the Illinois Pension Code. A health care provider who elects to participate in the plan does not have a cause of action against the State for any damages allegedly suffered by the provider as a result of any delay by the State in crediting the amount of any contribution to the provider's plan account. 
(Source: P.A. 96-806, eff. 7-1-10.) (215 ILCS 106/35)Sec. 35. Funding.(a) This Program is not an entitlement and shall not be construed to
create an entitlement.  Eligibility for the Program is subject to appropriation
of funds by the State and federal governments.(b) Any requirement imposed under this Act and any implementation of
this Act by the Department shall cease in the event (1) continued receipt of
federal funds for implementation of this Act requires an amendment to this Act,
or (2) federal funds for implementation of the Act are not otherwise available.(c) Payments under this Act shall be appropriated from the General Revenue
Fund and other funds that are authorized to be used to reimburse or make
medical payments for health care benefits under this Act or Title XXI of the
Social Security Act.(d) Benefits under this Act shall be available only as long as the
intergovernmental agreements made pursuant to Section 12-4.7 and Article XV of
the Illinois Public Aid Code and entered into between the Department and the
Cook County Board of Commissioners continue to exist.
(Source: P.A. 98-104, eff. 7-22-13.) (215 ILCS 106/40)Sec. 40. Waivers. The Department shall request any necessary waivers of federal
requirements in order to allow receipt of federal funding.(Source: P.A. 96-328, eff. 8-11-09; 97-689, eff. 6-14-12.) (215 ILCS 106/45)Sec. 45. 
		Study.(a) The Department shall conduct a study which includes, but is not
limited to, the following:(1) Establishes estimates, broken down by regions of     the State, of the number of children with health insurance coverage and without health insurance coverage; the number of children who are eligible for Medicaid, and of that number, the number who are enrolled in Medicaid; the number of children with access to dependent coverage through an employer, and of that number, the number who are enrolled in dependent coverage through an employer.(2) Ascertains, for the population of children     potentially eligible for coverage under any component of the Program, the extent of access to dependent coverage, how many children are enrolled in dependent coverage, the comprehensiveness of dependent coverage benefit packages available, and the amount of cost sharing currently paid by the employees.(b) The Department shall submit the preliminary results of the study to
the Governor and the General Assembly by December 1, 1998 and shall submit
the final results to the Governor and the General Assembly by May 1, 1999.
		(Source: P.A. 90-736, eff. 8-12-98.) (215 ILCS 106/50)Sec. 50. 
		Program evaluation. 
		The Department shall conduct 2
evaluations of the effectiveness of the program implemented under this Act.
The first evaluation shall be for the first 6 full months of implementation,
and the evaluation shall be completed within 90 days after that period.  The
second evaluation shall be for the first 12 full months of implementation and
shall be completed within 90 days after that period.
		(Source: P.A. 90-736, eff. 8-12-98.) (215 ILCS 106/55)Sec. 55. 
		Contracts with non-governmental bodies. 
		All contracts with
non-governmental bodies that are determined by the Department to be necessary
for the implementation of this Act are deemed to be purchase of care as defined
in the Illinois Procurement Code.
		(Source: P.A. 90-736, eff. 8-12-98; 91-266, eff. 7-23-99.) (215 ILCS 106/60)Sec. 60. 
		Emergency rulemaking. 
		Prior to June 30, 1999, the Department
may adopt rules necessary to establish and implement this Act through the
use of emergency rulemaking in accordance with Section 5-45 of the Illinois
Administrative Procedure Act.  For purposes of that Act, the General Assembly
finds that the adoption of rules to implement this Act is deemed an emergency
and necessary for the public interest, safety, and welfare.
		(Source: P.A. 90-736, eff. 8-12-98; 91-266, eff. 7-23-99.) (215 ILCS 106/65)Sec. 65. Dental home initiative.  The Department, in cooperation with the dental community and other affected organizations such as Head Start, shall work to develop and promote the concept of a dental home for children covered under this Act.  Included in this dental home outreach should be an effort to ensure an ongoing relationship between the patient and the dentist with an effort to provide comprehensive, coordinated, oral health care so that all children covered under this Act have access to preventative and restorative oral health care.
(Source: P.A. 97-283, eff. 8-9-11.) (215 ILCS 106/96)Sec. 96. 
		Inseverability. 
		The provisions of this Act are mutually
dependent and inseverable.  If any provision or its application to any person
or circumstance is held invalid, then this entire Act is invalid.
		(Source: P.A. 90-736, eff. 8-12-98.) (215 ILCS 106/97)Sec. 97. 
		(Repealed). 
		(Source: P.A. 92-597, eff. 6-28-02. Repealed by P.A. 93-63, eff. 6-30-03.) (215 ILCS 106/98)Sec. 98. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 90-736, eff. 8-12-98; text omitted.) (215 ILCS 106/99)Sec. 99. 
		Effective Date. 
		This Act takes effect upon becoming law.
		(Source: P.A. 90-736, eff. 8-12-98.)
(215 ILCS 107/1)Sec. 1. 
		Short title. 
		This Act may be cited as the Producer Controlled Insurer Act.
		(Source: P.A. 87-1090.) (215 ILCS 107/5)Sec. 5. 
		Definitions. 
		As used in this Act, the terms defined in the
Sections that follow this Section and precede Section 6 have the meanings
set forth in those Sections.
		(Source: P.A. 87-1090.) (215 ILCS 107/5.05)Sec. 5.05. 
		Accredited state. 
		"Accredited state" means a state in
which the insurance regulatory agency has qualified as meeting the minimum
financial regulatory standards promulgated and established from time to
time by the National Association of Insurance Commissioners.
		(Source: P.A. 87-1090.) (215 ILCS 107/5.10)Sec.  5.10. 
		Captive Insurer. 
		"Captive insurer" is
defined as in Section 123C-1 of the Illinois Insurance Code.
		(Source: P.A. 87-1090.) (215 ILCS 107/5.15)Sec. 5.15. 
		Control or controlled. 
		"Control" or "controlled" has the
meaning ascribed thereto in Article VIII 1/2 of the Illinois Insurance Code.
		(Source: P.A. 87-1090.) (215 ILCS 107/5.20)Sec. 5.20. 
		Controlled insurer. 
		"Controlled insurer" means a licensed
insurer that is controlled directly or indirectly by a producer.
		(Source: P.A. 87-1090.) (215 ILCS 107/5.25)Sec. 5.25. 
		Controlling producer. 
		"Controlling producer" means a
producer that directly or indirectly controls an insurer.
		(Source: P.A. 87-1090.) (215 ILCS 107/5.30)Sec. 5.30. 
		Licensed insurer or insurer. 
		"Licensed insurer" or "insurer"
means any person, firm, association, or corporation duly licensed to transact a
property or casualty insurance business in this State except that, for the
purposes of this Act, the following entities are not licensed insurers:(1) All risk retention groups as defined in the     Superfund Amendments Reauthorization Act of 1986, Public Law N. 99-499, 100 Stat. 1613 (1986), the Risk Retention Act, 15 U.S.C. Section 3901 et seq.  (1982 and Supp. 1986), and Article VIIB of the Illinois Insurance Code.(2) All residual market pools and joint underwriting     authorities or associations.(3) All captive insurers.(4) All reciprocals having an attorney in fact or any     affiliate thereof that is not paid a commission or other direct compensation for aiding in the soliciting, negotiating, or procuring the making of any insurance contract on behalf of another.		(Source: P.A. 87-1090.) (215 ILCS 107/5.35)Sec. 5.35. 
		Producer. 
		"Producer" means any person, firm, association,
or corporation that for compensation, commission, or other thing of value
acts or aids in any manner in soliciting, negotiating, or procuring the
making of any insurance contract on behalf of another.
		(Source: P.A. 87-1090.) (215 ILCS 107/5.40)Sec. 5.40. 
		Director. 
		"Director" means the Director
of the Department of Insurance.
		(Source: P.A. 87-1090.) (215 ILCS 107/10)Sec. 10. Applicability. This Act applies to licensed insurers
domiciled in this State or domiciled in a state that is not an accredited
state having in effect a substantially similar law.  All provisions of
Article VIII 1/2 of the Illinois Insurance Code, to the extent not superseded 
by this Act, shall apply to all parties within holding company systems
subject to this Act.
(Source: P.A. 96-1000, eff. 7-2-10.) (215 ILCS 107/15)Sec. 15. 
		Minimum standards.(a) Controlled insurers and controlling producers must comply with the
provisions of this Section no later than 60 days after the effective date
of this Act.(b) Except as provided in subsection (c), this Section shall apply if,
in any calendar year, the aggregate of gross written premium on business
placed with a controlled insurer by a controlling producer is equal to or
greater than 5% of the admitted assets of the controlled insurer as
reported in the controlled insurer's annual statement filed as of December
31 of the prior year.(c) Notwithstanding the provisions of subsection (b), this Section shall
not apply if the following circumstances exist:(1) the controlling producer (i) places insurance     only with the controlled insurer or only with the controlled insurer and members of the controlled insurer's holding company system or the controlled insurer's parent, affiliate, or subsidiary and receives no compensation upon the amount of premiums written in connection with the insurance and (ii) accepts insurance placements only from nonaffiliated subproducers and not directly from insureds; and(2) the controlled insurer, except for insurance     business written through a residual market facility such as the Illinois Fair Plan, the Illinois Assigned Risk Plan for coverage under the Workers' Compensation Act and Workers' Occupational Diseases Act, and the Illinois Automobile Insurance Plan, accepts insurance business only from a controlling producer, a producer controlled by the controlled insurer, or a producer that is a subsidiary of the controlled insurer.(d) A controlled insurer shall not accept business from a controlling
producer and a controlling producer shall not place business with a
controlled insurer unless:  (i) there is a written contract between the
controlling producer and the insurer specifying the responsibilities
of each party, (ii) the contract has been approved by the board of directors of
the insurer, and (iii) the contract contains, at a minimum, all of the
following provisions:(1) The controlled insurer may terminate the contract     for cause upon written notice to the controlling producer.  The controlled insurer must suspend the authority of the controlling producer to write business during the pendency of any dispute regarding the cause for the termination.(2)  The controlling producer must render accounts to     the controlled insurer detailing all material transactions, including information necessary to support all commissions, charges, and other fees received by or owing to the controlling producer.(3) The controlling producer must remit all funds due     under the terms of the contract to the controlled insurer on at least a monthly basis.  The due date must be fixed so that premiums or installments thereof collected shall be remitted no later than 90 days after the effective date of any policy placed with the controlled insurer.(4)  All funds collected for the controlled insurer's     accounts shall be held by the controlling producer in a fiduciary capacity in one or more appropriately identified bank accounts in banks that are members of the Federal Reserve System in accordance with the provisions of the Illinois Insurance Code.  However, funds of a controlling producer not required to be licensed in this State shall be maintained in compliance with the requirements of the controlling producer's domiciliary jurisdiction.(5) The controlling producer must maintain separately     identifiable records of business written for the controlled insurer.(6) The contract may not be assigned in whole or in     part by the controlling producer.(7) The controlled insurer shall provide the     controlling producer with its underwriting standards, rules and procedures, manuals setting forth the rates to be charged, and the conditions for the acceptance or rejection of risks.  The controlling producer shall adhere to the standards, rules, procedures, rates, and conditions.  The standards, rules, procedures, rates, and conditions must be the same as those applicable to comparable business placed with the controlled insurer by a producer other than the controlling producer.(8) The contract shall establish rates and terms of     the controlling producer's commissions, charges, or other fees and the purposes for those charges or fees.  The rates of the commissions, charges, and other fees shall be no greater than those applicable to comparable business placed with the controlled insurer by producers other than controlling producers.  For purposes of this paragraph and paragraph (7) of this subsection, examples of "comparable business" include the same lines of insurance, same kinds of insurance, same kinds of risks, similar policy limits, and similar quality of business.(9) If the contract provides that the controlling     producer is to be compensated on insurance business placed with the insurer contingent upon the insurer's profits on that business, then the compensation shall not be determined and paid until at least 5 years after the premiums on liability insurance are earned and at least one year after the premiums on any other insurance are earned.  In no event shall the commissions be paid until the adequacy of the controlled insurer's reserves on remaining claims has been independently verified under subsection (e) of this Section.(10) The contract shall establish a limit on the     controlling producer's writings in relation to the controlled insurer's surplus and total writings.  The insurer may establish a different limit for each line or sub-line of business.  The controlled insurer shall notify the controlling producer when the applicable limit is approached and may not accept business from the controlling producer if the limit is reached.  The controlling producer may not place business with the controlled insurer if it has been notified by the controlled insurer that the limit has been reached.(11) The controlling producer may negotiate, but     shall not bind, reinsurance on behalf of the controlled insurer on business the controlling producer places with the controlled insurer, except that the controlling producer may bind facultative reinsurance contracts under obligatory facultative agreements if the contract with the controlled insurer contains underwriting guidelines including, for both reinsurance assumed and ceded, a list of reinsurers with which those automatic agreements are in effect, the coverages and amounts or percentage that may be reinsured, and commission schedules.(e) Every controlled insurer shall have an audit committee of the board
of directors composed of independent directors.  The audit committee shall
meet annually with management, the insurer's independent certified public
accountants, and an independent casualty actuary or other independent loss
reserve specialist acceptable to the Director to review the adequacy of the
insurer's loss reserves.(f) In addition to any other required loss reserve certification, on
April 1 of each year the controlled insurer shall file with the Director an
opinion of an independent casualty actuary or another independent loss
reserve specialist acceptable to the Director reporting loss ratios for
each line of business written and attesting to the adequacy of loss
reserves established for losses incurred and outstanding as of the end of
the previous year including, but not limited to, losses incurred but not
reported on business placed by the controlling producer.  On April 1 of
each year the insurer shall report to the Director (i) the amount of
commissions paid to the controlling producer and the percentage of the net
premiums written that amount represents and (ii) the amount of commissions paid
to noncontrolling producers for placements of the same kinds of insurance
and the percentage of the net premiums written that amount represents.
		(Source: P.A. 87-1090.) (215 ILCS 107/20)Sec. 20. 
		Disclosure. 
		The producer shall deliver written notice to
the prospective insured before the effective date of any policy disclosing
the relationship between the producer and the controlled insurer; except
that if the business is placed through a subproducer who is not a
controlling producer, the controlling producer shall retain in his records
a signed commitment from the subproducer that the subproducer is aware of the
relationship between the controlling producer and the insurer and that the
subproducer has or will notify the insured.  The requirements of this Section
apply to all policies written or renewed more than 59 days after the effective
date of this Act.
		(Source: P.A. 87-1090.) (215 ILCS 107/25)Sec. 25. 
		Penalties.(a) If the Director believes that the controlling producer or any other
person has not materially complied with this Act or any regulation or order
promulgated hereunder, after notice and opportunity to be heard, the Director
may order the controlling producer to cease placing business with the
controlled insurer.  If it is found that the controlled insurer or any
policyholder thereof has suffered any loss or damage because of the material
noncompliance, the Director may maintain a civil action or intervene in an
action brought by or on behalf of the insurer or policyholder for recovery of
compensatory damages or other appropriate relief.  This subsection (a) shall
not be construed to prevent any other person from taking civil action against a
controlling producer.(b) If an order for liquidation or rehabilitation of the controlled
insurer has been entered under Article XIII of the Illinois Insurance Code
and the receiver appointed under that order believes that the controlling
producer or any other person has not materially complied with this Act or
any regulation or order promulgated hereunder and the insurer suffered any
loss or damage as a result, the receiver may maintain a civil action for
recovery of damages or other appropriate sanctions for the benefit of the
insurer.(c) Nothing in this Section shall affect the right of the Director to
impose any other penalties authorized under the Illinois Insurance Code.(d) Nothing in this Section is intended to, or shall in any manner,
alter or affect the rights of policyholder, claimants, creditors, or other
third parties.
		(Source: P.A. 87-1090; 88-364.) (215 ILCS 107/30)Sec. 30. 
		Administration of Act. 
		The Department of Insurance shall
administer this Act and may promulgate reasonable and necessary rules for that
purpose.
		(Source: P.A. 87-1090.) (215 ILCS 107/99)Sec. 99. 
		This Act takes effect upon becoming law. 
		(Source: P.A. 87-1090.)
(215 ILCS 109/1)Sec. 1. 
		Short title. 
		This Act may be cited as the Dental Care Patient Protection Act.
		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/5)Sec. 5. 
		Purpose; dental care patient rights.(a) The purpose of this Act is
to provide fairness and choice to dental patients and dentists under managed
care dental benefit plans.(b) Dental care patients have the following rights:(1) A patient has the right to care consistent with     professional standards of practice to assure quality dental care, to choose the participating dentist responsible for providing his or her care, to receive information concerning his or her condition and proposed treatment, to refuse any treatment to the extent permitted by law, and to privacy and confidentiality of records except as otherwise provided by law.(2) A patient has the right, regardless of source of     payment, to examine and to receive a reasonable explanation of his or her total bill for services rendered by his or her dentist. A dentist shall be responsible only for a reasonable explanation of those specific dental care services provided by the dentist.(3) A patient has the right to timely prior notice of     the termination in the event a plan cancels or refuses to renew an enrollee's participation in the plan except when the termination is for non-payment of premium or termination of the plan by the group.(4) A patient has the right to privacy and     confidentiality. This right may be expressly waived in writing by the patient or the patient's guardian.(5) A patient has the right to purchase any dental     care services with that patient's own funds.		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/10)Sec. 10. 
		Definitions. 
		As used in this Act:"Dental care services" means services permitted to be performed by a
licensed dentist or any person working under the dentist's supervision as
permitted by law."Dentist" means a person licensed to practice dentistry in any state."Department" means the Department of Insurance."Director" means the Director of Insurance."Emergency dental services" means the provision of dental care for a
sudden, acute dental condition that would lead a prudent layperson, who
possesses an average knowledge of dentistry, to reasonably expect the absence
of immediate care to result in serious impairment to the dentition or would
place the person's oral health in serious jeopardy."Enrollee" means an individual and his or her dependents who are enrolled
in a managed care dental plan."Managed care dental plan" or "plan" means a plan that establishes,
operates, or maintains a network of dentists that have entered into
agreements with the plan to provide dental care services to enrollees to whom
the plan has the obligation to arrange for the provision of or payment for
services through organizational arrangements for ongoing quality assurance,
utilization review programs, or dispute resolution.For the purpose of this Act, "managed care dental plans" do not include
employee or employer self-insured dental benefit plans under the federal ERISA
Act of 1974."Point-of-service plan" means a plan or plans that includes both in-plan
covered services and out-of-plan covered services as well as managed dental
care
plan arrangements in which the risk for out-of-plan covered services is borne
through reinsurance.  The term also includes indemnity benefits that are
underwritten in whole by a licensed insurance carrier or a self-funded employer
group.  For purposes of this Section, "out-of-plan services" means those
services which are obtained from providers who do not have a contract, or any
other arrangements, with a managed care dental plan or services obtained
without
a referral from providers who have contracted to provide services to the
enrollees on behalf of the managed care dental plan."Primary care provider (dentist)" means a dentist, having an arrangement
with a managed care dental plan, selected by an enrollee or assigned to an
enrollee by a plan to provide dental care services under a managed care
dental plan."Prospective enrollee" means an individual eligible for enrollment in a
managed care dental plan offered by that individual's employer."Provider" means either a general dentist or a dentist who is a licensed
specialist.
		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/15)Sec. 15. 
		Rules. 
		The Department may promulgate such
rules as it deems reasonably necessary to implement the terms
of
this Act.  The Department shall establish an advisory committee made up of
representatives from the dental profession to provide clinical advice and
counsel to the Department regarding dental managed care issues for which a
dentist's professional training is relevant in the course of administering this
Act.  The advisory committee shall be comprised of dentists licensed to
practice
in Illinois, appointed by the Director as follows: 2
dental directors or their dentist designee from managed care dental plans which
are subject to this Act, 2 general dentists, and the dental director of
the Illinois Department of Public Health. The advisory committee shall meet as
reasonably determined by the Director.  Nothing in this Section shall be deemed
as authorizing or permitting the Department to delegate any authority to
enforce
the provisions of this Act to the advisory committee and any such delegation is
expressly prohibited hereunder.
		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/25)Sec. 25. Provision of information.(a) A managed care dental plan shall provide upon request to
prospective enrollees a written summary description of all of the following
terms of
coverage:(1) Information about the dental plan, including how     the plan operates and what general types of financial arrangements exist between dentists and the plan. Nothing in this Section shall require disclosure of any specific financial arrangements between providers and the plan.(2) The service area.(3) Covered benefits, exclusions, or limitations.(4) Pre-certification requirements including any     requirements for referrals made by primary care dentists to specialists, and other preauthorization requirements.(5) A list of participating primary care dentists in     the plan's service area, including provider address and phone number, for an enrollee to evaluate the managed care dental plan's network access, as well as a phone number by which the prospective enrollee may obtain additional information regarding the provider network including participating specialists.  However, a managed care dental plan offering a preferred provider organization ("PPO") product that does not require the enrollee to select a primary care dentist shall only be required to make available for inspection to enrollees and prospective enrollees a list of participating dentists in the plan's service area, including whether the provider is accepting new patients at each of the specific locations listing the provider. Providers shall notify managed care dental plans electronically or in writing of any changes to their information as listed in the provider directory. Managed care dental plans shall update their directories in a manner consistent with the information provided by the provider or dental management service organization within 10 business days after being notified of the change by the provider.Nothing in this paragraph (5) shall void any     contractual relationship between the provider and the plan.(6) Emergency coverage and benefits.(7) Out-of-area coverages and benefits, if any.(8) The process about how participating dentists are     selected.(9) The grievance process, including the telephone     number to call to receive information concerning grievance procedures.An enrollee shall be provided with an evidence of coverage as
required
under the Illinois Insurance Code provisions applicable to the managed care
dental plan.(b) An enrollee or prospective enrollee has the right to the most current
financial statement filed by the managed care dental plan by contacting the
Department of Insurance.  The Department may charge a reasonable fee
for providing such information.(c) The managed care dental plan shall provide to the Department, on an
annual basis, a list of all participating dentists. Nothing in this Section
shall require a particular ratio for any type of provider.(d) If the managed care dental plan uses a capitation method of
compensation to its primary care providers (dentists), the plan must
establish and follow procedures that ensure that:(1) the plan application form includes a space in     which each enrollee selects a primary care provider (dentist);(2) if an enrollee who fails to select a primary care     provider (dentist) is assigned a primary care provider (dentist), the enrollee shall be notified of the name and location of that primary care provider (dentist); and(3) primary care provider (dentist) to whom an     enrollee is assigned, pursuant to item (2), is physically located within a reasonable travel distance, as established by rule adopted by the Director, from the residence or place of employment of the enrollee.(e) Nothing in this Act shall be deemed to require a plan to assign an
enrollee to a primary care provider (dentist).
(Source: P.A. 99-329, eff. 1-1-16.) (215 ILCS 109/35)Sec. 35. 
		Credentialing; utilization review; provider input.(a) Participating dentists shall be given an opportunity to comment on the
plan's policies affecting their services to include the plan's dental policy,
including coverage of a new technology and procedures, utilization review
criteria and procedures, quality and credentialing criteria, and dental
management procedures provided, however, a plan shall not be required to
release any information which it deems confidential or proprietary.(b) Upon request, managed care dental plans shall disclose to prospective
purchasers the process about how participating dentists are selected for the
plan.(c) A dentist under consideration for inclusion in a managed care dental
plan that requires the enrollee to select a primary care provider (dentist)
shall be subject to the managed care dental plan's credentialing policy, which
shall be overseen by the dental director of the managed care dental plan.(d) Credentialing of dentists who will participate in a managed care
dental plan that requires its enrollees to select a primary care provider
(dentist) shall be based on identified guidelines that have been adopted by the
plan. The managed care dental plan shall make the credentialing guidelines
available to applicants, upon request.(e) A managed care dental plan shall have a dental director who is a
licensed dentist. The dental director shall ultimately be responsible for the
benefit coverage decisions made by the plan which require professional dental
training and clinical judgement. Decisions made by the plan to deny coverage
for
a procedure, based primarily upon clinical judgment, or that a payment for an
alternative procedure should be considered must be made by the dental director
or a licensed dentist acting under the supervision of the dental director.
Nothing in this Section prohibits a benefit coverage decision that does not
require a dentist's professional judgment from being denied without a dentist's
involvement.A provider advocating on behalf of a patient who has had a claim denied, the
basis of which requires professional dental training and judgment, or was
offered an alternative benefit for payment by the plan has an opportunity to
appeal to the dental director by submitting a written appeal and providing
information that is reasonably needed to consider the appeal. The dental
director or a licensed dentist acting under the supervision of the dental
director shall respond to the provider's appeal. Enrollees shall be afforded
appeal rights as specified in the benefits contract or as otherwise provided by
law.(h) A managed care dental plan may not exclude a provider solely because
of the anticipated characteristics of the patients of that provider.(i) Before terminating a contract with a provider for cause,  the managed
care dental plan shall provide a written explanation of the reasons for
termination.  The provider shall be given an opportunity for discussion with
the
dental director or his dentist designee.
If a managed care dental plan conducts or uses utilization profiling as the
primary basis for terminating the provider contract for cause, the managed care
dental plan shall make available the utilization data relevant to that provider
in advance of the termination.(j) A communication relating to the subject matter provided for under
subsection (a) or (i) of this Section may not be the basis for a cause of
action for libel or slander, except for disclosures or communications with
parties other than the plan or provider.(k) The managed care dental plan shall establish reasonable procedures for
assuring a transition of enrollees of the plan to new providers.(l) This Act does not prohibit a managed care dental plan from rejecting
an application from a provider based on the plan's determination that the
plan has sufficient qualified providers or if the plan reasonably determines
that inclusion of the provider is not in the best interest of the managed care
dental plan and its enrollees.  Nothing in this Act shall be construed as
requiring a managed care dental plan to contract with a dentist who has not
agreed to the terms of participation as specified by the plan.(m) No contractual provision shall in any way prohibit a dentist from
discussing all clinical options for treatment with a patient.(n) A managed care dental plan shall submit for the Director's approval,
and thereafter maintain, a system for the resolution of grievances concerning
the provision of dental care services or other matters concerning operation
of the managed care dental plan.
		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/40)Sec. 40. 
		Coverage; prior authorization. 
		A managed care dental plan
shall:(1) cover palliative treatment for emergency dental     services, as included in its certificate of coverage, without regard to whether the provider furnishing the services has a contractual or other arrangement with the entity to provide items or services to covered individuals, provided that the enrollee has made a reasonable attempt to first obtain service through the appropriate primary care dentist; and(2) if an enrollee suffers trauma to the mouth, teeth     or oral cavity that results in a need for emergency dental services, as included in the certificate of coverage, provide that the prior authorization requirement for emergency dental is waived.Nothing in this Section shall be deemed as requiring managed care
dental plans to provide coverage for emergency dental services in excess of
that
required in the Illinois Insurance Code.
		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/45)Sec. 45. 
		Prior authorization; consent forms. 
		A plan for which prior
authorization is a condition to coverage of a service must clearly disclose
this
provision in the evidence of coverage.
		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/50)Sec. 50. 
		Point-of-service plans.(a) If an employer who has 25 or more employees and contributes 25% or more
to the cost of the dental benefit plan coverage to employees and the
only dental plan coverage being offered requires enrollees to select a
primary care provider (dentist) and has no out-of-plan covered services
option, the managed care dental plan with which the employer is
contracting for the coverage shall offer a dental point-of-service
("POS") option to the employee.(b) An employer may require an employee who accepts the POS option to be
responsible for the payment of a premium over the amount of the premium for
the coverage provided to employees under the dental benefit plan offered
which requires enrollees to select a primary care provider (dentist) and has
no out-of-plan covered services option.  The enrollee may pay any additional
premium either directly or by payroll deduction in the same manner in which
the other premium is paid.  The premium for the POS option shall be as
established by the managed care dental plan using its underwriting
guidelines for establishing rates to be charged for products which it
offers.(c) Different cost-sharing provisions may be imposed for the POS
option.(d) An employer may charge an employee who accepts the POS option a
reasonable administrative fee for costs associated with the employer's
reasonable administration of the POS option.(e) The POS option to be offered pursuant to this Section may be satisfied
by the plan by allowing prospective enrollees to elect the POS option during
the
employer's enrollment period, and remaining in the POS option until the next
open enrollment period, or any other basis reasonably determined by the plan to
satisfy the requirements of this Section.(f) A managed care dental plan required to offer a POS option pursuant to
this Act shall be subject to those rules for POS products as
set by the Department.
		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/55)Sec. 55. 
		Private cause of action; existing remedies. 
		This Act and rules
adopted under this Act do not:(1) provide a private cause of action for damages or     create a standard of care, obligation, or duty that provides a basis for a private cause of action for damages; or(2) abrogate a statutory or common law cause of     action, administrative remedy, or defense otherwise available and existing before the effective date of this Act.		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/60)Sec. 60. 
		Record of complaints.(a) The Department shall maintain records concerning the complaints
filed against the plan with the Department.  The Department shall
make a summary of all data collected available upon request and publish
the summary on the World Wide Web.(b) The Department shall maintain records on the number of complaints
filed against each plan.(c) The Department shall maintain records classifying each complaint by
whether the complaint was filed by:(1) a consumer or enrollee;(2) a provider; or(3) any other individual.(d) (Blank).(e) The Department shall maintain records classifying each complaint
according to the nature of the complaint as it pertains to a specific
function of the plan. The complaints shall be classified under the following
categories:(1) denial of care or treatment;(2) denial of a diagnostic procedure;(3) denial of a referral request;(4) sufficient choice and accessibility of dentists;(5) underwriting;(6) marketing and sales;(7) claims and utilization review;(8) member services;(9) provider relations; and(10) miscellaneous.(f) The Department shall maintain records classifying the disposition of
each complaint. The disposition of the complaint shall be classified in one
of the following categories:(1) complaint referred to the plan and no further     action necessary by the Department;(2) no corrective action deemed necessary by the     Department; or(3) corrective action taken by the Department.(g) No Department publication or release of information shall identify any
enrollee, dentist, or individual complainant.
		(Source: P.A. 91-355, eff. 1-1-00; 92-16, eff. 6-28-01.) (215 ILCS 109/65)Sec. 65. 
		Administration of Act. 
		The Director may adopt rules necessary to implement the Department's
responsibility under this Act.  To enforce the provisions of this Act, the
director may issue a cease and desist order or require a managed care dental
plan to submit a plan of correction for violations of this Act, or both.
Subject
to the provisions of the Illinois Administrative Procedure Act, the Director
may impose an administrative fine, not to exceed $1,000, for failure
to submit a requested plan of correction, failure to comply with its plan of
correction, or repeated violations of the Act.  All final decisions regarding
the imposition of a fine shall be subject to review under the Illinois
Administrative Review Law.
		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/70)Sec. 70. 
		Retaliation prohibited. 
		A managed care dental plan may not
take any retaliatory actions, including cancellation or refusal to renew a
policy, against an employer or enrollee solely because the employer or
enrollee has filed complaints with the plan or appealed a decision of the
plan.
		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/75)Sec. 75. 
		Application of other law.(a) All provisions of this Act and other applicable law that are not in
conflict with this Act shall apply to managed care dental plans and other
persons subject to this Act.(b) Solicitation of enrollees by a managed care entity granted a
certificate of authority or its representatives shall not be construed to
violate any provision of law relating to solicitation or advertising by
health professionals.
		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/80)Sec. 80. 
		Limitations on indemnification provisions. 
		No contract between
a managed care dental plan and a provider may require that the provider
indemnify the managed care dental plan for the Plan's, or its officers,
employees, or agents, negligence, willful misconduct, or breach
of contract, if any, provided nothing herein shall relieve the provider for
such obligations that have been delegated to the provider pursuant to written
agreement.  The delegation of functions agreed to between the plan and the
provider shall be identified in the written agreement.
		(Source: P.A. 91-355, eff. 1-1-00.) (215 ILCS 109/85)Sec. 85. 
		Severability. 
		The provisions of this Act are severable under
Section 1.31 of the Statute on Statutes.
		(Source: P.A. 91-355, eff. 1-1-00.)
(215 ILCS 110/1) (from Ch. 32, par. 690.1)Sec. 1. 
		
		This Act may be cited as the
Dental Service Plan Act.
		(Source: P.A. 86-1475.) (215 ILCS 110/2) (from Ch. 32, par. 690.2)Sec. 2. 
		
		For the purpose of this Act, the terms set forth in Sections 3
through 14, inclusive, have the respective meanings specified therein,
unless different meanings are plainly indicated by the context.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/3) (from Ch. 32, par. 690.3)Sec. 3. 
		
		"Dental service plan corporation" means a corporation organized
under the terms of this Act for the sole and specific purpose of
establishing and operating a dental service plan.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/4) (from Ch. 32, par. 690.4)Sec. 4. 
		
		"Dental service plan" means a plan or system under which dental
service may be rendered to a subscriber or other beneficiary by a duly
licensed dentist, at the expense of a dental service plan corporation, in
consideration of prepayments made by or on behalf of a subscriber prior to
the occurrence of the condition requiring dental service.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/5) (from Ch. 32, par. 690.5)Sec. 5. 
		
		"Dental service" means the ordinary and usual professional services
rendered by dentists licensed in Illinois to practice dentistry and dental
surgery.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/6) (from Ch. 32, par. 690.6)Sec. 6. 
		
		"Subscriber" means a natural person to whom a subscription
certificate has been issued by a dental service plan corporation.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/7) (from Ch. 32, par. 690.7)Sec. 7. 
		
		"Beneficiary" means a person designated in a subscription
certificate as one entitled to receive dental service.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/8) (from Ch. 32, par. 690.8)Sec. 8. 
		
		"Subscription certificate" means a certificate issued to a
subscriber by a dental service plan corporation, setting forth the terms
and conditions upon which a dental service plan corporation shall be liable
to pay for dental service rendered to a subscriber or beneficiary.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/9) (from Ch. 32, par. 690.9)Sec. 9. 
		
		"Covered dependent" means a subscriber's spouse, or a subscriber's
child under the age of 19 years.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/10) (from Ch. 32, par. 690.10)Sec. 10. 
		
		"Participating dentist" means a dentist licensed in Illinois to
practice dentistry, and who, by written agreement with a dental service
plan corporation undertakes to furnish dental service to the plan's
subscribers and their covered dependents and to abide by its by-laws, rules
and regulations.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/11) (from Ch. 32, par. 690.11)Sec. 11. 
		
		"Director" means the Director of Insurance of the State of
Illinois.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/12) (from Ch. 32, par. 690.12)Sec. 12. 
		
		All masculine pronouns may import the masculine, feminine or
neuter gender.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/13) (from Ch. 32, par. 690.13)Sec. 13. 
		"Person" means any of the following: 
		natural person, corporation,
co-partnership or association of persons.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/14) (from Ch. 32, par. 690.14)Sec. 14. 
		
		"Geographic area" means an area consisting of 2 or more contiguous
counties, except that a county having more than 500,000 inhabitants may be
a geographic area.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/15) (from Ch. 32, par. 690.15)Sec. 15. 
		
		It is unlawful for any person, except a dental service plan
corporation chartered in accordance with the provisions of this Act and
operating in accordance with authority from the Director, to establish,
maintain or operate a dental service plan, or to solicit subscribers to
or enter into contracts with respect to a dental service plan. This
prohibition, however, shall not be construed as preventing the
organization, establishment and operation of corporations organized in
accordance with the provisions of the Voluntary Health Services Plans
Act nor shall it be construed as
preventing a person from furnishing dental services for the prevention
of disease among his employees or from furnishing such dental service as
is required under the workers' compensation laws and related
legislation, when the employee is not charged for such services; nor
shall it be construed to prohibit an insurance company, or other
corporation or society which is subject to the supervision of the
Director, from operating in accordance with the laws governing insurance
companies, or such corporations or societies; nor shall it be construed
to prohibit the continued operation of any dental, medical, or health
service plan in existence and functioning upon the effective date of
this Act.
		(Source: P.A. 88-364.) (215 ILCS 110/15.1) (from Ch. 32, par. 690.15a)Sec. 15.1. 
		No new plans may be chartered. 
		No dental service plan
shall be issued a charter for the purpose of doing business under this Act
after the effective date of this Amendatory Act of 1989.
		(Source: P.A. 86-600.) (215 ILCS 110/16) (from Ch. 32, par. 690.16)Sec. 16. 
		
		Nine or more natural persons of legal age, all of whom are
residents of Illinois and citizens of the United States, and at least a
majority of whom are dentists licensed in Illinois to practice dentistry,
may form, under the provisions of this Act, a dental service plan
corporation for the purpose of establishing and operating a dental service
plan or plans. Such corporation shall be subject to regulation and
supervision by the Director as hereinafter provided, but shall not be
subject to the laws of this State with respect to insurance corporations,
except as provided in this Act.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/17) (from Ch. 32, par. 690.17)Sec. 17. The business and affairs of a dental service plan corporation
shall be managed by a board of trustees, which shall have the power to
adopt and to amend, from time to time, by-laws governing the conduct of the
corporation's business. The number of trustees shall be not less than 9 nor
more than 21. Subject to such limitation, the number of trustees shall be
fixed by the by-laws, except as to the number of the first board of
trustees which number shall be fixed by the charter, and the number of
trustees may be increased or decreased from time to time by amendment to
the by-laws. In the absence of a by-law fixing the number of trustees, the
number shall be the same as that stated in the charter. The trustees
constituting the first board of trustees shall be named in the charter and
shall hold office for such period or periods as may be specified in the
charter or the by-laws. Trustees may be divided into classes and the terms
of office of the several classes need not be uniform, but no such term
shall exceed 3 years. Each trustee shall hold office for the term for which
he is elected and until his successor has been elected and qualified. Any
vacancy occurring in the board of trustees and any trusteeship to be filled
by reason of an increase in the number of trustees may be filled by the
board of trustees. A trustee appointed to fill a vacancy shall be appointed
for the unexpired term of his predecessor in office. Each trustee shall be
of legal age and a citizen of the United States. At least one-third of the trustees shall be participating dentists of the corporation licensed in Illinois to practice
dentistry who are also residents of Illinois, and they shall be designated as "dental trustees". The remaining
trustees shall be designated as "public trustees". As the terms
of dental trustees expire, they shall be replaced, from time to time, by participating
dentists of the corporation licensed in Illinois to practice dentistry who are also residents of Illinois, and elected by the corporation's participating dentists, in the manner
prescribed by the by-laws. As the terms of public trustees expire, they
shall be replaced, from time to time, by election by the corporation's
subscribers, in the manner prescribed by the by-laws. Voting
by proxy shall be permitted.
(Source: P.A. 97-989, eff. 1-1-13.) (215 ILCS 110/18) (from Ch. 32, par. 690.18)Sec. 18. 
		
		A dental service plan corporation may, in the discretion of its
board of trustees, through its by-laws, limit or define the classes of
persons who shall be eligible to become subscribers, limit and define the
benefits which it will furnish, and may divide such benefits as it
undertakes to furnish into classes or kinds. In the absence of any such
limitation or division of service, such a corporation may provide either or
both general and special dental benefits, including such service as may be
necessarily incident to dental care. Such corporation may limit the
issuance of subscription certificates to residents of any geographic area
specified in its by-laws.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/19) (from Ch. 32, par. 690.19)Sec. 19. 
		
		Every dentist licensed in Illinois to practice dentistry, and who
is reputable and in good standing, shall be eligible to become a
participating dentist in the dental service plan corporation operating in
the geographic area in which he resides or practices, under such terms and
conditions as are imposed on other participating dentists under similar
circumstances. A dental service plan corporation shall impose no
restrictions on the dentists who treat its subscribers as to methods of
diagnosis or treatment. The private dentist-patient relationship shall be
maintained, and a subscriber shall at all times have free choice of any
dentist who is a participating dentist in the corporation and who agrees to
accept a particular beneficiary as a patient.Except as otherwise provided in Section 15 of this Act, no person
shall offer to the public any dental service plan or otherwise engage in
the business of a dental service plan corporation without having first
received a charter from the Director.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/20) (from Ch. 32, par. 690.20)Sec. 20. 
		The charter of a dental service plan corporation shall set forth:(a) The corporate name;(b) The location of its principal office and the name and address of its
registered agent;(c) The period of duration, which may be perpetual;(d) A description of the type of business in which it is to have the
power to be engaged;(e) The amount of capital to be contributed to the corporation before it
shall commence doing business;(f) A designation of the geographic area in which it is proposed that
the corporation shall have authority to engage in business;(g) The names, places of residence, and occupations of each of the
incorporators;(h) Such other provisions not inconsistent with law as may be determined
by the Director to be necessary or advisable.Each such corporation shall have and continuously maintain in this state
a registered office which may be, but need not be, the same as its place of
business, and a registered agent, which agent may be any person having a
business office in this state. The name and address of the initial
registered agent and the initial registered office of the corporation shall
be set forth in its charter.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/21) (from Ch. 32, par. 690.21)Sec. 21. 
		
		Prior to the issuance of a charter to any such corporation, the
following information shall be furnished to the Director:(a) The occupation, qualifications and place of residence and
professional or business address, if any, of each of the incorporators;(b) The name of each contributor to the capital of the corporation, the
amount contributed by him and the terms of such contribution;(c) A copy of the by-laws to be adopted by the Board of Trustees upon
the issuance of a charter;(d) Specimen copies of all subscription certificates which it is
proposed the corporation shall issue to subscribers, which certificates
shall set forth in detail the rates to be charged subscribers and the
nature and extent of the dental service which the subscriber or other
beneficiary shall be entitled to receive at the expense of the corporation;(e) Copies of all agreements to be entered into between the dental
service plan corporation and participating dentists, which shall set forth
in detail the terms and conditions upon which a participating dentist shall
render dental service to subscribers of the corporation;(f) A detailed statement as to the dental service plan or plans which
the corporation proposes to offer, including the rates to be charged and
the benefits to be provided;(g) Proof satisfactory to the Director that in the geographic area in
which it is proposed that the dental service plan corporation shall
operate, at least a majority of the licensed dentists residing and in
active practice in such geographic area have agreed to become participating
dentists in association with the dental service plan corporation;(h) The name and business address of the person who shall be the initial
registered agent of the corporation and the address of its initial
registered office;(i) Such other information as the Director determines to be necessary or
advisable.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/22) (from Ch. 32, par. 690.22)Sec. 22. 
		
		Amendments to a charter shall be made by application to the
Director and shall be subject to his approval.Amendments to a charter having the effect of adding one or more
additional counties in which the dental service plan corporation shall
operate may, if a majority of the dentists residing and in active practice
therein have agreed to become participating dentists, be adopted by the
affirmative vote of a majority of the trustees then in office.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/23) (from Ch. 32, par. 690.23)Sec. 23. 
		
		After the issuance of a charter, the Director, as he deems in the
public interest, may authorize a dental service plan corporation to solicit
and fulfill contracts, or require a dental service plan corporation to
charge rates or to utilize soliciting methods different from those on which
the charter was based, provided that such contracts and practices are in
compliance with provisions of this Act and are not violative of other laws
of this State.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/24) (from Ch. 32, par. 690.24)Sec. 24. 
		
		The Director may revoke or amend, after reasonable notice and
hearing, any charter, certificate, order, authority or consent made by him
to a dental service plan corporation on being satisfied (1) that the
further solicitation of subscribers or further continuance of the practices
in question will work a fraud on subscribers, (2) that the rates charged or
the benefits provided are not fair and reasonable to both the subscriber
and the corporation. The Director after reasonable notice and hearing may
also cancel the authority of the corporation to transact business in any
particular geographic area if he finds that less than a majority of the
eligible licensed dentists practicing in that geographic area are
participating dentists.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/25) (from Ch. 32, par. 690.25)Sec. 25. Application of Insurance Code provisions. Dental service
plan corporations and all persons interested therein or dealing therewith
shall be subject to the provisions of Articles IIA, XI, and XII 1/2
and
Sections 3.1,
133, 136, 139, 140, 143, 143c, 149, 355.2, 355.3, 367.2, 401, 401.1, 402, 403, 403A, 408,
408.2, and 412, and subsection (15) of Section 367 of the Illinois Insurance
Code.
(Source: P.A. 99-151, eff. 7-28-15.) (215 ILCS 110/26) (from Ch. 32, par. 690.26)Sec. 26. 
		Examination of corporations. 
		The Director shall have, with
respect to dental service plan
corporations, the powers of examination conferred upon him relative to
insurance companies by Sections 132 through 132.7 of the
Illinois Insurance Code. The cost of any examination
shall be paid by the corporation examined.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 110/27) (from Ch. 32, par. 690.27)Sec. 27. 
		
		No dental service plan corporation shall enter into any contract
with a subscriber until it has filed with the Director a schedule of rates
to be paid by a subscriber to each type of contract, and the Director has
approved the rate for each type of contract.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/27.1)Sec. 27.1. Reinsurance agreement; filing. A dental service plan may enter into reinsurance agreements for dental service.  Any reinsurance agreement shall be subject to the provisions of the laws of this State regarding reinsurance as provided in Article XI of the Illinois Insurance Code. All reinsurance agreements must be filed with the Director. A reinsurance agreement which is not disapproved by the Director within 30 days after its submission shall be deemed approved.
(Source: P.A. 99-151, eff. 7-28-15.) (215 ILCS 110/28) (from Ch. 32, par. 690.28)Sec. 28. 
		
		No subscription certificate shall be issued by any dental service
plan corporation until the form thereof has been filed with and approved
by the Director, together with all applications, riders and endorsements
for use in connection with the issuance or renewal thereof.  It shall be
the duty of the Director to withhold approval of any contract form filed
with him if it violates any provisions of this Act, or if it violates or
is contrary to any provisions of Sections 143, 355 and 355a of the "Illinois
Insurance Code", approved June 29, 1937, as amended, which are not inconsistent
or in conflict with provisions of this Act.
		(Source: P.A. 79-681.) (215 ILCS 110/29) (from Ch. 32, par. 690.29)Sec. 29. 
		
		Every subscription certificate made by a dental service plan
corporation shall provide for the payment for dental services as therein
specified for a period of 12 months from the date of issue of the
subscription certificate. Any such contract may provide that it shall
ordinarily be renewed from year to year, unless there has been one
month's prior written notice of termination either by the subscriber or
by the corporation. During the first contract year the provisions of the
contract may provide that the inception of coverage may be deferred for
not more than 2 months from date of issue of the contract and may
exclude treatment for illness or other condition requiring dental
service existing at the inception of the contract.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/30) (from Ch. 32, par. 690.30)Sec. 30. 
		
		Every contract entered into between a dental service plan
corporation and a subscriber shall be in writing and a certificate stating
the terms and conditions thereof shall be furnished the subscriber. No such
subscription certificate shall be issued unless it contains the following
provisions:(a) A statement of the amounts payable to the corporation by the
subscriber and the times and manner in which such amounts shall be paid;(b) A statement of the nature of the dental services to be paid for and
the period during which the certificate shall be effective; and if there
are any types of dental services to be excepted, a detailed statement of
such exceptions printed as hereinafter specified;(c) A statement of the terms or conditions, if any, upon which the
certificate may be cancelled or otherwise terminated at the option of
either party;(d) A statement that the subscription certificate, including any
endorsements and applications attached, constitutes the entire contract
between the corporation and the subscriber;(e) A statement that no statement by the subscriber in his application
for a certificate shall void the contract or be used in any legal
proceeding thereunder, unless such application or an exact copy thereof is
included in or attached to the certificate, and that no agent or
representative of such corporation, other than an officer or officers
designated in the certificate, is authorized to change the contract or
waive any of its provisions;(f) A statement that if the subscriber defaults in making any payment
under the certificate, the subsequent acceptance of a payment by the
corporation or by one of its duly authorized agents shall reinstate the
certificate, but with respect to disease and injury may cover only such
disease or injury as may be first manifested more than a specified number
of days, not exceeding 10, after the date of such acceptance;(g) A statement of the period of grace which will be allowed the
subscriber for making any payment due under the contract. Such period shall
not be less than 10 days; and(h) A statement that indemnity in the form of cash will not be paid to
any subscriber except in reimbursement for payments made by the subscriber
to a dentist and for which the corporation was liable at the time of such
payment.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/30.1) (from Ch. 32, par. 690.30-1)Sec. 30.1. 
		
		(1)  No service plan contract of a dental service plan
corporation which in addition to covering the subscriber, also covers members
of the subscriber's immediate family, shall contain any disclaimer, waiver or
other limitation of coverage relative to the dental service benefits for
or insurability of newborn infants of the subscriber from and after the
moment of birth.(2) Each such contract shall contain a provision stating that the
dental service benefits applicable for children shall be granted immediately
with respect to a newly born child from the moment of birth.  The coverage
for newly born children shall include coverage of illness, injury, congenital
defects, birth abnormalities and premature birth.(3) If payment of a specific subscription fee is required to provide
coverage for a child, the contract may require that notification of birth of
a newly born child must be furnished to the corporation within 31 days after
the date of birth in order to have the coverage continue beyond such 31 day
period and may require payment of the appropriate fee.(4) The requirements of this Section shall apply to all contracts delivered,
issued for delivery, renewed, or amended on or after the sixtieth day following
the effective date of this Section.
		(Source: P.A. 79-74.) (215 ILCS 110/30.2) (from Ch. 32, par. 690.30-2)Sec. 30.2. 
		Medical Assistance Exclusions Prohibited. 
		No
service plan contract delivered, issued for delivery, renewed, or
amended by a dental service plan corporation shall contain any
provision which limits or excludes payments of hospital or medical
benefits coverage to or on behalf of the subscriber because the subscriber
or any covered dependent is eligible for or is receiving medical assistance
benefits under Article V, VI, or VII of The Illinois Public Aid Code.The requirements of this Section shall apply to all such service
plan contracts delivered, issued for delivery, renewed or amended on
or after 30 days following the effective date of this Section.
		(Source: P.A. 82-330.) (215 ILCS 110/30.3) (from Ch. 32, par. 690.30-3)Sec. 30.3. 
		Medical Assistance Exclusions Void. 
		Any provision
contained in a service plan contract issued by a dental service plan
corporation which limits or excludes payments of hospital or medical
benefits or both to or on behalf of the subscriber because the subscriber
or any covered dependent is eligible for or is receiving medical
assistance benefits under Article V, VI, or VII of The Illinois
Public Aid Code shall be void after 30 days following the effective
date of this Section.
		(Source: P.A. 82-330.) (215 ILCS 110/31) (from Ch. 32, par. 690.31)Sec. 31. 
		
		In every such subscription certificate, referred to in Section
30:(a) All printed portions shall be plainly printed in type of which the
face is not smaller than 10 point;(b) There shall be a brief description of the subscription certificate
on its first page and on its filing back in type of which the face is not
smaller than 14 point;(c) The exceptions of the contract shall appear with the same prominence
in the certificate as the benefits to which they apply; and(d) If the contract contains any provisions purporting to make any
portion of the charter or of the by-laws of the corporation a part of the
contract, such portions shall be set forth in full in the subscription
certificate.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/32) (from Ch. 32, par. 690.32)Sec. 32. 
		
		A dental service plan corporation may enter into agreements with
dentists qualified as set forth herein, under which such dentists become
participating dentists in a plan operated by the corporation. Such
corporation may make to such dentists such payments as have accrued to them
by reason of services performed under the plan. Payment for dental services
may be made to participating or nonparticipating dentists, or to
nonparticipating licensed physicians, at rates adopted by the board of
trustees. A dental service plan corporation may enter into contracts for
the payment of dental services to the subscribers or members of similar
dental service plan corporations of other states, subject to the
supervision of such other states, and shall have the right to reimburse any
other dental service plan corporation or dentists of another state or of
the geographic areas of this State in which the corporation does not
transact business for services rendered to its subscribers, or
beneficiaries named in the certificates issued to such subscribers, at the
same rate paid participating dentists under the certificate of the
subscriber.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/32.1) (from Ch. 32, par. 690.32-1)Sec. 32.1. 
		
		All claims payable in the form of indemnities under the
terms of a service plan contract or subscription certificate shall be paid
within 30 days following receipt by the corporation of due proof of loss.
A dental service plan corporation which neglects to pay a claim within 30
days following receipt by the corporation of due proof of loss shall pay
the subscriber interest at the rate of 9% per annum from the 30th day
after receipt of such proof of loss to the date of late payment.
		(Source: P.A. 85-395.) (215 ILCS 110/33) (from Ch. 32, par. 690.33)Sec. 33. 
		
		No corporation subject to the provisions of this Act shall, except
upon the approval of the Director, disburse during any one calendar year
more than 10% of the aggregate amount of payments received from subscribers
during that year as expenditures for the solicitation of subscribers,
except that during the first year after the issuance of a charter such
corporation may so disburse not more than 20% of such amount, and during
the second year not more than 15% thereof.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/34) (from Ch. 32, par. 690.34)Sec. 34. 
		
		No such corporation shall disburse during any one year, except
upon the approval of the Director, a sum greater than 20% of payments
received from subscribers during that year, as administrative expenses.The term "administrative expense" as used in this section includes all
expenditures for nonprofessional services and in general all expenses not
directly connected with the payment for dental services, but does not
include expenses of soliciting subscriptions.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/35) (from Ch. 32, par. 690.35)Sec. 35. 
		Investments; reserves; deficiencies.(a) The funds of any dental service plan corporation may be invested only in
accordance with the requirements provided by law for the investment of funds of
life insurance companies.(b) As an allocation of net worth, each dental service plan corporation
shall maintain a special contingent reserve.  The special contingent reserve
for a corporation that is beginning operations shall be equal to 5% of its
net earned subscription revenue for dental care services through December
31st of the year in which it is certified, but in no event less than $100,000.  In subsequent years, unless waived by the Director, the
corporation shall accumulate additions to the contingent reserve in an amount
which is equal to 2% of its net earned subscription revenue for each calendar
year.  For purposes of this Section, "net earned subscription revenue"
means premium minus reinsurance expenses.  Maintenance of the contingent
reserve requires that net worth equals or exceeds the contingent reserve at any
balance sheet date.  The special contingent reserve shall be provided in cash
and securities in combination and form acceptable to the Director.(c) Additional accumulations under Section 35(b) will no longer be required
when the total special contingent reserve required by
Section 35(b) is equal to or greater than 5% of the corporation's average
annual net earned subscription revenue for the corporation's preceding 2 calendar years.
 Additional accumulations under subsection (b) of this Section shall no
longer
be required when
the total special contingent reserve required by subsection (b)
of this Section is equal to $1,500,000.(d) A deficiency in meeting amounts required in subsection (b) or (c) of this Section will
require, upon notice from the Director, (1) filing of a plan for correction
of the deficiency, acceptable to the Director, within 20 days from receipt
of notice, and (2) correction of the deficiency within a reasonable time,
not to exceed 60 days from receipt of notice unless an extension of time
is granted by the Director.  Such a deficiency will be deemed an
impairment, and failure to correct the deficiency in the prescribed time
shall be grounds for rehabilitation, liquidation, conservation, or
dissolution pursuant to Section 38.
		(Source: P.A. 90-794, eff. 8-14-98.) (215 ILCS 110/36)Sec. 36. (Repealed).
	 
	 (Source: Laws 1965, p. 2179. Repealed by P.A. 97-486, eff. 1-1-12.) (215 ILCS 110/37)Sec. 37. (Repealed).
	 
	 (Source: Laws 1965, p. 2179. Repealed by P.A. 97-486, eff. 1-1-12.) (215 ILCS 110/38) (from Ch. 32, par. 690.38)Sec. 38. 
		
		To the extent that the same are applicable and not inconsistent
with the provisions of this Act, all proceedings for the rehabilitation,
liquidation, conservation or dissolution of dental service plan
corporations shall be subject to the provisions of Article XIII of the
"Illinois Insurance Code", approved June 29, 1937, as amended.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/39) (from Ch. 32, par. 690.39)Sec. 39. 
		
		Every dental service plan corporation shall pay to the Director
the fees and charges set forth in Sections 408 and 408.2 of the Illinois Insurance Code.
		(Source: P.A. 84-989.) (215 ILCS 110/40) (from Ch. 32, par. 690.40)Sec. 40. 
		
		Every dental service plan corporation shall, at the written
request of a subscriber, furnish a list of the names and addresses of all
of the dentists in the geographic area of the subscriber's residence who
have agreements with the corporation to act as participating dentists.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/41) (from Ch. 32, par. 690.41)Sec. 41. 
		
		A dental service plan corporation may receive and accept from
governmental or private agencies or from other persons, as defined in this
Act, payments covering all or part of the cost of subscriptions to provide
dental care for needy and other individuals. However, all contracts for
dental care shall be between the dental service plan corporation and the
person to receive such care.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/42) (from Ch. 32, par. 690.42)Sec. 42. 
		
		A dental service plan corporation shall not be liable for injuries
resulting from negligence, misfeasance, malfeasance, non-feasance or
malpractice on the part of any officer or employee of the corporation or on
the part of any dentist, whether participating or not, in the course of
rendering dental service to subscribers and beneficiaries.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/43) (from Ch. 32, par. 690.43)Sec. 43. 
		
		Every dental service plan corporation organized hereunder shall be
operated and conducted not-for-profit and shall be deemed a charitable and
benevolent corporation, and all of its funds and property shall be exempt
from every State, county, district, municipal and school tax or assessment,
and all other taxes and license fees, from the payment of which charitable
and benevolent corporations or institutions are now or may hereafter be
exempt. This exemption shall not prevail against fees and charges imposed
by Sections 408, 408.2, 409, 444, and 444.1 of the Illinois
Insurance Code.
The laws of this state applicable to the merger, dissolution and
liquidation of domestic not-for-profit corporations and in respect to the
rights, classification and meetings of members, the selection, change,
duties and powers of corporate officers, and the filing of annual reports
by domestic not-for-profit corporations shall be applicable to corporations
organized under this act to the extent the same are not inconsistent with
the provisions of this act. Wherever in any such laws reference is made to
"Directors" of such not-for-profit corporations, such statutory provisions
shall be deemed to apply to the trustees of corporations organized under
this act, and wherever the office of the Secretary of State is mentioned in
such an act, such provisions shall be deemed to refer to and designate the
Director of Insurance when applied to corporations organized hereunder.
		(Source: P.A. 90-583, eff. 5-29-98.) (215 ILCS 110/44) (from Ch. 32, par. 690.44)Sec. 44. 
		
		Any person, or any agent or officer of the corporation who
violates any provisions of this Act or who makes any false statement with
respect to any report or statement required by this Act or required by the
Director under this Act is guilty of a Class A misdemeanor.
		(Source: P.A. 77-2830.) (215 ILCS 110/45) (from Ch. 32, par. 690.45)Sec. 45. 
		
		The provisions of this Act are severable, and if any provision of
this Act is declared unconstitutional or the applicability thereof to any
person or circumstance is held invalid, the constitutionality of the
remainder of the Act and the applicability thereof to other persons and
circumstances shall not be affected thereby.
		(Source: Laws 1965, p. 2179.) (215 ILCS 110/46) (from Ch. 32, par. 690.46)Sec. 46. 
		
		Every final administrative decision of the Director is subject
to judicial review only under and in accordance with the Administrative
Review Law, as amended. The Administrative Review Law and all
amendments and modifications thereof, and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the Director
hereunder. The term "administrative decision" is defined as in Section
3-101 of the Code of Civil Procedure.
		(Source: P.A. 82-783.) (215 ILCS 110/47) (from Ch. 32, par. 690.47)Sec. 47. Continuance privilege; group type contracts.(1) Every
service plan contract of a dental service plan corporation which
provides that the continued coverage of a beneficiary is contingent upon
the continued employment of the subscriber with a particular employer shall
further provide for the continuance of such contract in accordance with
the requirements set forth in Section 367.2 of the Illinois Insurance Code.(2) The requirements of this Section shall apply to all such contracts
delivered, issued for delivery, renewed, or amended on or after December 1, 1985 (the effective
date of Public Act 84-556).
(Source: P.A. 102-558, eff. 8-20-21.)
(215 ILCS 111/1)Sec. 1. Short title. This Act may be cited as the Uniform Electronic Transactions in Dental Care Billing Act.
(Source: P.A. 102-146, eff. 7-23-21.) (215 ILCS 111/5)Sec. 5. Purpose.  The purpose of this Act is to standardize the forms used in the billing and reimbursement of dental care, reduce the number of forms used, increase efficiency in the reimbursement of dental care through standardization, and encourage the use of and prescribe a timetable for implementation of electronic data interchange of dental care expenses and reimbursement.
(Source: P.A. 102-146, eff. 7-23-21.) (215 ILCS 111/10)Sec. 10. Applicability.  Except as may be otherwise specifically provided, this Act applies to all dental plan carriers.
(Source: P.A. 102-146, eff. 7-23-21.) (215 ILCS 111/15)Sec. 15. Definitions.  As used in this Act:"Department" means the Department of Insurance."Director" means the Director of Insurance."Dental care provider" means a dentist who bills for services in Illinois."Dental plan carrier" means an entity subject to the insurance laws and regulations of this State or subject to the jurisdiction of the Director that contracts or offers to contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of dental care services, including an accident and health insurance company, a health maintenance organization, a limited health service organization, a dental service plan corporation, a health services plan corporation, a voluntary health services plan, or any other entity providing a plan of dental insurance, dental benefits, or dental health care services. 
(Source: P.A. 102-146, eff. 7-23-21.) (215 ILCS 111/20)Sec. 20. Uniform electronic claims and eligibility transactions required.(a)   Beginning January 1, 2025, no dental plan carrier is required to accept from a dental care provider eligibility for a dental plan transaction or dental care claims or equivalent encounter information transaction except as provided in this Act.(b)   All dental plan carriers and dental care providers must exchange claims and eligibility information electronically using the standard electronic data interchange transactions for claims submissions, payments, and verification of benefits required under the Health Insurance Portability and Accountability Act in order to be compensable by the dental plan carrier.

(Source: P.A. 102-146, eff. 7-23-21.) (215 ILCS 111/25)Sec. 25. Rules; modification of rules.(a)   The Department shall adopt rules as necessary to implement this Act and may establish exemptions to this Act by rule.(b)   A dental plan carrier or dental care provider may not add to or modify the uniform electronic claims and eligibility requirements adopted by the Department.

(Source: P.A. 102-146, eff. 7-23-21.) (215 ILCS 111/99)Sec. 99. Effective date. This Act takes effect upon becoming law.
(Source: P.A. 102-146, eff. 7-23-21.)
(215 ILCS 113/1)Sec. 1. 
		Short title. 
		This Act may be cited as the Employee Leasing
Company
Act.
		(Source: P.A. 90-499, eff. 1-1-98.) (215 ILCS 113/5)Sec. 5. 
		Purpose. 
		For the purpose of ensuring that an employer that
leases some or all of its workers properly obtains workers' compensation
insurance coverage for all of its employees, including those leased from
another entity, and that premium is paid commensurate with exposure and
anticipated claim experience, this Act is required to regulate
employee leasing companies.
		(Source: P.A. 90-499, eff. 1-1-98.) (215 ILCS 113/10)Sec. 10. 
		Applicability. 
		This Act applies to all lessors and insurers
conducting business in this State and to policies issued,
renewed,
or delivered after the effective date of this amendatory Act of 1998.
		(Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.) (215 ILCS 113/15)Sec. 15. 
		Definitions. 
		In this Act:"Department" means the Illinois Department of Insurance."Employee leasing arrangement" means a contractual arrangement,
including long-term temporary arrangements whereby a lessor obligates itself
to perform specified employer responsibilities as to leased employees including
the securing of workers' compensation insurance.  For purposes of this Act,
"employee leasing arrangement" does not include "temporary help arrangement"."Leased employee" or "worker" means a person performing services for a
lessee under an
employee leasing arrangement."Lessee" or "client company" means an entity that obtains any of its
work force from
another entity through an employee leasing arrangement."Lessor" or "employee leasing company" means an entity that leases any of
its workers to a lessee through an
employee leasing arrangement."Long-term temporary arrangement" means an arrangement where one company
leases all or a
majority number of workers from
another for a
period in excess of 6 months or consecutive periods equal to or greater than
one year."Residual market mechanism" means the residual market mechanism as
defined in Section 468 of the Illinois Insurance Code."Temporary help arrangement" means a service whereby an organization hires
its own employees and assigns them to clients for a finite time period to
support or supplement the client's work force in special work situations such
as, but not limited to, employee absences, temporary skill shortages, seasonal
workloads, and special assignments and projects.
		(Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.) (215 ILCS 113/20)Sec. 20. 
		Registration.(a) A lessor shall register with the Department prior to becoming a
qualified self-insured for workers' compensation or becoming eligible to be
issued a workers' compensation and employers' liability insurance policy.   The
registration shall:(1) identify the name of the lessor;(2) identify the address of the principal place of     business of the lessor;(3) include the lessor's taxpayer or employer     identification number;(4) include a list by jurisdiction of each and every     name that the lessor has operated under in the preceding 5 years including any alternative names and names of predecessors;(5) include a list of the officers and directors of     the lessor and its predecessors, successors, or alter egos in the preceding 5 years; and(6) include a $1,000 fee for the registration and     each annual renewal thereafter.Amounts received as registration fees shall be deposited into the Insurance
Producer
Administration Fund.(b) (Blank).(c) Lessors registering
pursuant to
this Section shall notify the Department within 30 days as to any changes
in any information
provided pursuant to this Section.(d) The Department shall maintain a list of those lessors who are registered
with the Department.(e) The Department may prescribe any forms that are
necessary to promote the efficient administration of this Section.(f) Any lessor that was doing
business in this
State prior to enactment of this Act shall register with the Department
within
60 days of the effective date of this Act.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 113/25)Sec. 25. Record keeping and reporting requirement.(a) A lessor shall maintain accounting and employment records relating to
all employee leasing arrangements for a minimum of 4 calendar years.  A lessor
shall maintain the address of each office it maintains in this State, at its
principal place of business.(b) A lessor shall maintain sufficient information in a manner consistent
with a licensed rating organization's data submission requirements to permit
the rating organization licensed under Section 459 of the Illinois Insurance
Code to calculate an experience modification factor for the lessee.(c) Upon written request of a lessee with an annual payroll attributed to it
in excess of $200,000, the lessor shall provide the lessee's experience
modification factor to the lessee within 30 days of the request.(d) Upon request of a lessee with an annual payroll attributed to it of less
than $200,000, the lessor shall provide the loss information required to be
maintained
by this Section to the lessee within 30 days of the request.(e) Nothing in this Section shall preclude a licensed rating organization
from calculating the experience modification factor for each lessee nor an
insurer from maintaining and furnishing on behalf of the lessor, such
information as required by this Section.(f) In the event that a lessee's experience modification factor
exceeds the
lessor's experience modification factor by 50% at the inception of the employee
leasing arrangement, the lessee's experience
modification factor shall be utilized to calculate the premium or costs charged
to the lessee for workers' compensation coverage for a period of 2 years.
Thereafter, the premium charged by the insurer for
inclusion of a
lessee under a lessor's policy may be calculated on the basis of the lessor's
experience modification factor.(g) A lessor that does not provide workers' compensation insurance coverage for leased employees of a lessee under an employee leasing arrangement shall not be subject to compliance with subsections (b) through (f) of this Section. (Source: P.A. 99-726, eff. 1-1-17.) (215 ILCS 113/30)Sec. 30. Responsibility for policy issuance and continuance.(a) Either a lessor or lessee may provide workers' compensation insurance coverage for leased employees under an employee leasing arrangement. When a workers' compensation policy written to cover leased
employees is issued to the lessor as the named
insured, the lessee shall be identified thereon by the
attachment of
an appropriate endorsement indicating that the policy provides coverage for
leased
employees.  The endorsement shall, at a
minimum, provide for the following:(1) Coverage under the endorsement shall be limited     to the named insured's employees leased to the lessees.(2) The experience of the employees leased to the     particular lessee shall be separately maintained by the lessor as provided in Section 25.(b) (Blank).(c) The lessor shall notify the insurer or a licensed rating organization 30
days prior to the effective date of termination or immediately upon
notification of cancellation by the lessor of an employee leasing arrangement
with the lessee in order to allow sufficient time to calculate an experience
modification factor for
the lessee.(d) The insurer shall provide proof of workers' compensation
insurance to
the lessor and to each applicable lessee within 30 days of the coverage
being effected or changed.(e) Calculation of a lessor's or lessee's premium shall be done in
accordance with the insurer's rating manual filed with the
Department.(f) When the lessee provides workers' compensation coverage for leased employees under an employee leasing arrangement, the lessor shall notify the Department in a manner specified by the Department to ensure proper and timely notification of coverage to the Department. 
(Source: P.A. 99-726, eff. 1-1-17.) (215 ILCS 113/35)Sec. 35. 
		(Repealed). 
		(Source: P.A. 90-499, eff. 1-1-98.  Repealed by 90-794, eff. 8-14-98.) (215 ILCS 113/40)Sec. 40. 
		Insurer or service carrier audit. 
		Insurers shall audit policies
issued through the residual market pursuant to Section 30 of this Act within 90
days of the policy
effective date and may conduct quarterly audits thereafter.  Insurers may audit
policies issued through the voluntary market within 90 days of the policy
effective date and shall conduct audits during the normal course of
business thereafter. 
		(Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.) (215 ILCS 113/45)Sec. 45. 
		Exclusivity and vicarious liability. 
		Subject to any contrary
provisions of the contract between the client and the employee leasing company,
the employee leasing arrangement that exists between an employee leasing
company and its clients shall be interpreted for purposes of insurance,
bonding,
and employers' liability as follows:(1) The employee leasing company shall be entitled     along with the client to the exclusivity of the remedy under both the workers' compensation and employers' liability provisions of a workers' compensation policy or plan that either party has secured.(2) An employee leasing company is not liable for the     acts, errors, or omissions of a client or of any leased employee acting under the sole and exclusive direction and control of a client.  A client shall not be liable for the acts, errors, or omissions of an employee leasing company or of any employee of an employee leasing company acting under the sole and exclusive direction or control of an employee leasing company.  Nothing herein shall limit any contractual liability between an employee leasing company and the client company, nor shall the same limit any liability or responsibility imposed by this Act.(3) Employees leased to a client by an employee     leasing company shall be considered as the employees of the client for the purposes of general liability insurance, automobile insurance, fidelity bonds, surety bonds, and liquor liability insurance carried by the client.  Employees leased to a client by an  employee leasing company are not deemed employees of the employee leasing company for purposes of general liability insurance, automobile insurance, fidelity bonds, surety bonds, and liquor liability insurance carried by the employee leasing company unless the employees are included by specific reference in the applicable employment arrangement contract, insurance contract, or bond.		(Source: P.A. 90-499, eff. 1-1-98.) (215 ILCS 113/50)Sec. 50. 
		Grounds for removal of eligibility; order; hearing; review.(a) Any registration issued under this Act may be revoked or an
application for registration may be denied if the Director finds that the
lessor or applicant:(1) has willfully violated any provision of this Act     or any rule promulgated by the Director;(2) has intentionally made a material misstatement in     the application for a registration;(3) has obtained or attempted to obtain a     registration through misrepresentation or fraud;(4) has misappropriated or converted to his own, or     improperly withheld, money required to be held in a fiduciary capacity;(5) has used fraudulent, coercive, or dishonest     practices, or has demonstrated incompetence, untrustworthiness, or financial irresponsibility;(6) has been, within the past 3 years, convicted of a     felony, unless the person demonstrates to the Director sufficient rehabilitation to warrant the public trust;(7) has failed to appear without reasonable cause or     excuse in response to a subpoena lawfully issued by the Director;(8) has had its registration or license suspended or     revoked or its application denied in any other state, district, territory, or province;(b) When the Director of Insurance has cause to believe that grounds for the
refusal, denial, or revocation of a registration under this Section exists, the
Director shall issue an order to the lessor stating the grounds upon which the
refusal, denial, or revocation is based.  The order shall be sent to the lessor
by certified or registered mail.  The lessor may request a hearing in writing
within 30 days of the mailing of the order.  If no written request is received
by the Director, the order shall be final upon the expiration of the 30 days.(c) If the lessor requests a hearing pursuant to this
Section, the Director shall issue a written notice of hearing sent to the
lessor by certified or registered mail stating the following:(1) a specified time for the hearing, which may not     be less than 20 days nor more than 30 days after the mailing of the notice of hearing; and(2) a specific place for the hearing, which may be     either in the city of Springfield or Chicago or in the county where the lessor's principal place of business is located.(d) After the hearing, or upon the failure of the lessor
to appear at the hearing, the Director of Insurance shall take such action as
is deemed advisable on written findings that shall be served on the lessor.
The action of the Director of Insurance shall be subject to
review under and in accordance with the Administrative Review Law.
		(Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.) (215 ILCS 113/55)Sec. 55. 
		(Repealed). 
		(Source: P.A. 90-499, eff. 1-1-98.  Repealed by 90-794, eff. 8-14-98.) (215 ILCS 113/56)Sec. 56. 
		Rulemaking authority. 
		The Director shall have the authority to
promulgate rules to enforce this Act.
		(Source: P.A. 90-794, eff. 8-14-98.) (215 ILCS 113/91)Sec. 91. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 90-499, eff. 8-19-97; text omitted.) (215 ILCS 113/93)Sec. 93. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 90-499, eff. 1-1-98; text omitted.) (215 ILCS 113/95)Sec. 95. 
		The Illinois Insurance Code is amended by repealing Section 107.14. 
		(Source: P.A. 90-499, eff. 1-1-98.) (215 ILCS 113/97)Sec. 97. 
		The Illinois Insurance Code is amended by repealing Section 493.1. 
		(Source: P.A. 90-499, eff. 8-19-97.) (215 ILCS 113/99)Sec. 99. 
		Effective date. 
		This Section and Sections 91 and 97 of this Act
take effect upon becoming law; Sections 1 through 55, 93, and 95 of this Act
take effect January 1, 1998.
		(Source: P.A. 90-499, eff. 8-19-97.)
(215 ILCS 115/1) (from Ch. 32, par. 690.71)Sec. 1. 
		
		This Act shall be known and may be cited as the Employees Dental Freedom of Choice Act.
		(Source: P.A. 84-426.) (215 ILCS 115/2) (from Ch. 32, par. 690.72)Sec. 2. 
		
		Any employer, group or organization that pays or contributes
to the premium of a group health insurance plan or a dental service plan
corporation which provides dental coverage to eligible employees or members
of such employer, group or organization only upon the condition that such
employees or members obtain dental services from a list of dentists or
groups of dentists approved by the insurer or dental service corporation
shall provide an alternative plan whereby the employees or members may
obtain services from dentists not on the list approved by such insurer or
dental service corporation. Where an employee or member elects such
alternative plan, the employer, group or organization shall contribute the
same dollar amount toward the payment of dental services under
the alternative plan as such employer, group or organization would
have contributed under the original plan. Nothing in this Section requires
the commingling of costs and claims experience between the two plans.
		(Source: P.A. 84-426.) (215 ILCS 115/3) (from Ch. 32, par. 690.73)Sec. 3. 
		
		Insurers and dental service plan corporations in this State
which provide group insurance or prepaid health care that includes dental
care only upon the condition that the insured or the person entitled to
make a claim under the plan obtain services only from a list of dentists or
groups of dentists approved by the insurer or dental service plan
corporation shall advise the employer, group or organization of the
requirements of Section 1 during the course of marketing or renewal of such
health care policies.
		(Source: P.A. 84-426.) (215 ILCS 115/4) (from Ch. 32, par. 690.74)Sec. 4. 
		
		Any person or entity which knowingly violates any provision
of this Act shall be guilty of a business offense.
		(Source: P.A. 84-426.)
(215 ILCS 120/1) (from Ch. 73, par. 1251)Sec. 1. 
		Scope. 
		This Act shall apply to:(1) companies organized or operating prior to the effective date of this
Act, under an Act entitled, "An Act relating to local mutual district,
county and township insurance companies", approved March 13, 1936, as
amended, and(2) any fire insurance company, corporation or association operating in
this State under a special charter and heretofore subject to "An Act
relating to local mutual district, county and township insurance
companies", approved March 13, 1936, as amended.
		(Source: P.A. 84-1431.) (215 ILCS 120/2) (from Ch. 73, par. 1252)Sec. 2. 
		Farm Mutual Insurance Companies. 
		Any district, county, township
or special act mutual insurance company now authorized to write insurance
in this State shall hereafter be known as a "Farm Mutual Insurance Company".
		(Source: P.A. 84-1431.) (215 ILCS 120/3) (from Ch. 73, par. 1253)Sec. 3. 
		Definitions. 
		For purposes of this Act unless the context
clearly requires otherwise:"Policyholders' Surplus" means a company's admitted assets
less its
liabilities, including its liability for an unearned premium reserve."Direct Premium Written" means those amounts charged
policyholders
pursuant to the company's rating schedules and plans currently in use, less
return premiums."Gross Premium Written" means direct premium written plus assumed reinsurance premium."Assessment" means amounts levied to policyholders by
action of the
board of directors pursuant to the contingent liability clause contained in the
bylaws."Net Premium Written" means direct premium written plus
assumed reinsurance premium less ceded reinsurance
premium.
		(Source: P.A. 88-364.) (215 ILCS 120/4) (from Ch. 73, par. 1254)Sec. 4. 
		Definition of Admitted Assets. 
		Admitted assets shall include
those investments permitted under Section 12 of this Act and in addition
thereto, only the following:(1) Cash funds held in the company's office and under the company's control.(2) Interest due and accrued on bonds, certificates of deposit and other
investments permitted by this Act that are not in default.(3) Dividends declared and unpaid on mutual funds, common stock, and
preferred stock, permitted by this Act.(4) Amounts recoverable from solvent insurance companies
licensed to do
business in this State.(5) Tax refunds due from the United States or the State of
Illinois.(6) Premiums receivable on policies not over 90 days past due.
The due date of the premium shall be considered to be the first day
of the coverage period for which the premium is payable.
		(Source: P.A. 90-794, eff. 1-1-99.) (215 ILCS 120/5) (from Ch. 73, par. 1255)Sec. 5. 
		Kinds of Insurance.(1) Any company operating under this Act
is authorized to insure or to accept reinsurance from other farm mutual
companies against loss or damage by:(a) any peril  or perils, except earthquake,     resulting in physical loss or damage to property;(b) animal mortality;(c) consequential loss coverages if written in     conjunction with the policy providing direct coverage for same.(2) A company authorized under this Act may insure against loss or
damage by the perils of wind, only if such company has and maintains
policyholders' surplus equal to or greater than $100,000.(3) A company may undertake to insure against the peril of flood to the
extent such company is reinsured pursuant to the National Flood Insurance
Program, and only if such company has and maintains policyholders' surplus
equal to or greater than $100,000.
		(Source: P.A. 88-364.) (215 ILCS 120/6) (from Ch. 73, par. 1256)Sec. 6. 
		Territories. 
		The territories of a farm mutual insurance
company are limited to its domiciliary county and counties contiguous
thereto.  However, territories may be expanded by amendment to its
articles of incorporation in accordance with Section 7 of this Act.Territorial limitations shall not apply to reinsurance assumed from other
farm mutual companies operating under this Act.Any farm mutual insurance company which does not wish to avail itself of
additional territory authorized by Sections 6 or 7 of this Act or kinds of
insurance authorized by Section 5 of this Act may retain the territorial
authority contained in its articles of incorporation that were in effect on
the effective date of this Act.
		(Source: P.A. 84-1431.) (215 ILCS 120/7) (from Ch. 73, par. 1257)Sec. 7. 
		Additional Territory. 
		Any farm mutual insurance company may
amend its articles of incorporation to include other adjoining counties,
provided that the company's net written premium did not exceed 3 times its
policyholders' surplus as reported in its last financial statement.
Subject to the approval of the Director of Insurance, any company having
$150,000 policyholders' surplus may add one contiguous county to its
territory, and may add one additional contiguous county for each additional
$50,000 policyholders' surplus thereafter.
		(Source: P.A. 84-1431.) (215 ILCS 120/8) (from Ch. 73, par. 1258)Sec. 8. 
		Amendment of Articles of Incorporation.(1) A farm mutual company may amend its articles of incorporation in any
respect not in
violation of this Act.(2) Amendments to the articles shall be made in the following manner:The board of directors shall adopt a resolution to amend the
articles of incorporation and sign a Statement of Directors setting forth
such resolution and deliver the Statement of Directors in duplicate to the
Director of Insurance together with duplicate copies of the restated
articles of incorporation to be approved or disapproved by the Director.
If approved, the Director shall place on file in his office all of the
documents so delivered to him except one of the duplicate originals of the
amended articles of incorporation which shall be delivered to the farm
mutual insurance company.  The farm mutual insurance company shall file the
duplicate original copy of the amended articles of incorporation for
record, within 15 days after it has been delivered to the farm mutual
insurance company, in the office of the Recorder of the domiciliary county.(3) Amended articles must set forth:(a) The corporate name which must include the words     "Mutual Insurance Company".(b) The location of its principal office:  city and     county.(c) The period of duration, which may be perpetual.(d) The kinds of insurance as provided in Section 5     of this Act, in which it proposes to write.(e) The exact number, terms of office of and the     manner of electing the members of the board.(f) The date, time and place of the annual meeting of     members.(g) The territory in which the farm mutual insurance     company operates, pursuant to Sections 6 and 7 of this Act.(4) Each farm mutual insurance company shall hold an annual meeting of
its members on the date and time and at the place specified in its articles
of incorporation; immediately thereafter, a separate meeting of the board
of directors shall be held for the purpose of electing officers.  The
annual meeting shall be held on or before the first day of May and shall be
held in the domiciliary county where the home office of the company is
located.  At such meeting the Treasurer shall present an annual statement
showing the condition of the company on December 31 of the preceding
year.Notice of the annual meeting of the members shall be stamped or printed
in or on the policy.(5) The number of directors shall not be less than 7, nor more than 15
members, a majority of whom shall constitute a quorum to do business, to be
elected by ballot of the members and who shall be elected in the manner and
for the length of time prescribed in the articles of incorporation.
Directors may be elected for a period of no more than 3 years.  No more
than one-half of the directors shall be elected in any one year.  Said
election shall be held at the annual meeting of the company. Every person
insured shall be entitled to one vote and may cast the same in person or by
proxy. Vacancies on the board shall be filled by the remaining directors
until the next annual meeting.The directors shall elect from their number a president and at their
option a vice president, and such additional officers as they may deem
necessary, and shall also elect a treasurer, and a secretary, who may or
may not be a member of the company. The offices of secretary and treasurer
may be occupied by one person. All of such officers shall hold their office
for one year, and until their successors are elected and qualified.(6) The company shall prepare and maintain a surety bond on any person
handling
company funds and on any officer, director, or employee for the faithful
performance
of his duties, in such amounts pursuant to the regulations
promulgated
by the Director.
		(Source: P.A. 88-364.) (215 ILCS 120/9) (from Ch. 73, par. 1259)Sec. 9. 
		
		Qualification of Membership - Of Directors - Representatives
- Personal Liability.  Only policyholders residing in the territory in
which the farm mutual insurance company is authorized to write insurance
shall become a director of such company.Any person, public or private corporation, board, estate or association
owning property within the territory of such company may make applications,
enter into agreements for and hold policies in any such company.  Any
officer, trustee, board member or legal representative of any such
corporation, board, estate or association may be recognized as acting for or
on its behalf for the purpose of such membership, but shall not be
personally liable upon such contract of insurance by reason of acting in
such representative capacity.
		(Source: P.A. 84-1431.) (215 ILCS 120/10) (from Ch. 73, par. 1260)Sec. 10. 
		Property insurable; limitations of risk.(1) Farm mutual
insurance companies are permitted to insure the following classes of property:(a) Farm property, including residences and other     farm buildings and all classes of personal property in connection therewith, other than motor vehicles required to be licensed for road use, including such property temporarily located elsewhere;(b) Growing crops;(c) Buildings and personal property used in the     processing of agricultural products in conjunction with a farming operation;(d) Residences, including household and personal     effects, and including such property temporarily located elsewhere;(e) Churches, schools and community buildings and     such property as may be properly contained therein.No farm mutual insurance company may insure any property within the
limits of any city containing over 50,000 inhabitants at the time of the
organization of the company.(2) No farm mutual insurance company authorized to write the kinds of
insurance enumerated in Section 5 of this Act may expose itself to any loss
on any one risk in an amount in excess of $20,000 plus 10% of its
policyholders' surplus in excess of $20,000.A farm mutual insurance company insuring against the perils of wind or
hail must have and maintain catastrophic reinsurance which limits the
company's exposure on any one loss occurrence to 20% of its policyholders'
surplus.No portion of any such risk which has been reinsured with a farm mutual
insurance company or an insurance company authorized to write the kinds of
insurance described in Class 2 or
Class 3 of Section 4 of the Illinois Insurance Code shall be included in
determining the limitation of risk described herein.For purposes of this Section:A single risk shall be all real and personal property in one fixed
location and not separated by 50 feet.As regards the peril of wind or hail, the term "loss occurrence" shall
mean all losses occasioned by tornadoes, cyclones, windstorms, hurricanes,
or hail stones arising from the same atmospheric disturbance and occurring
during any continuous period of not less than 48 hours.(3) Whenever the company's financial condition is such that the further
assumption of risks might be hazardous to policyholders, the Director of
Insurance may order the company to take one or more of the following steps:(a) To reduce the loss exposure by reinsurance;(b) To reduce the volume of business being written or     renewed;(c) To suspend the writing of new business;(d) To suspend the writing of both new and renewal     business;(e) To levy a special assessment of policyholders;(f) To reduce general or acquisition expenses by     specified methods.(4) Whenever the Director determines that a farm mutual insurance
company is insolvent he shall order the farm mutual insurance company to
levy a special assessment within 30 days of receipt of such order. If the
insolvency is not corrected within 90 days of the mailing of such
assessment, the company shall be subject to liquidation pursuant to Article
XIII of the Illinois Insurance Code.
		(Source: P.A. 88-364.) (215 ILCS 120/11) (from Ch. 73, par. 1261)Sec. 11. 
		Premium and assessments. 
		The company shall collect from its
members such premiums, fees and assessments as the directors shall find
necessary or as prescribed in the bylaws. Every policy issued pursuant to
this Act shall contain a provision setting forth the contingent liability
of its members. Each member shall be liable in accordance with the terms of
his policy for his pro rata share of the amount necessary to pay all losses
and necessary expenses incurred during the time for which his respective
policy is written, and to maintain a policyholders' surplus. The company
may in its bylaws limit the liability of its members during each year to
an amount equal to not less than 3% of the insurance carried by the member.It shall be the duty of the Secretary, whenever an assessment shall have
been made, to immediately notify every person composing such company,
personally, by an agent or by letter sent to his usual post office address,
of the purpose of such assessment and if for payment of a loss the amount
of such loss, and the sum due from him as his share thereof, and of the
time when and to whom such payment is to be made; but such time shall not
be less than 30 nor more than 90 days from the date of such notice.
Insurance policies issued pursuant to this Act shall provide that if a
policyholder fails to pay an assessment levied in accordance with this
paragraph within the prescribed time, the policy shall be suspended until
such assessment is paid.
		(Source: P.A. 84-1431.) (215 ILCS 120/12) (from Ch. 73, par. 1262)Sec. 12. Investments. Without the prior approval of the Director, the
funds of any company operating under or
regulated by the provisions of this Act, shall be invested only in the
following:(1) Direct obligations of the United States of     America, or obligations of agencies or instrumentalities of the United States to the extent guaranteed or insured as to the payment of principal and interest by the United States of America;(2) Bonds which are direct, general obligations of     the State of Illinois or any other state, subject to a maximum of 30% of admitted assets in states other than Illinois in the aggregate;(3) Bonds which are direct, general obligations of     political subdivisions of the State of Illinois or any       other state, subject to the following conditions:(a) Maximum of 5% of admitted assets in any one         political subdivision;(b) Maximum of 30% of admitted assets in all         political subdivisions in the aggregate;(c) Rating of A3 or higher by Moody's Investors         Service, Inc. or A- or higher by Standard & Poor's Corporation;(4) Bonds, notes, debentures, or other similar     obligations of the United States of America, its agencies, and its instrumentalities, subject to a maximum investment of 10% of admitted assets in any one issuer;(5) Bonds that are obligations of corporations     organized by the United States of America, subject to the following conditions:(a) Maximum of 5% of admitted assets in any one         issuer;(b) Maximum of 15% of admitted assets in the         aggregate;(c) Rating of A3 or higher by Moody's Investors         Service, Inc. or A- or higher by Standard & Poor's Corporation;(d) Maximum maturity of no longer than 10 years;(6) Mutual funds, unit investment trusts, and     exchange traded funds, subject to the following conditions:(a) Maximum of 6% of policyholders' surplus in         any one balanced or growth mutual fund that invests in common stock;(b) Maximum of 5% of admitted assets in any one         bond or income mutual fund or any one non-governmental money market mutual fund;(c) Maximum of 10% of admitted assets in any one         governmental money market mutual fund;(d) Maximum of 25% of admitted assets in all         mutual funds in the aggregate;(7) Common stock and preferred stock subject to the     following conditions:(a) Common stock and preferred stock shall be         traded on the New York Stock Exchange or the American Stock Exchange or listed on the National Association of Securities Dealers Automated Quotation (NASDAQ) system;(b) Maximum of 3% of policyholders' surplus in         excess of $400,000 in any one common stock or preferred stock issuer provided that the net unearned premium reserve does not exceed policyholders' surplus;(8) Investments authorized under subdivision (a) of     item (6) and subdivision (a) of item (7) of this Section shall not in the aggregate exceed 15% of policyholders' surplus;(9) Funds on deposit in solvent banks and savings and     loan associations which are insured by the Federal Deposit Insurance Corporation; however, the uninsured portion of funds held in any one such bank or association shall not exceed 5% of the company's policyholders' surplus;(10) Real estate for home office building purposes,     provided that such investments are approved by the Director of Insurance on the basis of a showing by the company that the company has adequate assets available for such investment and that the proposed acquisition does not exceed the reasonable normal value of such property;(11) Amounts in excess of the investment limitations     contained in items (2) through (9) may be allowed, subject to the following conditions:(a) Maximum additional investment of 3% of         admitted assets in any one issuer;(b) Maximum  additional investment of 6% of         admitted assets in the aggregate.An investment that qualified under this Section at the time it was
acquired by the company shall continue to qualify under this Section.Investments permitted under this Section shall be registered in the name of
the
company and under its direct control or shall be held in a custodial account
with a bank or trust company that is qualified to administer trusts in Illinois
under
the Corporate Fiduciary Act and that has an office in Illinois.
 However, securities may be held in street form and in the custody of a
licensed dealer for a period not to exceed 30 days.Notwithstanding the provisions of this Act, the Director may, after notice
and hearing, order a company to limit or withdraw from certain investments or
discontinue certain investments or investment practices to the extent the
Director finds those investments or investment practices endanger the solvency
of the company.
(Source: P.A. 100-201, eff. 8-18-17.) (215 ILCS 120/13) (from Ch. 73, par. 1263)Sec. 13. 
		Annual statement - filing of - penalty for late filing. 
		Every
company authorized under this Act shall file with the Director by January
31 of each year a financial statement for the year ending December 31 of
the year preceding on forms prescribed by the Director. A company may request
the Director to grant an extension until February 15; however, such request
must be received by the Department of Insurance no later than January 25.
The Director shall not deny a request for an extension made by a company
whose gross premium written for the year just ending exceeds $750,000.The Director may require that a company file quarterly financial
statements which shall be due 30 days after the end of each quarter.A company failing to file its annual financial statements by January 31
or by February 15 (if the Director had previously granted such extension)
shall pay to the Director, a penalty of $20 per day for each day after the
due date that the statement was not received.
		(Source: P.A. 84-1431.) (215 ILCS 120/14) (from Ch. 73, par. 1264)Sec. 14. 
		Membership requirement. 
		Any company which, on or after
December 31, 1988, fails to maintain a minimum of 100 members shall be
subject to liquidation pursuant to Article XIII of the Illinois Insurance Code.
		(Source: P.A. 84-1431.) (215 ILCS 120/15) (from Ch. 73, par. 1265)Sec. 15. 
		Application of law. 
		Companies subject to this Act shall be
subject to the provisions of Article X (Merger) and Article XXV of the
Illinois Insurance
Code but shall not be subject to any other provisions of the Illinois
Insurance Code unless specifically enumerated therein.
		(Source: P.A. 90-583, eff. 5-29-98.) (215 ILCS 120/16) (from Ch. 73, par. 1266)Sec. 16. 
		New companies prohibited. 
		No farm mutual insurance company
shall be incorporated after the effective date of this Act.
		(Source: P.A. 84-1431.) (215 ILCS 120/17) (from Ch. 73, par. 1267)Sec. 17. 
		
		This Article shall be known and may be cited as the "Farm Mutual
Insurance Company Act of 1986".
		(Source: P.A. 84-1431.)
(215 ILCS 121/1)Sec. 1. Short title. This Act may be cited as the Navigator Certification Act.
(Source: P.A. 98-524, eff. 8-23-13.) (215 ILCS 121/5)Sec. 5. Definitions. 

As used in this Act:"Certified application counselor" has the same meaning as in federal regulations and guidelines, including 45 CFR 155.225."Director" means the Director of Insurance."Exchange" means any health benefit exchange established or operating in this State, including any exchange established or operated by the United States Department of Health and Human Services."Navigator" means a person or entity selected to perform the activities and duties identified in 42 U.S.C. 18031(i) in this State.

(Source: P.A. 102-462, eff. 8-20-21.) (215 ILCS 121/10)Sec. 10. Certificate required.(a)  No individual or entity shall perform, offer to perform, or advertise any service as a navigator or certified application counselor in this State or receive navigator grant funding from the United States Department of Health and Human Services, the State of Illinois, or an exchange or private funds unless certified as a navigator or certified application counselor by the Director under this Act.(b) The Director may establish exemptions from certification by rule.(c)  A navigator or certified application counselor may not:(1) sell, solicit, or negotiate, as these terms are     defined in Section 500-10 of the Illinois Insurance Code, any of the classes of insurance enumerated in Section 4 of the Illinois Insurance Code;(2) offer advice about which health plan is better or     worse for a particular individual or employer;(3) recommend or endorse a particular health plan or     advise consumers about which health plan to choose;(4) provide any information or services related to     health benefit plans or other insurance products not offered in the exchange, except for health care providers when furnishing information or services related to a patient's existing health benefit plan or other existing health insurance coverage;(5) accept any compensation or consideration,     directly or indirectly, from any issuer of accident and health insurance or stop-loss insurance that is dependent, in whole or in part, on whether a person enrolls in or purchases a particular private health benefit plan; or(6) engage in an unfair method of competition or a     fraudulent, deceptive, or dishonest act or practice with respect to the health insurance marketplace or with respect to that individual's or entity's absence of a conflict of interest in connection with the enrollment of an individual or employee in a particular private health benefit plan.(d) Items (1), (2), (3), (4), and (5) of subsection (c) of this Section do not apply to navigators or certified application counselors when assisting individuals with the enrollment process in the State Medicaid program or other public programs.
(Source: P.A. 102-462, eff. 8-20-21.) (215 ILCS 121/15)Sec. 15. Application for certificate.(a) An entity or individual applying for an initial or renewal navigator or certified application counselor certificate shall make application to the Director on a form developed by the Director and declare under penalty of refusal, suspension, or revocation of the certificate that the statements made in the application are true, correct, and complete to the best of the individual's or entity's knowledge and belief.(b) The Director shall establish certification terms and requirements for completed applications, including educational requirements, by rule.(c) The Director may require any documents deemed necessary to verify the information contained in an application submitted in accordance with subsections (a) and (b) of this Section.(d) Any navigator or certified application counselor who fails to timely file for certificate renewal shall be charged a late fee in an amount prescribed by the Director.(e) The Director may require, in a manner determined by the Director, that each entity that acts as a navigator or certified application counselor demonstrate a level of financial responsibility capable of protecting all persons against the wrongful acts, misrepresentations, or negligence of the navigator or certified application counselor.(f) Prior to any exchange becoming operational in this State, the Director, in coordination with the exchange, shall prescribe the initial training and continuing education requirements for navigators and certified application counselors.(g) Certificate holders must inform the Director, in writing, of a change of address within 30 days after the change.(h) In order to assist in the performance of the Director's duties, the Director may contract with the National Association of Insurance Commissioners (NAIC), or any affiliates or subsidiaries that the NAIC oversees, to perform any ministerial functions, including the collection of fees, related to certification that the Director and the nongovernmental entity may deem appropriate.
(Source: P.A. 102-462, eff. 8-20-21.) (215 ILCS 121/20)Sec. 20. (Repealed).
	 
	 (Source: P.A. 98-524, eff. 8-23-13. Repealed by P.A. 102-462, eff. 8-20-21.) (215 ILCS 121/25)Sec. 25. (Repealed).
	 
	 (Source: P.A. 98-524, eff. 8-23-13. Repealed by P.A. 102-462, eff. 8-20-21.) (215 ILCS 121/30)Sec. 30. Certificate denial, nonrenewal, or revocation.(a) The Director may place on probation, suspend, revoke, or refuse to issue or renew a navigator or certified application counselor certificate or may levy a civil penalty as established by rule.(b) If an action by the Director is to nonrenew, suspend, or revoke a certificate or to deny an application for a certificate, then the Director shall notify the applicant or certificate holder and advise, in writing, the applicant or certificate holder of the reason for the suspension, revocation, or denial or nonrenewal of the applicant's or certificate holder's certificate. The applicant or certificate holder may make written demand upon the Director within 30 days after the date of mailing for a hearing before the Director to determine the reasonableness of the Director's action. The hearing must be held within not fewer than 20 days nor more than 30 days after the mailing of the notice of hearing.(c) A navigator or certified application counselor entity certificate may be suspended, revoked, or refused or information turned over to the U.S. Department of Health and Human Services and applicable state agencies if the Director finds, after hearing, that a certified individual's violation was known or should have been known by one or more of the partners, officers, or managers acting on behalf of the  navigator entity.(d) In addition to or instead of any applicable denial, suspension, or revocation of a certificate, a person may, after hearing, be subject to a civil penalty in accordance with emergency rules issued by the Director.(e) The Director has the authority to enforce the provisions of and impose any penalty or remedy authorized by this Act against any person who is under investigation of or charged with a violation of this Act or rules, even if the person's certificate has been surrendered or has lapsed by operation of law.(f) Upon the suspension, denial, or revocation of a certificate, the certificate holder or other person having possession or custody of the certificate shall promptly deliver it to the Director in person or by mail. The Director shall publish all suspensions, denials, or revocations after the suspensions, denials, or revocations become final in a manner designed to notify the public.(g) A person whose certificate is revoked or whose application is denied pursuant to this Section is ineligible to apply for any certificate for 3 years after the revocation or denial. A person whose certificate as a navigator or certified application counselor has been revoked, suspended, or denied may not be employed, contracted, or engaged in an exchange-related capacity during the time the revocation, suspension, or denial is in effect.
(Source: P.A. 102-462, eff. 8-20-21.) (215 ILCS 121/35)Sec. 35. Reporting to the Director.(a) Each navigator or certified application counselor shall report to the Director within 30 calendar days after the final disposition of a matter that results in any administrative action taken against the navigator or certified application counselor in another jurisdiction or by another governmental agency in this State.  The report shall include a copy of the order, consent to order, or other relevant legal documents.(b) Within 30 days after the initial pretrial hearing date, a navigator or certified application counselor shall report to the Director any criminal prosecution of the navigator or certified application counselor taken in any jurisdiction.  The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.(c) An entity that is certified as a navigator or certified application counselor that terminates the employment, engagement, affiliation, or other relationship with an individual navigator or certified application counselor shall 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 related to the requirements or standards set forth in this Act or the rules adopted by the Director pursuant to this Act, or the entity has knowledge the navigator or certified application counselor was found by a court or  government body to have engaged in any of the activities prohibited by this Act or the rules adopted by the Director pursuant to this Act. Upon the written request of the Director, the entity shall provide additional information, documents, records, or other data pertaining to the termination or activity of the individual.

(Source: P.A. 102-462, eff. 8-20-21.) (215 ILCS 121/40)Sec. 40. (Repealed).
	 
	 (Source: P.A. 98-524, eff. 8-23-13. Repealed by P.A. 102-462, eff. 8-20-21.) (215 ILCS 121/45)Sec. 45. Other laws; rulemaking authority.(a) The requirements of this Act shall not apply to any individual or entity licensed as an insurance producer in this State.(b)  Pursuant to the authority granted by this Act, the Director may adopt rules as may be necessary or appropriate for the administration and enforcement of this Act.

Such rules may not conflict with or prevent the application of the provisions of Title I of the Patient Protection and Affordable Care Act or the federal regulations promulgated under such provisions. 
(Source: P.A. 102-462, eff. 8-20-21.) (215 ILCS 121/97)Sec. 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.
(Source: P.A. 98-524, eff. 8-23-13.) (215 ILCS 121/99)Sec. 99. Effective date. This Act takes effect upon becoming law. 
(Source: P.A. 98-524, eff. 8-23-13.)
(215 ILCS 122/Art. 10 heading) 
	 
  
  ARTICLE 10. 
HEALTH SAVINGS ACCOUNT
(The State Employee Health Savings Account Law 
is compiled at 5 ILCS 377/)(Source: P.A. 97-142, eff. 7-14-11.)
(215 ILCS 122/Art. 5 heading) 
	 
  
  ARTICLE 5. 
ILLINOIS HEALTH BENEFITS EXCHANGE
  (Source: P.A. 97-142, eff. 7-14-11.) (215 ILCS 122/5-1)Sec. 5-1. Short title. This Article may be cited as the Illinois Health Benefits Exchange Law.
(Source: P.A. 97-142, eff. 7-14-11.) (215 ILCS 122/5-3)Sec. 5-3. Legislative intent.   The General Assembly finds the health benefits exchanges authorized by the federal Patient Protection and Affordable Care Act represent one of a number of ways in which the State can address coverage gaps and provide individual consumers and small employers access to greater coverage options.  The General Assembly also finds that the State is best positioned to implement an exchange that is sensitive to the coverage gaps and market landscape unique to this State.The purpose of this Law is to ensure that the State is making sufficient progress towards establishing an exchange within the guidelines outlined by the federal law and to protect Illinoisans from undue federal regulation.  Although the federal law imposes a number of core requirements on state-level exchanges, the State has significant flexibility in the design and operation of a State exchange that make it prudent for the State to carefully analyze, plan, and prepare for the exchange.  The General Assembly finds that in order for the State to craft a tenable exchange that meets the fundamental goals outlined by the Patient Protection and Affordable Care Act of expanding access to affordable coverage and improving the quality of care, the implementation process should (1) provide for broad stakeholder representation; (2) foster a robust and competitive marketplace, both inside and outside of the exchange; and (3) provide for a broad-based approach to the fiscal solvency of the exchange.
(Source: P.A. 97-142, eff. 7-14-11.) (215 ILCS 122/5-5)Sec. 5-5. State health benefits exchange.   It is declared that this State, beginning October 1, 2013, in accordance with Section 1311 of the federal Patient Protection and Affordable Care Act, shall establish a State health benefits exchange to be known as the Illinois Health Benefits Exchange in order to help individuals and small employers with no more than 50 employees shop for, select, and enroll in qualified, affordable private health plans that fit their needs at competitive prices.  The Exchange shall separate coverage pools for individuals and small employers and shall supplement and not supplant any existing private health insurance market for individuals and small employers.
(Source: P.A. 97-142, eff. 7-14-11.) (215 ILCS 122/5-10)Sec. 5-10. Exchange functions.(a) The Illinois Health Benefits Exchange shall meet the core functions identified by Section 1311 of the Patient Protection and Affordable Care Act and subsequent federal guidance and regulations.(b) In order to meet the deadline  of October 1, 2013 established by federal law to have operational a State exchange, the Department of Insurance
and the Commission on Government Forecasting and Accountability is authorized to apply for, accept, receive, and use as appropriate
for and on behalf of the State any grant money provided by the
federal government and to share federal grant funding with, give support to,
and coordinate with other agencies of the State and federal government
or third parties as determined by the Governor.
(Source: P.A. 97-142, eff. 7-14-11; 98-756, eff. 7-16-14.) (215 ILCS 122/5-15)Sec. 5-15. Illinois Health Benefits Exchange Legislative Study Committee.(a) There is created an Illinois Health Benefits Exchange Legislative Study Committee to conduct a study regarding State implementation and establishment of the Illinois Health Benefits Exchange.(b) Members of the Legislative Study Committee shall be appointed as follows: 3 members of the Senate shall be appointed by the President of the Senate; 3 members of the Senate shall be appointed by the Minority Leader of the Senate; 3 members of the House of Representatives shall be appointed by the Speaker of the House of Representatives; and 3 members of the House of Representatives shall be appointed by the Minority Leader of the House of Representatives.  Each legislative leader shall select one member to serve as co-chair of the committee.(c) Members of the Legislative Study Committee shall be appointed within 30 days after the effective date of this Law.  The co-chairs shall convene the first meeting of the committee no later than 45 days after the effective date of this Law.
(Source: P.A. 97-142, eff. 7-14-11.) (215 ILCS 122/5-20)Sec. 5-20. Committee study.   No later than September 30, 2011, the Committee shall report all findings concerning the implementation and establishment of the Illinois Health Benefits Exchange to the executive and legislative branches, including, but not limited to, (1) the governance and
structure of the Exchange, (2) financial sustainability of the
Exchange, and (3) stakeholder engagement, including an ongoing role
for the Legislative Study Committee or other legislative oversight of the
Exchange. The Committee shall report its findings with regard to (A) the operating model of
the Exchange, (B) the size of the employers to be offered
coverage through the Exchange, (C) coverage pools for
individuals and businesses within the Exchange, and (D) the development of standards for the coverage of full-time and part-time employees and their dependents.  The Committee study shall also include recommendations concerning prospective action on behalf of the General Assembly as it relates to the establishment of the Exchange in 2011, 2012, 2013, and 2014.
(Source: P.A. 97-142, eff. 7-14-11.) (215 ILCS 122/5-25)Sec. 5-25. Federal action.   This Law shall be null and void if Congress and the President take action to repeal or replace, or both, Section 1311 of the Affordable Care Act.
(Source: P.A. 97-142, eff. 7-14-11.)
(215 ILCS 122/Art. 90 heading) 
	 
  
  ARTICLE 90. 
AMENDATORY PROVISIONS
(Amendatory provisions; text omitted)(Source: P.A. 97-142, eff. 7-14-11; text omitted.)
(215 ILCS 122/Art. 99 heading) 
	 
  
  ARTICLE 99. 
EFFECTIVE DATE
  (Source: P.A. 97-142, eff. 7-14-11.) (215 ILCS 122/99)Section 99. Effective date. This Act takes effect upon becoming law.
	 (Source: P.A. 97-142, eff. 7-14-11.)
(215 ILCS 123/1)Sec. 1. 
		Short title. 
		This Act may be cited as the
Health Care Purchasing Group Act.
		(Source: P.A. 90-337, eff. 1-1-98.) (215 ILCS 123/5)Sec. 5. 
		
		Purpose; applicability of Illinois Health Insurance Portability
and Accountability Act.(a) The purpose and intent of this Act is
to authorize the formation, operation, and regulation of health care
purchasing groups (referred to in this Act as "HPGs") as described by
this Act, to authorize the sale and regulation of health
insurance products for employers that are sold to HPGs, and to
encourage the development of financially secure and cost
effective markets for the basic health care needs of employers,
employees, and their dependents in this State.
Nothing in this Act authorizes an employer to join with other employers to
self-insure through risk pooling.(b) All health insurance contracts issued under this Act are subject to
the Illinois Health Insurance Portability and Accountability Act.
		(Source: P.A. 90-337, eff. 1-1-98; 90-567, eff. 1-23-98.) (215 ILCS 123/10)Sec. 10. Definitions. Words and phrases used in this
Act, unless defined in this Section, have the meanings attributed to them in
Section 5 of the Illinois Health Insurance Portability and Accountability
Act."Director" means the Director of
Insurance."Employer" means an individual, sole proprietorship,
partnership, firm, corporation, association, or any other legal entity that has
one or more employees and is legally doing business in this State. "Employer" includes employers as defined in the Illinois Health Insurance Portability and Accountability Act."Health insurance contract", "group or master health
insurance contract" and "insurance" refer to the forms of
insurance obligations which a "risk-bearer" as defined in this
Section has been authorized to issue."Risk-bearer" means an insurance company licensed in
this State and authorized to transact the kinds of business
described in clause (b) of Class 1 and clause (a) of Class 2 of
Section 4 of the Illinois Insurance Code and
entities authorized under the Health Maintenance Organization
Act.
(Source: P.A. 97-715, eff. 1-1-13.) (215 ILCS 123/15)Sec. 15. Health care purchasing groups; membership; formation.(a) An HPG may be an organization formed by 2 or more
employers with no more than 2,500
 covered employees each, an HPG sponsor or a
risk-bearer for purposes of
contracting for health insurance under this Act to cover
employees and dependents of HPG members.  An HPG shall not be
prevented from supplementing health insurance coverage purchased
under this Act by contracting for services from entities licensed
and authorized in Illinois to provide those services under the
Dental Service Plan Act, the Limited Health Service Organization
Act, or Voluntary Health Services Plans Act.
An HPG may be a separate legal entity or simply a group of 2 or more employers
with no more than 2,500
 covered employees each aggregated under this Act by an HPG
sponsor or risk-bearer for insurance purposes.  There shall be no limit as to
the number of HPGs that may operate in any geographic area of the State.  No
insurance risk may be borne or retained by the HPG.  All health insurance
contracts issued to the HPG must be delivered or issued for delivery in
Illinois.(b) Members of an HPG must be Illinois domiciled employers, except that an
employer domiciled elsewhere may become a member of an Illinois HPG for the
sole purpose of insuring its employees whose place of employment is located
within this State.  HPG membership may include employers having no more than 2,500
 covered employees each.(c) If an HPG is formed by any 2 or more employers with no more than 2,500
 covered employees each, it shall utilize a licensed insurance producer to negotiate, solicit, market, obtain
proposals for, and enter into group or master health insurance contracts on
behalf of its members and their employees and employee dependents so long as
it meets all of the following requirements:(1) The HPG must be an organization having the legal     capacity to contract and having its legal situs in Illinois.(2) The principal persons responsible for the conduct     of the HPG must perform their HPG related functions in Illinois.(3) No HPG may collect premium in its name or hold or     manage premium or claim fund accounts unless duly licensed and qualified as a managing general agent pursuant to Section 141a of the Illinois Insurance Code or a third party administrator pursuant to Section 511.105 of the Illinois Insurance Code.(4) If the HPG gives an offer, application, notice,     or proposal of insurance to an employer, it must disclose to that employer the total cost of the insurance.  Dues, fees, or charges to be paid to the HPG, HPG sponsor, or any other entity as a condition to purchasing the insurance must be itemized. The HPG shall also disclose to its members the amount of any dividends, experience refunds, or other such payments it receives from the risk-bearer.(5) An HPG must register with the Director before     entering into a group or master health insurance contract on behalf of its members and must renew the registration annually on forms and at times prescribed by the Director in rules specifying, at minimum, (i) the identity of the officers and directors, trustees, or attorney-in-fact of the HPG; (ii) a certification that those persons have not been convicted of any felony offense involving a breach of fiduciary duty or improper manipulation of accounts; and (iii) the number of employer members then enrolled in the HPG, together with any other information that may be needed to carry out the purposes of this Act.(6) At the time of initial registration and each     renewal thereof an HPG shall pay a fee of $100 to the Director.(d) If an HPG is formed by an HPG sponsor or risk-bearer
and the HPG performs
no marketing, negotiation, solicitation, or proposing of insurance to HPG
members, exclusive of ministerial acts performed by individual employers to
service their own employees, then a group or master health insurance contract
may be issued in the name of the HPG and held by an HPG sponsor, risk-bearer,
or designated employer member within the State.  In these cases the HPG
requirements specified in subsection (c) shall not be applicable, however:(1) the group or master health insurance contract     must contain a provision permitting the contract to be enforced through legal action initiated by any employer member or by an employee of an HPG member who has paid premium for the coverage provided;(2) the group or master health insurance contract     must be available for inspection and copying by any HPG member, employee, or insured dependent at a designated location within the State at all normal business hours; and(3) any information concerning HPG membership     required by rule under item (5) of subsection (c) must be provided by the HPG sponsor in its registration and renewal forms or by the risk-bearer in its annual reports.(Source: P.A. 97-715, eff. 1-1-13.) (215 ILCS 123/20)Sec. 20. 
		HPG sponsors. 
		Except as provided by Sections 15 and 25 of this Act,
only a corporation authorized by the Secretary of State to transact business in
Illinois may sponsor one or more HPGs with no more than 100,000
covered
individuals by negotiating, soliciting, or
servicing health insurance contracts for HPGs and their members.
Such a corporation may assert and maintain authority to act as an
HPG sponsor by complying with all of the following requirements:(1) The principal officers and directors responsible     for the conduct of the HPG sponsor must perform their HPG sponsor related functions in Illinois.(2) No insurance risk may be borne or retained by the     HPG sponsor; all health insurance contracts issued to HPGs through the HPG sponsor must be delivered in Illinois.(3) No HPG sponsor may collect premium in its name or     hold or manage premium or claim fund accounts unless duly qualified and licensed as a managing general agent pursuant to Section 141a of the Illinois Insurance Code or as a third party administrator pursuant to Section 511.105 of the Illinois Insurance Code.(4) If the HPG gives an offer, application, notice,     or proposal of insurance to an employer, it must disclose the total cost of the insurance. Dues, fees, or charges to be paid to the HPG, HPG sponsor, or any other entity as a condition to purchasing the insurance must be itemized.  The HPG shall also disclose to its members the amount of any dividends, experience refunds, or other such payments it receives from the risk-bearer.(5) An HPG sponsor must register with the Director     before negotiating or soliciting any group or master health insurance contract for any HPG and must renew the registration annually on forms and at times prescribed by the Director in rules specifying, at minimum, (i) the identity of the officers and directors of the HPG sponsor corporation; (ii) a certification that those persons have not been convicted of any felony offense involving a breach of fiduciary duty or improper manipulation of accounts; (iii) the number of employer members then enrolled in each HPG sponsored; (iv) the date on which each HPG was issued a group or master health insurance contract, if any; and (v) the date on which each such contract, if any, was terminated.(6) At the time of initial registration and each     renewal thereof an HPG sponsor shall pay a fee of $200 to the Director.		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 123/25)Sec. 25. 
		Risk-bearer.(a) A risk-bearer may issue for delivery in this State any
health insurance contracts as provided by this Act.  A risk-bearer
may also be a sponsor of an HPG.(b) A risk-bearer must also file an annual report in the
form and at the time prescribed by the Director in rules that
shall require, at minimum, (i) the  number of employer members then
enrolled in each HPG; (ii) the date on which each HPG was
issued a group or master health insurance contract,
if any; and (iii) the date on which each such contract, if any, was
terminated, together with any other information that may be
necessary to carry out the purposes of this Act.  A fee of $25
shall be paid to the Director at the time the annual report is
filed.
		(Source: P.A. 90-337, eff. 1-1-98.) (215 ILCS 123/30)Sec. 30. 
		Insurance policy requirements.(a) No health insurance contract may be issued or delivered
pursuant to this Act unless a copy of the form of the contract has been
filed with the Director and approved in accordance with Section
355 of the Illinois Insurance Code.  It must also
contain, in substance, those provisions contained in Sections
357.1 through 357.30 of the Illinois Insurance Code
as may be applicable and contain all other
provisions applicable to group accident and health insurance policies
as provided in Article XX of the Illinois Insurance Code, except as provided in
Section 50 of this Act.  This subsection (a) does not apply to health
maintenance organizations.(b) No health maintenance organization contract may be
issued or delivered under this Act unless a copy of the form
of the contract has been filed with the Director and approved in
accordance with Section 4-13 of the Health Maintenance
Organization Act.  It must also provide or
arrange for and pay for or reimburse the cost of basic health
care services as defined in Section 1-2 of the Health Maintenance Organization
Act and provide the benefits specified in the Health Maintenance Organization
Act for group contracts.(c) In the event that the enrollee has moved outside of the
service area of the health maintenance organization, the HMO
must make available conversion coverage through a contract with
a licensed insurance carrier.  The conversion coverage must be similar to
that which is provided through the HMO.  Coverage shall be
considered "similar" if it provides
a comprehensive medical benefit plan for at least 18 months and is provided
without
imposing any preexisting condition limitation or exclusion,
other than those remaining unexpired under the contract from
which conversion is exercised.(d) Nothing in this Act shall preclude a risk-bearer and an
HPG or employer from entering into a contract that contains
provisions whereby each party agrees to continue the contract in
force for a prescribed period of time.(e) Nothing in this Act shall preclude a risk-bearer from
offering health insurance contracts that contain benefits in
addition to those required in subsection (a).(f) No HPG may purchase insurance providing for a
deductible or an aggregate limit unless the deductible or
aggregate limit applies separately to each individual insured person
of the purchasing group.
		(Source: P.A. 90-337, eff. 1-1-98.) (215 ILCS 123/35)Sec. 35. 
		Underwriting provisions. 
		All
health insurance contracts issued under this Act shall be subject
to the portability and preexisting condition provisions of
the Illinois
Health Insurance
Portability and Accountability Act.
		(Source: P.A. 90-337, eff. 1-1-98; 90-567, eff. 1-23-98.) (215 ILCS 123/40)Sec. 40. 
		Renewability. 
		All health insurance contracts issued under this
Act are subject to the renewability provisions of the Illinois Health Insurance
Portability and Accountability Act.
		(Source: P.A. 90-337, eff. 1-1-98; 90-567, eff. 1-23-98.) (215 ILCS 123/45)Sec. 45. 
		Disclosure requirements. 
		In connection with the
offering for sale of any health insurance contract or certificate
under the contract to an HPG sponsor, HPG, employer, and employee, a
risk-bearer
shall make a reasonable disclosure, as part of its solicitation
and sales materials of all of the following:(1) the provisions of the health insurance contracts
concerning the risk-bearer's right to change premium rates
and the factors, other than claim experience, that affect
changes in premium rates;(2) the provisions relating to renewability of policies and
contracts;(3) the provisions relating to any preexisting condition
provision; and(4) the provisions relating to portability provisions.
		(Source: P.A. 90-337, eff. 1-1-98; 90-567, eff. 1-23-98.) (215 ILCS 123/50)Sec. 50. 
		(Repealed). 
		(Source: P.A. 90-337, eff. 1-1-98.  Repealed by P.A. 90-567, eff. 1-23-98.) (215 ILCS 123/60)Sec. 60. 
		
		Administrative and procedural authority regarding
HPGs and HPG sponsors. The Director is authorized to make use of
any of the powers established under the Illinois Insurance Code to enforce the
laws
of this State. This includes but is not limited to, the Director's
administrative authority to investigate, issue subpoenas,
conduct depositions and hearings, issue orders (including without
limitation orders pursuant to Article XII 1/2
and Section 401.1 of the Illinois Insurance Code), and impose penalties.
With regard to any investigation, administrative proceedings,
or litigation, the Director shall rely on the procedural
law and regulations of this State.
		(Source: P.A. 90-337, eff. 1-1-98.) (215 ILCS 123/65)Sec. 65. 
		Fees.(a) The Director shall charge, collect, and give proper
acquittance for the payment all fees provided for by this Act,
except that any Illinois corporations licensed by the
Department of Insurance pursuant to the provisions of the
Illinois Insurance Code, the Dental Service Plan Act, the Health
Maintenance Organization Act, the Limited Health Service
Organization Act, the Vision Service Plan Act and the Voluntary
Health Services Plans Act or licensed as a third party
administrator or as a managing general agent is exempt from the
registration fee imposed under this Act.(b) Any funds collected under provisions of this Act shall
be deposited in the Insurance Producer Administration Fund.
		(Source: P.A. 90-337, eff. 1-1-98; 90-567, eff. 1-23-98.) (215 ILCS 123/70)Sec. 70. 
		Rules. 
		The Director shall
promulgate rules as may be necessary or desirable
to carry out the provisions of this Act.
		(Source: P.A. 90-337, eff. 1-1-98.) (215 ILCS 123/75)Sec. 75. 
		Severability. 
		The provisions of this Act are severable under
Section 1.31 of the Statute on Statutes.
		(Source: P.A. 90-337, eff. 1-1-98.)
(215 ILCS 124/1)Sec. 1. Short title. This Act may be cited as the Network Adequacy and Transparency Act.
(Source: P.A. 100-502, eff. 9-15-17.) (215 ILCS 124/3)Sec. 3. Applicability of Act. This Act applies to an individual or group policy of accident and health insurance with a network plan amended, delivered, issued, or renewed in this State on or after January 1, 2019. This Act does not apply to an individual or group policy for dental or vision insurance or a limited health service organization with a network plan amended, delivered, issued, or renewed in this State on or after January 1, 2019. 
(Source: P.A. 100-502, eff. 9-15-17; 100-601, eff. 6-29-18.) (215 ILCS 124/5)Sec. 5. Definitions.  In this Act:"Authorized representative" means a person to whom a beneficiary has given express written consent to represent the beneficiary; a person authorized by law to provide substituted consent for a beneficiary; or the beneficiary's treating provider only when the beneficiary or his or her family member is unable to provide consent."Beneficiary" means an individual, an enrollee, an insured, a participant, or any other person entitled to reimbursement for covered expenses of or the discounting of provider fees for health care services under a program in which the beneficiary has an incentive to utilize the services of a provider that has entered into an agreement or arrangement with an insurer."Department" means the Department of Insurance."Director" means the Director  of Insurance."Family caregiver" means a relative, partner, friend, or neighbor who has a significant relationship with the patient and administers or assists the patient with activities of daily living, instrumental activities of daily living, or other medical or nursing tasks for the quality and welfare of that patient."Insurer" means any entity that offers individual or group accident and health insurance, including, but not limited to, health maintenance organizations, preferred provider organizations, exclusive provider organizations, and other plan structures requiring network participation, excluding the medical assistance program under the Illinois Public Aid Code, the State employees group health insurance program, workers compensation insurance, and pharmacy benefit managers."Material change" means a significant reduction in the number of providers available in a network plan, including, but not limited to, a reduction of 10% or more in a specific type of providers, the removal of a major health system that causes a network to be significantly different from the network when the beneficiary purchased the network plan, or any change that would cause the network to no longer satisfy the requirements of this Act or the Department's rules for network adequacy and transparency."Network" means the group or groups of preferred providers providing services to a network plan."Network plan" means an individual or group policy of accident and health insurance that either requires a covered person to use or creates incentives, including financial incentives, for a covered person to use providers managed, owned, under contract with, or employed by the insurer."Ongoing course of treatment" means (1) treatment for a life-threatening condition, which is a disease or condition for which likelihood of death is probable unless the course of the disease or condition is interrupted; (2) treatment for a serious acute condition, defined as a disease or condition requiring complex ongoing care that the covered person is currently receiving, such as chemotherapy, radiation therapy, or post-operative visits; (3) a course of treatment for a health condition that a treating provider attests that discontinuing care by that provider would worsen the condition or interfere with anticipated outcomes; or (4) the third trimester of pregnancy through the post-partum period."Preferred provider" means any provider who has entered, either directly or indirectly, into an agreement with an employer or risk-bearing entity relating to health care services that may be rendered to beneficiaries under a network plan."Providers" means physicians licensed to practice medicine in all its branches, other health care professionals, hospitals, or other health care institutions that provide health care services."Telehealth" has the meaning given to that term in Section 356z.22 of the Illinois Insurance Code."Telemedicine" has the  meaning given to that term in Section 49.5 of the Medical Practice Act of 1987."Tiered network" means a network that identifies and groups some or all types of provider and facilities into specific groups to which different provider reimbursement, covered person cost-sharing or provider access requirements, or any combination thereof, apply for the same services."Woman's principal health care provider" means a physician licensed to practice medicine in all of its branches specializing in obstetrics, gynecology, or family practice.
(Source: P.A. 102-92, eff. 7-9-21; 102-813, eff. 5-13-22.) (215 ILCS 124/10)Sec. 10. Network adequacy.(a)  An insurer providing a network plan shall file a description of all of the following with the Director:(1)  The written policies and procedures for adding     providers to meet patient needs based on increases in the number of beneficiaries, changes in the patient-to-provider ratio, changes in medical and health care capabilities, and increased demand for services.(2)  The written policies and procedures for making     referrals within and outside the network.(3)  The written policies and procedures on how the     network plan will provide 24-hour, 7-day per week access to network-affiliated primary care, emergency services, and women's principal health care providers.An insurer shall not prohibit a preferred provider from discussing any specific or all treatment options with beneficiaries irrespective of the insurer's position on those treatment options or from advocating on behalf of beneficiaries within the utilization review, grievance, or appeals processes established by the insurer in accordance with any rights or remedies available under applicable State or federal law.(b) Insurers must file for review a description of the services to be offered through a network plan.  The description shall include all of the following:(1) A geographic map of the area proposed to be     served by the plan by county service area and zip code, including marked locations for preferred providers.(2) As deemed necessary by the Department, the names,     addresses, phone numbers, and specialties of the providers who have entered into preferred provider agreements under the network plan.(3) The number of beneficiaries anticipated to be     covered by the network plan.(4) An Internet website and toll-free telephone     number for beneficiaries and prospective beneficiaries to access current and accurate lists of preferred providers, additional information about the plan, as well as any other information required by Department rule.(5) A description of how health care services to be     rendered under the network plan are reasonably accessible and available to beneficiaries. The description shall address all of the following:(A)  the type of health care services to be         provided by the network plan;(B)  the ratio of  physicians and other providers         to beneficiaries, by specialty and including primary care physicians and facility-based physicians when applicable under the contract, necessary to meet the health care needs and service demands of the currently enrolled population;(C) the travel and distance standards for plan         beneficiaries in county service areas; and(D)  a description of how the use of         telemedicine, telehealth, or mobile care services may be used to partially meet the network adequacy standards, if applicable.(6) A provision ensuring that whenever a beneficiary     has made a good faith effort, as evidenced by accessing the provider directory, calling the network plan, and calling the provider, to utilize preferred providers for a covered service and it is determined the insurer does not have the appropriate preferred providers due to insufficient number, type, unreasonable travel distance or delay, or preferred providers refusing to provide a covered service because it is contrary to the conscience of the preferred providers, as protected by the Health Care Right of Conscience Act, the insurer shall ensure, directly or indirectly, by terms contained in the payer contract, that the beneficiary will be provided the covered service at no greater cost to the beneficiary than if the service had been provided by a preferred provider. This paragraph (6) does not apply to: (A) a beneficiary who willfully chooses to access a non-preferred provider for health care services available through the panel of preferred providers, or (B) a beneficiary enrolled in a health maintenance organization. In these circumstances, the contractual requirements for non-preferred provider reimbursements shall apply unless Section 356z.3a of the Illinois Insurance Code requires otherwise. In no event shall a beneficiary who receives care at a participating health care facility be required to search for participating providers under the circumstances described in subsection (b) or (b-5) of Section 356z.3a of the Illinois Insurance Code except under the circumstances described in paragraph (2) of subsection (b-5).(7) A provision that the beneficiary shall receive     emergency care coverage such that payment for this coverage is not dependent upon whether the emergency services are performed by a preferred or non-preferred provider and the coverage shall be at the same benefit level as if the service or treatment had been rendered by a preferred provider.  For purposes of this paragraph (7), "the same benefit level" means that the beneficiary is provided the covered service at no greater cost to the beneficiary than if the service had been provided by a preferred provider. This provision shall be consistent with Section 356z.3a of the Illinois Insurance Code.(8) A limitation that, if the plan provides that the     beneficiary will incur a penalty for failing to pre-certify inpatient hospital treatment, the penalty may not exceed $1,000 per occurrence in addition to the plan cost sharing provisions.(c) The network plan shall demonstrate to the Director a minimum ratio of providers to plan beneficiaries as required by the Department.(1)  The ratio of physicians or other providers to     plan beneficiaries shall be established annually by the Department in consultation with the Department of Public Health based upon the guidance from the federal Centers for Medicare and Medicaid Services. The Department shall not establish ratios for vision or dental providers who provide services under dental-specific or vision-specific benefits.  The Department shall consider establishing ratios for the following physicians or other providers:(A)  Primary Care;(B)  Pediatrics;(C)  Cardiology;(D)  Gastroenterology;(E)  General Surgery;(F)  Neurology;(G)  OB/GYN;(H)  Oncology/Radiation;(I)  Ophthalmology;(J)  Urology;(K)  Behavioral Health;(L)  Allergy/Immunology;(M)  Chiropractic;(N)  Dermatology;(O)  Endocrinology;(P)  Ears, Nose, and Throat (ENT)/Otolaryngology;(Q)  Infectious Disease;(R)  Nephrology;(S)  Neurosurgery;(T)  Orthopedic Surgery;(U)  Physiatry/Rehabilitative;(V)  Plastic Surgery;(W)  Pulmonary;(X)  Rheumatology;(Y)  Anesthesiology;(Z)  Pain Medicine;(AA)  Pediatric Specialty Services;(BB)  Outpatient Dialysis; and(CC)  HIV.(2)  The Director shall establish a process for the     review of the adequacy of these standards, along with an assessment of additional specialties to be included in the list under this subsection (c).(d) The network plan shall demonstrate to the Director maximum travel and distance standards for plan beneficiaries, which shall be established annually by the Department in consultation with the Department of Public Health based upon the guidance from the federal Centers for Medicare and Medicaid Services.  These standards shall consist of the maximum minutes or miles to be traveled by a plan beneficiary for each county type, such as large counties, metro counties, or rural counties as defined by Department rule.The maximum travel time and distance standards must include standards for each physician and other provider category listed for which ratios have been established.The Director shall establish a process for the review of the adequacy of these standards along with an assessment of additional specialties to be included in the list under this subsection (d).(d-5)(1)    Every insurer shall ensure that beneficiaries have timely and proximate access to treatment for mental, emotional, nervous, or substance use disorders or conditions in accordance with the provisions of paragraph (4) of subsection (a) of Section 370c of the Illinois Insurance Code. Insurers shall use a comparable process, strategy, evidentiary standard, and other factors in the development and application of the network adequacy standards for timely and proximate access to treatment for mental, emotional, nervous, or substance use disorders or conditions and those for the access to treatment for medical and surgical conditions. As such, the network adequacy standards for timely and proximate access shall equally be applied to treatment facilities and providers for mental, emotional, nervous, or substance use disorders or conditions and specialists providing medical or surgical benefits pursuant to the parity requirements of Section 370c.1 of the Illinois Insurance Code and the federal Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008. Notwithstanding the foregoing, the network adequacy standards for timely and proximate access to treatment for mental, emotional, nervous, or substance use disorders or conditions shall, at a minimum, satisfy the following requirements:(A)    For beneficiaries residing in the metropolitan     counties of Cook, DuPage, Kane, Lake, McHenry, and Will, network adequacy standards for timely and proximate access to treatment for mental, emotional, nervous, or substance use disorders or conditions means a beneficiary shall not have to travel longer than 30 minutes or 30 miles from the beneficiary's residence to receive outpatient treatment for mental, emotional, nervous, or substance use disorders or conditions. Beneficiaries shall not be required to wait longer than 10 business days between requesting an initial appointment and being seen by the facility or provider of mental, emotional, nervous, or substance use disorders or conditions for outpatient treatment or to wait longer than 20 business days between requesting a repeat or follow-up appointment and being seen by the facility or provider of mental, emotional, nervous, or substance use disorders or conditions for outpatient treatment; however, subject to the protections of paragraph (3) of this subsection, a network plan shall not be held responsible if the beneficiary or provider voluntarily chooses to schedule an appointment outside of these required time frames.(B)    For beneficiaries residing in Illinois     counties other than those counties listed in subparagraph (A) of this paragraph, network adequacy standards for timely and proximate access to treatment for mental, emotional, nervous, or substance use disorders or conditions means a beneficiary shall not have to travel longer than 60 minutes or 60 miles from the beneficiary's residence to receive outpatient treatment for mental, emotional, nervous, or substance use disorders or conditions. Beneficiaries shall not be required to wait longer than 10 business days between requesting an initial appointment and being seen by the facility or provider of mental, emotional, nervous, or substance use disorders or conditions for outpatient treatment or to wait longer than 20 business days between requesting a repeat or follow-up appointment and being seen by the facility or provider of mental, emotional, nervous, or substance use disorders or conditions for outpatient treatment; however, subject to the protections of paragraph (3) of this subsection, a network plan shall not be held responsible if the beneficiary or provider voluntarily chooses to schedule an appointment outside of these required time frames.(2)    For beneficiaries residing in all Illinois counties, network adequacy standards for timely and proximate access to treatment for mental, emotional, nervous, or substance use disorders or conditions means a beneficiary shall not have to travel longer than 60 minutes or 60 miles from the beneficiary's residence to receive inpatient or residential treatment for mental, emotional, nervous, or substance use disorders or conditions.(3)    If there is no in-network facility or provider available for a beneficiary to receive timely and proximate access to treatment for mental, emotional, nervous, or substance use disorders or conditions in accordance with the network adequacy standards outlined in this subsection, the insurer shall provide necessary exceptions to its network to ensure admission and treatment with a provider or at a treatment facility in accordance with the network adequacy standards in this subsection.(e) Except for network plans solely offered as a group health plan, these ratio and time and distance standards apply to the lowest cost-sharing tier of any tiered network.(f) The network plan may consider use of other health care service delivery options, such as telemedicine or telehealth, mobile clinics, and centers of excellence, or other ways of delivering care to partially meet the requirements set under this Section.(g) Except for the requirements set forth in subsection (d-5), insurers who are not able to comply with the provider ratios and time and distance standards established by the Department may request an exception to these requirements from the Department.  The Department may grant an exception in the following circumstances:(1) if no providers or facilities meet the specific     time and distance standard in a specific service area and the insurer (i) discloses information on the distance and travel time points that beneficiaries would have to travel beyond the required criterion to reach the next closest contracted provider outside of the service area and (ii) provides contact information, including names, addresses, and phone numbers for the next closest contracted provider or facility;(2) if patterns of care in the service area do not     support the need for the requested number of provider or facility type and the  insurer provides data on local patterns of care, such as claims data, referral patterns, or local provider interviews, indicating where the beneficiaries currently seek this type of care or  where the physicians currently refer beneficiaries, or both; or(3) other circumstances deemed appropriate by the     Department consistent with the requirements of this Act.(h)  Insurers are required to report to the Director any material change to an approved network plan within 15 days after the change occurs and any change that would result in failure to meet the requirements of this Act. Upon notice from the insurer, the Director shall reevaluate the network plan's compliance with the network adequacy and transparency standards of this Act.
(Source: P.A. 102-144, eff. 1-1-22; 102-901, eff. 7-1-22; 102-1117, eff. 1-13-23.) (215 ILCS 124/15)Sec. 15. Notice of nonrenewal or termination.(a) A network plan must give at least 60 days' notice of nonrenewal or termination of a provider to the provider and to the beneficiaries served by the provider. The notice shall include a name and address to which a beneficiary or provider may direct comments and concerns regarding the nonrenewal or termination and the telephone number maintained by the Department for consumer complaints. Immediate written notice may be provided without 60 days' notice when a provider's license has been disciplined by a State licensing board or when the network plan reasonably believes direct imminent physical harm to patients under the providers care may occur.(b) Primary care providers must notify active affected patients of nonrenewal or termination of the provider from the network plan, except in the case of incapacitation.
(Source: P.A. 100-502, eff. 9-15-17.) (215 ILCS 124/20)Sec. 20. Transition of services.(a) A network plan shall provide for continuity of care for its beneficiaries as follows:(1) If a beneficiary's physician or hospital provider     leaves the network plan's network of providers for reasons other than termination of a contract in situations involving imminent harm to a patient or a final disciplinary action by a State licensing board and the provider remains within the network plan's service area, the network plan shall permit the beneficiary to continue an ongoing course of treatment with that provider during a transitional period for the following duration:(A) 90 days from the date of the notice to the         beneficiary of the provider's disaffiliation from the network plan if the beneficiary has an ongoing course of treatment; or(B) if the beneficiary has entered the third         trimester of pregnancy at the time of the provider's disaffiliation, a period that includes the provision of post-partum care directly related to the delivery.(2) Notwithstanding the provisions of paragraph (1)     of this subsection (a), such care shall be authorized by the network plan during the transitional period in accordance with the following:(A) the provider receives continued reimbursement         from the network plan at the rates and terms and conditions applicable under the terminated contract prior to the start of the transitional period;(B) the provider adheres to the network plan's         quality assurance requirements, including provision to the network plan of necessary medical information related to such care; and(C) the provider otherwise adheres to the network         plan's policies and procedures, including, but not limited to, procedures regarding referrals and obtaining preauthorizations for treatment.(3)  The provisions of this Section governing health     care provided during the transition period do not apply if the beneficiary has successfully transitioned to another provider participating in the network plan, if the beneficiary has already met or exceeded the benefit limitations of the plan, or if the care provided is not medically necessary.(b) A network plan shall provide for continuity of care for new beneficiaries as follows:(1) If a new beneficiary whose provider is not a     member of the network plan's provider network, but is within the network plan's service area, enrolls in the network plan, the network plan shall permit the beneficiary to continue an ongoing course of treatment with the beneficiary's current physician during a transitional period:(A) of 90 days from the effective date of         enrollment if the beneficiary has an ongoing course of treatment; or(B) if the beneficiary has entered the third         trimester of pregnancy at the effective date of enrollment, that includes the provision of post-partum care directly related to the delivery.(2) If a beneficiary, or a beneficiary's authorized     representative, elects in writing to continue to receive care from such provider pursuant to paragraph (1) of this subsection (b), such care shall be authorized by the network plan for the transitional period in accordance with the following:(A) the provider receives reimbursement from the         network plan at rates established by the network plan;(B) the provider adheres to the network plan's         quality assurance requirements, including provision to the network plan of necessary medical information related to such care; and(C) the provider otherwise adheres to the network         plan's policies and procedures, including, but not limited to, procedures regarding referrals and obtaining preauthorization for treatment.(3)  The provisions of this Section governing health     care provided during the transition period do not apply if the beneficiary has successfully transitioned to another provider participating in the network plan, if the beneficiary has already met or exceeded the benefit limitations of the plan, or if the care provided is not medically necessary.(c) In no event shall this Section be construed to require a network plan to provide coverage for benefits not otherwise covered or to diminish or impair preexisting condition limitations contained in the beneficiary's contract.
(Source: P.A. 100-502, eff. 9-15-17.) (215 ILCS 124/25)Sec. 25. Network transparency.(a)  A network plan shall post electronically an up-to-date, accurate, and complete provider directory for each of its network plans, with the information and search functions, as described in this Section.(1) In making the directory available electronically,     the network plans shall ensure that the general public is able to view all of the current providers for a plan through a clearly identifiable link or tab and without creating or accessing an account or entering a policy or contract number.(2) The network plan shall update the online provider     directory at least monthly. Providers shall notify the network plan electronically or in writing of any changes to their information as listed in the provider directory, including the information required in subparagraph (K) of paragraph (1) of subsection (b).  The network plan shall update its online provider directory in a manner consistent with the information provided by the provider within 10 business days after being notified of the change by the provider.  Nothing in this paragraph (2) shall void any contractual relationship between the provider and the plan.(3) The network plan shall audit periodically at     least 25% of its provider directories for accuracy, make any corrections necessary, and retain documentation of the audit. The network plan shall submit the audit to the Director upon request.  As part of these audits, the network plan shall contact any provider in its network that has not submitted a claim to the plan or otherwise communicated his or her intent to continue participation in the plan's network.(4) A network plan shall provide a print copy of a     current provider directory or a print copy of the requested directory information upon request of a beneficiary or a prospective beneficiary. Print copies must be updated quarterly and an errata that reflects changes in the provider network must be updated quarterly.(5) For each network plan, a network plan shall     include, in plain language in both the electronic and print directory, the following general information:(A)  in plain language, a description of the         criteria the plan has used to build its provider network;(B)  if applicable, in plain language, a         description of the criteria the insurer or network plan has used to create tiered networks;(C)  if applicable, in plain language, how the         network plan designates the different provider tiers or levels in the network and identifies for each specific provider, hospital, or other type of facility in the network which tier each is placed, for example, by name, symbols, or grouping, in order for a beneficiary-covered person or a prospective beneficiary-covered person to be able to identify the provider tier; and(D)  if applicable, a notation that authorization         or referral may be required to access some providers.(6) A network plan shall make it clear for both its     electronic and print directories what provider directory applies to which network plan, such as including the specific name of the network plan as marketed and issued in this State.  The network plan shall include in both its electronic and print directories a customer service email address and telephone number or electronic link that beneficiaries or the general public may use to notify the network plan of inaccurate provider directory information and contact information for the Department's Office of Consumer Health Insurance.(7) A provider directory, whether in electronic or     print format, shall accommodate the communication needs of individuals with disabilities, and include a link to or information regarding available assistance for persons with limited English proficiency.(b)  For each network plan, a network plan shall make available through an electronic provider directory the following information in a searchable format:(1)  for health care professionals:(A)  name;(B)  gender;(C)  participating office locations;(D)  specialty, if applicable;(E)  medical group affiliations, if applicable;(F)  facility affiliations, if applicable;(G)  participating facility affiliations, if         applicable;(H)  languages spoken other than English, if         applicable;(I)  whether accepting new patients;(J)  board certifications, if applicable; and(K) use of telehealth or telemedicine, including,         but not limited to:(i) whether the provider offers the use of             telehealth or telemedicine to deliver services to patients for whom it would be clinically appropriate;(ii) what modalities are used and what types             of services may be provided via telehealth or telemedicine; and(iii) whether the provider has the ability             and willingness to include in a telehealth or telemedicine encounter a family caregiver who is in a separate location than the patient if the patient wishes and provides his or her consent;(2)  for hospitals:(A)  hospital name;(B)  hospital type (such as acute,         rehabilitation, children's, or cancer);(C)  participating hospital location; and(D) hospital accreditation status; and(3)  for facilities, other than hospitals, by type:(A)  facility name;(B)  facility type;(C)  types of services performed; and(D)  participating facility location or locations.(c)  For the electronic provider directories, for each network plan, a network plan shall make available all of the following information in addition to the searchable information required in this Section:(1)  for health care professionals:(A)  contact information; and(B)  languages spoken other than English by         clinical staff, if applicable;(2)  for hospitals,  telephone number; and(3)  for facilities other than hospitals,  telephone     number.(d)  The insurer or network plan shall make available in print, upon request, the following provider directory information for the applicable network plan:(1)  for health care professionals:(A)  name;(B)  contact information;(C)  participating office location or locations;(D)  specialty, if applicable;(E)  languages spoken other than English, if         applicable;(F)  whether accepting new patients; and(G) use of telehealth or telemedicine, including,         but not limited to:(i) whether the provider offers the use of             telehealth or telemedicine to deliver services to patients for whom it would be clinically appropriate;(ii) what modalities are used and what types             of services may be provided via telehealth or telemedicine; and(iii) whether the provider has the ability             and willingness to include in a telehealth or telemedicine encounter a family caregiver who is in a separate location than the patient if the patient wishes and provides his or her consent;(2)  for hospitals:(A)  hospital name;(B)  hospital type (such as acute,         rehabilitation, children's, or cancer); and(C)  participating hospital location and         telephone number; and(3)  for facilities, other than hospitals, by type:(A)  facility name;(B)  facility type;(C)  types of services performed; and(D)  participating facility location or locations         and telephone numbers.(e)  The network plan shall include a disclosure in the print format provider directory that the information included in the directory is accurate as of the date of printing and that beneficiaries or prospective beneficiaries should consult the insurer's  electronic provider directory on its website and contact the provider.  The network plan shall also include a telephone number in the print format provider directory for a customer service representative where the beneficiary can obtain current provider directory information.(f)  The Director may conduct periodic audits of the accuracy of provider directories. A network plan shall not be subject to any fines or penalties for information required in this Section that a provider submits that is inaccurate or incomplete. 
(Source: P.A. 102-92, eff. 7-9-21.) (215 ILCS 124/30)Sec. 30. Administration and enforcement.(a) Insurers, as defined in this Act, have a continuing obligation to comply with the requirements of this Act.  Other than the duties specifically created in this Act, nothing in this Act is intended to preclude, prevent, or require the adoption, modification, or termination of any utilization management, quality management, or claims processing methodologies of an insurer.(b) Nothing in this Act precludes, prevents, or requires the adoption, modification, or termination of any network plan term, benefit, coverage or eligibility provision, or payment methodology.(c) The Director shall enforce the provisions of this Act pursuant to the enforcement powers granted to it by law.(d) The Department shall adopt rules to enforce compliance with this Act to the extent necessary.
(Source: P.A. 100-502, eff. 9-15-17.) (215 ILCS 124/99)Sec. 99. Effective date. This Act takes effect upon becoming law. 
(Source: P.A. 100-502, eff. 9-15-17.)
(215 ILCS 125/Art. I heading) ARTICLE I.  
		SHORT TITLE AND DEFINITIONS (215 ILCS 125/1-1) (from Ch. 111 1/2, par. 1401)Sec. 1-1. 
		
		This Act shall be known and may be cited as the "Health
Maintenance Organization Act".
		(Source: P.A. 85-20.) (215 ILCS 125/1-2) (from Ch. 111 1/2, par. 1402)Sec. 1-2. Definitions. As used in this Act, unless the context otherwise
requires, the following terms shall have the meanings ascribed to them:(1) "Advertisement" means any printed or published material,
audiovisual material and descriptive literature of the health care plan
used in direct mail, newspapers, magazines, radio scripts, television
scripts, billboards and similar displays; and any descriptive literature or
sales aids of all kinds disseminated by a representative of the health care
plan for presentation to the public including, but not limited to, circulars,
leaflets, booklets, depictions, illustrations, form letters and prepared
sales presentations.(2) "Director" means the Director of Insurance.(3) "Basic health care services" means emergency care, and inpatient
hospital and physician care, outpatient medical services, mental
health services and care for alcohol and drug abuse, including any
reasonable deductibles and co-payments, all of which are subject to the
limitations described in Section 4-20 of this Act and as determined by the Director pursuant to rule.(4) "Enrollee" means an individual who has been enrolled in a health
care plan.(5) "Evidence of coverage" means any certificate, agreement,
or contract issued to an enrollee setting out the coverage to which he is
entitled in exchange for a per capita prepaid sum.(6) "Group contract" means a contract for health care services which
by its terms limits eligibility to members of a specified group.(7) "Health care plan" means any arrangement whereby any organization
undertakes to provide or arrange for and pay for or reimburse the
cost of basic health care services, excluding any reasonable deductibles and copayments, from providers selected by
the Health Maintenance Organization and such arrangement
consists of arranging for or the provision of such health care services, as
distinguished from mere indemnification against the cost of such services,
except as otherwise authorized by Section 2-3 of this Act,
on a per capita prepaid basis, through insurance or otherwise.  A "health
care plan" also includes any arrangement whereby an organization undertakes to
provide or arrange for or pay for or reimburse the cost of any health care
service for persons who are enrolled under Article V of the Illinois Public Aid
Code or under the Children's Health Insurance Program Act through
providers selected by the organization and the arrangement consists of making
provision for the delivery of health care services, as distinguished from mere
indemnification.  A "health care plan" also includes any arrangement pursuant
to Section 4-17.  Nothing in this definition, however, affects the total
medical services available to persons eligible for medical assistance under the
Illinois Public Aid Code.(8) "Health care services" means any services included in the furnishing
to any individual of medical or dental care, or the hospitalization or
incident to the furnishing of such care or hospitalization as well as the
furnishing to any person of any and all other services for the purpose of
preventing, alleviating, curing or healing human illness or injury.(9) "Health Maintenance Organization" means any organization formed
under the laws of this or another state to provide or arrange for one or
more health care plans under a system which causes any part of the risk of
health care delivery to be borne by the organization or its providers.(10) "Net worth" means admitted assets, as defined in Section 1-3 of
this Act, minus liabilities.(11) "Organization" means any insurance company, a nonprofit
corporation authorized under the Dental
Service Plan Act or the Voluntary
Health Services Plans Act,
or a corporation organized under the laws of this or another state for the
purpose of operating one or more health care plans and doing no business other
than that of a Health Maintenance Organization or an insurance company.
"Organization" shall also mean the University of Illinois Hospital as
defined in the University of Illinois Hospital Act or a unit of local government health system operating within a county with a population of 3,000,000 or more.(12) "Provider" means any physician, hospital facility,
facility licensed under the Nursing Home Care Act, or facility or long-term care facility as those terms are defined in the Nursing Home Care Act or other person which is licensed or otherwise authorized
to furnish health care services and also includes any other entity that
arranges for the delivery or furnishing of health care service.(13) "Producer" means a person directly or indirectly associated with a
health care plan who engages in solicitation or enrollment.(14) "Per capita prepaid" means a basis of prepayment by which a fixed
amount of money is prepaid per individual or any other enrollment unit to
the Health Maintenance Organization or for health care services which are
provided during a definite time period regardless of the frequency or
extent of the services rendered
by the Health Maintenance Organization, except for copayments and deductibles
and except as provided in subsection (f) of Section 5-3 of this Act.(15) "Subscriber" means a person who has entered into a contractual
relationship with the Health Maintenance Organization for the provision of
or arrangement of at least basic health care services to the beneficiaries
of such contract.
(Source: P.A. 98-651, eff. 6-16-14; 98-841, eff. 8-1-14; 99-78, eff. 7-20-15.) (215 ILCS 125/1-3) (from Ch. 111 1/2, par. 1402.1)Sec. 1-3. 
		Definitions of admitted assets. 
		"Admitted Assets" includes
the investments authorized or permitted by Section 3-1 of this Act and, in
addition thereto, only the following:(1) Amounts due from affiliates pursuant to     management contracts or service agreements which meet the requirements of Section 141.1 of the Illinois Insurance Code to the extent that the affiliate has liquid assets with which to pay the balance and maintain its accounts on a current basis; provided that the aggregate amount due from affiliates may not exceed the lesser of 10% of the organization's admitted assets or 25% of the organization's net worth as defined in Section 3-1.  Any amount outstanding more than 3 months shall be deemed not current.  For purpose of this subsection "affiliates" are as defined in Article VIII 1/2 of the Illinois Insurance Code.(2) Amounts advanced to providers under contract to     the organization for services to be rendered to enrollees pursuant to the contract.  Amounts advanced must be for period of not more than 3 months and must be based on historical or estimated utilization patterns with the provider and must be reconciled against actual incurred claims at least semi-annually. Amounts due in the aggregate may not exceed 50% of the organization's net worth as defined in Section 3-1.  Amounts due from a single provider may not exceed the lesser of 5% of the organization's admitted assets or 10% of the organization's net worth.(3) Amounts permitted under Section 2-7.
		(Source: P.A. 91-357, eff. 7-29-99; 91-549, eff. 8-14-99; 92-16, eff.
6-28-01.)
(215 ILCS 125/Art. II heading) ARTICLE II.  
		CERTIFICATE OF AUTHORITY,
GENERAL CORPORATE AND FINANCIAL REQUIREMENTS (215 ILCS 125/2-1) (from Ch. 111 1/2, par. 1403)Sec. 2-1. Certificate of authority - Exception for corporate employee
programs - Applications - Material modification of operation.(a) No organization shall establish or operate a Health Maintenance
Organization in this State without obtaining a certificate of authority
under this Act.  No person other than an organization may lawfully
establish or operate a Health Maintenance Organization in this State.
This Act shall not apply to the establishment and operation
of a Health Maintenance Organization exclusively providing or arranging
for health care services to employees of a  corporate affiliate of such
Health Maintenance Organization.  This exclusion shall be available
only to those Health Maintenance Organizations which require employee
contributions which equal less than 50% of the total cost of the health
care plan, with the remainder of the cost being paid by the corporate
affiliate which is the employer of the participants in the  plan.
This Act shall not apply to the establishment and operation of a Health
Maintenance Organization exclusively providing or arranging health care
services under contract with the State to persons committed to the custody
of the Illinois Department of Corrections.This Act does not apply to the establishment and operation of
managed care community networks that are certified as risk-bearing entities
under Section 5-11 of the Illinois Public Aid Code and that contract with the
Department of Healthcare and Family Services (formerly Illinois Department of Public Aid) pursuant to that Section.(b) Any organization may apply to the Director for and obtain a
certificate of authority to establish and operate a Health Maintenance
Organization in compliance with this Act. A foreign corporation may
qualify under this Act, subject to its registration to do business in
this State as a foreign corporation.(c) Each application for a certificate of authority shall be
filed in triplicate and verified by an officer or authorized representative
of the applicant, shall be in a form prescribed by the Director, and shall
set forth, without limiting what may be required by the Director, the
following:(1) A copy of the organizational document;(2) A copy of the bylaws, rules and regulations, or     similar document regulating the conduct of the internal affairs of the applicant, which shall include a mechanism to afford the enrollees an opportunity to participate in an advisory capacity in matters of policy and operations;(3) A list of the names, addresses, and official     positions of the persons who are to be responsible for the conduct of the affairs of the applicant; including, but not limited to, all members of the board of directors, executive committee, the principal officers, and any person or entity owning or having the right to acquire 10% or more of the voting securities or subordinated debt of the applicant;(4) A statement generally describing the applicant,     geographic area to be served, its facilities, personnel and the health care services to be offered;(5) A copy of the form of any contract made or to be     made between the applicant and any providers regarding the provision of health care services to enrollees;(6) A copy of the form of any contract made or to be     made between the applicant and any person listed in paragraph (3) of this subsection;(7) A copy of the form of any contract made or to be     made between the applicant and any person, corporation, partnership or other entity for the performance on the applicant's behalf of any functions including, but not limited to, marketing, administration, enrollment, investment management and subcontracting for the provision of health services to enrollees;(8) A copy of the form of any group contract which is     to be issued to employers, unions, trustees, or other organizations and a copy of any form of evidence of coverage to be issued to any enrollee or subscriber and any advertising material;(9) Descriptions of the applicant's procedures for     resolving enrollee grievances which must include procedures providing for enrollees participation in the resolution of grievances;(10) A copy of the applicant's most recent financial     statements audited by an independent certified public accountant.  If the financial affairs of the applicant's parent company are audited by an independent certified public accountant but those of the applicant are not, then a copy of the most recent audited financial statement of the applicant's parent, attached to which shall be consolidating financial statements of the parent including separate unaudited financial statements of the applicant, unless the Director determines that additional or more recent financial information is required for the proper administration of this Act;(11) A copy of the applicant's financial plan,     including a three-year projection of anticipated operating results, a statement of the sources of working capital, and any other sources of funding and provisions for contingencies;(12) A description of rate methodology;(13) A description of the proposed method of     marketing;(14) A copy of every filing made with the Illinois     Secretary of State which relates to the applicant's registered agent or registered office;(15) A description of the complaint procedures to be     established and maintained as required under Section 4-6 of this Act;(16) A description, in accordance with regulations     promulgated by the Illinois Department of Public Health, of the quality assessment and utilization review procedures to be utilized by the applicant;(17) The fee for filing an application for issuance     of a certificate of authority provided in Section 408 of the Illinois Insurance Code, as now or hereafter amended; and(18) Such other information as the Director may     reasonably require to make the determinations required by this Act.					(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 125/2-2) (from Ch. 111 1/2, par. 1404)Sec. 2-2. Determination by Director.(a) Upon receipt of an application for issuance of a certificate of
authority, the Director shall transmit copies of such application and
accompanying documents to the Director of the Illinois Department of Public
Health. The Director of the Department of Public Health shall then
determine whether the applicant for certificate of authority, with respect
to health care services to be furnished: (1) has demonstrated the
willingness and potential ability to assure that such health care service
will be provided in a manner to insure both availability and accessibility
of adequate personnel and facilities and in a manner enhancing
availability, accessibility, and continuity of service; and (2) has
arrangements, established in accordance with regulations promulgated by the
Department of Public Health for an ongoing quality of health care assurance
program concerning health care processes and outcomes. Upon investigation,
the Director of the Department of Public Health shall certify to the
Director whether the proposed Health Maintenance Organization meets the
requirements of this subsection (a). If the Director of the Department of
Public Health certifies that the Health Maintenance Organization does not
meet such requirements, he shall specify in what respect it is deficient.(b) Issuance of a certificate of authority shall be granted if the
following conditions are met:(1) the requirements of subsection (c) of Section 2-1     have been fulfilled;(2) the persons responsible for the conduct of the     affairs of the applicant are competent, trustworthy, and possess good reputations, and have had appropriate experience, training or education;(3) the Director of the Department of Public Health     certifies that the Health Maintenance Organization's proposed plan of operation meets the requirements of this Act;(4) the Health Care Plan furnishes basic health care     services on a prepaid basis, through insurance or otherwise, except to the extent of reasonable requirements for co-payments or deductibles as authorized by this Act;(5) the Health Maintenance Organization is     financially responsible and may reasonably be expected to meet its obligations to enrollees and prospective enrollees; in making this determination, the Director shall consider:(A) the financial soundness of the applicant's         arrangements for health services and the minimum standard rates, co-payments and other patient charges used in connection therewith;(B) the adequacy of working capital, other         sources of funding, and provisions for contingencies; and(C) that no certificate of authority shall be         issued if the initial minimum net worth of the applicant is less than $2,000,000. The initial net worth shall be provided in cash and securities in combination and form acceptable to the Director;(6) the agreements with providers for the provision     of health services contain the provisions required by Section 2-8 of this Act; and(7) any deficiencies identified by the Director have     been corrected.(Source: P.A. 100-63, eff. 8-11-17.) (215 ILCS 125/2-3) (from Ch. 111 1/2, par. 1405)Sec. 2-3. 
		Powers of health maintenance organizations. 
		The powers of a health maintenance organization include, but are not
limited to the following:(a) The purchase, lease, construction, renovation, operation, or
maintenance of hospitals, medical facilities or both, and their ancillary
equipment, and such property as may reasonably be required for its
principal office or for such other purposes as may be necessary in the
transaction of the business of the organization.(b) The making of loans to a medical group under contract with it and in
furtherance of its program or the making of loans to a corporation or
corporations under its control for the purpose of acquiring or constructing
medical facilities at hospitals or in furtherance of a program providing
health care services for enrollees.(c) The furnishing of health care services through providers which are
under contract with or employed by the health maintenance
organization.(d) The contracting with any person for the performance on its behalf of
certain functions such as marketing, enrollment and administration.(e) The contracting with an insurance company licensed in this State, or
with a hospital, medical, dental, vision or pharmaceutical service
corporation authorized to do business in this State, for the provision of
insurance, indemnity, or reimbursement against the cost of health care
service provided by the health maintenance organization.(f) The offering, in addition to basic health care services, of (1)
health care services, (2) indemnity benefits covering out of area or
emergency services, (3) indemnity benefits provided through insurers or
hospital, medical, dental, vision, or pharmaceutical service
corporations, and (4) health maintenance organization point-of-service
benefits as authorized under Article 4.5.(g) Rendering services related to the functions involved in the
operating of its health maintenance organization business including but not
limited to providing health services, data processing, accounting, or
claims.(g-5) Indemnification for services provided to a child as required under
subdivision (e)(3) of Section 4-2.(h) Any other business activity reasonably complementary or
supplementary to its health maintenance organization business to the extent
approved by the Director.
		(Source: P.A. 92-135, eff. 1-1-02.) (215 ILCS 125/2-3.1) (from Ch. 111 1/2, par. 1405.1)Sec. 2-3.1. (a) No health maintenance organization shall cause to be
dispensed any drug other than that prescribed by a physician.  Nothing
herein shall prohibit drug product selection under Section 3.14 of the
"Illinois Food, Drug
and Cosmetic Act", approved June 29, 1967, as amended, and in accordance
with the requirements of Section 25 of the "Pharmacy Practice Act",
approved September 24, 1987, as amended.(b) No health maintenance organization shall include in any contract
with any physician providing for health care services any provision
requiring such physician to prescribe any particular drug product to any
enrollee unless the enrollee is a hospital in-patient where such drug product
may be permitted pursuant
to written guidelines or procedures previously established by a
pharmaceutical or therapeutics committee of a hospital, approved by the
medical staff of such hospital and specifically approved, in writing, by
the prescribing physician for his or her patients in such hospital, and
unless it is compounded, dispensed or sold by a
pharmacy located in a hospital, as defined in Section 3 of the Hospital
Licensing Act or a hospital organized under "An Act in relation to the
founding and operation of the University of Illinois Hospital and the
conduct of University of Illinois health care programs", approved July 3,
1931, as amended.
(Source: P.A. 95-689, eff. 10-29-07.) (215 ILCS 125/2-4) (from Ch. 111 1/2, par. 1406)Sec. 2-4. 
		
		Required minimum net worth; special contingent
reserve; deficiency; impairment.(a) A health maintenance
organization issued a certificate of authority on or after the
effective date of this amendatory Act of 1987
shall have and at all times maintain net worth of not
less than $1,500,000.  As an allocation of net worth, organizations
certified prior to the effective date of this amendatory Act of 1987
shall maintain a special contingent reserve. The special contingent
reserve for an organization certified between January 1, 1986 and the
effective date of this amendatory Act of 1987 shall be equal to 5% of its
net earned subscription revenue for health care services through December
31st of the year in which certified.  In subsequent years such organization
shall accumulate additions to the
contingent reserve in an amount which is equal to 2% of
its net earned subscription revenue for each calendar year.  For purposes
of this Section, net earned subscription
revenue means premium minus reinsurance expenses.  Maintenance of the
contingent reserve requires that net worth equals or exceeds the contingent
reserve at any balance sheet date.(b) Additional accumulations under subsection (a) will no longer be
required at such time that the total special contingent reserve required
by subsection (a) is equal to $1,500,000.(c) A deficiency in meeting amounts required in
subsections (a),  (b), and (d) will require (1)
filing with the Director a plan for
correction of the deficiency, acceptable to the Director and (2) correction
of the deficiency within a reasonable
time, not to exceed 60 days unless an extension
of time, not to exceed 60 additional days, is granted by the Director.
Such a deficiency will be deemed an impairment, and failure to correct the
deficiency in the prescribed time shall be grounds for suspension or
revocation pursuant to subsection (h) of Section 5-5.(d) All health maintenance organizations issued a certificate of
authority on or prior to December 31, 1985 and regulated under this Act
must have and at all times maintain, prior to December 31, 1988, the net
worth and special contingent
reserve that was required for that particular organization at the time it
was certified.  All such organizations must have by December 31, 1988 and
thereafter maintain at all times, net worth of not less than $300,000 and a
special contingent reserve calculated and accumulated in the same manner as
required of a health maintenance organization issued a certificate of
authority on or between January 1, 1986 and the effective date of this
amendatory Act of 1987.  Such calculation shall commence with
the financial reporting period first following certification.All organizations issued a certificate of authority between January 1,
1986 and the effective date of this amendatory Act of 1987 must have and at
all times maintain the net worth and special contingent reserve that was
required for that particular organization at the time it was certified.(d-5) A health maintenance organization that offers a point-of-service
product
must
maintain minimum net worth of not less than:(1) the greater of 300% of the "authorized control     level" as defined by Article IIA of the Illinois Insurance Code; or(2) $3,500,000 if the health maintenance     organization's annual projected out-of-plan claims are less than $500,000; or(3) $4,500,000 if the health maintenance     organization's annual projected out-of-plan claims are equal to or greater than $500,000 but less than $1,000,000; or(4) $6,000,000 if the health maintenance     organization's annual projected out-of-plan claims are $1,000,000 or greater.(e) Unless allowed by the Director, no health maintenance
organization, officer, director, trustee, producer, or employee of such
organization may renew, issue, or deliver, or cause to be renewed, issued
or delivered, any certificate, agreement, or contract of coverage in this
State, for which a premium is charged or collected, when the organization
writing such coverage is insolvent or impaired, and the fact of such
insolvency or impairment is known to the organization, officer, director,
trustee, producer, or employee of such organization.  An organization is
impaired when a deficiency exists in meeting the amounts required in
subsections (a), (b), and (d) of Section 2-4.However, the existence of an impairment does not prevent the issuance or
renewal of a certificate, agreement or contract when the enrollee exercises
an option granted under the plan to obtain new, renewed or converted coverage.Any organization, officer, director, trustee, producer, or employee of
such organization violating this subsection shall be guilty of a
Class A misdemeanor.
		(Source: P.A. 92-135, eff. 1-1-02.) (215 ILCS 125/2-5) (from Ch. 111 1/2, par. 1406.1)Sec. 2-5. 
		Claims Liabilities. 
		Every Health
Maintenance Organization shall, at all times,
maintain liabilities in an amount estimated in the aggregate to provide for
the payment of all claims incurred and any due and unpaid provider
capitation, whether reported or unreported, which
are unpaid and for which such organization is or may be liable, and to
provide for the expense of adjustment or settlement of such claims.  Such
liabilities shall be computed in accordance with regulations promulgated by
the Director upon reasonable consideration of the ascertained experience
and character of such business for the purpose of adequately protecting
enrollees and securing the solvency of such organizations.Whenever the claim and claim expense experience of any such organization
shows the liabilities calculated in accordance with such regulations to be
inadequate, the Director may require such organization to maintain
additional liabilities.
		(Source: P.A. 86-620.) (215 ILCS 125/2-6) (from Ch. 111 1/2, par. 1406.2)Sec. 2-6. 
		Statutory deposits.(a) An organization subject to the provisions
of this Act shall make and maintain with the Director through December 30,
1993, for the protection of enrollees of the organization, a deposit of
securities which are authorized investments under paragraphs (1)
and (2) of subsection (h) of Section 3-1 having a fair market value equal to
at least $100,000.  Effective December 31, 1993 and through December 30,
1994, the deposit shall have a fair market value at least equal to $200,000.
Effective December 31, 1994 and thereafter, the deposit shall have a fair
market value at least equal to $300,000.  An organization issued a certificate
of authority on or after the effective date of this Amendatory Act of 1993,
shall make and maintain with the Director; for the protection of enrollees of
the organization, a deposit of securities which are authorized investments
under paragraphs (1) and (2) of subsection (h) of Section 3-1 having a fair
market value equal to at least $300,000.  The amount on deposit shall remain
as an admitted asset of the organization in the determination of its net
worth.  The Director may release the required deposit of securities
upon receipt of
an order of a court having proper jurisdiction or
upon: (i)
certification by the organization that it has no outstanding
enrollee creditors, enrollees, certificate holders, or enrollee obligations
in effect and no plans to engage in the
business of insurance as a health maintenance organization; (ii)
receipt of
a lawful resolution of the
organization's governing body effecting the surrender of
its certificate of authority, articles of incorporation, or other
organizational documents to their issuing governmental officer for voluntary or
administrative dissolution; and (iii) receipt of the name and
forwarding address for each of the final officers and directors of the
organization,
together with a plan of dissolution approved by the Director.(b) An organization that offers a point-of-service product, as permitted
by Article 4.5, must maintain an additional deposit in an amount that is not
less than the greater of 125% of the organization's annual projected
point-of-service claims or $300,000.
		(Source: P.A. 92-75, eff. 7-12-01; 92-135, eff. 1-1-02; 92-651, eff.
7-11-02.) (215 ILCS 125/2-7)Sec. 2-7. (Repealed).
	 
	 (Source: P.A. 92-16, eff. 6-28-01. Repealed by P.A. 97-486, eff. 1-1-12.) (215 ILCS 125/2-8) (from Ch. 111 1/2, par. 1407.01)Sec. 2-8. 
		Provider agreements. 
		(a) All provider contracts currently in
existence between any organization and any hospital which are renewed on
or after 180 days following the effective date of this amendatory Act of
1987, and all contracts between any organization and any hospital executed
on or after 180 days after such effective date, shall contain the following
"hold-harmless" clause: "The provider agrees that in no event, including
but not limited to nonpayment by the organization of amounts due the
hospital provider under this contract, insolvency of the organization or
any breach of this contract by the organization, shall the hospital
provider or its assignees or subcontractors have a right to seek any type
of payment from, bill, charge, collect a deposit from, or have any recourse
against, the enrollee, persons acting on the enrollee's behalf (other than
the organization), the employer or group contract holder for services
provided pursuant to this contract except for the payment of applicable
co-payments or deductibles for services covered by the organization or fees
for services not covered by the organization.  The requirements of this
clause shall survive any termination of this contract for services rendered
prior to such termination, regardless of the cause of such termination. The
organization's enrollees, the persons acting on the enrollee's behalf
(other than the organization) and the employer or group contract holder
shall be third party beneficiaries of this clause.  This clause supersedes
any oral or written agreement now existing or hereafter entered into
between the provider and the enrollee, persons acting on the enrollee's
behalf (other than the organization) and the employer or group contract
holder." To the extent that any hospital provider contract, which is
renewed or entered into on or after 180 days following the effective date
of this amendatory Act of 1987, fails to incorporate such provisions, such
provisions shall be deemed incorporated into such contracts by operation of
law as of the date of such renewal or execution.(b) All provider and subcontractor contracts must contain provisions
whereby the provider or subcontractor shall provide, arrange for, or
participate in the quality assurance programs mandated by this Act, unless
the Illinois Department of Public Health certifies that such programs will
be fully implemented without any participation or action from such contracting provider.(c) The Director may promulgate rules requiring that provider contracts
contain provisions concerning reasonable notices to be given between the
parties and for the organization to provide reasonable notice to its
enrollees and to the Director.  Notice shall be given for such events as,
but not limited to, termination of insurance protection, quality assurance
or availability of medical care.
		(Source: P.A. 86-620.) (215 ILCS 125/2-9) (from Ch. 111 1/2, par. 1407.02)Sec. 2-9. 
		Subordinated Indebtedness. 
		An organization having a
certificate of authority under this Act may borrow or assume a liability
for the repayment of a sum of money upon a written agreement that the loan
or advance with interest thereon not exceeding a reasonable rate shall be
repaid only out of net worth of the organization in excess of such minimum
net worth as is stipulated in and by the agreement.  The agreement form
shall first be submitted to and approved by the appropriate authoritative
body of the organization and the Director.  Repayment of principal or
payment of interest may be made only with the approval of the Director when
he is satisfied that the financial condition of the organization warrants
such action, but such approval may not be withheld if the organization
shall have and submit satisfactory evidence of net worth of not less than
the amount stipulated in the repayment of principal or interest payment
clause of the agreement. No loan or advance made under this Section or
interest accruing thereon shall form a part of the legal liabilities of the
organization until authorized for payment by the Director, but, until such
authorization, all statements published by the organization or filed with
the Director shall show the amount thereof then remaining unpaid as a
special surplus account. Nothing in this Section shall be construed to mean
that an organization may not otherwise borrow money, but the amount so
borrowed with accrued interest thereon shall be carried by the organization
as a liability.
		(Source: P.A. 86-620.) (215 ILCS 125/2-10)Sec. 2-10. 
		Directors.(a) After June 30, 2002, the corporate powers for domestic organizations
issued a certificate of authority under this Act must be exercised by, and its
business and affairs must be under the control of, a board of directors
composed of not less than 3 nor more than 21 natural persons who are at least
18
years of age.  At least 3 of the directors must be residents and citizens of
this State.  A person convicted of a felony may not be a director.  A
director must be of good character and known professional, administrative, or
business ability.  The requisite ability must include a practical knowledge of
managed health care, insurance, finance, or investment.(b) After June 30, 2002, not less than one-third of the directors of a
domestic organization that is not a controlled insurer for purposes of Section
131.20b of the Illinois Insurance Code must be persons who are not officers or
employees of the organization.  At least one of those persons must be included
in
any quorum for the transaction of business at any meeting of the board of
directors or any committee thereof.
		(Source: P.A. 92-140, eff. 7-24-01.)
(215 ILCS 125/Art. III heading) ARTICLE III.  
		INVESTMENTS (215 ILCS 125/3-1) (from Ch. 111 1/2, par. 1407.3)Sec. 3-1. 
		Investment Regulations.(a) Any health maintenance
organization may invest its funds as provided in this Section and not
otherwise.  A health  maintenance organization that is organized as an
insurance company may also acquire the investment assets authorized for an
insurance company pursuant to the laws applicable to an insurance company
in the organization's state of domicile.  Notwithstanding the provisions of
this Section, the Director may, after notice and hearing, order an
organization to limit or withdraw from certain investments, or discontinue
certain investment practices, to the extent the Director finds that such
investments or investment practices are hazardous to the financial
condition of the organization.(b) No investment or loan shall be made or engaged in by any health
maintenance organization unless the same have been authorized or ratified
by the board of directors or by a committee thereof charged with the duty
of supervising investments and loans.  Nothing contained in this subsection
shall prevent the board of directors of any such organization from
depositing any of its securities with a committee appointed for the purpose
of protecting the interest of security holders or with the authorities of
any state where it is necessary to do so in order to secure permission to
transact its appropriate business therein, and nothing contained in this
subsection shall prevent the board of directors of such organization from
depositing any securities as collateral for the securing of any bond
required for the business of the organization.(c) No health maintenance organization shall pay any commission or
brokerage for the purchase or sale of property whether real or personal, in
excess of that usual and customary at the time and in the locality where
such purchases or sales are made, and information regarding payments of
commissions and brokerage shall be maintained.(d) A health maintenance organization may not directly or indirectly,
unless it
has notified the Director in writing of its intention to enter into the
transaction at least 30 days prior thereto, or any shorter period as the
Director may permit, and the Director has not disapproved it within that
period:(1) make a loan to or other investment in an officer     or director of the organization or a person in which the officer or director has any direct or indirect financial interest;(2) make a guarantee for the benefit of or in favor     of an officer or director of the organization or a person in which the officer or director has any direct or indirect financial interest; or(3) enter into an agreement for the purchase or sale     of property from or to an officer or director of the organization or a person in which the officer or director has any direct or indirect financial interest.For the purposes of this Section, an officer or director shall not be deemed
to have a financial interest by reason of an interest that is held directly or
indirectly through the ownership of equity interests representing less than 2%
of all outstanding equity interests issued by a person that is a party to the
transaction, or solely by reason of that individual's position as a director or
officer of a person that is a party to the transaction.This subsection does not apply to a transaction between an organization and
any of its subsidiaries or affiliates that is entered into in compliance with
Section 131.20a of the Illinois Insurance Code, other than a transaction
between an insurer and its officer or director.(e) In applying the percentage limitations imposed by this Section there
shall be used as a base the total of all assets which would be admitted by
this Section without regard to percentage limitations.  All legal
measurements used as a base in the determination of all investment
qualifications shall consist of the amounts determined at the most recent
year end adjusted for subsequent acquisition and disposition of investments.(f) Valuation of investments.  Investments shall be valued in
accordance with the published valuation standards of the National
Association of Insurance Commissioners.  Securities investments as to which
the National Association of Insurance Commissioners has not published
valuation standards in its Valuations of Securities manual or its successor
publication shall be valued as follows:(1) All obligations having a fixed term and rate     shall, if not in default as to principal or interest, be valued as follows: if purchased at par, at the par value; if purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made;(2) Common, preferred or guaranteed stocks shall be     valued at market value.(3) Other security investments shall be valued in     accordance with regulations promulgated by the Director pursuant to paragraph (6) of this subsection.(4) Other investments, including real property, shall     be valued in accordance with regulations promulgated by the Director pursuant to paragraph (6) of this subsection, but in no event shall such other investments be valued at more than the purchase price.  The purchase price for real property includes capitalized permanent improvements, less depreciation spread evenly over the life of the property or, at the option of the company, less depreciation computed on any basis permitted under the Internal Revenue Code and regulations thereunder.  Such investments that have been affected by permanent declines in value shall be valued at not more than market value.(5) Any investment, including real property, not     purchased by the Health Maintenance Organization but acquired in satisfaction of a debt or otherwise shall be valued in accordance with the applicable procedures for that type of investment contained in this subsection.  For purposes of applying the valuation procedures, the purchase price shall be deemed to be the market value at the time the investment is acquired or, in the case of any investment acquired in satisfaction of debt, the amount of the debt, including interest, taxes and expenses, whichever amount is less.(6) The Director shall promulgate rules and     regulations for determining and calculating values to be used in financial statements submitted to the Department for investments.(g) Definitions.  As used in this Section, unless the context otherwise
requires.(1) "Business Corporation" means corporations     organized for other than not for profit purposes.(2) "Business Entity" includes sole proprietorships,     corporations, associations, partnerships and business trusts.(3) "Bank or Trust Company" means any bank or trust     company organized under the laws of the United States or any State thereof if said bank or trust company is regularly examined pursuant to such laws and said bank or trust company has the insurance protection afforded by an agency of the United States government.(4) "Capital" means capital stock paid-up, if any,     and its use in a provision does not imply that a non-profit Health Maintenance Organization without stated capital stock is excluded from the provision.  The capital of such an organization will be zero.(5) "Direct" when used in connection with     "obligation" means that the designated obligor shall be primarily liable on the instrument representing the obligation.(6) "Facility" means and includes real estate and any     and all forms of tangible personal property and services used constituting an operating unit.(7) "Guaranteed or insured" means that the guarantor     or insurer will perform or insure the obligation of the obligor or will purchase the obligation to the extent of the guaranty or insurance.(8) "Mortgage" shall include a trust deed or other     lien on real property securing an obligation for the payment of money.(9) "Servicer" means a business entity that has a     contractual obligation to service a pool of mortgage loans.  The service provided shall include, but is not limited to, collection of principal and interest, keeping the accounts current, maintaining or confirming in force hazard insurance and tax status and providing supportive accounting services.(10) "Single credit risk" means the direct,     guaranteed or insured obligations of any one business entity including affiliates thereof.(11) "Surplus" means the amount properly shown as     total net worth on a company's balance sheet, plus all voluntary reserves, but not including capital paid-up.(12) "Tangible net worth" means the par value of all     issued and outstanding capital stock of a corporation (or in the case of shares having no par value, the stated value) and the amounts of all surplus accounts less the sum of (a) such intangible assets as deferred charges, organization and development expense, discount and expense incurred in securing capital, good will, trade-marks, trade-names and patents, (b) leasehold improvements, and (c) any reserves carried by the corporation and not otherwise deducted from assets.(13) "Unconditional" when used in connection with     "obligation" means that nothing remains to be done or to occur to make the designated obligor liable on the instrument, and that the legal holder shall have the status at least equal to that of general creditor of the obligor.(h) Authorized investments.  Any Health Maintenance Organization, except
those organized as an insurance company, may acquire the assets set forth
in paragraphs 1 through 17, inclusive.  A Health Maintenance Organization
that is organized as an insurance company may acquire the investment assets
authorized for an insurance company pursuant to the laws applicable to an
insurance company in the organization's state of domicile.  Any
restriction, exclusion or provision appearing in any paragraph shall apply
only with respect to the authorization of the particular paragraph in which
it appears and shall not constitute a general prohibition and shall not be
applicable to any other paragraph.  The qualifications or disqualifications
of an investment under one paragraph shall not prevent its qualification in
whole or in part under another paragraph, and an investment authorized by
more than one paragraph may be held under whichever authorizing paragraph the
organization elects.  An investment which qualified under any paragraph at
the time it was acquired or entered into by an organization shall continue
to be qualified under that paragraph.  An investment in whole or in part
may be transferred from time to time, at the election of the organization,
to the authority of any paragraph under which it qualifies, whether
originally qualifying thereunder or not.(1) Direct obligations of the United States for the     payment of money, or obligations for the payment of money to the extent guaranteed or insured as to the payment of principal and interest by the United States.(2) Direct obligations for the payment of money,     issued by an agency or instrumentality of the United States, or obligations for the payment of money to the extent guaranteed or insured as to the payment of principal and interest by an agency or instrumentality of the United States.(3) Direct, general obligations of any state of the     United States for the payment of money, or obligations for the payment of money to the extent guaranteed or insured as to the payment of principal and interest by any state of the United States, on the following conditions:(i) Such state has the power to levy taxes for         the prompt payment of the principal and interest of such obligations; and(ii) Such state shall not be in default in the         payment of principal or interest on any of its direct, guaranteed or insured obligations at the date of such investment.(4) Direct, general obligations of any political     subdivision of any state of the United States for the payment of money, or obligations for the payment of money to the extent guaranteed as to the payment of principal and interest by any political subdivision of any state of the United States, on the following conditions:(i) The obligations are payable or guaranteed         from ad valorem taxes;(ii) Such political subdivision is not in default         in the payment of principal or interest on any of its direct or guaranteed obligations;(iii) No investment shall be made under this         paragraph in obligations which are secured only by special assessments for local improvements; and(iv) An organization shall not invest under this         paragraph more than 2% of its admitted assets in obligations issued or guaranteed by any one such political subdivision.(5) Anticipation obligations of any political     subdivision of any state of the United States, including but not limited to bond anticipation notes, tax anticipation notes and construction anticipation notes, for the payment of money within 12 months from the issuance of the obligation, on the following conditions:(i) Such anticipation notes must be a direct         obligation of the issuer under conditions set forth in paragraph 4;(ii) Such political subdivision is not in default         in the payment of the principal or interest on any of its direct general obligations or any obligation guaranteed by such political subdivision;(iii) The anticipated funds must be specifically         pledged to secure the obligation;(iv) An organization shall not invest under this         paragraph more than 2% of its admitted assets in the anticipation obligations issued by any one such political subdivision.(6) Obligations of any state of the United States, a     political subdivision thereof, or a public instrumentality of any one or more of the foregoing, for the payment of money, on the following conditions:(i) The obligations are payable from revenues or         earnings of a public utility of such state, political subdivision, or public instrumentality which are specifically pledged therefor;(ii) The law under which the obligations are         issued requires such rates for service shall be charged and collected at all times that they will produce sufficient revenue or earnings together with any other revenues or moneys pledged to pay all operating and maintenance charges of the public utility and all principal and interest on such obligations;(iii) No prior or parity obligations payable from         the revenues or earnings of that public utility are in default at the date of such investment;(iv) An organization shall not invest more than         20% of its admitted assets under this paragraph; and(v) An organization shall not invest under this         Section more than 2% of its admitted assets in the revenue obligations issued in connection with any one facility.(7) Obligations of any state of the United States, a     political subdivision thereof, or a public instrumentality of any of the foregoing, for the payment of money, on the following conditions:(i) The obligations are payable from revenues or         earnings, excluding revenues or earnings from public utilities, specifically pledged therefor by such state, political subdivision or public instrumentality;(ii) No prior or parity obligation of the same         issuer payable from revenues or earnings from the same source has been in default as to principal or interest during the 5 years next preceding the date of such investment, but such issuer need not have been in existence for that period, and obligations acquired under this paragraph may be newly issued;(iii) An organization shall not invest in excess         of 20% of its admitted assets under this paragraph;(iv) An organization shall not invest under this         paragraph more than 2% of its admitted assets in the revenue obligations issued in connection with any one facility; and(v) An organization shall not invest under this         paragraph more than 2% of its admitted assets in revenue obligations payable from revenue or earning sources which are the contractual responsibility of any one single credit risk.(8) Direct, unconditional obligations of a solvent     business corporation for the payment of money, including obligations to pay rent for equipment used in its business or obligations for the payment of money to the extent guaranteed or insured as to the payment of principal and interest by any solvent business corporation, on the following conditions:(i) The corporation shall be incorporated under         the laws of the United States or any state of the United States;(ii) The corporation shall have tangible net         worth of not less than $1,000,000;(iii) No such obligation, guarantee or insurance         of the corporation has been in default as to principal or interest during the 5 years preceding the date of investment, but the corporation need not have had obligations guarantees or insurance outstanding during that period and need not have been in existence for that period, and obligations acquired under this paragraph may be newly issued;(iv) An organization shall not invest more than         2% of its admitted assets in obligations issued, guaranteed or insured by any one such corporation;(v) An organization may invest under this         paragraph up to an additional 2% of its admitted assets in obligations which (i) are issued, guaranteed or insured by any one or more such corporations, each having a tangible net worth of not less than $25,000,000 and (ii) mature within 12 months from the date of acquisition;(vi) An organization may invest not more than 1/2         of 1% of its admitted assets in such obligations of corporations which do not meet the condition of subparagraph (ii) of this paragraph; and(vii) An organization shall not invest more than         75% of its admitted assets under this paragraph.(9) Direct, unconditional obligations for the payment     of money issued or obligations for the payment of money to the extent guaranteed as to principal and interest by a solvent not for profit corporation, on the following conditions:(i) The corporation shall be incorporated under         the laws of the United States or of any state of the United States;(ii) The corporation shall have been in existence         for at least 5 years and shall have assets of at least $2,000,000;(iii) Revenues or other income from such assets         and the services or commodities dispensed by the corporation shall be pledged for the payment of the obligations or guarantees;(iv) No such obligation or guarantee of the         corporation has been in default as to principal or interest during the 5 years next preceding the date of such investment, but the corporation need not have had obligations or guarantees outstanding during that period and obligations which are acquired under this paragraph may be newly issued;(v) An organization shall not invest more than         15% of its admitted assets under this paragraph; and(vi) An organization shall not invest under this         paragraph more than 2% of its admitted assets in the obligations issued or guaranteed by any one such corporation.(10) Direct, unconditional nondemand obligations for     the payment of money issued by a solvent bank, mutual savings bank or trust company on the following conditions:(i) The bank, mutual savings bank or trust         company shall be incorporated under the laws of the United States, or of any state of the United States;(ii) The bank, mutual savings bank or trust         company shall have tangible net worth of not less than $1,000,000;(iii) Such obligations must be of the type which         are insured by an agency of the United States or have a maturity of no more than 1 day;(iv) An organization shall not invest under this         paragraph more than the amount which is fully insured by an agency of the United States plus 2% of its admitted assets in nondemand obligations issued by any one such financial institution; and(v) An organization may invest under this         paragraph up to an additional 8% of its admitted assets in nondemand obligations which (1) are issued by any such banks, mutual savings banks or trust companies, each having a tangible net worth of not less than $25,000,000 and (2) mature within 12 months from the date of acquisition.(11) Preferred or guaranteed stocks issued or     guaranteed by a solvent business corporation incorporated under the laws of the United States or any state of the United States, on the following conditions:(i) The corporation shall have tangible net worth         of not less than $1,000,000;(ii) If such stocks have been outstanding prior         to purchase, an organization shall not invest under this paragraph in such stock if prescribed current or cumulative dividends are in arrears;(iii) An organization shall not invest more than         33 1/3% of its admitted assets under this paragraph and an organization shall not invest more than 15% of its admitted assets under this paragraph in stocks which, at the time of purchase, are not Sinking Fund Stocks.  An issue of preferred or guaranteed stock shall be a Sinking Fund Stock when (1) such issue is subject to a 100% mandatory sinking fund or similar arrangement which will provide for the redemption of the entire issue over a period not longer than 40 years from the date of purchase; (2) annual mandatory sinking fund installments on each issue commence not more than 10 years from the date of issue; and (3) each annual sinking fund installment provides for the purchase or redemption of at least 2 1/2% of the original number of shares of such issue; and(iv) An organization shall not invest under this         paragraph more than 2% of its admitted assets in the preferred or guaranteed stocks of any one such corporation.(12) Common stock issued by any solvent business     corporation incorporated under the laws of the United States, or of any state of the United States, on the following conditions:(i) The issuing corporation must have tangible         net worth of $1,000,000 or more;(ii) An organization may not invest more than an         amount equal to its net worth under this paragraph; and(iii) An organization may not invest under this         paragraph an amount equal to more than 10% of its net worth in the common stock of any one corporation.(13) Shares of common stock or units of beneficial     interest issued by any solvent business corporation or trust incorporated or organized under the laws of the United States, or of any state of the United States, on the following conditions:(i) If the issuing corporation or trust is         advised by an investment advisor which is the organization or an affiliate of the organization, the issuing corporation or trust shall have net assets of $100,000 or more, or if the issuing corporation or trust has an unaffiliated investment advisor, the issuing corporation or trust shall have net assets of $10,000,000 or more;(ii) The issuing corporation or trust is         registered as an investment company with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended;(iii) An organization shall not invest under this         paragraph more than the greater of $100,000 or 10% of its admitted assets in any one bond fund, municipal bond fund or money market fund;(iv) An organization shall not invest under this         paragraph more than 10% of its net worth in any one common stock fund, balanced fund or income fund;(v) An organization shall not invest more than         50% of its admitted assets in bond funds, municipal bond funds and money market funds under this paragraph; and(vi) An organization's investments in common         stock funds, balanced funds or income funds when combined with its investments in common stocks made under paragraph (12) shall not exceed the aggregate limitation provided by subparagraph (ii) of paragraph (12).(14) Shares of, or accounts or deposits with savings     and loan associations or building and loan associations, on the following conditions:(i) The shares, accounts, or deposits, or         investments in any form legally issuable shall be of a withdrawable type and issued by an association which has the insurance protection afforded by the Federal Savings and Loan Insurance Corporation; but nonwithdrawable accounts which are not eligible for insurance by the Federal Savings and Loan Insurance Corporation shall not be eligible for investment under this paragraph;(ii) The association shall have tangible net         worth of not less than $1,000,000;(iii) The investment shall be in the name of and         owned by the organization, unless the account is under a trusteeship with the organization named as the beneficiary;(iv) An organization shall not invest more than         50% of its admitted assets under this paragraph; and(v) Under this paragraph, an organization shall         not invest in any one such association an amount in excess of 2% of its admitted assets or an amount which is fully insured by the Federal Savings and Loan Insurance Corporation, whichever is greater.(15) Direct, unconditional obligations for the     payment of money secured by the pledge of any investment which is authorized by any of the preceding paragraphs, on the following conditions:(i) The investment pledged shall by its terms be         legally assignable and shall be validly assigned to the organization;(ii) The investment pledged shall have a fair         market value which is at least 25% greater than the amount invested under this paragraph, except that a loan may be made up to 100% of the full fair market value of collateral that would qualify as an investment under paragraph (1) provided it qualifies under condition (i) of this paragraph; and(iii) An organization's investment under this         paragraph when added to its investment of the category of the collateral pledged shall not cause the sum to exceed the limits provided by the paragraph authorizing that category of investments.(16) Real estate (including leasehold estates and     leasehold improvements) for the convenient accommodation of the organization's business operations, including home office, branch office, medical facilities and field office operations, on the following conditions:(i) Any parcel of real estate acquired under this         paragraph may include excess space for rent to others, if it is reasonably anticipated that such excess will be required by the organization for expansion or if the excess is reasonably required in order to have one or more buildings that will function as an economic unit;(ii) Such real estate may be subject to a         mortgage; and(iii) The greater of the admitted value of the         asset as determined by subsection (f) or the organization's equity plus all encumbrances on such real estate owned by a company under this paragraph shall not exceed 20% of its admitted assets, except with the permission of the Director if he finds that such percentage of its admitted assets is insufficient to provide convenient accommodation for the company's business; provided, however, an organization that directly provides medical services may invest an additional 20% of its admitted assets in such real estate, not requiring the permission of the Director.(17) Any investments of any kind, in the complete     discretion of the organization, without regard to any condition of, restriction in, or exclusion from paragraphs (1) to (16), inclusive, and regardless of whether the same or a similar type of investment has been included in or omitted from any such paragraph, on the following condition: An organization shall not invest under this paragraph more than the lesser of (i) 10% of its admitted assets, or (ii) 50% of the amount by which its net worth exceeds the minimum requirements of a new health maintenance organization to qualify for a certificate of authority.		(Source: P.A. 92-140, eff. 7-24-01; 92-651, eff. 7-11-02.)
(215 ILCS 125/Art. 4.5 heading) ARTICLE 4.5.  
		POINT-OF-SERVICE
PRODUCTS (215 ILCS 125/4.5-1)Sec. 4.5-1. Point-of-service health service contracts.(a) A health maintenance organization that offers a point-of-service
contract:(1) must include as in-plan covered services all     services required by law to be provided by a health maintenance organization;(2) must provide incentives, which shall include     financial incentives, for enrollees to use in-plan covered services;(3) may not offer services out-of-plan without     providing those services on an in-plan basis;(4) may include annual out-of-pocket limits and     lifetime maximum benefits allowances for out-of-plan services that are separate from any limits or allowances applied to in-plan services;(5) may not consider emergency services, authorized     referral services, or non-routine services obtained out of the service area to be point-of-service services;(6) may treat as out-of-plan services those services     that an enrollee obtains from a participating provider, but for which the proper authorization was not given by the health maintenance organization; and(7) after the effective date of this amendatory Act     of the 92nd General Assembly, must include the following disclosure on its point-of-service contracts and evidences of coverage: "WARNING, LIMITED BENEFITS WILL BE PAID WHEN NON-PARTICIPATING PROVIDERS ARE USED. You should be aware that when you elect to utilize the services of a non-participating provider for a covered service in non-emergency situations, benefit payments to such non-participating provider are not based upon the amount billed. The basis of your benefit payment will be determined according to your policy's fee schedule, usual and customary charge (which is determined by comparing charges for similar services adjusted to the geographical area where the services are performed), or other method as defined by the policy. YOU CAN EXPECT TO PAY MORE THAN THE COINSURANCE AMOUNT DEFINED IN THE POLICY AFTER THE PLAN HAS PAID ITS REQUIRED PORTION. Non-participating providers may bill members for any amount up to the billed charge after the plan has paid its portion of the bill, except as provided in Section 356z.3a of the Illinois Insurance Code for covered services received at a participating health care facility from a non-participating provider that are: (a) ancillary services, (b) items or services furnished as a result of unforeseen, urgent medical needs that arise at the time the item or service is furnished, or (c) items or services received when the facility or the non-participating provider fails to satisfy the notice and consent criteria specified under Section 356z.3a. Participating providers have agreed to accept discounted payments for services with no additional billing to the member other than co-insurance and deductible amounts. You may obtain further information about the participating status of professional providers and information on out-of-pocket expenses by calling the toll free telephone number on your identification card.".(b) A health maintenance organization offering a point-of-service contract
is
subject to all of the following limitations:(1) The health maintenance organization may not     expend in any calendar quarter more than 20% of its total expenditures for all its members for out-of-plan covered services.(2) If the amount specified in item (1) of this     subsection is exceeded by 2% in a quarter, the health maintenance organization must effect compliance with item (1) of this subsection by the end of the following quarter.(3) If compliance with the amount specified in item     (1) of this subsection is not demonstrated in the health maintenance organization's next quarterly report, the health maintenance organization may not offer the point-of-service contract to new groups or include the point-of-service option in the renewal of an existing group until compliance with the amount specified in item (1) of this subsection is demonstrated or until otherwise allowed by the Director.(4) A health maintenance organization failing,     without just cause, to comply with the provisions of this subsection shall be required, after notice and hearing, to pay a penalty of $250 for each day out of compliance, to be recovered by the Director. Any penalty recovered shall be paid into the General Revenue Fund. The Director may reduce the penalty if the health maintenance organization demonstrates to the Director that the imposition of the penalty would constitute a financial hardship to the health maintenance organization.(c) A health maintenance organization that offers a
point-of-service product must
do all of the following:(1) File a quarterly financial statement detailing     compliance with the requirements of subsection (b).(2) Track out-of-plan, point-of-service utilization     separately from in-plan or non-point-of-service, out-of-plan emergency care, referral care, and urgent care out of the service area utilization.(3) Record out-of-plan utilization in a manner that     will permit such utilization and cost reporting as the Director may, by rule, require.(4) Demonstrate to the Director's satisfaction that     the health maintenance organization has the fiscal, administrative, and marketing capacity to control its point-of-service enrollment, utilization, and costs so as not to jeopardize the financial security of the health maintenance organization.(5) Maintain, in addition to any other deposit     required under this Act, the deposit required by Section 2-6.(6) Maintain cash and cash equivalents of sufficient     amount to fully liquidate 10 days' average claim payments, subject to review by the Director.(7) Maintain and file with the Director, reinsurance     coverage protecting against catastrophic losses on out of network point-of-service services. Deductibles may not exceed $100,000 per covered life per year, and the portion of risk retained by the health maintenance organization once deductibles have been satisfied may not exceed 20%. Reinsurance must be placed with licensed authorized reinsurers qualified to do business in this State.(d) A health maintenance organization may not issue a point-of-service
contract
until it has filed and had approved by the Director a plan to comply with the
provisions of
this Section.  The compliance plan must, at a minimum, include provisions
demonstrating
that the health maintenance organization will do all of the following:(1) Design the benefit levels and conditions of     coverage for in-plan covered services and out-of-plan covered services as required by this Article.(2) Provide or arrange for the provision of adequate     systems to:(A) process and pay claims for all out-of-plan         covered services;(B) meet the requirements for point-of-service         contracts set forth in this Section and any additional requirements that may be set forth by the Director; and(C) generate accurate data and financial and         regulatory reports on a timely basis so that the Department of Insurance can evaluate the health maintenance organization's experience with the point-of-service contract and monitor compliance with point-of-service contract provisions.(3) Comply with the requirements of subsections (b)     and (c).(Source: P.A. 102-901, eff. 1-1-23.)
(215 ILCS 125/Art. IV heading) ARTICLE IV.  
		DELIVERY OF SERVICES - REQUIRED
PROVISIONS AND MARKETING. (215 ILCS 125/4-1) (from Ch. 111 1/2, par. 1408)Sec. 4-1. 
		Description and securing of services. 
		Every Health Maintenance Organization shall at the time of enrollment
and annually thereafter provide its enrollees a description of the services
and information as to where and how to secure them.  The Health
Maintenance Organization shall issue to each subscriber or enrollee a group
contract or evidence of coverage.  The group contract or evidence of
coverage and related material shall be delivered or issued for delivery to
an enrollee within 30 days from the later of the effective date of coverage
or the date on which the Health Maintenance Organization is provided
completed notification of enrollment.
		(Source: P.A. 86-620.) (215 ILCS 125/4-2) (from Ch. 111 1/2, par. 1408.2)Sec. 4-2. 
		Medical assistance; coverage of child.(a) In this Section, "Medicaid" means medical assistance authorized under
Section 1902 of the Social Security Act.(b) A contract or
evidence of coverage delivered, issued for delivery, renewed, or amended by
a Health Maintenance Organization may not contain any provision
which
limits or excludes payments of health care services
to or on behalf of the enrollee because the enrollee or any covered
dependent is eligible for or is receiving Medicaid
benefits in this or any other state.(c) To the extent that payment for covered expenses has been made under
Article V, VI, or VII of the Illinois Public Aid Code for health care services
provided to an individual, if a third party has a legal liability to make
payments for those health care services, the State is considered to have
acquired the rights of the individual to payment.(d) If a child is covered under a health care plan of a Health Maintenance
Organization in which
the child's noncustodial parent is an enrollee, the Health Maintenance
Organization shall:(1) Provide necessary information to the child's     custodial parent to enable the child to obtain benefits under that health care plan.(2) Permit the child's custodial parent (or the     provider, with the custodial parent's approval) to submit claims for payment for covered services without the approval of the noncustodial parent.(3) Make payments on claims submitted in accordance     with paragraph (2) directly to the custodial parent, the provider of health care services, or the state Medicaid agency.(e) A Health Maintenance Organization may not deny enrollment of a child
under the
health care plan in which the child's parent is an enrollee on any of the
following
grounds:(1) The child was born out of wedlock.(2) The child is not claimed as a dependent on the     parent's federal income tax return.(3) The child does not reside with the parent or in     the service area covered by the health care plan.(f) If a parent is required by a court or administrative order to provide
coverage for a child under a health care plan in which the parent is enrolled,
and that offers coverage for eligible
dependents, the Health Maintenance Organization,
upon receiving a copy of the order, shall:(1) Upon application, permit the parent to enroll in     the health care plan a child who is otherwise eligible for that coverage, without regard to any enrollment season restrictions that might otherwise be applicable as to the time period within which a person may enroll in the plan.(2) Enroll the child in the health care plan upon     application of the child's other parent, the state agency administering the Medicaid program, or the state agency administering a program for enforcing child support and establishing paternity under 42 U.S.C. 651 through 669 (or another child support enforcement program), if the parent is enrolled in the health care plan but fails to apply for enrollment of the child.(g) A Health Maintenance Organization may not impose, on a state agency that
has been assigned
the
rights of an enrollee in a health care plan who
receives Medicaid benefits, requirements that are different from requirements
applicable to an assignee of any other enrollee in that health care
plan.(h) Nothing in subsections (e) and (f) prevents a Health Maintenance
Organization from denying any such application if the child is not eligible for
coverage
according to the Health Maintenance Organization's medical underwriting
standards.(i) The Health Maintenance Organization may not disenroll (or otherwise
eliminate coverage
of) the child from the health
care plan unless the Health Maintenance Organization is provided
satisfactory written evidence of either of the following:(1) The court or administrative order is no longer in     effect.(2) The child is or will be enrolled in a comparable     health care plan obtained by the parent under such order and that enrollment is currently in effect or will take effect not later than the date the prior coverage is terminated.		(Source: P.A. 89-183, eff. 1-1-96.) (215 ILCS 125/4-3) (from Ch. 111 1/2, par. 1408.3)Sec. 4-3. 
		(Repealed). 
		(Source: Repealed by P.A. 89-183, eff. 1-1-96.) (215 ILCS 125/4-4) (from Ch. 111 1/2, par. 1408.4)Sec. 4-4. Sexual assault or abuse victims; coverage of expenses;
recovery of State funds; reimbursement of Department of Public Health.(1) Contracts or evidences of coverage issued by a health maintenance
organization, which provide benefits for health care services, shall to the
full extent of coverage provided for any other emergency or accident care,
provide for the payment of actual expenses incurred, without offset or
reduction for benefit deductibles or co-insurance amounts, in the examination
and testing of a victim of an offense defined in Sections 11-1.20 through 11-1.60 or 12-13 through 12-16
of the Criminal Code of 1961 or the Criminal Code of 2012, or an attempt to
commit such offense, to establish that sexual contact did occur or did not
occur, and to establish the presence or absence of sexually transmitted disease
or infection, and examination and treatment of injuries and trauma sustained by
a victim of such offense.(2) For purposes of enabling the recovery of State funds, any health
maintenance organization subject to this Section shall upon reasonable demand
by the Department of Public Health disclose the names and identities of its
enrollees entitled to benefits under this provision to the Department of Public
Health whenever the Department of Public Health has determined that it has
paid, or is about to pay for, health care services for which a health
maintenance organization is liable under this Section.  All information
received by the Department of Public Health under this provision shall be held
on a confidential basis and shall not be subject to subpoena and shall not be
made public by the Department of Public Health or used for any
purpose other than that authorized by this Section.(3) Whenever the Department of Public Health finds that it has paid
for all or part of any health care services for which a health maintenance
organization is obligated to pay under this Section, the Department of Public
Health shall be entitled to receive reimbursement for its payments from
such organization provided that the Department of Public Health has notified
the organization of its claims before the organization has paid such benefits
to its enrollees or in behalf of its enrollees.
(Source: P.A. 96-1551, eff. 7-1-11; 97-1150, eff. 1-25-13.) (215 ILCS 125/4-5) (from Ch. 111 1/2, par. 1408.5)Sec. 4-5. 
		Organ Transplants. 
		No contract or evidence
of coverage issued by a health maintenance organization which provides
coverage for health care services shall deny reimbursement for
an otherwise covered expense incurred for any organ transplantation
procedure solely on the basis that such procedure is deemed experimental or
investigational unless supported by the determination of the Office of
Health Care Technology Assessment within the Agency for Health Care Policy
and Research within the federal Department of Health and Human Services
that such procedure is either experimental or investigational or that there
is insufficient data or experience to determine whether an organ
transplantation procedure is clinically acceptable. If a health maintenance
organization has made written request, or had one made on its behalf by a
national organization, for determination by the Office of Health Care
Technology Assessment within the Agency for Health Care Policy and Research
within the federal Department of Health and Human Services as to
whether a specific organ transplantation procedure is clinically acceptable
and said organization fails to respond to such a request within a period of
90 days, the failure to act may be deemed a determination that the
procedure is deemed to be experimental or investigational.
		(Source: P.A. 87-218.) (215 ILCS 125/4-6) (from Ch. 111 1/2, par. 1408.6)Sec. 4-6. 
		Complaint handling procedure. 
		(a) Every health maintenance
organization shall establish and maintain a complaint system providing
reasonable procedures for resolving complaints initiated by enrollees.
Nothing herein shall be construed to preclude an enrollee or a
provider from filing a complaint with the Director or as limiting the
Director's ability to investigate such complaints.(b) When a complaint is received
by the Department of Insurance against a health maintenance organization or
producer (respondent), the respondent, shall be notified of the
complaint. The Department shall, in its notification, specify the date when
a report is to be received from the respondent, which shall be no later
than 21 days after notification is sent to the respondent.  A failure to
reply by the date specified may be followed by a collect telephone call or
collect telegram.  Repeated instances of failing to reply by the date
specified may result in further regulatory action.(c) Contents of Response or Report. (1) Each respondent shall supply
adequate documentation which explains all actions taken or not taken and
which were the basis for the complaint;(2) Documents necessary to support the respondent's position and
information requested by the Department, shall be furnished with the
respondent's reply;(3) The respondent's reply shall be in duplicate, but duplicate copies
of supporting documents shall not be required;(4) The respondent's reply shall include the name, telephone number and
address of the individual assigned to the complaint; and(5) The Department shall respect the confidentiality of medical reports
and other documents which by law are confidential.  Any other information
furnished by a respondent shall be marked "confidential" if the respondent
does not wish it to be released to the complainant.(d) Follow-up Conclusion. Upon receipt of the respondent's report, the
investigating deputy shall evaluate the material submitted; and(1) Advise the complainant of the action taken and disposition of his
complaint;(2) Pursue further investigation with respondent or complainant; or(3) Refer the investigation report to the appropriate branch within the
Department of Insurance for further regulatory action.
		(Source: P.A. 86-620.) (215 ILCS 125/4-6.1) (from Ch. 111 1/2, par. 1408.7)Sec. 4-6.1. Mammograms; mastectomies.(a) Every contract or evidence of coverage
issued by a Health Maintenance Organization for persons who are residents of
this State shall contain coverage for screening by low-dose mammography
for all women 35 years of age or older for the presence of occult breast
cancer.  The coverage shall be as follows:(1) A baseline mammogram for women 35 to 39 years of     age.(2) An annual mammogram for women 40 years of age or     older.(3) A mammogram at the age and intervals considered     medically necessary by the woman's health care provider for women under 40 years of age and having a family history of breast cancer, prior personal history of breast cancer, positive genetic testing, or other risk factors.(4) For an individual or group policy of accident and     health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after the effective date of this amendatory Act of the 101st General Assembly, a comprehensive ultrasound screening and MRI of an entire breast or breasts if a mammogram demonstrates heterogeneous or dense breast tissue or when medically necessary as determined by a physician licensed to practice medicine in all of its branches.(5) For an individual or group policy of accident and     health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after the effective date of this amendatory Act of the 101st General Assembly, a diagnostic mammogram when medically necessary, as determined by a physician licensed to practice medicine in all its branches, advanced practice registered nurse, or physician assistant.A policy subject to this subsection shall not impose a deductible, coinsurance, copayment, or any other cost-sharing requirement on the coverage provided; except that this sentence does not apply to coverage of diagnostic mammograms to the extent such coverage would disqualify a high-deductible health plan from eligibility for a health savings account pursuant to Section 223 of the Internal Revenue Code (26 U.S.C. 223).For purposes of this Section:"Diagnostic
mammogram" means a mammogram obtained using diagnostic mammography."Diagnostic
mammography" means a method of screening that is designed to
evaluate an abnormality in a breast, including an abnormality seen
or suspected on a screening mammogram or a subjective or objective
abnormality otherwise detected in the breast."Low-dose mammography"
means the x-ray examination of the breast using equipment dedicated
specifically for mammography, including the x-ray tube, filter, compression
device, and image receptor, with radiation exposure delivery of less than 1
rad per breast for 2 views of an average size breast. The term also includes digital mammography and includes breast tomosynthesis."Breast tomosynthesis" means a radiologic procedure that involves the acquisition of projection images over the stationary breast to produce cross-sectional digital three-dimensional images of the breast.If, at any time, the Secretary of the United States Department of Health and Human Services, or its successor agency, promulgates rules or regulations to be published in the Federal Register or publishes a comment in the Federal Register or issues an opinion, guidance, or other action that would require the State, pursuant to any provision of the Patient Protection and Affordable Care Act (Public Law 111-148), including, but not limited to, 42 U.S.C. 18031(d)(3)(B) or any successor provision, to defray the cost of any coverage for breast tomosynthesis outlined in this subsection, then the requirement that an insurer cover breast tomosynthesis is inoperative other than any such coverage authorized under Section 1902 of the Social Security Act, 42 U.S.C. 1396a, and the State shall not assume any obligation for the cost of coverage for breast tomosynthesis set forth in this subsection.(a-5) Coverage as described in subsection (a) shall be provided at no cost to the enrollee and shall not be applied to an annual or lifetime maximum benefit.(b) No contract or evidence of coverage issued by a health maintenance
organization that provides for the
surgical procedure known as a mastectomy shall be issued, amended, delivered,
or renewed in this State on or after the effective date of this amendatory Act
of the 92nd General Assembly unless that coverage also provides for prosthetic
devices or reconstructive surgery incident to the mastectomy, providing that
the mastectomy is performed after the effective date of this amendatory Act.
Coverage for breast reconstruction in connection
with a mastectomy shall
include:(1) reconstruction of the breast upon which the     mastectomy has been performed;(2) surgery and reconstruction of the other breast to     produce a symmetrical appearance; and(3) prostheses and treatment for physical     complications at all stages of mastectomy, including lymphedemas.
Care shall be determined in consultation with the attending physician and the
patient.
The offered coverage for prosthetic devices and
reconstructive surgery shall be subject to the deductible and coinsurance
conditions applied to the mastectomy and all other terms and conditions
applicable to other benefits.  When a mastectomy is performed and there is
no evidence of malignancy, then the offered coverage may be limited to the
provision of prosthetic devices and reconstructive surgery to within 2
years after the date of the mastectomy. As used in this Section,
"mastectomy" means the removal of all or part of the breast for medically
necessary reasons, as determined by a licensed physician.Written notice of the availability of coverage under this Section shall be
delivered to the enrollee upon enrollment and annually thereafter.  A
health maintenance organization may not deny to an enrollee eligibility, or
continued eligibility, to enroll or
to renew coverage under the terms of the plan solely for the purpose of
avoiding the requirements of this Section.  A health maintenance organization
may not penalize or
reduce or
limit the reimbursement of an attending provider or provide incentives
(monetary or otherwise) to an attending provider to induce the provider to
provide care to an insured in a manner inconsistent with this Section.(c) Rulemaking authority to implement this amendatory Act of the 95th General Assembly, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.(Source: P.A. 100-395, eff. 1-1-18; 101-580, eff. 1-1-20.) (215 ILCS 125/4-6.2) (from Ch. 111 1/2, par. 1408.8)Sec. 4-6.2. 
		Breast implant removal. 
		No contract offered by
Health Maintenance Organizations shall deny coverage for the removal of breast
implants when the removal of the implants is medically necessary treatment for
a sickness or injury.  This Section does not apply to surgery performed for
removal of breast implants that were implanted solely for cosmetic reasons.
For the purpose of this Section, cosmetic reasons does not include cosmetic
surgery performed as reconstruction resulting from sickness or injury.
		(Source: P.A. 87-938; 88-45.) (215 ILCS 125/4-6.3)Sec. 4-6.3. Prescription drugs; cancer treatment. No health
maintenance organization that provides coverage for prescribed drugs
approved by the federal Food and Drug Administration for the treatment of
certain types of cancer shall exclude coverage of any drug on the basis
that the drug has been prescribed for the treatment of a type of cancer for
which the drug has not been approved by the federal Food and Drug
Administration.  The drug, however, must be approved by the federal Food and
Drug Administration and must be recognized for the treatment of the
specific type of cancer for which the drug has been prescribed in any
one of the following established reference compendia:(a) the American Hospital Formulary Service Drug     Information;(b) National Comprehensive Cancer Network's Drugs &     Biologics Compendium;(c) Thomson Micromedex's Drug Dex;(d) Elsevier Gold Standard's Clinical Pharmacology; or(e) other authoritative compendia as identified from     time to time by the Federal Secretary of Health and Human Services; or
if not in the compendia, recommended for that particular type of cancer
in formal clinical studies, the results of which have been published in at
least two peer reviewed professional medical journals published in the
United States or Great Britain.Any coverage required by this Section shall also include those medically
necessary services associated with the administration of a drug.Despite the provisions of this Section, coverage shall
not be required for any experimental or investigational drugs or any drug
that the federal Food and Drug Administration has determined to be
contraindicated for treatment of the specific type of cancer for which the
drug has been prescribed.  This Section shall apply only to cancer drugs.
Nothing in this Section shall be construed, expressly or by implication, to
create, impair, alter, limit, notify, enlarge, abrogate or prohibit
reimbursement for drugs used in the treatment of any other disease or
condition.
(Source: P.A. 96-457, eff. 8-14-09.) (215 ILCS 125/4-6.4)Sec. 4-6.4. 
		Post-parturition care. 
		A health maintenance organization is
subject to the provisions of Section 356s of the Illinois
Insurance Code.
		(Source: P.A. 89-513, eff. 9-15-96; 90-14, eff. 7-1-97.) (215 ILCS 125/4-6.5)Sec. 4-6.5. Required health benefits; Illinois Insurance Code
requirements.  A health maintenance organization is subject to the provisions
of Sections 155.37, 356g.5, 356t, 356u, and 356z.1 of the Illinois Insurance Code.
					(Source: P.A. 95-189, eff. 8-16-07.) (215 ILCS 125/4-7) (from Ch. 111 1/2, par. 1409)Sec. 4-7. 
		Solicitations of enrollees. 
		Solicitations of enrollees
by a Health Maintenance Organization
authorized under this Act, or its representatives shall not be construed to
be violative of any provisions of law relating to solicitation or
advertising by health professionals. No solicitation may be made which
advertises, identifies or makes a qualitative judgment concerning any
health professional who provides services for a Health Maintenance
Organization. Nothing in this Section precludes a Health Maintenance
Organization from providing to a particular potential enrollee the names of
health providers upon request by that particular potential individual
enrollee. No Health Maintenance Organization, or representative thereof,
may cause or knowingly permit the use of advertising which is untrue or
misleading, solicitation which is untrue or misleading, or any form of
evidence of coverage which is deceptive.  Health Maintenance Organizations
shall be subject to Section 143c of the "Illinois Insurance Code", approved
June 29, 1937, as amended.If the Director finds that any advertisement of a plan has materially
failed to comply with the provisions of this Act or the rules thereunder,
the Director may, by order, require the plan to publish in the same or
similar medium, an approved correction or retraction of any untrue,
misleading, or deceptive statement contained in the advertising and may
prohibit such plan from publishing or distributing, or allowing to be
published or distributed on its behalf such advertisement or any new
materially revised advertisement without first having filed a copy thereof
with the Director 30 days prior to the publication or distribution thereof,
or any shorter period specified in such order.  An order issued under this
Section shall be effective for 12 months from its issuance, and may be
renewed by order if the advertisements submitted under this Section
indicate difficulties of voluntary compliance with the applicable
provisions of this Act and the rules thereunder.
		(Source: P.A. 85-20.) (215 ILCS 125/4-8) (from Ch. 111 1/2, par. 1409.1)Sec. 4-8. 
		Newborn Infants. 
		(1) No contract or evidence of coverage
issued by a Health Maintenance Organization which provides for coverage of
dependents of the principal enrollee shall contain any disclaimer, waiver
or other limitation relative to the eligibility or coverage of newborn
infants of a principal enrollee from and after the moment of birth.(2) Each such contract or evidence of coverage shall contain a provision
stating that benefits shall be granted immediately with respect to newborn
infants from the moment of birth and that such coverage shall include
illness, injury, congenital defects, birth abnormalities and premature birth.(3) If payment of a specific premium is required under the terms of a
contract to provide coverage for a child, there may be requirements that
notification of birth of a newly born infant be given to the Health
Maintenance Organization within the 31 days following the birth in order to
have coverage continued beyond such 31 day period and that such specific
premium be paid within 30 days following receipt of such notice.(4) In the event that no other members of the enrollee's immediate
family are covered, immediate coverage for the first newborn infant shall
be provided if the enrollee applies for dependent's coverage within 31 days
of the newborn's birth.  Such coverage shall be contingent upon payment of
the additional premium.(5) The requirements of this Section shall apply, on or after the
sixtieth day following the effective date of this amendatory Act of 1989,
(a) to all such evidences of coverage delivered or issued for delivery, and
(b) to all such group contracts delivered, issued for delivery, renewed or
amended.  The health maintenance organizations which issue such evidences
of coverage that are in effect on the sixtieth day following the effective
date of this amendatory Act of 1989 shall extend to owners of such
contracts, on or before the first contract anniversary following such date,
the opportunity to apply for the addition to their contracts of a provision
as set forth in subsection (2) above, with, at the option of the health
maintenance organization, payment of a premium appropriate thereto.
		(Source: P.A. 86-620.) (215 ILCS 125/4-9) (from Ch. 111 1/2, par. 1409.2)Sec. 4-9. 
		Adopted children. 
		No contract or evidence of coverage
issued by a Health Maintenance Organization which provides for coverage of
dependents of the principal enrollees shall exclude a child from coverage or
eligibility for coverage or limit coverage for a child solely on the basis
that he or she is an adopted child.  For purposes of this Section, a child
who is in the custody of a principal enrollee, pursuant to an interim court
order of adoption or, in the case of group insurance, placement of adoption,
whichever comes first, vesting temporary care of the child in the enrollee,
is
an
adopted child, regardless of whether a final order granting adoption is
ultimately issued.
		(Source: P.A. 91-549, eff. 8-14-99.) (215 ILCS 125/4-9.1) (from Ch. 111 1/2, par. 1409.2-1)Sec. 4-9.1. Dependent Coverage Termination.(a) The attainment of a limiting age under a group contract or
evidence of coverage which provides that coverage of a dependent person of
an enrollee shall terminate upon attainment of the limiting age for
dependent persons does
not operate to terminate the coverage of a person who, because
of a disabling condition that occurred before attainment of the limiting age,
is incapable of self-sustaining employment and is dependent on his
or her
parents or other care providers for lifetime care and supervision.(b) For purposes of subsection (a), "dependent on other care providers" is
defined as requiring a Community Integrated Living Arrangement, group home,
supervised apartment, or other residential services licensed or certified by
the Department of Human Services (as successor to the Department of Mental
Health and Developmental Disabilities), the Department
of Public Health, or the Department of Healthcare and Family Services (formerly Department of Public Aid).(c) Proof of such incapacity and dependency shall be furnished to the health
maintenance organization by the enrollee within
31 days of a request for the
information by the health maintenance organization and subsequently as may
be required by the health maintenance organization, but not more frequently
than annually.  In the absence of proof submitted within 31 days of such
inquiry that such dependent is a person who has a disability and is a dependent, the health
maintenance organization may terminate coverage of such person at or
after attainment of the limiting age.  In the absence of such inquiry,
coverage of any person who has a disability and is a dependent shall continue through the
term of the group contract or evidence of coverage or any extension or
renewal thereof.
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 125/4-9.2) (from Ch. 111 1/2, par. 1409.2-2)Sec. 4-9.2. Continuation of group HMO coverage after termination of
employee or membership.  A group contract delivered, issued for delivery,
renewed,  or amended in this State that covers employees or members for health
care services shall provide that employees or members whose coverage under
the group contract would otherwise terminate because of termination of
employment or membership or because of a reduction in hours below the minimum
required by the group contract shall be entitled to continue their coverage
under
that group contract, for themselves and their eligible dependents, subject
to all of the group contract's terms and conditions applicable to those
forms of coverage and to the following conditions:(1) Continuation shall only be available to an     employee or member who has been continuously covered under the group contract (and for similar benefits under any group contract that it replaced) during the entire 3 month period ending with the termination of employment or membership or reduction in hours below the minimum required by the group contract. With respect to an employee or member who is involuntarily terminated between September 1, 2008 and the end of the period set forth in Section 3001(a)(3)(A) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, as now or hereafter amended, continuation shall be available if the employee or member was covered under the group contract the day prior to such termination.(2) Continuation shall not be available for any     enrollee who is covered by Medicare, except for those individuals who have been covered under a group Medicare supplement policy. Continuation shall not be available for any enrollee who is covered by any other insured or uninsured plan that provides hospital, surgical, or medical coverage for individuals in a group and under which the enrollee was not covered immediately before termination or reduction in hours below the minimum required by the group contract or who exercises his or her conversion privilege under the group policy.(3) Continuation need not include dental, vision     care, prescription drug, or similar supplementary benefits that are provided under the group contract in addition to its basic health care services.(4) Within 10 days after the employee's or member's     termination or reduction in hours below the minimum required by the group contract, written notice of continuation shall be presented to the employee or member by the employer.  If the employee or member is unavailable, written notice shall be mailed by the employer to the last known address of the employee or member within 10 days after the employee's or member's termination or reduction in hours below the minimum required by the group plan. The employer shall also send a copy of the notice to the HMO. An employee or member who wishes continuation of coverage must request continuation in writing within the 30 day period following the later of (i) the date of termination or reduction in hours below the minimum required by the group contract or (ii) the date the employee is presented or mailed written notice of the right of continuation by either the employer or the group policyholder. In no event, however, shall the employee or member elect continuation more than 60 days after the date of termination or reduction in hours below the minimum required by the group contract. Written notice of continuation presented to the employee or member by the policyholder, or mailed by the policyholder to the last known address of the employee, shall constitute the giving of notice for the purpose of this paragraph.The HMO shall not deny coverage to the employee or     member due to the employer's failure to provide notice pursuant to this Section to the employee or member.  Until the end of the period set forth in Section 3001(a)(3)(A) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, as now or hereafter amended, in the event the employee or member contacts the HMO regarding continuation rights and advises that notice has not been provided by the employer or group policyholder, the HMO shall provide a written explanation to the employee or member of the employee's or member's continuation rights pursuant to this Section.(4a) Unless contrary to the provisions of, or any     rules promulgated pursuant to, the federal American Recovery and Reinvestment Act of 2009, with respect to employees or members of health plans that are subject solely to State continuation coverage and who are terminated or whose reduction in hours below the minimum required by the group occurs between the effective date of this amendatory Act of the 96th General Assembly and the end of the period set forth in Section 3001(a)(3)(A) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, as now or hereafter amended, the notice requirements of this Section are not satisfied unless notice is presented or mailed to the employee or member by the HMO informing the employee or member of the availability of premium reduction with respect to such coverage under the federal American Recovery and Reinvestment Act of 2009.  Such written notice shall conform to all applicable requirements set forth in the federal American Recovery and Reinvestment Act of 2009.  The Department shall publish models for the notification that shall be provided by HMOs pursuant to this paragraph (4a).(4b) Unless contrary to the provisions of, or any     rules promulgated pursuant to, Section 3001(a)(7) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, with respect to employees or members of health plans that are subject solely to State continuation coverage who were terminated or whose reduction in hours below the minimum required by the group occurred between September 1, 2008, and the effective date of this amendatory Act of the 96th General Assembly and who have an election of continuation of coverage pursuant to this Section in effect, notice shall be presented or mailed to the employee or member by the HMO informing the employee or member of the availability of premium reduction with respect to such coverage under the federal American Recovery and Reinvestment Act of 2009.  Such written notice shall conform to all applicable requirements set forth in Section 3001(a)(7) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009 and shall be presented or mailed to the employee or member within 14 days of the effective date of this amendatory Act of the 96th General Assembly.  The Department shall publish models for the notification that shall be provided by HMOs pursuant to this paragraph (4b).(5) An employee or member electing continuation must     pay to the group policyholder or his employer, on a monthly basis in advance, the total amount of premium required by the HMO, including that portion of the premium contributed by the policyholder or employer, if any, but not more than the group rate for the coverage being continued with appropriate reduction in premium for any supplementary benefits that have been discontinued under paragraph (3) of this Section. The premium rate required by the HMO shall be the applicable premium required on the due date of each payment.(6) Continuation of coverage under the group contract     for any person shall terminate when the person becomes eligible for Medicare or is covered by any other insured or uninsured plan that provides hospital, surgical, or medical coverage for individuals in a group and under which the person was not covered immediately before  termination or reduction in hours below the minimum required by the group contract as provided in paragraph (2) of this Section or, if earlier, at the first to occur of the following:(a) The expiration of 12 months after the         employee's or member's coverage because of termination of employment or membership or reduction in hours below the minimum required by the group contract.(b) If the employee or member fails to make         timely payment of a required contribution, the end of the period for which contributions were made or, with respect to an employee or member who is an assistance eligible individual as defined in Section 3001(a)(3) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, the date that the individual ceases to be eligible for premium assistance under Section 3001(a)(2)(A)(ii)(I) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, as now or hereafter amended.(c) The date on which the group contract is         terminated or, in the case of an employee, the date his or her employer terminates participation under the group contract. If, however, this paragraph applies and the coverage ceasing by reason of termination is replaced by similar coverage under another group contract, then (i) the employee or member shall have the right to become covered under the replacement group contract for the balance of the period that he or she would have remained covered under the prior group contract in accordance with paragraph (6) had a termination described in this item (c) not occurred and (ii) the prior group contract shall continue to provide benefits to the extent of its accrued liabilities and extensions of benefits as if the replacement had not occurred.(7) A notification of the continuation privilege     shall be included in each evidence of coverage.(8) Continuation shall not be available for any     employee who was discharged because of the commission of a felony in connection with his or her work, or because of theft in connection with his or her work, for which the employer was in no way responsible if the employee (i) admitted to committing the felony or theft or (ii) was convicted or placed under supervision by a court of competent jurisdiction.(9) An employee or member without an election of     continuation of coverage pursuant to this Section in effect on the effective date of this amendatory Act of the 96th General Assembly may elect continuation pursuant to this paragraph (9) if the employee or member: (i) would be an assistance eligible individual as defined in Section 3001(a)(3) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009 if such an election were in effect and (ii) at the time of termination was eligible for continuation pursuant to paragraphs (1) and (2) of this Section.Unless contrary to the provisions of, or any rules     promulgated pursuant to, Section 3001(a)(7) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, written notice of continuation pursuant to this paragraph (9) shall be presented to the employee or member by the HMO or mailed by the HMO to the last known address of the employee or member within 30 days after the effective date of this amendatory Act of the 96th General Assembly.  The written notice shall conform to all applicable requirements set forth in Section 3001(a)(7) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009. The Department shall publish models for the notification that shall be provided by HMOs pursuant to this paragraph (9).An employee or member electing continuation of     coverage under this paragraph (9) must request such continuation in writing within 60 days after the date the employee or member receives written notice of the right of continuation by the HMO.Continuation of coverage elected pursuant to this     paragraph (9) shall commence with the first period of coverage beginning on or after February 17, 2009, the effective date of the federal American Recovery and Reinvestment Act of 2009, and shall not extend beyond the period of continuation that would have been required if the coverage had been elected pursuant to paragraph (4) of this Section.With respect to an employee or member who elects     continuation of coverage under this paragraph (9), the period beginning on the date of the employee or member's involuntary termination of employment and ending on the date of the first period of coverage on or after February 17, 2009 shall be disregarded for purposes of determining the 63-day period referred to in Section 20 of the Illinois Health Insurance Portability and Accountability Act.The requirements of this amendatory Act of 1992 shall apply to any
group contract, as defined in this Section, delivered or issued for
delivery on or after 180 days following the effective date of this
amendatory Act of 1992.
(Source: P.A. 96-13, eff. 6-18-09; 96-894, eff. 5-17-10.) (215 ILCS 125/4-10) (from Ch. 111 1/2, par. 1409.3)Sec. 4-10. Medical necessity; dispute resolution; independent second opinion.  Each Health Maintenance Organization shall provide a mechanism
for the timely review by a physician holding the same class of license as
the primary care physician, who is unaffiliated with the Health Maintenance
Organization, jointly selected by the patient (or the patient's next of
kin or legal representative if the patient is unable to act for himself),
primary care physician and the Health Maintenance Organization in the event
of a dispute between the primary care physician and the Health Maintenance
Organization regarding the medical necessity of a covered service proposed
by a primary care physician.  In the event that the reviewing physician
determines the covered service to be medically necessary, the Health
Maintenance Organization shall provide the covered service.  Future
contractual or employment action by the Health Maintenance Organization
regarding the primary care physician shall not be based solely on the
physician's
participation in this procedure.
(Source: P.A. 100-201, eff. 8-18-17.) (215 ILCS 125/4-11) (from Ch. 111 1/2, par. 1409.4)Sec. 4-11. 
		
		Any person who enrolls recipients of
Public Aid or Medicare in a health maintenance organization, either personally or by
mail, shall, on or after July 1, 1989, be licensed as a limited insurance
representative under Section 495.1 of the Illinois
Insurance Code.  No such person shall be required to pass a written
examination in order to qualify to be licensed as a limited insurance
representative under this Section.
		(Source: P.A. 85-1246.) (215 ILCS 125/4-12) (from Ch. 111 1/2, par. 1409.5)Sec. 4-12. 
		
		Changes in Rate Methodology and Benefits, Material
Modifications.  A health maintenance organization shall file with the
Director, prior to use, a notice of any change in rate methodology, or
benefits and of any material modification of any matter or document
furnished pursuant to Section 2-1, together with such supporting documents
as are necessary to fully explain the change or modification.(a) Contract modifications described in subsections (c)(5), (c)(6) and
(c)(7) of Section 2-1 shall include all form agreements between the
organization and enrollees, providers, administrators of services and
insurers of health maintenance organizations.(b) Material transactions or series of transactions other than those
described in subsection (a) of this Section, the total annual value of
which exceeds the greater of $100,000 or 5% of net earned subscription
revenue for the most current twelve month period as determined from filed
financial statements.(c) Any agreement between the organization and an insurer shall be
subject to the provisions of the laws of this State regarding reinsurance
as provided in Article XI of the Illinois Insurance Code.  All reinsurance
agreements must be filed.  Approval of the Director is required for all
agreements except the following:  individual stop loss, aggregate excess,
hospitalization benefits or out-of-area of the participating providers
unless 20% or more of the organization's total risk is reinsured, in which
case all reinsurance agreements require approval.
		(Source: P.A. 86-620.) (215 ILCS 125/4-13) (from Ch. 111 1/2, par. 1409.6)Sec. 4-13. 
		Prior approval of policy forms. 
		No health maintenance
organization shall issue or deliver in this State a group contract or
evidence of coverage, attach an endorsement or rider thereto, incorporate
by reference bylaws or other matter therein, or use an application blank in
this State until the form and content of the group contract or evidence of
coverage, endorsement, rider, bylaw, or other matter incorporated by
reference or application blank has been filed with and approved by the
Director, except that any such endorsement or rider that is to be attached
to a group contract or evidence of coverage after the date the group contract
or evidence of coverage is issued must be filed with, reviewed, and approved by
the Director before the date it is attached to a group contract or evidence of
coverage issued or delivered in this State. The Director shall withhold
approval of any such group contract, evidence of coverage, endorsement, rider,
bylaw, or other matter incorporated by reference or application blank if it
contains provisions that may encourage misrepresentation or that are unjust,
unfair, inequitable, ambiguous, misleading, inconsistent, deceptive, or
contrary to the law or public policy of this State or contains exceptions and
conditions that unreasonably or deceptively affect the risk purported to be
assumed in the general coverage of the group contract or evidence of coverage.
The Director shall not withhold approval of a form under this Section solely
because of the absence of coverage for mental health services if the Department
of Children and Family Services presents evidence that coverage of mental
health services for clients of that Department will be provided by another
entity.  In all cases the Director shall approve or disapprove any such form
within 60 days after submission unless the Director extends by not more than an
additional 30 days the period within which he shall approve or disapprove any
such form by giving written notice to the organization of the extension before
expiration of the initial 60-day period.The Director shall withdraw his approval of a group contract or evidence of
coverage, endorsement, rider, bylaw, or other matter incorporated by reference
or application blank if he subsequently determines that the group contract or
evidence of coverage, endorsement, rider, bylaw, other matter, or application
blank is misrepresentative, unjust, unfair, inequitable, ambiguous, misleading,
inconsistent, deceptive, or contrary to the law or public policy of this State,
or contains exceptions or conditions that unreasonably or deceptively affect
the risk purported to be assumed in the general coverage of the group contract
or evidence of coverage. The Director shall not withdraw approval of a form
under this Section solely because of the absence of coverage for mental health
services if the Department of Children and Family Services presents evidence
that coverage of mental health services for clients of that Department is being
or will be provided by another entity.If a previously approved group contract or evidence of coverage,
endorsement, rider, bylaw, or other matter incorporated by reference or
application blank is withdrawn for use, the Director shall serve upon the
company an order of withdrawal of use, either personally or by mail. If the
service is by mail, the service shall be completed if the notice is deposited
in the post office, postage prepaid, addressed to the health maintenance
organization's last known address specified in the records of the Department of
Insurance.  The order of withdrawal of use shall take effect 30 days from the
date of mailing but shall be stayed if within the 30-day period a written
request for hearing is filed with the Director.  The hearing shall be held at
the time and place designated in the order given by the Director.  The hearing
may be held either in the City of Springfield, the City of Chicago, or in the
county where the principal business address of the health maintenance
organization is located.The action of the Director in disapproving or withdrawing the form shall be
subject to judicial review under the Administrative Review Law.
		(Source: P.A. 88-487.) (215 ILCS 125/4-14) (from Ch. 111 1/2, par. 1409.7)Sec. 4-14. Evidence of Coverage.(a) Every subscriber shall be issued an evidence of coverage, which
shall contain a clear and complete statement of:(1) The health services to which each enrollee is     entitled;(2) Eligibility requirements indicating the     conditions which must be met to enroll in a Health Care Plan;(3) Any limitation of the services, kinds of services     or benefits to be provided, and exclusions, including any reasonable deductibles, copayments, or other charges;(4) The terms or conditions upon which coverage may     be cancelled or otherwise terminated;(5) Where and in what manner information is available     as to where and how services may be obtained; and(6) The method for resolving complaints.(b) Any amendment to the evidence of coverage may be provided to the
subscriber in a separate document.
(Source: P.A. 97-1148, eff. 1-24-13.) (215 ILCS 125/4-15) (from Ch. 111 1/2, par. 1409.8)Sec. 4-15. 
		
		(a) No contract or evidence of coverage for basic health
care services delivered, issued for delivery, renewed or amended by a
Health Maintenance Organization shall exclude coverage for emergency
transportation by
ambulance.
For the purposes of this Section, the term "emergency" means a need for
immediate medical attention resulting from a life threatening condition or
situation or a need for immediate medical attention as otherwise reasonably
determined by a physician, public safety official or other emergency
medical personnel.(b) Upon reasonable demand by a provider of emergency transportation
by ambulance, a Health Maintenance Organization shall promptly pay to the
provider, subject to
coverage limitations stated in the contract or evidence of coverage,
the
charges for emergency transportation by ambulance provided to an enrollee in a health care
plan arranged for by the Health Maintenance
Organization.  By
accepting any such payment from the Health Maintenance Organization, the
provider of emergency transportation by ambulance agrees not to seek any
payment from the enrollee for services provided to the enrollee.
		(Source: P.A. 86-833; 86-1028.) (215 ILCS 125/4-16) (from Ch. 111 1/2, par. 1409.9)Sec. 4-16. 
		Fibrocystic condition; denial of coverage. 
		No contract or
evidence of coverage issued by a Health
Maintenance Organization shall be denied by the Organization,
nor shall any contract or evidence of coverage contain any exception or
exclusion of benefits, solely because the enrollee has been diagnosed as
having a fibrocystic breast condition, unless the condition is diagnosed by
a
breast biopsy that demonstrates an increased disposition to the development
of breast cancer or unless the enrollee's medical history confirms a
chronic, relapsing, symptomatic breast condition.
		(Source: P.A. 87-519; 87-1066.) (215 ILCS 125/4-17)Sec. 4-17. Basic outpatient preventive and primary health care services
for children.  In order to attempt to address the needs of children in Illinois
(i) without health care coverage, either through a parent's employment, through
medical assistance under the Illinois Public Aid Code, or any other health plan
or (ii) who lose medical assistance if and when their parents move from welfare
to work and do not find employment that offers health care coverage, a
health maintenance  organization may undertake to provide or arrange for and to
pay for or reimburse the cost of basic outpatient preventive and primary health
care services.  The Department shall promulgate rules to establish minimum
coverage and disclosure requirements.  These requirements at a minimum shall
include routine physical examinations and immunizations, sick visits,
diagnostic x-rays and laboratory services, and emergency outpatient services.
Coverage may also include preventive dental services, vision screening and one
pair of eyeglasses, prescription drugs, and mental health services.
The coverage may include any
reasonable co-payments, deductibles, and benefit maximums subject to
limitations established by the Director by rule.   Coverage shall be
limited to children who are 18 years of age or under, who have resided
in the State of Illinois for at least 30 days, and who do not qualify for
medical assistance under the Illinois Public Aid Code.  Any such coverage
shall be made available to an adult on behalf of such children
and shall not be funded through State appropriations.  In counties with
populations in excess of 3,000,000, the Director shall not approve any
arrangement under this Section unless and until an arrangement for at least one
health maintenance organization under
contract with the Department of Healthcare and Family Services (formerly
						Illinois Department of Public Aid) for furnishing health
services pursuant to Section 5-11 of the Illinois Public Aid Code and for which
the requirements of 42 CFR 434.26(a) have been waived is approved.
					(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 125/4-18)Sec. 4-18. 
		Retirement facility residents. 
		With respect to an
enrollee who is a resident of a retirement facility consisting of a long-term
care facility, as defined in the Nursing Home Care Act, and residential
apartments, a contract or evidence of coverage issued, amended, delivered, or
renewed after the effective date of this amendatory Act of 1997 shall provide
that the enrollee's primary care physician must refer the enrollee to the
retirement facility's long-term care facility for Medicare covered skilled
nursing services if the primary care physician finds that:(1) it is in the best interests of the patient;(2) the facility, if not a participating provider in     the specific health maintenance organization, agrees during the preauthorization period to a negotiated rate for skilled nursing services covered in that organization's health care plan; and(3) the facility meets all the requirements of a     participating provider for skilled nursing services as defined and covered under the health maintenance organization's health care plan.Both the facility and the health maintenance organization must fully disclose
all pertinent information to consumers to assure that their decisions are based
upon full knowledge of the implications of their decision making.
		(Source: P.A. 90-408, eff. 1-1-98; 90-655, eff. 7-30-98.) (215 ILCS 125/4-19)Sec. 4-19. Purchase of ophthalmic goods or services. A health maintenance organization may not require a provider, as a condition of participation in the health maintenance organization's health care plan, to purchase ophthalmic goods or services, including but not limited to eyeglass frames, in a quantity or dollar amount in excess of the quantity or dollar amount an enrollee purchases under the terms of the health care plan.
(Source: P.A. 93-1077, eff. 1-18-05.) (215 ILCS 125/4-20)Sec. 4-20. Deductibles and copayments.(a) A Health Maintenance Organization may require deductibles and copayments of enrollees as a
condition for the receipt of specific health care services, including basic
health care services. Deductibles and copayments shall be the only
allowable charges, other than premiums, assessed enrollees. Nothing within
this subsection (a) shall preclude the provider from charging reasonable
administrative fees, such as service fees for checks returned for non-sufficient
funds and missed appointments.(b) Deductibles and copayments shall be for specific dollar amounts or for
specific percentages of the cost of the health care services.(c) No combination of deductibles and copayments paid for the receipt of basic health care services may exceed the annual maximum out-of-pocket expenses of a high deductible health plan as defined in 26 U.S.C. 223.(d) Deductibles and copayments applicable to supplemental health care
services, catastrophic-only plans as defined under the federal Affordable Care Act, or pre-existing conditions are not subject to the annual limitations described in this Section.(e) This Section applies to enrollees and does not limit the health care plan payment for services provided by non-participating providers.(f) This Section applies to enrollees and does not limit the health care plan payment for services provided by non-participating providers. 
(Source: P.A. 97-1148, eff. 1-24-13.)
(215 ILCS 125/Art. V heading) ARTICLE V.  
		GENERAL PROVISIONS (215 ILCS 125/5-1) (from Ch. 111 1/2, par. 1409A)Sec. 5-1. 
Section 155 of the Illinois Insurance Code shall apply to Health
Maintenance Organizations; except that no action shall be brought for an
unreasonable delay in the settling of a claim if the delay is caused by the
failure of the enrollee to execute a lien as requested by the health care plan.
(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 125/5-2) (from Ch. 111 1/2, par. 1410)Sec. 5-2. 
		Rules and regulations or licensing of producers. 
		The Director may promulgate such reasonable rules and regulations as are
necessary to provide for the licensing of producers.
		(Source: P.A. 85-20.) (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)Sec. 5-3. Insurance Code provisions.(a) Health Maintenance Organizations
shall be subject to the provisions of Sections 133, 134, 136, 137, 139, 140, 141.1,
141.2, 141.3, 143, 143c, 147, 148, 149, 151,
152, 153, 154, 154.5, 154.6,
154.7, 154.8, 155.04, 155.22a, 355.2, 355.3, 355b, 355c, 356g.5-1, 356m, 356q, 356v, 356w, 356x, 356y,
356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.30a, 356z.32, 356z.33, 356z.35, 356z.36, 356z.40, 356z.41, 356z.46, 356z.47, 356z.48, 356z.50, 356z.51, 256z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 364, 364.01, 364.3, 367.2, 367.2-5, 367i, 368a, 368b, 368c, 368d, 368e, 370c,
370c.1, 401, 401.1, 402, 403, 403A,
408, 408.2, 409, 412, 444,
and
444.1,
paragraph (c) of subsection (2) of Section 367, and Articles IIA, VIII 1/2,
XII,
XII 1/2, XIII, XIII 1/2, XXV, XXVI, and XXXIIB of the Illinois Insurance Code.(b) For purposes of the Illinois Insurance Code, except for Sections 444
and 444.1 and Articles XIII and XIII 1/2, Health Maintenance Organizations in
the following categories are deemed to be "domestic companies":(1) a corporation authorized under the Dental Service     Plan Act or the Voluntary Health Services Plans Act;(2) a corporation organized under the laws of this     State; or(3) a corporation organized under the laws of another     state, 30% or more of the enrollees of which are residents of this State, except a corporation subject to substantially the same requirements in its state of organization as is a "domestic company" under Article VIII 1/2 of the Illinois Insurance Code.(c) In considering the merger, consolidation, or other acquisition of
control of a Health Maintenance Organization pursuant to Article VIII 1/2
of the Illinois Insurance Code,(1) the Director shall give primary consideration to     the continuation of benefits to enrollees and the financial conditions of the acquired Health Maintenance Organization after the merger, consolidation, or other acquisition of control takes effect;(2)(i) the criteria specified in subsection (1)(b) of     Section 131.8 of the Illinois Insurance Code shall not apply and (ii) the Director, in making his determination with respect to the merger, consolidation, or other acquisition of control, need not take into account the effect on competition of the merger, consolidation, or other acquisition of control;(3) the Director shall have the power to require the     following information:(A) certification by an independent actuary of         the adequacy of the reserves of the Health Maintenance Organization sought to be acquired;(B) pro forma financial statements reflecting the         combined balance sheets of the acquiring company and the Health Maintenance Organization sought to be acquired as of the end of the preceding year and as of a date 90 days prior to the acquisition, as well as pro forma financial statements reflecting projected combined operation for a period of 2 years;(C) a pro forma business plan detailing an         acquiring party's plans with respect to the operation of the Health Maintenance Organization sought to be acquired for a period of not less than 3 years; and(D) such other information as the Director shall         require.(d) The provisions of Article VIII 1/2 of the Illinois Insurance Code
and this Section 5-3 shall apply to the sale by any health maintenance
organization of greater than 10% of its
enrollee population (including without limitation the health maintenance
organization's right, title, and interest in and to its health care
certificates).(e) In considering any management contract or service agreement subject
to Section 141.1 of the Illinois Insurance Code, the Director (i) shall, in
addition to the criteria specified in Section 141.2 of the Illinois
Insurance Code, take into account the effect of the management contract or
service agreement on the continuation of benefits to enrollees and the
financial condition of the health maintenance organization to be managed or
serviced, and (ii) need not take into account the effect of the management
contract or service agreement on competition.(f) Except for small employer groups as defined in the Small Employer
Rating, Renewability and Portability Health Insurance Act and except for
medicare supplement policies as defined in Section 363 of the Illinois
Insurance Code, a Health Maintenance Organization may by contract agree with a
group or other enrollment unit to effect refunds or charge additional premiums
under the following terms and conditions:(i) the amount of, and other terms and conditions     with respect to, the refund or additional premium are set forth in the group or enrollment unit contract agreed in advance of the period for which a refund is to be paid or additional premium is to be charged (which period shall not be less than one year); and(ii) the amount of the refund or additional premium     shall not exceed 20% of the Health Maintenance Organization's profitable or unprofitable experience with respect to the group or other enrollment unit for the period (and, for purposes of a refund or additional premium, the profitable or unprofitable experience shall be calculated taking into account a pro rata share of the Health Maintenance Organization's administrative and marketing expenses, but shall not include any refund to be made or additional premium to be paid pursuant to this subsection (f)).  The Health Maintenance Organization and the group or enrollment unit may agree that the profitable or unprofitable experience may be calculated taking into account the refund period and the immediately preceding 2 plan years.The Health Maintenance Organization shall include a statement in the
evidence of coverage issued to each enrollee describing the possibility of a
refund or additional premium, and upon request of any group or enrollment unit,
provide to the group or enrollment unit a description of the method used to
calculate (1) the Health Maintenance Organization's profitable experience with
respect to the group or enrollment unit and the resulting refund to the group
or enrollment unit or (2) the Health Maintenance Organization's unprofitable
experience with respect to the group or enrollment unit and the resulting
additional premium to be paid by the group or enrollment unit.In no event shall the Illinois Health Maintenance Organization
Guaranty Association be liable to pay any contractual obligation of an
insolvent organization to pay any refund authorized under this Section.(g) Rulemaking authority to implement Public Act 95-1045, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized. (Source: P.A. 101-13, eff. 6-12-19; 101-81, eff. 7-12-19; 101-281, eff. 1-1-20; 101-371, eff. 1-1-20; 101-393, eff. 1-1-20; 101-452, eff. 1-1-20; 101-461, eff. 1-1-20; 101-625, eff. 1-1-21; 102-30, eff. 1-1-22; 102-34, eff. 6-25-21; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff. 1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff. 1-1-23; 102-1117, eff. 1-13-23.) (215 ILCS 125/5-3.1)Sec. 5-3.1. 
		Woman's health care provider. 
		Health
maintenance organizations are subject to the provisions of Section 356r
of the Illinois Insurance Code.
		(Source: P.A. 89-514, eff. 7-17-96.) (215 ILCS 125/5-3.5)Sec. 5-3.5. 
		Illinois Health Insurance Portability and Accountability Act. 
		
The provisions of this Act are subject to the Illinois Health Insurance
Portability and Accountability Act as provided in Section 15 of that Act.
		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 125/5-3.6)Sec. 5-3.6. 
		Managed Care Reform and Patient Rights Act. 
		Health
maintenance organizations are subject to the provisions of the Managed Care
Reform and Patient Rights Act.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 125/5-4) (from Ch. 111 1/2, par. 1412)Sec. 5-4. 
		
		Examination of affairs and quality of services by the
Director; books and records.  The Director shall have with respect to health
maintenance organizations the powers of examination conferred upon him
relative to Sections 132 through 132.7 of the Illinois
Insurance Code. The Director of
Public Health shall make an examination concerning the quality of health
care services of any health maintenance organization and providers with
whom the organization has contracts, agreements, or other arrangements
pursuant to its health care plan as often as he deems it necessary for the
protection of the interest of the people of this State, but not less
frequently than once every 3 years.  The cost of any examination
shall be paid by the health maintenance organization being examined.The fee assessed against the organization being examined shall be
composed of a fixed annual fee plus an additional fee based on the
individual health maintenance organization's enrollment in Illinois.  The
revenues generated shall not exceed the estimated actual costs of the program.
The methodology for computing the fee to be assessed shall be
established by rule, pursuant to the Illinois
Administrative Procedure Act.Every health maintenance organization and provider shall submit its
books and records relating to the Health Care Plan to examination and
in every way facilitate them. For the purpose of examinations, the Director
and the Director of Public Health may administer oaths to
and examine the officers and agents of the health maintenance organization
and the principals of providers concerning their business.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 125/5-5) (from Ch. 111 1/2, par. 1413)Sec. 5-5. Suspension, revocation, or denial of certification of authority. The Director may suspend or revoke any certificate of authority issued
to a health maintenance organization under this Act or deny an
application for a certificate of authority if he finds any of the
following:(a) The health maintenance organization is operating     significantly in contravention of its basic organizational document, its health care plan, or in a manner contrary to that described in any information submitted under Section 2-1 or 4-12.(b) The health maintenance organization issues     contracts or evidences of coverage or uses a schedule of charges for health care services that do not comply with the requirement of Section 2-1 or 4-12.(c) The health care plan does not provide or arrange     for basic health care services, except as provided in Section 4-13 concerning mental health services for clients of the Department of Children and Family Services.(d) The Director of Public Health certifies to the     Director that (1) the health maintenance organization does not meet the requirements of Section 2-2 or (2) the health maintenance organization is unable to fulfill its obligations to furnish health care services as required under its health care plan.  The Department of Public Health shall promulgate by rule, pursuant to the Illinois Administrative Procedure Act, the precise standards used for determining what constitutes a material misrepresentation, what constitutes a material violation of a contract or evidence of coverage, or what constitutes good faith with regard to certification under this paragraph.(e) The health maintenance organization is no longer     financially responsible and may reasonably be expected to be unable to meet its obligations to enrollees or prospective enrollees.(f) The health maintenance organization, or any     person on its behalf, has advertised or merchandised its services in an untrue, misrepresentative, misleading, deceptive, or unfair manner.(g) The continued operation of the health maintenance     organization would be hazardous to its enrollees.(h) The health maintenance organization has neglected     to correct, within the time prescribed by subsection (c) of Section 2-4, any deficiency occurring due to the organization's prescribed minimum net worth or special contingent reserve being impaired.(i) The health maintenance organization has otherwise     failed to substantially comply with this Act.(j) The health maintenance organization has failed to     meet the requirements for issuance of a certificate of authority set forth in Section 2-2.When the certificate of authority of a health     maintenance organization is revoked, the organization shall proceed, immediately following the effective date of the order of revocation, to wind up its affairs and shall conduct no further business except as may be essential to the orderly conclusion of the affairs of the organization. The Director may permit further operation of the organization that he finds to be in the best interest of enrollees to the end that the enrollees will be afforded the greatest practical opportunity to obtain health care services.(k)   The health maintenance organization has failed     to pay any assessment due under Article V-H of the Illinois Public Aid Code for 60 days following the due date of the payment (as extended by any grace period granted).(Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.) (215 ILCS 125/5-6) (from Ch. 111 1/2, par. 1414)Sec. 5-6. 
		
		Supervision of rehabilitation, liquidation or
conservation by the Director.(a) For purposes of the rehabilitation, liquidation or conservation of a
health maintenance organization, the operation of a health maintenance
organization in this State
constitutes a form of insurance protection which should be governed by the
same provisions governing the rehabilitation, liquidation or conservation
of insurance companies.
Any rehabilitation, liquidation or conservation of a Health Maintenance
Organization shall be based upon the grounds set forth in and subject
to the provisions of the laws of this State
regarding the rehabilitation, liquidation, or conservation of an insurance
company and shall be conducted under the supervision of the Director.
Insolvency, as a ground for rehabilitation, liquidation, or conservation
of a Health Maintenance Organization, shall be recognized when
a Health Maintenance
Organization cannot be expected to satisfy its financial obligations when
such obligations are to become due
or when the Health Maintenance Organization has neglected to correct
within the time prescribed by subsection (c) of Section 2-4, a deficiency
occurring due to such organization's prescribed minimum net worth or special
contingent reserve being impaired.  For purpose of determining the priority
of distribution of general assets, claims of enrollees and enrollees'
beneficiaries shall have the same priority as established by Section 205 of
the Illinois Insurance Code for policyholders and beneficiaries of insureds
of insurance companies.  If an enrollee is liable to any provider for
services provided pursuant to and covered by the health care plan, that
liability shall have the status of an enrollee claim for distribution of
general assets.Any provider who is obligated by statute or agreement to hold enrollees
harmless from liability for services provided pursuant to and covered by a
health care plan shall have a priority of distribution of the general
assets immediately following that of enrollees and enrollees' beneficiaries
as described herein, and immediately preceding the priority of distribution
described in paragraph (e) of subsection (1) of Section 205 of the Illinois
Insurance Code.(b) For purposes of Articles XIII and XIII-1/2 of the Illinois Insurance
Code, organizations in the following categories shall be deemed to be a
"domestic company" and a "domiciliary company":(i) a corporation authorized under the Dental Service     Plan Act or the Voluntary Health Services Plans Act;(ii) a corporation organized under the laws of this     State; or(iii) a corporation organized under the laws of     another state, 20% or more of the enrollees of which are residents of this State, except where such a corporation is, in its state of incorporation, subject to rehabilitation, liquidation and conservation under the laws relating to insurance companies.(c) In the event of the insolvency of a health maintenance organization,
no enrollee of such organization shall be liable to any provider for medical
services rendered by such provider, except for applicable
co-payments or deductibles for covered services or fees for services not
covered by the health maintenance organization, with respect to the amounts
such provider is not paid by the Association pursuant to the provisions of
Section 6-8 (8)(b) and (c).  No provider, whether or not the provider is
obligated by statute or agreement to hold enrollees harmless from liability,
shall seek to recover any such amount from any enrollee until the Association
has made a final determination of its liability (or the resolution of any
dispute or litigation resulting therefrom) with respect to the matters
specified in such provisions.  In the event that the provider seeks to recover
such amounts before the Association's final determination of its liability (or
the resolution of any dispute or litigation resulting therefrom), the provider
shall be liable for all reasonable costs and attorney fees incurred by the
Director or the Association in enforcing this provision or any court orders
related hereto.
		(Source: P.A. 89-206, eff. 7-21-95; 90-177, eff. 7-23-97; 90-372, eff.
7-1-98; 90-655, eff. 7-30-98.) (215 ILCS 125/5-7) (from Ch. 111 1/2, par. 1415)Sec. 5-7. 
		Rules and regulations to carry out provisions of Act. 
		The Director may, after notice and hearing, promulgate reasonable rules
and regulations as are necessary and proper to:(1) Establish minimum coverage standards for basic health care services,
the application of which standards discriminate against no class of physician;(2) Establish specific standards, including standards for the full and
fair disclosure of health care services provided by group contracts or
evidences of coverage which may cover but shall not be limited to:(a) Coordination of benefits(b) Conversion(c) Cancellation and termination(d) Deductibles and co-payments(e) Pre-existing conditions; and(3) Otherwise carry out the provisions of this Act.
		(Source: P.A. 86-620.) (215 ILCS 125/5-7.1) (from Ch. 111 1/2, par. 1415.1)Sec. 5-7.1. 
		
		No health care plan shall include any provision which shall
have the effect of denying coverage to or on behalf of an enrollee under
such plan on the basis of a failure by the enrollee to file a notice of
claim within the time period required by the plan, provided such failure is
caused solely by the physical inability or mental incapacity of the
enrollee to file such notice
of claim because of a period of emergency hospitalization.
		(Source: P.A. 86-784.) (215 ILCS 125/5-8) (from Ch. 111 1/2, par. 1416)Sec. 5-8. 
		
		Grounds for denial, suspension or revocation of certificate of
authority-Hearing-Review under Administrative Review Law.(a) When the Director has cause to believe that grounds for the denial
of an application for a certificate of authority exists, or that grounds
for the suspension or revocation of a certificate of authority exists, he
shall issue an order to the organization or applicant stating the grounds
upon which the denial, suspension, or revocation is based.  The order shall
be sent to the organization or applicant by certified or registered mail
and to the Director of Public Health.  The organization or applicant may in
writing request a hearing within 30 days of receipt of the order.  If no
written request is made, the order shall be final upon the expiration of
said 30 days.(b) If the organization or applicant requests a hearing pursuant to
this Section, the Director shall issue a written notice of hearing sent to
the organization or applicant by certified or registered mail and to the
Director of Public Health, stating:(i) a specified time for the hearing, which may not be less than 20 nor
more than 30 days after receipt of the notice of hearing; and(ii) a specific place for the hearing, which may be either in the city
of Springfield or in the county where the organization's or applicant's
principal place of business is located.(c) If a hearing is requested, the Director of the Department of
Public Health or his  delegated representative, shall be in attendance at
the hearing and shall participate in the proceedings. The recommendations
and findings of the Director of the Department of Public Health with regard
to matters relating to the quality of health care services provided in
connection with any decision regarding denial, suspension or revocation of
a certificate of authority, shall be conclusive and binding upon the
Director.(d) After such hearing, or upon the failure of the organization or
applicant to appear at such hearing, the Director shall take such action as is
deemed advisable on written findings which shall be served on the
organization or applicant with a copy thereof to the Director of the
Department of Public Health. The action of the Director and the
recommendations and findings of the Director of the Department of Public
Health shall be subject to review under and in accordance with
the Administrative Review Law.
		(Source: P.A. 86-620.) (215 ILCS 125/5-9) (from Ch. 111 1/2, par. 1417)Sec. 5-9. 
		Violations-Class B misdemeanor-Cease and desist order. 
		(a)
Any organization which violates this Act shall be guilty of a Class B
misdemeanor.(b) The Director may issue to any organization subject to this Act,
a cease and desist order as provided in Article
XXIV, Section 401.1 of the "Illinois Insurance Code".(c) The Director may issue corrective orders to any organization
subject to this Act, as provided in Article XII 1/2, Sections 186.1 and
186.2 of the "Illinois Insurance Code".
		(Source: P.A. 85-20.) (215 ILCS 125/5-10)Sec. 5-10. Health maintenance organizations; revenue data.(a)  No health maintenance organization shall pass the cost of the assessment imposed pursuant to Article V-H of the Illinois Public Aid Code on to consumers as a discrete addition to their premiums.(b) The Department shall provide the Department of Healthcare and Family Services with member months and premium revenue data needed for implementing the assessment imposed under Article V-H of the Illinois Public Aid Code.
(Source: P.A. 101-9, eff. 6-5-19; 101-608, eff. 12-13-19.)
(215 ILCS 130/Art. 1 heading) ARTICLE 1.  
		SHORT TITLE AND DEFINITIONS (215 ILCS 130/1001) (from Ch. 73, par. 1501-1)Sec. 1001. 
		Short Title. 
		This Act may be cited as the Limited Health Service Organization Act.
		(Source: P.A. 86-600.) (215 ILCS 130/1002) (from Ch. 73, par. 1501-2)Sec. 1002. 
		Definitions. 
		As used in this Act, unless the context
otherwise requires, the following terms shall have the meanings ascribed
to them:"Advertisement" means any printed or published material,
audiovisual material and descriptive literature of the limited health care
plan used in direct mail, newspapers, magazines, radio scripts, television
scripts, billboards and similar displays; and any descriptive literature or
sales aids of all kinds disseminated by a representative of the limited
health care plan for presentation to the public including, but not limited
to, circulars, leaflets, booklets, depictions, illustrations, form letters
and prepared sales presentations."Copayment" means the amount that an enrollee must pay in order to
receive a specific service that is not fully prepaid."Director" means the Director of Insurance."Enrollee" means an individual who has been enrolled in a limited health care plan."Evidence of coverage" means any certificate, agreement or
contract issued to an enrollee setting out the coverage to which that
enrollee is entitled in exchange for a per capita prepaid sum."Group contract" means a contract for limited health services
which by its terms limits eligibility to members of a specified group."In-plan covered services" means covered limited health services
obtained from providers who are employed by, under contract with, referred
by, or otherwise affiliated with the LHSO and emergency services."Limited health care plan" means any arrangement whereby an
organization undertakes to provide or arrange for and, pay for or reimburse
the cost of any limited health services from providers selected by the
limited health service organization and such arrangement consists of
arranging for or the provision of such limited health services on a per
capita prepaid basis, as distinguished from mere indemnification against
the cost of such limited services on a per capita prepaid basis through
insurance except as otherwise provided under Section 3009."Limited health service" means ambulance care services, dental care
services, vision care services, pharmaceutical services, clinical laboratory
services, and podiatric care services.  Limited health service shall not
include hospital, medical, surgical or emergency services except when those
services are essential to the delivery of the limited health service.
Essential hospital, medical, surgical, or emergency services shall be covered
unless specifically excluded."Limited health service organization" (LHSO) means any organization
formed under the laws of this or another state to provide or arrange for
one or more limited health care plans under a system which causes any part
of the risk of limited health care delivery to be borne by the organization
or its providers."Net worth" means admitted assets, as defined in Section 1003 of
this Act, minus liabilities."Organization" means any insurance company or other corporation
organized under the laws of this or another state for the purpose of
operating one or more limited health care plans and doing no business other
than that of a health maintenance organization or a limited health service
organization or an insurance company.  Organization does not include (1)
any entity otherwise authorized on the effective date of this Act pursuant
to the laws of this State either to provide any limited health service on a
prepayment basis or to indemnity for any limited health service; nor does
it include (2) any provider or other entity when providing or arranging for
the provision of limited health services pursuant to a contract with a
limited health service organization or with any entity described in (1) of
this definition."Out-of-plan covered services" means non-emergency, self-referred
covered limited health services obtained from providers who are not
otherwise employed by, under contract with, or otherwise affiliated with
the LHSO or services obtained without a referral from providers who have
contracted to provide limited health services to the enrollee on behalf of
the limited health care plan."Point-of-service product" (POS) means a group contract that includes
both in-plan covered services and out-of-plan covered services as well as a
POS contract in which the risk for out-of-plan covered services is borne
through reinsurance.  This term does not apply to indemnity benefits
offered through an LHSO that are underwritten in whole by a licensed
insurance carrier and offered in conjunction with the LHSO benefit package."Provider" means any physician, dentist, health facility, or
other person or institution which is duly licensed or otherwise authorized
to deliver or furnish limited health services and also includes any other
entity that arranges for the delivery or furnishing of limited health service."Per capita prepaid" means a basis of payment by which a fixed
amount of money is prepaid per individual or any other enrollment unit to
the limited health service organization or for limited health services
which are provided during a definite time period regardless of the
frequency or extent of the services rendered, except for copayments of a
fixed amount by the limited health service organization."Subscriber" means the person whose employment or other status,
except for family dependency, is the basis for entitlement to limited
health services pursuant to a contract with an organization authorized to
provide or arrange for such services under this Act."Uncovered expense" means the cost of limited health services that
are the obligation of a limited health service organization for which an
enrollee may be liable in the event of the insolvency of the organization.
Costs incurred by a provider who has agreed in writing not to bill
enrollees, except for permissible supplemental charges, shall be considered
covered expenses.
		(Source: P.A. 87-1079; 88-568, eff. 8-5-94; 88-667, eff. 9-16-94.) (215 ILCS 130/1003) (from Ch. 73, par. 1501-3)Sec. 1003. 
		Definition of admitted assets. 
		"Admitted assets" of a limited health service organization shall only
include the admitted assets and investments authorized or permitted for
health maintenance organizations by Sections 1-3 and 3-1 of the Health
Maintenance Organization Act, as now or hereafter amended.
		(Source: P.A. 86-600.)
(215 ILCS 130/Art. 2 heading) ARTICLE 2. 
CERTIFICATE OF AUTHORITY;
GENERAL CORPORATE AND FINANCIAL REQUIREMENTS (215 ILCS 130/2001) (from Ch. 73, par. 1502-1)Sec. 2001. 
		
		Certificate of authority; exception for corporate employee
programs; applications; material modification of operation.(a) No organization shall establish or operate a limited health service
organization in this State without obtaining and maintaining a certificate
of authority under this Act.  No person other than an organization may
lawfully establish or operate a limited health service organization in this
State.  This Act shall not apply to the establishment and operation of a
limited health service organization exclusively providing or arranging for
limited health services to employees of a corporate affiliate of such
limited health service organization.  This exclusion shall be available
only to those limited health service organizations which require employee
contributions which equal less than 50% of the total cost of the limited
health care plan, with the remainder of the cost being paid by the
corporate affiliate which is the employer of the participants in the plan.(b) Any organization may apply to the Director for and obtain a
certificate of authority to establish and operate a limited health service
organization in compliance with this Act.  A foreign corporation may
qualify under this Act, subject to its obtaining and maintaining
authorization to do business in this State as a foreign corporation.(c) Each application for certificate of authority shall be filed in
triplicate and verified by an officer or authorized representative
of the applicant, shall be in a form prescribed by the Director, and shall
set forth, without limiting what may be required by the Director, the following:(1) A copy of the organization document.(2) A copy of the bylaws, rules and regulations, or     similar document regulating the conduct of the internal affairs of the applicant.(3) A list of the names, addresses, and official     positions of the persons who are to be responsible for the conduct of the affairs of the applicant; including but not limited to, all members of the board of directors, executive committee, the principal officers, and any person or entity owning or having the right to acquire 10% or more of the voting securities or subordinated debt of the applicant.(4) A statement generally describing the application,     geographic area to be served, its facilities, personnel and the limited health service or services to be offered.(5) A copy of the form of any contract made or be     made between the applicant and any providers regarding the provision of limited health services to enrollees.(6) A copy of the form of any contract made, or to be     made between the applicant and any person listed in paragraph (3) of this subsection.(7) A copy of the form of any contract made or to be     made between the applicant and any person, corporation, partnership or other entity for the performance on the applicant's behalf of any functions including, but not limited to, marketing, administration, enrollment, investment management and subcontracting for the provision of limited health services to enrollees.(8) A copy of the form of any group contract which is     to be issued to employers, unions, trustees or other organizations and a copy of any form of evidence of coverage to be issued to any enrollee or subscriber and any advertising material.(9) A copy of the applicant's most recent financial     statements audited by an independent certified public accountant.  If the financial affairs of the applicant's parent company are audited by an independent certified public account, but those of the applicant are not, then a copy of the most recent audited financial statement of the applicant's parent, attached to which shall be consolidating financial statements of the parent including separate unaudited financial statements of the applicant, unless the Director determines that additional or more recent financial information is required for the proper administration of this Act.(10) A copy of the applicant's financial plan,     including a 3 year projection of anticipated operating results, a statement of the sources of working capital and any other sources of funding and provisions for contingencies.(11) A description of rate methodology.(12) A description of the proposed method of     marketing.(13) Except in the case of a foreign applicant     authorized to transact business in this State, a statement acknowledging that all lawful process in any legal action or proceeding against the applicant on a cause of action arising in this State is valid if served in accordance with Section 112 of the Illinois Insurance Code as now or hereafter amended.(14) A description of the complaint procedures to be     established and maintained as required under Section 3002 of this Act.(15) A description of the quality assessment and     utilization review procedures to be utilized by the applicant.(16) The fee for filing an application for issuance     of a certificate of authority provided in Section 408 of the Illinois Insurance Code as now or hereafter amended.(17) Such other information as the Director may     reasonably require to make the determinations required by this Act.		(Source: P.A. 86-600.) (215 ILCS 130/2002) (from Ch. 73, par. 1502-2)Sec. 2002. 
		Issuance of certificate of authority.(a) Issuance of a certificate of authority shall be granted if the
following conditions are met:(1) The requirements of subsection (c) of Section     2001 have been fulfilled.(2) The persons responsible for conducting the     applicant's affairs are competent and trustworthy, possess good reputations and have had appropriate experience, training or education.(3) The applicant has demonstrated the willingness     and potential ability to assure that such limited health service will be provided in a manner to insure both availability and accessibility of adequate personnel and facilities and in a manner enhancing availability, accessibility, and continuity of service.(4) The applicant has arrangements for an ongoing     quality of health care assessment program concerning health care processes and outcomes.(5) The applicant is financially responsible and may     reasonably be expected to meet its obligations to enrollees and to prospective enrollees.  In making this determination, the Director shall consider:(A) the financial soundness of the applicant's         arrangements for limited health services and the minimum standard rates, copayments and other patient charges used in connection therewith.(B) the adequacy of working capital, other         sources of funding, and provisions for contingencies.(6) The limited health care plan furnishes limited     health services on a prepaid basis, through insurance or otherwise, except to the extent of reasonable requirements for copayments of a fixed amount.(7) The agreements with providers for the provision     of limited health services contain the provisions required by Section 2008 of this Act.(8) Any deficiencies identified by the Director have     been corrected.(b) No certificate of authority shall be issued if the initial minimum net
worth of the applicant is less than $100,000.  The initial net worth shall
be provided in cash and securities in combination and form acceptable to the
Director.
		(Source: P.A. 86-600.) (215 ILCS 130/2003) (from Ch. 73, par. 1502-3)Sec. 2003. Powers of limited health service organizations. The powers of a limited health service organization include, but are not
limited to the following:(1) The purchase, lease, construction, renovation,     operation or maintenance of limited health service facilities and their ancillary equipment, and such property as may reasonably be required for its principal office or for such other purposes as may be necessary in the transaction of the business of the organization.(2) The making of loans to a provider group under     contract with it and in furtherance of its program or the making of loans to a corporation or corporations under its control for the purpose of acquiring or constructing limited health service facilities or in furtherance of a program providing limited health services for enrollees.(3) The furnishing of limited health services through     providers which are under contract with or employed by the limited health service organization.(4) The contracting with any person for the     performance on its behalf of certain functions such as marketing, enrollment and administration.(5) The contracting with an insurance company     licensed in this State, or with a hospital, medical, voluntary, dental, vision or pharmaceutical service corporation authorized to do business in this State, for the provision of insurance, indemnity or reimbursement against the cost of limited health service provided by the limited health service organization.(6) Rendering services related to the functions     involved in the operation of its limited health service business including, but not limited to, providing limited health services, data processing, accounting, claims.(7) Indemnity benefits covering out of area or     emergency services directly related to the provision of limited health service.(8) The offering of point-of-service products as     authorized under Section 3009.(9) Any other business activity reasonably     complementary or supplementary to its limited health service business to the extent approved by the Director.(Source: P.A. 97-813, eff. 7-13-12.) (215 ILCS 130/2004) (from Ch. 73, par. 1502-4)Sec. 2004. 
		Required minimum net worth; impairment.(a) A limited health service organization issued a certificate of
authority shall have and at all times maintain net worth of not less than
the greater of:(1) $50,000; or(2) 2% of the organization's annual gross premium     income, up to a maximum of $500,000.(b) A limited health service organization that has annual uncovered
expenses in excess of $50,000, as reported on the most recent annual
financial statement filed with the Director, shall maintain additional net
worth equal to 25% of such uncovered expenses in excess of $50,000 in
addition to the net worth required by subsection (a), subject to the maximum
net worth set forth in item (2) of subsection (a).(c) A limited health service organization that has been approved by
the Director to offer a POS contract shall have and at all times maintain
net worth of not less than the greater of:(1) $100,000 if the LHSO's expenditures for     out-of-plan covered services do not exceed 10% of its total limited health expenditure in any calendar quarter; or(2) $100,000 plus an additional $10,000 for each     percentage point that the LHSO's expenditures for out-of-plan covered services exceeds 10% of its total limited health service expenditure in any calendar quarter up to $200,000; or(3) the amount set forth in item (2) of subsection     (a).(d) A deficiency in meeting amounts required in subsection (a), (b), or (c)
shall require (1) filing with the Director a plan of correction of the
deficiency, acceptable to the Director and (2) correction of the deficiency
within a reasonable time, not to exceed 60 days unless an extension of
time, not to exceed 60 additional days, is granted by the Director.  Such a
deficiency will be deemed an impairment, and failure to correct the
deficiency in the prescribed time shall be grounds for suspension or
revocation pursuant to subsection (h) of Section 4005 of this Act.(e) Unless allowed by the Director, no limited health service
organization, officer, director, trustee, producer or employee of such
organization may renew, issue, or deliver, or cause to be renewed, issued or
delivered, any evidence of coverage in this State, for which a premium is
charged or collected, when the organization writing such coverage is
insolvent or impaired, and the fact of such insolvency or impairment is
known to the organization, officer, director, producer or employee of such
organization.  An organization is impaired when a deficiency exists in
meeting the amounts required in subsection (a), (b), or (c) of this Section.
However, the existence of an impairment does not prevent the issuance or
renewal of any evidence of coverage when the enrollee exercises an option
granted under the plan to obtain new, renewed or converted coverage.
Any organization, officer, director, producer or employee of such
organization violating this subsection shall be guilty of a Class A
misdemeanor.
		(Source: P.A. 87-1079; 88-667, eff. 9-16-94.) (215 ILCS 130/2005) (from Ch. 73, par. 1502-5)Sec. 2005. 
		Claims liabilities.(a) Every limited health service organization shall, at all times, maintain
liabilities in an amount estimated in the aggregate to provide for the
payment of all claims incurred and any due and unpaid provider capitation,
whether reported or unreported, which are unpaid and for which such
organization is or may be liable, and to provide for the expense of
adjustment or settlement of such claims.  Such liabilities shall be
computed in accordance with regulations promulgated by the Director upon
reasonable consideration of the ascertained experience and character of
such business for the purpose of adequately protecting enrollees and
securing the solvency of such organizations.(b) Whenever the claim and claim expense experience of any such organization
shows the liabilities calculated in accordance with such regulations to be
inadequate, the Director may require such organization to maintain additional liabilities.
		(Source: P.A. 86-600.) (215 ILCS 130/2006) (from Ch. 73, par. 1502-6)Sec. 2006. 
		Statutory deposits.(a) An organization subject to the provisions of this Act
shall make and
maintain with the Director, for the protection of enrollees of the
organization, a deposit of securities that are in the form authorized under
Section 2-6 of the Health Maintenance Organization Act having a fair market
value equal to the minimum net worth required under subsection (a) of Section
2004.  The amount on deposit shall remain as an admitted asset of the
organization in the determination of its net worth.  The Director may release
the required deposit of securities required by this Section
upon receipt of
an order of a court having proper jurisdiction or
upon: (i)
certification by the organization that it has no outstanding
enrollee creditors, enrollees, certificate holders, or enrollee obligations
in effect and no plans to engage in the
business of insurance as a limited health service organization; (ii) receipt of
a lawful resolution of the
organization's governing body effecting the surrender of
its certificate of authority, articles of incorporation, or other
organizational documents to their issuing governmental officer for voluntary or
administrative dissolution; and (iii) receipt of the name and
forwarding address for each of the final officers and directors of the
organization,
together with a plan of dissolution approved by the Director.(b) An LHSO that offers a POS contract shall, in addition to the
deposit required by subsection (a), deposit and maintain with the Director
cash or securities that are authorized investments under Section 1003
having a fair market value equal to the greater of:(1) $50,000 if the LHSO's expenditures for     out-of-plan covered services do not exceed 10% of its total limited health expenditures in any calendar quarter; or(2) $100,000 if the LHSO's expenditures for     out-of-plan covered services exceeds 10% but are less than 20% of its total limited health services expenditure in any calendar quarter; or(3) 120% of its current actual monthly out-of-plan     covered service claims expense plus incurred but not reported balances for out-of-plan covered services.(c) The combined deposit amount required in subsections (a) and (b) shall
not exceed $200,000.
		(Source: P.A. 92-75, eff. 7-12-01.) (215 ILCS 130/2007)Sec. 2007. (Repealed).
	 
	 (Source: P.A. 91-549, eff. 8-14-99. Repealed by P.A. 97-486, eff. 1-1-12.) (215 ILCS 130/2008) (from Ch. 73, par. 1502-8)Sec. 2008. 
		Provider contracts.(a) All contracts with providers or with
entities which subcontract for the provision of limited health services to
enrollees on a prepayment or  other basis and any contract with any
subcontractor thereof shall contain the following hold-harmless clause:
"The provider agrees that in no event including, but not limited to,
nonpayment by the organization of amounts due the provider under this
contract, insolvency of the organization or any breach of this contract by
the organization, shall the provider or its assignees or subcontractors
have a right to seek any type of payment from, bill, charge, collect a
deposit from or have any recourse against the enrollee, persons acting on
the enrollee's behalf (other than the organization), the employer or group
contractholder for services provided pursuant to this contract except for
the payment of applicable copayments for services covered by the
organization or fees for services not covered by the organization.  The
requirements of this clause shall survive any termination of this contract
for services rendered prior to such termination, regardless of the cause of
such termination.  The organization's enrollees shall be third party
beneficiaries of this clause.  This clause supersedes any oral or written
agreement now existing or hereafter entered into between the provider and
the enrollee or persons acting on the enrollee's behalf (other than the
organization).".  To the extent that any provider or subcontractor's
contract, fails to incorporate such provisions, such provisions shall be
deemed incorporated into such contracts by operation of law.(b) All provider and subcontractor contracts must contain provisions
whereby the provider or subcontractor shall provide, arrange for or
participate in the quality assessment programs mandated by this Act, unless
the Department of Insurance certifies that such programs will
be fully implemented without any participation or action from such
contracting provider.(c) The Director may promulgate rules requiring that provider contracts
contain provisions concerning reasonable notices to be given between the
parties and for the organization to provide reasonable notice to its
enrollees and to the Director.  Notice shall be given for such events as,
but not limited to, termination of insurance protection, quality assessment
or availability of medical area.
		(Source: P.A. 86-600; 86-1408.) (215 ILCS 130/2009) (from Ch. 73, par. 1502-9)Sec. 2009. 
		Subordinated  indebtedness. 
		An organization having a
certificate of authority under this Act may borrow or assume a liability
for the repayment of a sum of money upon a written agreement that the loan
or advance with interest thereon not exceeding a reasonable rate shall be
repaid only out of net worth of the organization in excess of such minimum
net worth as is  stipulated in and by the agreement.  The agreement shall
first be submitted to and approved by the appropriate authoritative body of
the organization and the Director.  Repayment of principal or payment of
interest may be made only with the approval of the Director when he is
satisfied that the financial condition of the organization warrants such
action, but such approval may not be withheld if the organization shall
have and submit satisfactory evidence of net worth of not less than the
amount stipulated in the repayment of principal or interest payment clause
of the agreement. No loan or advance made under this Section or interest
accruing thereon shall form a part of the legal liabilities of the
organization until authorized for payment by the Director, but until such
authorization all statements published by the organization or filed with
the Director shall show the amount thereof then remaining unpaid as a
special surplus account.  Nothing in this Section shall be construed to
mean that an organization may not otherwise borrow money, but the amount so
borrowed with accrued interest thereon shall be carried by the company as
a liability.
		(Source: P.A. 86-600.)
(215 ILCS 130/Art. 3 heading) ARTICLE 3.  
		DELIVERY OF SERVICES; REQUIRED
PROVISIONS AND MARKETING (215 ILCS 130/3001) (from Ch. 73, par. 1503-1)Sec. 3001. 
		Description and securing of services. 
		The limited health service organization shall issue to each subscriber or
enrollee a group contract or evidence of coverage.  Any such group contract
or evidence of coverage shall provide for the rendering of limited health
services as defined therein for a period of 12 months from the date of
issuance; and shall provide that it shall be renewed from year to year
unless there has been 31 days written notice of termination prior to the
annual renewal of the contract by the subscriber, enrollee or the limited
health service organization.  The group contract, evidence of coverage and
related material shall be delivered or issued for delivery to an enrollee
within 30 days from the later of the effective date of coverage or the date
on which the limited health service organization is notified of enrollment.
		(Source: P.A. 86-600.) (215 ILCS 130/3002) (from Ch. 73, par. 1503-2)Sec. 3002. 
		Complaint system. 
		Every limited health service organization
shall establish and maintain a complaint system providing reasonable
procedures for resolving complaints initiated by enrollees.  Nothing herein
shall be construed to preclude an enrollee or a provider from filing a
complaint with the Director or as limiting the Director's ability to
investigate such complaints.
		(Source: P.A. 86-600.) (215 ILCS 130/3003) (from Ch. 73, par. 1503-3)Sec. 3003. 
		Department complaint handling procedure. 
		(a) When a complaint is received by the Department of Insurance
(Department) against a limited health service organization (respondent) or
producer (respondent), the respondent shall be notified of the complaint.
The Department in its notification shall specify the date when a report is
to be received from the respondent, which shall be no later than 21 days
after notification is sent to the respondent.  A failure to reply by the
date specified may be followed by a collect telephone call or collect
telegram.  Repeated instances of failing to reply by the date specified may
result in further regulatory action.(b) Contents of response or report.(1) Each respondent shall supply adequate     documentation which explains all actions taken or not taken and which were the basis for the complaint.(2) Documents necessary to support the respondent's     position and information requested by the Department, shall be furnished with the respondent's reply.(3) The respondent's reply shall be duplicate, but     duplicate copies of supporting documents shall not be required.(4) The respondent's reply shall include the name,     telephone number and address of the individual assigned to the complaint.(5) The Department shall respect the confidentiality     of medical reports and other documents which by law are confidential. Any other information furnished by a respondent shall be marked "confidential" if the respondent does not wish it to be released to the complainant.(c) Follow-up conclusion. Upon receipt of the respondent's report, the
investigating deputy shall evaluate the material submitted; and(1) advise the complainant of the action taken and     disposition of his complaint;(2) pursue further investigation with respondent or     complainant; or(3) refer the investigation report to the appropriate     unit within the Department of Insurance for further regulatory action.		(Source: P.A. 86-600.) (215 ILCS 130/3004) (from Ch. 73, par. 1503-4)Sec. 3004. 
		Solicitations of enrollees. 
		(a) Solicitations of enrollees by a
limited health service organization authorized under this Act, or its
representatives shall not be construed to be violative of any provisions
of law relating to solicitation or advertising by health professionals.
Nothing in this Section precludes a limited health service organization
from providing to a particular potential enrollee the names of health
providers. No limited health service organization, or representative
thereof, may cause or knowingly permit the use of advertising which is
untrue or misleading, solicitation which is untrue or misleading or any
form of evidence of coverage which is deceptive. Limited health service
organizations shall be subject to Section 143c or the Illinois Insurance
Code as now or hereafter amended.(b) If the Director finds that any advertisement of a plan has materially
failed to comply with the provisions of this Act or the rules hereunder,
the Director may, by order, require the plan to publish in the same or
similar medium, an approved correction or retraction of any untrue,
misleading or deceptive statement contained in the advertising and may
prohibit such plan from publishing, distributing or allowing to be
published or distributed on its behalf such advertisement or any new
materially revised advertisement without first having filed a copy thereof
with the Director 30 days prior to the publication or distribution thereof,
or any shorter period specified in such order. An order issued under this
Section shall be effective for 12 months from its issuance and may be
renewed by order if the advertisements submitted under this Section
indicate difficulties of voluntary compliance with the applicable
provisions of this Act and the rules hereunder.
		(Source: P.A. 86-600.) (215 ILCS 130/3005) (from Ch. 73, par. 1503-5)Sec. 3005. 
		Producers. 
		No person may apply, procure, solicit,
negotiate, or place for others any evidence of coverage of a limited health
service organization unless that person holds a valid limited insurance
representative license or producers license to sell accident and health
insurance policies pursuant to Article XXXI of the Illinois Insurance Code,
as now and hereafter amended.
		(Source: P.A. 86-600.) (215 ILCS 130/3006) (from Ch. 73, par. 1503-6)Sec. 3006. 
		
		Changes in rate methodology and benefits; material modifications;
addition of limited health services.(a) A limited health service organization shall file with the Director
prior to use, a notice of any change in rate methodology, charges or
benefits and of any material modification of any matter or document
furnished pursuant to Section 2001, together with such supporting documents
as are necessary to fully explain the change or modification.(1) Contract modifications described in paragraphs     (5) and (6) of subsection (c) of Section 2001 shall include all agreements between the organization and enrollees, providers, administrators of services and insurers of limited health services; also other material transactions or series of transactions, the total annual value of which exceeds the greater of $100,000 or 5% of net earned subscription revenue for the most current 12 month period as determined from filed financial statements.(2) Contract modification for reinsurance. Any     agreement between the organization and an insurer shall be subject to the provisions of Article XI of the Illinois Insurance Code, as now or hereafter amended. All reinsurance agreements must be filed with the Director. Approval of the Director in required agreements must be filed. Approval of the director is required for all agreements except individual stop loss, aggregate excess, hospitalization benefits or out-of-area of the participating providers, unless 20% or more of the organization's total risk is reinsured, in which case all reinsurance agreements shall require approval.(b) If a limited health service organization desires to add one or more
additional limited health services, it shall file a notice with the Director
and, at the same time, submit the information required by Section
2001 if different from that filed with the prepaid limited health service
organization's application.  Issuance of such an amended certificate of
authority shall be subject to the conditions of Section 2002 of this Act.
		(Source: P.A. 86-600.) (215 ILCS 130/3007) (from Ch. 73, par. 1503-7)Sec. 3007. 
		Prior approval of policy forms.(a) No limited health
service organization shall issue or deliver, in this State, a group
contract or evidence of coverage, attach an endorsement or rider thereto,
incorporate by reference, bylaws or other matter therein or use an
application blank in this State until the form and content of such group
contract or evidence of coverage, endorsement, rider, bylaw or other matter
incorporated by reference or application blank has been filed with and
approved by the Director and, provided further, except that any such
endorsement or rider which is to be attached to a group contract or
evidence of coverage subsequent to the date the group contract or evidence
of coverage is issued must be filed with, reviewed and approved by the
Director prior to the date it is attached to a group contract or evidence
of coverage issued or delivered in this State.  The Director shall withhold
approval of any such group contract, evidence of coverage, endorsement,
rider, bylaw or other matter incorporated by reference or application blank
if it contains provisions which may encourage misrepresentation or are
unjust, unfair,  inequitable, ambiguous, misleading, inconsistent,
deceptive, contrary to law or to the public policy of this State, or
contains exceptions and conditions that unreasonably or deceptively affect
the risk purported to be assumed in the general coverage of the group
contract or evidence of coverage.  In all cases the Director shall approve
or disapprove any such form within 60 days after submission unless the
Director extends, by not more than an additional 30 days, the period within
which he shall approve or disapprove any such form by giving written notice
to the organization of such extension before expiration of the initial 60
day period.  The Director shall withdraw his approval of a group contract
or evidence of coverage, endorsement rider, bylaw or other matter
incorporated by reference or application blank if he subsequently
determines that such group contract or evidence of coverage, endorsement,
rider, bylaw, other matter incorporated by reference or
application blank is misrepresentative, unjust, unfair, unequitable,
ambiguous, misleading, inconsistent, deceptive, contrary to law or public
policy of this State, or contains exceptions or conditions which
unreasonably or deceptively affect the risk purported to be assumed in the
general coverage of the group contract or evidence of coverage.(b) If a previously approved group contract or evidence of coverage,
endorsement, rider, bylaw or other matter incorporated by reference or
application blank is withdrawn from use, the Director shall serve upon the
company an order of withdrawal of use, either personally or by mail, and if
by mail, such service shall be completed if such notice is deposited in the
post office, postage prepaid, addressed to the limited health service
organization's last known address specified in the records of the
Department of Insurance.  The order of withdrawal of use shall take effect
30 days from the date of mailing, but shall be stayed if within the 30 day
period a written request for hearing is filed with the Director.  Such
hearing shall be held at such time and place as designated in the order
given by the Director.  The hearing may be held either in the City of
Springfield, the City of Chicago or in the county where the principal
business address of the limited health service organization is located.
The action of the Director in disapproving or withdrawing such form shall
be subject to judicial review under the Administrative Review Law, as now or
hereafter amended.
		(Source: P.A. 86-600.) (215 ILCS 130/3008) (from Ch. 73, par. 1503-8)Sec. 3008. 
		Evidence of coverage. 
		(a) Every subscriber shall be issued
an evidence of coverage, which shall contain a clear and complete statement of:(1) The limited health services to which each     enrollee is entitled.(2) Eligibility requirements indicating the     conditions which must be met to enroll in a limited health care plan.(3) Any limitation of the services or benefits to be     provided, and exclusions, including any copayment, or other charges.(4) The terms or conditions upon which coverage may     be cancelled or otherwise terminated.(5) Where and in what manner information is available     as to where and how services may be obtained.(6) The method for resolving complaints.(b) Any amendment to the evidence of coverage may be provided to the
subscriber in a separate document.
		(Source: P.A. 86-600.) (215 ILCS 130/3009) (from Ch. 73, par. 1503-9)Sec. 3009. 
		Point-of-service limited health service contracts.(a) An LHSO that offers a POS contract:(1) shall include as in-plan covered services all     services required by law to be provided by an LHSO;(2) shall provide incentives, which shall include     financial incentives, for enrollees to use in-plan covered services;(3) shall not offer services out-of-plan without     providing those services on an in-plan basis;(4) may limit or exclude specific types of services     from coverage when obtained out-of-plan;(5) may include annual out-of-pocket limits and     lifetime maximum benefits allowances for out-of-plan services that are separate from any limits or allowances applied to in-plan services;(6) shall include an annual maximum benefit allowance     not to exceed $2,500 per year that is separate from any limits or allowances applied to in-plan services;(7) may limit the groups to which a POS product is     offered, however, if a POS product is offered to a group, then it must be offered to all eligible members of that group, when an LHSO provider is available;(8) shall not consider emergency services, authorized     referral services, or non-routine services obtained out of the service area to be POS services; and(9) may treat as out-of-plan services those services     that an enrollee obtains from a participating provider, but for which the proper authorization was not given by the LHSO.(b) An LHSO offering a POS contract shall be subject to the following
limitations:(1) The LHSO shall not expend in any calendar quarter     more than 20% of its total limited health services expenditures for all its members for out-of-plan covered services.(2) If the amount specified in paragraph (1) is     exceeded by 2% in a quarter, the LHSO shall effect compliance with paragraph (1) by the end of the following quarter.(3) If compliance with the amount specified in     paragraph (1) is not demonstrated in the LHSO's next quarterly report, the LHSO may not offer the POS contract to new groups or include the POS option in the renewal of an existing group until compliance with the amount specified in paragraph (1) is demonstrated or otherwise allowed by the Director.(4) Any LHSO failing, without just cause, to comply     with the provisions of this subsection shall be required, after notice and hearing, to pay a penalty of $250 for each day out of compliance, to be recovered by the Director of Insurance.  Any penalty recovered shall be paid into the General Revenue Fund.  The Director may reduce the penalty if the LHSO demonstrates to the Director that the imposition of the penalty would constitute a financial hardship to the LHSO.(c) Any LHSO that offers a POS product shall:(1) File a quarterly financial statement detailing     compliance with the requirements of subsection (b).(2) Track out-of-plan POS utilization separately from     in-plan or non-POS out-of-plan emergency care, referral care, and urgent care out of the service area utilization.(3) Record out-of-plan utilization in a manner that     will permit such utilization and cost reporting as the Director may, by regulation, require.(4) Demonstrate to the Director's satisfaction that     the LHSO has the fiscal, administrative, and marketing capacity to control its POS enrollment, utilization, and costs so as not to jeopardize the financial security of the LHSO.(5) Maintain the deposit required by subsection (b)     of Section 2006 in addition to any other deposit required under this Act.(d) An LHSO shall not issue a POS contract until it has filed and had
approved by the Director a plan to comply with the provisions of this
Section.  The compliance plan shall at a minimum include provisions
demonstrating that the LHSO will do all of the following:(1) Design the benefit levels and conditions of     coverage for in-plan covered services and out-of-plan covered services as required by this Article.(2) Provide or arrange for the provision of adequate     systems to:(A) process and pay claims for all out-of-plan         covered services;(B) meet the requirements for a POS contract set         forth in this Section and any additional requirements that may be set forth by the Director; and(C) generate accurate data and financial and         regulatory reports on a timely basis so that the Department can evaluate the LHSO's experience with the POS contract and monitor compliance with POS contract provisions.(3) Comply initially and on an ongoing basis with the     requirements of subsections (b) and (c).(e) A limited health service organization that offers a POS contract must
comply with Sections 356w and 356x of the Illinois Insurance Code.
		(Source: P.A. 90-741, eff. 1-1-99.) (215 ILCS 130/3010)Sec. 3010. Purchase of ophthalmic goods or services. An organization may not require a provider, as a condition of participation in the organization's limited health care plan, to purchase ophthalmic goods or services, including but not limited to eyeglass frames, in a quantity or dollar amount in excess of the quantity or dollar amount an enrollee purchases under the terms of the limited health care plan.
(Source: P.A. 93-1077, eff. 1-18-05.)
(215 ILCS 130/Art. 4 heading) ARTICLE 4.  
		GENERAL PROVISIONS (215 ILCS 130/4001) (from Ch. 73, par. 1504-1)Sec. 4001. 
		
		Applicability of Section 155 of the Illinois Insurance
Code to limited health service organizations.  Section 155 of the Illinois
Insurance Code, as now or hereafter amended, shall apply to limited health
service organizations; except that no actions shall be brought for an
unreasonable delay in the settling of a claim if the delay is caused by the
failure of the enrollee to execute a lien as requested by the health care plan.
		(Source: P.A. 86-600.) (215 ILCS 130/4002) (from Ch. 73, par. 1504-2)Sec. 4002. 
		Health Maintenance Organization Act. 
		Limited health service
organizations shall be subject to the provisions of Sections 1-3
and 3-1 of the Health Maintenance Organization Act, as now or hereafter
amended.
		(Source: P.A. 86-600.) (215 ILCS 130/4002.1)Sec. 4002.1. 
		Woman's health care provider. 
		Limited health
service organizations are subject to the provisions of Section 356r
of the Illinois Insurance Code.
		(Source: P.A. 89-514, eff. 7-17-96.) (215 ILCS 130/4002.5)Sec. 4002.5. 
		Illinois Health Insurance Portability and Accountability Act. 
		 The provisions of this Act are subject to the Illinois Health Insurance
Portability and Accountability Act as provided in Section 15 of that Act.
		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 130/4002.6)Sec. 4002.6. 
		Managed Care Reform and Patient Rights Act. 
		Except for
health care
plans offering only dental services or only vision services, limited
health service organizations are subject to the provisions of the Managed Care
Reform and Patient Rights Act.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 130/4003) (from Ch. 73, par. 1504-3)Sec. 4003. Illinois Insurance Code provisions. Limited health service
organizations shall be subject to the provisions of Sections 133, 134, 136, 137, 139,
140, 141.1, 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154, 154.5,
154.6, 154.7, 154.8, 155.04, 155.37, 355.2, 355.3, 355b, 356q, 356v, 356z.4, 356z.4a, 356z.10, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30a, 356z.32, 356z.33, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.57, 356z.59, 364.3, 368a, 401, 401.1,
402,
403, 403A, 408,
408.2, 409, 412, 444, and 444.1 and Articles IIA, VIII 1/2, XII, XII 1/2,
XIII,
XIII 1/2, XXV, and XXVI of the Illinois Insurance Code. Nothing in this Section shall require a limited health care plan to cover any service that is not a limited health service.  For purposes of the
Illinois Insurance Code, except for Sections 444 and 444.1 and Articles XIII
and XIII 1/2, limited health service organizations in the following categories
are deemed to be domestic companies:(1) a corporation under the laws of this State; or(2) a corporation organized under the laws of another     state, 30% or more of the enrollees of which are residents of this State, except a corporation subject to substantially the same requirements in its state of organization as is a domestic company under Article VIII 1/2 of the Illinois Insurance Code.(Source: P.A. 101-81, eff. 7-12-19; 101-281, eff. 1-1-20; 101-393, eff. 1-1-20; 101-625, eff. 1-1-21; 102-30, eff. 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff. 1-1-23; 102-1117, eff. 1-13-23.) (215 ILCS 130/4004) (from Ch. 73, par. 1504-4)Sec. 4004. 
		
		Examination of affairs and quality of services by the
Director; books and records.(a) The Director shall have, with respect to
limited health service organizations, the powers of examination conferred
upon him pursuant to Sections 132 through 132.7 of the
Illinois Insurance Code. The Director shall make an examination
concerning the quality of limited health services of any limited health
service organization and providers with whom the organization has
contracts, agreements, or other arrangements pursuant to its limited
health care plan as often as he deems it necessary for the protection of
the interests of the people of this State.  The cost of any examination
shall be paid by the limited health service organization being examined.(b) Every limited health service organization and provider shall submit
its books and records relating to the limited health care plan to
examination and in every way facilitate it.  For the purpose of
examination, the Director  may administer an oath to and examine the
officers, agents, employees, and producers of the limited health service
organization and the principals of providers concerning their business.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 130/4005) (from Ch. 73, par. 1504-5)Sec. 4005. 
		
		Suspension or revocation or denial of certification of
authority. (a) The Director may suspend or revoke any certificate of
authority issued to a limited health service organization under this Act or
deny an application for a certificate of authority if he finds:(1) That the limited health service organization is     operating significantly in contravention of its basic organizational document, its health care plan or in a manner contrary to that described in any information submitted under Sections 2001 or 3006.(2) The limited health service organization issues     contracts or evidences of coverage or uses a schedule of charges for health care services which do not comply with the requirements of Sections 2001 or 3006.(3) The limited health care plan does not provide or     arrange for limited health services.(4) That the limited health service organization has     failed to meet the requirements for issuance of a certificate of authority as set forth in Section 2002.(5) That the limited health service organization is     unable to fulfill its obligation to furnish limited health services as required under its limited health care plan.(6) The limited health service organization is no     longer financially responsible and may reasonably be expected to be unable to meet its obligations to enrollees or prospective enrollees.(7) The limited health service organization, or any     person on its behalf, has advertised or merchandised its services in an untrue, misrepresentative, misleading, deceptive or unfair manner.(8) The continued operation of the limited health     service organization would be hazardous to its enrollees.(9) The limited health service organization has     neglected to correct, within the time prescribed by subsection (c) of Section 2004, any deficiency occurring due to such organization's prescribed minimum net worth.(10) The limited health service organization has     otherwise failed to substantially comply with this Act.(b) When the certificate of authority of a limited health service
organization is revoked, such organization shall proceed, immediately
following the effective date of the order of revocation, to wind up its
affairs and shall conduct no further business except as may be essential to
the orderly conclusion of the affairs of such organization.  The Director
may permit such further operation of the organization as he may find to be
in the best interest of enrollees to the end that the enrollees will be
afforded the greatest practical opportunity to obtain limited health services.
		(Source: P.A. 86-600.) (215 ILCS 130/4006) (from Ch. 73, par. 1504-6)Sec. 4006. Supervision of rehabilitation, liquidation or conservation
by the Director.(a) For purposes of the rehabilitation, liquidation or
conservation of a limited health service organization, the operation of a
limited health service organization in this State constitutes a form of
insurance protection which should be governed by the same provisions
governing the rehabilitation, liquidation or conservation of insurance
companies.  Any rehabilitation, liquidation or conservation of a limited
health service organization shall be based upon the grounds set forth in
and subject to the provisions of the laws of this State regarding the
rehabilitation, liquidation or conservation of an insurance company and
shall be conducted under the supervision of the Director.  Insolvency, as a
ground for rehabilitation, liquidation or conservation of a limited health
service organization, shall be recognized when a limited health service
organization cannot be expected to satisfy its financial
obligations when such obligations are to become due or when the limited
health service organization has neglected to correct, within the time
prescribed by subsection (c) of Section 2004, a deficiency occurring due to
such organization's prescribed minimum net worth being impaired.  For
purpose of determining the priority of distribution of general assets,
claims of enrollees and enrollees' beneficiaries shall have the same
priority as established by Section 205 of the Illinois Insurance Code, for policyholders and beneficiaries of insureds
of insurance companies.  If an enrollee is liable to any provider for
services provided pursuant to and covered by the limited health care plan,
that liability shall have the status of an enrollee claim for distribution
of general assets.Any provider who is obligated by statute or agreement to hold enrollees
harmless from liability for services provided pursuant to and covered by a
limited health care plan shall have a priority of distribution of the
general assets immediately following that of enrollees and enrollees'
beneficiaries as described herein, and immediately preceding the priority
of distribution described in paragraph (e) of subsection (1) of Section
205 of the Illinois Insurance
Code.(b) For purposes of Articles XIII and XIII 1/2 of the Illinois Insurance
Code, organizations in the following
categories shall be deemed to be a domestic company and a domiciliary company:(1) a corporation organized under the laws of this     State; or(2) a corporation organized under the laws of another     state, 20% or more of the enrollees of which are residents of this State, except where such a corporation is, in its state of incorporation, subject to rehabilitation, liquidation and conservation under the laws relating to insurance companies.(Source: P.A. 100-201, eff. 8-18-17.) (215 ILCS 130/4007) (from Ch. 73, par. 1504-7)Sec. 4007. 
		Rules and regulations. 
		(a) The Director may promulgate
reasonable rules and regulations as are necessary and proper to
establish specific standards, including standards for the full and
fair disclosure of limited health services provided by group contracts and
evidences of coverage, which may cover, but shall not be limited to:(1) Coordination of benefits.(2) Conversion.(3) Cancellation and termination.(b) The Director may promulgate reasonable rules and regulations as are
necessary and proper to otherwise carry out the provisions of this Act.
		(Source: P.A. 86-600.) (215 ILCS 130/4008) (from Ch. 73, par. 1504-8)Sec. 4008. 
		
		Grounds for denial, suspension or revocation of
certificate of authority under Administrative Review Law.
(a) When the Director has cause to believe that grounds for the denial
of an application for a certificate of authority exist or that grounds
for the suspension or revocation of a certificate of authority exist, he
shall issue an order to the organization or applicant stating the grounds
upon which the suspension, revocation or denial is based.  The order shall
be sent to the organization or applicant by certified or registered mail.
The organization or applicant may in writing request a hearing within 30
days from the date of mailing of the order.  If no written request is made,
the order shall be final upon the expiration of said 30 days.(b) If the organization or applicant requests a hearing pursuant to this
Section the Director shall issue a written notice of hearing sent to the
organization or applicant by certified or registered mail stating:(1) A specific time for the hearing, which may not be     less than 20 nor more than 30 days after mailing of the notice of hearing.(2) A specific place for the hearing, which may be     either in the City of Springfield or in the county where the organization's or applicant's principal place of business is located.(c) After such hearing, or upon the failure of the limited health
service organization to appear at such hearing, the Director shall take
action as is deemed advisable on written findings which shall
be mailed to the organization or applicant.  The action of the Director
shall be subject to review under the Administrative Review Law, as now or
hereafter amended.
		(Source: P.A. 86-600.) (215 ILCS 130/4009) (from Ch. 73, par. 1504-9)Sec. 4009. 
		
		Violations; cease and desist
order; corrective orders. (a) Any organization which violates this Act
shall be guilty of a Class B misdemeanor.(b) The Director may issue to any organization subject to this Act, a
cease and desist order as provided in Article XXIV of the
Illinois Insurance Code, as now or hereafter amended.(c) The Director may issue corrective orders to any organization subject
to this Act, as provided in Article XII 1/2 of the Illinois Insurance Code,
as now or hereafter amended.
		(Source: P.A. 86-600.)
(215 ILCS 132/1)Sec. 1. Short title. This Act may be cited as the Illinois Long-Term Care Partnership Program Act.
(Source: P.A. 95-200, eff. 8-16-07.) (215 ILCS 132/5)Sec. 5. Findings. The General Assembly finds that our nation's current financing structure relies too heavily on individuals and families to bear the financial burden of long-term supportive services. The financial burden can be so large that, for many individuals, particularly those with moderate income, the only alternative is Medicaid, which requires spending down all assets in order to qualify to receive long-term care benefits.The General Assembly declares that Medicare is not intended to cover the majority of long-term care expenses. Medicaid is the largest source of funding for long-term care in the United States, making the financing of long-term care costs a significant issue for both State and federal budgets. The growth in spending by the federal government and states for long-term care services through Medicaid will continue to increase as the American population ages.The General Assembly finds that one solution to help address the spiraling Medicaid growth and encourage individuals to plan for their long-term care is the Long Term Care Partnership Program, a public-private partnership between states and private insurance companies. It is the intent of this program to reduce future Medicaid costs for long-term care by delaying or eliminating dependence on Medicaid by providing incentives for individuals to insure against the cost of providing for their long-term care needs.  The program, including the treatment of assets for Medicaid eligibility and estate recovery, shall be structured and administered in accordance with federal law and applicable federal guidelines.


(Source: P.A. 95-200, eff. 8-16-07.) (215 ILCS 132/10)Sec. 10. Definitions. As used in this Act:"Agency" means the  Department of Healthcare and Family Services."Asset disregard" means, with respect to qualification for State Medicaid benefits, the

disregard of any assets or resources in an amount equal to the insurance benefit payments that are made to or on the behalf of an individual who is a beneficiary under a qualified long-term care insurance partnership policy."Department" means the Department of Financial and Professional Regulation."Medicaid" means the federal medical assistance program established under Title XIX

of the Social Security Act."Qualified long-term care insurance partnership policy" means a policy that meets all of the following requirements:(1) it covers an insured who was a resident of     Illinois when coverage first became effective under the policy;(2)   it is a qualified long-term care insurance     policy as defined in Section 7702B(b) of the Internal Revenue Code of 1986 issued not earlier than the effective date of the State plan amendment;(3) it meets the model regulations and requirements     of the National Association of Insurance Commissioners model specified in paragraph (5) of Title VI, Section 6021 of the federal Deficit Reduction Act of 2005, and the Director of the Division of  Insurance of the Department  certifies it as meeting these requirements; and(4) if the policy is sold to an individual who:(A) has not attained age 61 as of the date of         purchase, the policy provides compound annual inflation protection;(B) has attained age 61 but has not attained age         76 as of such date, the policy provides some level of inflation protection; or(C) has attained age 76 as of such date, the         policy may, but is not required to, provide some level of inflation protection."State plan amendment" means a State Medicaid plan amendment made to the federal

Department of Health and Human Services that provides for the disregard of any assets or resources in an amount equal to the insurance benefit payments that are made to or on the behalf of an individual who is a beneficiary under a qualified long-term care insurance partnership policy.


(Source: P.A. 95-200, eff. 8-16-07.) (215 ILCS 132/15)Sec. 15. Illinois Long-term Care Partnership Program.(a) In accordance with  Title VI, Section 6021 of the federal Deficit Reduction Act of 2005, there shall be established the Illinois Long-Term Care Partnership Program, to be administered by the Agency with the assistance of the Department to do the following:(1)  provide incentives for individuals to insure     against the costs of providing for their long-term care needs;(2)  provide a mechanism for individuals to qualify     for coverage of the cost of their long-term care needs under Medicaid without first being required to substantially exhaust their resources;(3)  provide counseling services to individuals     planning for their long-term care needs; and(4)  alleviate the financial burden on the State's     medical assistance program by encouraging the pursuit of private initiatives.(b) The Agency shall:(1)  Within 180 days of the effective date of this     Act, or as soon  thereafter as possible, make application to the federal Department of Health and Human Services for a State plan amendment to establish that, if an individual is a beneficiary of a long-term care partnership program certified policy, the total assets an individual owns and may retain under Medicaid and still qualify for benefits under Medicaid at the time the individual applies for long-term care benefits are increased by $1 for each $1 of benefit paid out under the individual's long-term care partnership program certified insurance policy.(2)  Provide information and technical assistance to     the Department on the Department's role in assuring that any individual who sells a qualified long-term care insurance partnership policy receives training and demonstrates evidence of an understanding of such policies and how they relate to other public and private coverage of long-term care.(c) The Department may not impose any requirement affecting the terms or benefits of qualified long-term care partnership policies unless the Department imposes the requirement on all long-term care policies sold in Illinois without regard to whether the policy is covered under the partnership or is offered in connection with the partnership.(d) The issuers of qualified long-term care partnership policies in Illinois shall provide regular reports to the Secretary of the federal Department of Health and Human Services, in accordance with federal regulation. Issuers of qualified long-term care partnership policies in Illinois shall provide appropriate reports to the Agency and to the Department as determined by those entities.
(Source: P.A. 95-200, eff. 8-16-07.) (215 ILCS 132/20)Sec. 20. Administration.(a)  The Agency and the Department are authorized to adopt regulations to implement the provisions of this Act and rules for its administration.(b)  The Agency and Department must comply with all federal rules developed in accordance with Title VI, Section 6021 of the federal Deficit Reduction Act of 2005, regarding data reporting, reciprocity with other states that develop long-term care insurance partnership programs, and any other matters, and shall have the authority to adopt regulations relative to the provisions of any federal rules and their administration.


(Source: P.A. 95-200, eff. 8-16-07.) (215 ILCS 132/25)Sec. 25. The Partnership for Long-Term Care Act is repealed.
(Source: P.A. 95-200, eff. 8-16-07.) (215 ILCS 132/99)Sec. 99. Effective date. This Act takes effect upon becoming law.
		
(Source: P.A. 95-200, eff. 8-16-07.)
(215 ILCS 134/1)Sec. 1. 
		Short title. 
		This Act may be cited as the Managed Care Reform and Patient Rights Act.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/5)Sec. 5. 
		Health care patient rights.(a) The General Assembly finds that:(1) A patient has the right to care consistent with     professional standards of practice to assure quality nursing and medical practices, to choose the participating physician responsible for coordinating his or her care, to receive information concerning his or her condition and proposed treatment, to refuse any treatment to the extent permitted by law, and to privacy and confidentiality of records except as otherwise provided by law.(2) A patient has the right, regardless of source of     payment, to examine and to receive a reasonable explanation of his or her total bill for health care services rendered by his or her physician or other health care provider, including the itemized charges for specific health care services received.  A physician or other health care provider has responsibility only for a reasonable explanation of those specific health care services provided by the health care provider.(3) A patient has the right to timely prior notice of     the termination whenever a health care plan cancels or refuses to renew an enrollee's participation in the plan.(4) A patient has the right to privacy and     confidentiality in health care. This right may be expressly waived in writing by the patient or the patient's guardian.(5) An individual has the right to purchase any     health care services with that individual's own funds.(b) Nothing in this Section shall preclude the health care plan from
sharing information for
plan quality assessment and improvement purposes as required by Section 80.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/10)Sec. 10. Definitions."Adverse determination" means a determination by a health care plan under
Section 45 or by a utilization review program under Section
85 that
a health care service is not medically necessary."Clinical peer" means a health care professional who is in the same
profession and the same or similar specialty as the health care provider who
typically manages the medical condition, procedures, or treatment under
review."Department" means the Department of Insurance."Emergency medical condition" means a medical condition manifesting itself by
acute symptoms of sufficient severity, regardless of the final diagnosis given, such that a prudent
layperson, who possesses an average knowledge of health and medicine, could
reasonably expect the absence of immediate medical attention to result in:(1) placing the health of the individual (or, with     respect to a pregnant woman, the health of the woman or her unborn child) in serious jeopardy;(2) serious
impairment to bodily functions;(3) serious dysfunction of any bodily organ
or part;(4) inadequately controlled pain; or(5) with respect to a pregnant woman who is having     contractions:(A) inadequate time to complete a safe transfer         to another hospital before delivery; or(B) a transfer to another hospital may pose a         threat to the health or safety of the woman or unborn child."Emergency medical screening examination" means a medical screening
examination and
evaluation by a physician licensed to practice medicine in all its branches, or
to the extent permitted
by applicable laws, by other appropriately licensed personnel under the
supervision of or in
collaboration with a physician licensed to practice medicine in all its
branches to determine whether
the need for emergency services exists."Emergency services" means, with respect to an enrollee of a health care
plan,
transportation services, including but not limited to ambulance services, and
covered inpatient and outpatient hospital services
furnished by a provider
qualified to furnish those services that are needed to evaluate or stabilize an
emergency medical condition. "Emergency services" does not
refer to post-stabilization medical services."Enrollee" means any person and his or her dependents enrolled in or covered
by a health care plan."Health care plan" means a plan, including, but not limited to, a health maintenance organization, a managed care community network as defined in the Illinois Public Aid Code, or an accountable care entity as defined in the Illinois Public Aid Code that receives capitated payments to cover medical services from the Department of Healthcare and Family Services, that establishes, operates, or maintains a
network of health care providers that has entered into an agreement with the
plan to provide health care services to enrollees to whom the plan has the
ultimate obligation to arrange for the provision of or payment for services
through organizational arrangements for ongoing quality assurance,
utilization review programs, or dispute resolution.
Nothing in this definition shall be construed to mean that an independent
practice association or a physician hospital organization that subcontracts
with
a health care plan is, for purposes of that subcontract, a health care plan.For purposes of this definition, "health care plan" shall not include the
following:(1) indemnity health insurance policies including     those using a contracted provider network;(2) health care plans that offer only dental or only     vision coverage;(3) preferred provider administrators, as defined in     Section 370g(g) of the Illinois Insurance Code;(4) employee or employer self-insured health benefit     plans under the federal Employee Retirement Income Security Act of 1974;(5) health care provided pursuant to the Workers'     Compensation Act or the Workers' Occupational Diseases Act; and(6) not-for-profit voluntary health services plans     with health maintenance organization authority in existence as of January 1, 1999 that are affiliated with a union and that only extend coverage to union members and their dependents."Health care professional" means a physician, a registered professional
nurse,
or other individual appropriately licensed or registered
to provide health care services."Health care provider" means any physician, hospital facility, facility licensed under the Nursing Home Care Act, long-term care facility as defined in Section 1-113 of the Nursing Home Care Act, or other
person that is licensed or otherwise authorized to deliver health care
services.  Nothing in this
Act shall be construed to define Independent Practice Associations or
Physician-Hospital Organizations as health care providers."Health care services" means any services included in the furnishing to any
individual of medical care, or the
hospitalization incident to the furnishing of such care, as well as the
furnishing to any person of
any and all other services for the purpose of preventing,
alleviating, curing, or healing human illness or injury including behavioral health, mental health, home health,
and pharmaceutical services and products."Medical director" means a physician licensed in any state to practice
medicine in all its
branches appointed by a health care plan."Person" means a corporation, association, partnership,
limited liability company, sole proprietorship, or any other legal entity."Physician" means a person licensed under the Medical
Practice Act of 1987."Post-stabilization medical services" means health care services
provided to an enrollee that are furnished in a licensed hospital by a provider
that is qualified to furnish such services, and determined to be medically
necessary and directly related to the emergency medical condition following
stabilization."Stabilization" means, with respect to an emergency medical condition, to
provide such medical treatment of the condition as may be necessary to assure,
within reasonable medical probability, that no material deterioration
of the condition is likely to result."Utilization review" means the evaluation of the medical necessity,
appropriateness, and efficiency of the use of health care services, procedures,
and facilities."Utilization review program" means a program established by a person to
perform utilization review.
(Source: P.A. 101-452, eff. 1-1-20; 102-409, eff. 1-1-22.) (215 ILCS 134/15)Sec. 15. Provision of information.(a) A health care plan shall provide annually to enrollees and prospective
enrollees, upon request, a complete list of participating health care providers
in the
health care plan's service area and a description of the following terms of
coverage:(1) the service area;(2) the covered benefits and services with all     exclusions, exceptions, and limitations;(3) the pre-certification and other utilization     review procedures and requirements;(4) a description of the process for the selection of     a primary care physician, any limitation on access to specialists, and the plan's standing referral policy;(5) the emergency coverage and benefits, including     any restrictions on emergency care services;(6) the out-of-area coverage and benefits, if any;(7) the enrollee's financial responsibility for     copayments, deductibles, premiums, and any other out-of-pocket expenses;(8) the provisions for continuity of treatment in the     event a health care provider's participation terminates during the course of an enrollee's treatment by that provider;(9) the appeals process, forms, and time frames for     health care services appeals, complaints, and external independent reviews, administrative complaints,  and utilization review complaints, including a phone number to call to receive more information from the health care plan concerning the appeals process; and(10) a statement of all basic health care services     and all specific benefits and services mandated to be provided to enrollees by any State law or administrative rule.(a-5) Without limiting the generality of subsection (a) of this Section, no qualified health plans shall be offered for sale directly to consumers through the health insurance marketplace operating in the State in accordance with Sections 1311 and
1321 of the federal Patient Protection and Affordable Care Act of 2010 (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), and any amendments thereto, or regulations or guidance issued thereunder (collectively, "the Federal Act"), unless, in addition to the information required under subsection (a) of this Section, the following information is available to the consumer at the time he or she is comparing health care plans and their premiums:(1) With respect to prescription drug benefits, the     most recently published formulary where a consumer can view in one location covered prescription drugs; information on tiering and the cost-sharing structure for each tier; and information about how a consumer can obtain specific copayment amounts or coinsurance percentages for a specific qualified health plan before enrolling in that plan.  This information shall clearly identify the qualified health plan to which it applies.(2) The most recently published provider directory     where a consumer can view the provider network that applies to each qualified health plan and information about each provider, including location, contact information, specialty, medical group, if any, any institutional affiliation, and whether the provider is accepting new patients.  The information shall clearly identify the qualified health plan to which it applies.In the event of an inconsistency between any separate written disclosure
statement and the enrollee contract or certificate, the terms of the enrollee
contract or certificate shall control.(b) Upon written request, a health care plan shall provide to enrollees a
description of the financial relationships between the health care plan and any
health care provider
and, if requested, the percentage
of copayments, deductibles, and total premiums spent on healthcare related
expenses and the percentage of
copayments, deductibles, and total premiums spent on other expenses, including
administrative expenses,
except that no health care plan shall be required to disclose specific provider
reimbursement.(c) A participating health care provider shall provide all of the
following, where applicable, to enrollees upon request:(1) Information related to the health care provider's     educational background, experience, training, specialty, and board certification, if applicable.(2) The names of licensed facilities on the provider     panel where the health care provider presently has privileges for the treatment, illness, or procedure that is the subject of the request.(3) Information regarding the health care provider's     participation in  continuing education programs and compliance with any licensure, certification, or registration requirements, if applicable.(d) A health care plan shall provide the information required to be
disclosed under this Act upon enrollment and annually thereafter in a legible
and understandable format. The Department
shall promulgate rules to establish the format based, to the extent
practical,
on
the standards developed for supplemental insurance coverage under Title XVIII
of
the federal Social Security Act as a guide, so that a person can compare the
attributes of the various health care plans.(e) The written disclosure requirements of this Section may be met by
disclosure to one enrollee in a household.(f) Each issuer of qualified health plans for sale directly to consumers through the health insurance marketplace operating in the State shall make the information described in subsection (a) of this Section, for each qualified health plan that it offers, available and accessible to the general public on the company's  Internet website and through other means for individuals without access to the Internet.(g) The Department shall ensure that State-operated Internet websites, in addition to the Internet website for the health insurance marketplace established in this State in accordance with the Federal Act and its implementing regulations, prominently provide links to Internet-based materials and tools to help consumers be informed purchasers of health care plans.(h) Nothing in this Section shall be interpreted or implemented in a manner not consistent with the Federal Act.  This Section shall apply to all qualified health plans offered for sale directly to consumers through the health insurance marketplace operating in this State for any coverage year beginning on or after January 1, 2015. (Source: P.A. 98-1035, eff. 8-25-14.) (215 ILCS 134/20)Sec. 20. 
		Notice of nonrenewal or termination. 
		A health care plan must
give at least 60
days notice of nonrenewal or termination of a health
care provider to the health care
provider and to the enrollees served by the health care provider.
The notice shall include a name and address to which an enrollee or health care
provider may direct
comments and concerns regarding the nonrenewal or termination.
Immediate written notice may be provided without 60 days notice when a health
care provider's license has been disciplined by a State licensing board.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/25)Sec. 25. Transition of services.(a) A health care plan shall provide for continuity of care for its
enrollees as follows:(1) If an enrollee's physician leaves the health care     plan's network of health care providers for reasons other than termination of a contract in situations involving imminent harm to a patient or a final disciplinary action by a State licensing board and the physician remains within the health care plan's service area, the health care plan shall permit the enrollee to continue an ongoing course of treatment with that physician during a transitional period:(A) of 90 days from the date of the notice of         physician's termination from the health care plan to the enrollee of the physician's disaffiliation from the health care plan if the enrollee has an ongoing course of treatment; or(B) if the enrollee has entered the third         trimester of pregnancy at the time of the physician's disaffiliation, that includes the provision of post-partum care directly related to the delivery.(2) Notwithstanding the provisions in item (1) of     this subsection, such care shall be authorized by the health care plan during the transitional period only if the physician agrees:(A) to continue to accept reimbursement from the         health care plan at the rates applicable prior to the start of the transitional period;(B) to adhere to the health care plan's quality         assurance requirements and to provide to the health care plan necessary medical information related to such care; and(C) to otherwise adhere to the health care plan's         policies and procedures, including but not limited to procedures regarding referrals and obtaining preauthorizations for treatment.(3) During an enrollee's plan year, a health care     plan shall not remove a drug from its formulary or negatively change its preferred or cost-tier sharing unless, at least 60 days before making the formulary change, the health care plan:(A) provides general notification of the change         in its formulary to current and prospective enrollees;(B) directly notifies enrollees currently         receiving coverage for the drug, including information on the specific drugs involved and the steps they may take to request coverage determinations and exceptions, including a statement that a certification of medical necessity by the enrollee's prescribing provider will result in continuation of coverage at the existing level; and(C) directly notifies by first class mail and         through an electronic transmission, if available, the prescribing provider of all health care plan enrollees currently prescribed the drug affected by the proposed change; the notice shall include a one-page form by which the prescribing provider can notify the health care plan by first class mail that coverage of the drug for the enrollee is medically necessary.The notification in paragraph (C) may direct the     prescribing provider to an electronic portal through which the prescribing provider may electronically file a certification to the health care plan that coverage of the drug for the enrollee is medically necessary.  The prescribing provider may make a secure electronic signature beside the words "certification of medical necessity", and this certification shall authorize continuation of coverage for the drug.If the prescribing provider certifies to the health     care plan either in writing or electronically that the drug is medically necessary for the enrollee as provided in paragraph (C), a health care plan shall authorize coverage for the drug prescribed based solely on the prescribing provider's assertion that coverage is medically necessary, and the health care plan is prohibited from making modifications to the coverage related to the covered drug, including, but not limited to:(i) increasing the out-of-pocket costs for the         covered drug;(ii) moving the covered drug to a more         restrictive tier; or(iii) denying an enrollee coverage of the drug         for which the enrollee has been previously approved for coverage by the health care plan.Nothing in this item (3) prevents a health care plan     from removing a drug from its formulary or denying an enrollee coverage if the United States Food and Drug Administration has issued a statement about the drug that calls into question the clinical safety of the drug, the drug manufacturer has notified the United States Food and Drug Administration of a manufacturing discontinuance or potential discontinuance of the drug as required by Section 506C of the Federal Food, Drug, and Cosmetic Act, as codified in 21 U.S.C. 356c, or the drug manufacturer has removed the drug from the market.Nothing in this item (3) prohibits a health care     plan, by contract, written policy or procedure, or any other agreement or course of conduct, from requiring a pharmacist to effect substitutions of prescription drugs consistent with Section 19.5 of the Pharmacy Practice Act, under which a pharmacist may substitute an interchangeable biologic for a prescribed biologic product, and Section 25 of the Pharmacy Practice Act, under which a pharmacist may select a generic drug determined to be therapeutically equivalent by the United States Food and Drug Administration and in accordance with the Illinois Food, Drug and Cosmetic Act.This item (3) applies to a policy or contract that is     amended, delivered, issued, or renewed on or after January 1, 2019. This item (3) does not apply to a health plan as defined in the State Employees Group Insurance Act of 1971 or medical assistance under Article V of the Illinois Public Aid Code.(b) A health care plan shall provide for continuity of care for new
enrollees as follows:(1) If a new enrollee whose physician is not a member     of the health care plan's provider network, but is within the health care plan's service area, enrolls in the health care plan, the health care plan shall permit the enrollee to continue an ongoing course of treatment with the enrollee's current physician during a transitional period:(A) of 90 days from the effective date of         enrollment if the enrollee has an ongoing course of treatment; or(B) if the enrollee has entered the third         trimester of pregnancy at the effective date of enrollment, that includes the provision of post-partum care directly related to the delivery.(2) If an enrollee elects to continue to receive care     from such physician pursuant to item (1) of this subsection, such care shall be authorized by the health care plan for the transitional period only if the physician agrees:(A) to accept reimbursement from the health care         plan at rates established by the health care plan; such rates shall be the level of reimbursement applicable to similar physicians within the health care plan for such services;(B) to adhere to the health care plan's quality         assurance requirements and to provide to the health care plan necessary medical information related to such care; and(C) to otherwise adhere to the health care plan's         policies and procedures including, but not limited to procedures regarding referrals and obtaining preauthorization for treatment.(c) In no event shall this Section be construed to require a health care
plan
to
provide coverage for benefits not otherwise covered or to diminish or
impair preexisting condition limitations contained in the enrollee's
contract. In no event shall this Section be construed to prohibit the addition of prescription drugs to a health care plan's list of covered drugs during the coverage year. 
(Source: P.A. 100-1052, eff. 8-24-18.) (215 ILCS 134/30)Sec. 30. Prohibitions.(a) No health care plan or its subcontractors may prohibit or discourage
health care providers
by contract or policy from
discussing any health care services and health care providers, utilization
review and quality assurance policies, terms and conditions of plans and plan
policy with enrollees, prospective enrollees, providers, or the public.(b) No health care plan by contract, written policy, or procedure may
permit or allow an individual or entity to dispense a different
drug in place of the drug or brand of drug ordered or prescribed without the
express permission of the person ordering or prescribing the drug, except as
provided under Section 3.14 of the Illinois Food, Drug and Cosmetic Act.(c) No health care plan or its subcontractors may by contract, written
policy, procedure, or otherwise mandate or require an enrollee
to substitute his or her participating primary care physician
under the plan during inpatient hospitalization, such as with a hospitalist physician licensed to practice medicine in all its branches,
without the agreement of that enrollee's
participating primary care physician.  "Participating primary care
physician" for health care plans and subcontractors that do not require
coordination of care by a primary care physician means the participating
physician treating the patient.  All health care plans shall inform enrollees
of any policies, recommendations, or guidelines concerning the
substitution of the enrollee's primary care physician when hospitalization is
necessary in the manner set forth in subsections (d) and (e) of Section 15.(d) A health care plan shall apply any third-party payments, financial assistance, discount, product vouchers, or any other reduction in out-of-pocket expenses made by or on behalf of such insured for prescription drugs toward a covered individual's deductible, copay, or cost-sharing responsibility, or out-of-pocket maximum associated with the individual's health insurance. If, under federal law, application of this requirement would result in health savings account ineligibility under Section 223 of the Internal Revenue Code, this requirement applies to health savings account-qualified high deductible health plans with respect to the deductible of such a plan after the enrollee has satisfied the minimum deductible under Section 223, except with respect to items or services that are preventive care pursuant to Section 223(c)(2)(C) of the Internal Revenue Code, in which case the requirement of this subsection applies regardless of whether the minimum deductible under Section 223 has been satisfied.(e) Any violation of this Section shall be subject to the
penalties under this Act.
(Source: P.A. 101-452, eff. 1-1-20; 102-704, eff. 4-22-22.) (215 ILCS 134/35)Sec. 35. 
		Medically appropriate health care protection.(a) No health care plan or its subcontractors shall retaliate against a
physician or other
health
care provider who advocates for appropriate health care services for
patients.(b) It is the public policy of the State of Illinois that a physician or any
other health care provider be encouraged to advocate for medically appropriate
health care services for his or her patients.  For purposes of this Section,
"to advocate for medically appropriate health care services" means to appeal a
decision to deny payment for a health care service pursuant to the
reasonable grievance or appeal procedure established by a health care plan
or to protest a decision, policy, or practice that the
physician or other health care provider, consistent with that degree of
learning and skill ordinarily possessed by physicians or other health care
providers practicing in the same or a similar locality and under similar
circumstances, reasonably believes impairs the physician's or other health care
provider's ability to provide appropriate health care services to his or her
patients.(c) This Section shall not be construed to prohibit a health care plan or
its subcontractors from making a
determination not to pay for a particular health care service or to prohibit a
medical group, independent practice association, preferred provider
organization, foundation, hospital medical staff, hospital governing body or
health care plan from enforcing reasonable peer review or utilization
review
protocols or
determining whether a physician or other health care provider has complied with
those protocols.(d) Nothing in this Section shall be construed to prohibit the governing
body of a hospital or the hospital medical staff from taking disciplinary
actions against a physician as authorized by law.(e) Nothing in this Section shall be construed to prohibit the Department of
Professional Regulation from taking disciplinary actions against a physician or
other health care provider under the appropriate licensing Act.(f) Any violation of this Section shall be subject to the penalties under
this Act.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/40)Sec. 40. Access to specialists.(a) All health care plans that require each enrollee to select a
health care provider for any purpose including coordination of
care shall
permit an enrollee to choose any available primary care physician licensed to
practice
medicine in all its branches participating in
the health care plan for that purpose.
The health care plan shall provide the enrollee with a choice of licensed
health care providers who are accessible and
qualified.  Nothing in
this Act shall be construed to prohibit a health care plan from requiring a
health care provider to meet the health care plan's criteria in order to
coordinate access to health care.(b) A health care plan shall establish a procedure by which an enrollee who
has a condition that requires ongoing care from a specialist physician
or other health care provider may apply for a
standing referral to a specialist physician or other health care provider if a
referral to a specialist
physician or other health care provider is required for
coverage.
The application shall be made to the enrollee's primary care physician.
This procedure for a standing referral must specify
the necessary criteria and conditions that must be met in order for an enrollee
to obtain a standing referral.
A standing referral shall be effective for the period
necessary to provide the referred services or one year, except in the event of
termination of a contract or policy in which case Section 25 on transition of
services shall apply, if applicable.
A primary care physician may renew and re-renew a standing referral.(c) The enrollee may be required by the health care plan to select a
specialist physician or other health care provider who has a referral
arrangement with the enrollee's
primary care physician or to select a new primary care physician who has a
referral arrangement with the specialist physician or other health care
provider chosen by the enrollee.
If a health care plan requires an enrollee to select a new physician under
this subsection, the health care plan must provide the enrollee with
both
options provided in this subsection.
When a participating specialist with a referral arrangement is not available,
the primary care physician, in consultation with the enrollee, shall arrange
for the enrollee to have access to a qualified participating health care
provider, and the enrollee shall be allowed to stay with his or her primary
care physician.
If a secondary referral is necessary, the specialist physician or other health
care provider shall advise the primary care physician. The primary care
physician shall be responsible for making the secondary referral. In addition,
the health care plan shall require the specialist physician or other health
care
provider to provide regular updates to the enrollee's primary care physician.(d) When the type of specialist physician or other health care provider
needed to provide ongoing care
for a
specific condition is not represented in the health care plan's provider
network, the primary care physician shall arrange for the enrollee to have
access to
a qualified non-participating health care provider
within a reasonable distance and travel
time at no additional cost beyond what the enrollee would otherwise pay for
services received within the network.  The referring physician
shall notify the plan when a referral is made outside the network.(e) The enrollee's primary care physician shall remain responsible for
coordinating the care of an enrollee who has received a standing referral to a
specialist physician or other health care provider.
If a secondary referral is necessary, the specialist physician or other health
care provider shall advise
the primary care physician.  The primary care physician shall be responsible
for making the secondary referral.
In addition,
the health care plan shall require the specialist physician or other health
care
provider to provide
regular updates to the enrollee's primary care physician.(f) If an enrollee's application for any referral is denied, an
enrollee may appeal the decision through the
health care plan's external independent review process as provided by the Illinois Health Carrier External Review Act.(g) Nothing in this Act shall be construed to require an enrollee to select
a new primary care physician when no referral arrangement exists between the
enrollee's primary care physician and the specialist selected by the enrollee
and when the enrollee has a long-standing relationship with his or her primary
care physician.(h) In promulgating rules to implement this Act, the Department shall
define
"standing referral" and "ongoing course of treatment".
(Source: P.A. 96-857, eff. 7-1-10.) (215 ILCS 134/43)Sec. 43. 
		Utilization of health care facilities.(a) A health care plan must provide its enrollees with a description of
their rights and responsibilities in obtaining referrals to and making
appropriate use of health care facilities when access to their primary care
physician is not readily available.(b) Nothing in this Section is intended to affect the rights of enrollees or
relieve a health care plan of its responsibilities with respect to the
provision of and coverage of emergency services or treatment of an emergency
medical condition, as those terms are defined by this Act, and as those
responsibilities and rights are otherwise provided under this Act, especially
Section 65 of this Act.
		(Source: P.A. 93-540, eff. 8-18-03.) (215 ILCS 134/45)Sec. 45. Health care services appeals,
complaints, and
external independent reviews.(a) A health care plan shall establish and maintain an appeals procedure as
outlined in this Act.  Compliance with this Act's appeals procedures shall
satisfy a health care plan's obligation to provide appeal procedures under any
other State law or rules.
All appeals of a health care plan's administrative determinations and
complaints regarding its administrative decisions shall be handled as required
under Section 50.(b) When an appeal concerns a decision or action by a health care plan,
its
employees, or its subcontractors that relates to (i) health care services,
including, but not limited to, procedures or
treatments,
for an enrollee with an ongoing course of treatment ordered
by a health care provider,
the denial of which could significantly
increase the risk to an
enrollee's health,
or (ii) a treatment referral, service,
procedure, or other health care service,
the denial of which could significantly
increase the risk to an
enrollee's health,
the health care plan must allow for the filing of an appeal
either orally or in writing.  Upon submission of the appeal, a health care plan
must notify the party filing the appeal, as soon as possible, but in no event
more than 24 hours after the submission of the appeal, of all information
that the plan requires to evaluate the appeal.
The health care plan shall render a decision on the appeal within
24 hours after receipt of the required information.  The health care plan shall
notify the party filing the
appeal and the enrollee, enrollee's primary care physician, and any health care
provider who recommended the health care service involved in the appeal of its
decision orally
followed-up by a written notice of the determination.(c) For all appeals related to health care services including, but not
limited to, procedures or treatments for an enrollee and not covered by
subsection (b) above, the health care
plan shall establish a procedure for the filing of such appeals.  Upon
submission of an appeal under this subsection, a health care plan must notify
the party filing an appeal, within 3 business days, of all information that the
plan requires to evaluate the appeal.
The health care plan shall render a decision on the appeal within 15 business
days after receipt of the required information.  The health care plan shall
notify the party filing the appeal,
the enrollee, the enrollee's primary care physician, and any health care
provider
who recommended the health care service involved in the appeal orally of its
decision followed-up by a written notice of the determination.(d) An appeal under subsection (b) or (c) may be filed by the
enrollee, the enrollee's designee or guardian, the enrollee's primary care
physician, or the enrollee's health care provider.  A health care plan shall
designate a clinical peer to review
appeals, because these appeals pertain to medical or clinical matters
and such an appeal must be reviewed by an appropriate
health care professional.  No one reviewing an appeal may have had any
involvement
in the initial determination that is the subject of the appeal.  The written
notice of determination required under subsections (b) and (c) shall
include (i) clear and detailed reasons for the determination, (ii)
the medical or
clinical criteria for the determination, which shall be based upon sound
clinical evidence and reviewed on a periodic basis, and (iii) in the case of an
adverse determination, the
procedures for requesting an external independent review as provided by the Illinois Health Carrier External Review Act.(e) If an appeal filed under subsection (b) or (c) is denied for a reason
including, but not limited to, the
service, procedure, or treatment is not viewed as medically necessary,
denial of specific tests or procedures, denial of referral
to specialist physicians or denial of hospitalization requests or length of
stay requests, any involved party may request an external independent review as provided by the Illinois Health Carrier External Review Act.(f) Until July 1, 2013, if an external independent review decision made pursuant to the Illinois Health Carrier External Review Act upholds a determination adverse to the covered person, the covered person has the right to appeal the final decision to the Department; if the external review decision is found by the Director to have been arbitrary and capricious, then the Director, with consultation from a licensed medical professional, may overturn the external review decision and  require the health carrier to pay for the health care service
or treatment; such decision, if any, shall be made solely on
the legal or medical merits of the claim. If an external review decision is overturned by the Director pursuant to this Section and the health carrier so requests, then the Director shall assign a new independent review organization to reconsider the overturned decision. The new independent review organization shall follow subsection (d) of Section 40 of the Health Carrier External Review Act in rendering a decision.(g) Future contractual or employment action by the health care plan
regarding the
patient's physician or other health care provider shall not be based solely on
the physician's or other
health care provider's participation in health care services appeals,
complaints, or
external independent reviews under the Illinois Health Carrier External Review Act.(h) Nothing in this Section shall be construed to require a health care
plan to pay for a health care service not covered under the enrollee's
certificate of coverage or policy.
(Source: P.A. 96-857, eff. 7-1-10.) (215 ILCS 134/45.1)Sec. 45.1. Medical exceptions procedures required.(a) Notwithstanding any other provision of law, on or after
the effective date of this amendatory Act of the 99th General
Assembly, every insurer licensed in this State to sell a policy
of group or individual accident and health insurance or a
health benefits plan shall establish and maintain a medical exceptions process that allows covered persons or their authorized representatives to request any clinically appropriate prescription drug when (1) the drug is not covered based on the health benefit plan's formulary; (2) the health benefit plan is discontinuing coverage of the drug on the plan's formulary for reasons other than safety or other than because the prescription drug has been withdrawn from the market by the drug's manufacturer; (3) the prescription drug alternatives required to be used in accordance with a step therapy requirement (A) has been ineffective in the treatment of the enrollee's disease or medical condition or, based on both sound clinical evidence and medical and scientific evidence, the known relevant physical or mental characteristics of the enrollee, and the known characteristics of the drug regimen, is likely to be ineffective or adversely affect the drug's effectiveness or patient compliance or (B) has caused or, based on sound medical evidence, is likely to cause an adverse reaction or harm to the enrollee; or (4) the number of doses available under a dose restriction for the prescription drug (A) has been ineffective in the treatment of the enrollee's disease or medical condition or (B) based on both sound clinical evidence and medical and scientific evidence, the known relevant physical and mental characteristics of the enrollee, and known characteristics of the drug regimen, is likely to be ineffective or adversely affect the drug's effective or patient compliance.(b) The health carrier's established medical exceptions procedures must require, at a minimum, the following:(1) Any request for approval of coverage made     verbally or in writing (regardless of whether made using a paper or electronic form or some other writing) at any time shall be reviewed by appropriate health care professionals.(2) The health carrier must, within 72 hours after     receipt of a request made under subsection (a) of this Section, either approve or deny the request.  In the case of a denial, the health carrier shall provide the covered person or the covered person's authorized representative and the covered person's prescribing provider with the reason for the denial, an alternative covered medication, if applicable, and information regarding the procedure for submitting an appeal to the denial.(3) In the case of an expedited coverage     determination, the health carrier must either approve or deny the request within 24 hours after receipt of the request.  In the case of a denial, the health carrier shall provide the covered person or the covered person's authorized representative and the covered person's prescribing provider with the reason for the denial, an alternative covered medication, if applicable, and information regarding the procedure for submitting an appeal to the denial.(c) A step therapy requirement exception request shall be
approved if:(1) the required prescription drug is contraindicated;(2) the patient has tried the required prescription     drug while under the patient's current or previous health insurance or health benefit plan and the prescribing provider submits evidence of failure or intolerance; or(3) the patient is stable on a prescription drug     selected by his or her health care provider for the medical condition under consideration while on a current or previous health insurance or health benefit plan.(d) Upon the granting of an exception request, the insurer,
health plan, utilization review organization, or other entity
shall authorize the coverage for the drug
prescribed by the enrollee's treating health care provider,
to the extent the prescribed drug is a covered drug under the policy or contract up to the quantity covered.(e) Any approval of a medical exception request made pursuant to this Section shall be honored for 12 months following the date of the approval or until renewal of the plan.(f) Notwithstanding any other provision of this Section, nothing in this Section shall be interpreted or implemented in a manner not consistent with the federal Patient Protection and Affordable Care Act of 2010 (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), and any amendments thereto, or regulations or guidance issued under those Acts.(g) Nothing in this Section shall require or authorize the State agency responsible for the administration of the medical assistance program established under the Illinois Public Aid Code to approve, supply, or cover prescription drugs pursuant to the procedure established in this Section. (Source: P.A. 98-1035, eff. 8-25-14; 99-761, eff. 1-1-18.) (215 ILCS 134/45.2)Sec. 45.2. Prior authorization form; prescription benefits.(a) Notwithstanding any other provision of law, on and after January 1, 2015, a health insurer that provides prescription drug benefits must, within 72 hours after receipt of a paper or electronic prior authorization form from a prescribing provider or pharmacist, either approve or deny the prior authorization. In the case of a denial, the insurer shall provide the prescriber with the reason for the denial, an alternative covered medication, if applicable, and information regarding the denial.In the case of an expedited coverage determination, the health insurer must either approve or deny the prior authorization within 24 hours after receipt of the paper or electronic prior authorization form.  In the case of a denial, the health insurer shall provide the prescriber with the reason for the denial, an alternative covered medication, if applicable, and information regarding the procedure for submitting an appeal to the denial.(b) This Section does not apply to plans for beneficiaries of Medicare or Medicaid.(c) For the purposes of this Section:"Pharmacist" has the same meaning as set forth in the Pharmacy Practice Act."Prescribing provider" includes a provider authorized to write a prescription, as described in subsection (e) of Section 3 of the Pharmacy Practice Act, to treat a medical condition of an insured.
(Source: P.A. 98-1035, eff. 8-25-14.) (215 ILCS 134/45.3)Sec. 45.3. Prescription drug benefits; plan choice.(a) Notwithstanding any other provision of law, beginning January 1, 2023, every health insurance carrier that offers an individual health plan that provides coverage for prescription drugs shall ensure that at least 10% of individual health care plans offered in each applicable service area and at each level of coverage as defined in 42 U.S.C. 18022 apply a flat-dollar copayment structure to the entire drug benefit. Beginning January 1, 2024, every health insurance carrier that offers an individual health plan that provides coverage for prescription drugs shall ensure that at least 25% of individual health care plans offered in each applicable service area and at each level of coverage as defined in 42 U.S.C. 18022 apply a flat-dollar copayment structure to the entire drug benefit. If a health insurance carrier offers fewer than 4 plans in a service area, then the health insurance carrier shall ensure that one plan applies a flat-dollar copayment structure to the entire drug benefit.(b)   Beginning January 1, 2023, every health insurance carrier that offers a group health plan that provides coverage for prescription drugs shall offer at least one group health plan in each applicable service area and at each level of coverage as defined in 42 U.S.C. 18022 that applies a flat-dollar copayment structure to the entire drug benefit.  Beginning January 1, 2024, every health insurance carrier that offers a group health plan that provides coverage for prescription drugs shall offer at least 2 group health plans in each applicable service area and at each level of coverage as defined in 42 U.S.C. 18022 that apply a flat-dollar copayment structure to the entire drug benefit.(c)   The flat-dollar copayment structure for prescription drugs under subsections (a) and (b) must be applied pre-deductible and be reasonably graduated and proportionately related in all tier levels such that the copayment structure as a whole does not discriminate against or discourage the enrollment of individuals with significant health care needs.(d) A health insurance carrier that offers individual or group health care plans shall clearly and appropriately name the plans described in subsections (a) and (b)   to aid in the individual or group plan selection process.(e) A health insurance carrier shall market plans described in subsections (a) and (b) in the same manner as plans not described in subsections (a) and (b).(f) The Department shall adopt rules necessary to implement and enforce the provisions of this Section. 
(Source: P.A. 102-391, eff. 1-1-23.) (215 ILCS 134/50)Sec. 50. 
		Administrative complaints and Departmental review.(a) Administrative complaint process.(1) A health care plan shall accept and review     appeals of its determinations and complaints related to administrative issues initiated by enrollees or their health care providers (complainant). All appeals of a health care plan's determinations and complaints related to health care services shall be handled as required under Section 45.  Nothing in this Act shall be construed to preclude an enrollee from filing a complaint with the Department or as limiting the Department's ability to investigate complaints. In addition, any enrollee not satisfied with the plan's resolution of any complaint may appeal that final plan decision to the Department.(2) When a complaint against a health care plan     (respondent) is received by the Department, the respondent shall be notified of the complaint. The Department shall, in its notification, specify the date when a report is to be received from the respondent, which shall be no later than 21 days after notification is sent to the respondent. A failure to reply by the date specified may be followed by a collect telephone call or collect telegram. Repeated instances of failing to reply by the date specified may result in further regulatory action.(3) The respondent's report shall supply adequate     documentation that explains all actions taken or not taken and that were the basis for the complaint. The report shall include documents necessary to support the respondent's position and any information requested by the Department. The respondent's reply shall be in duplicate, but duplicate copies of supporting documents shall not be required. The respondent's reply shall include the name, telephone number, and address of the individual assigned to investigate or process the complaint. The Department shall respect the confidentiality of medical reports and other documents that by law are confidential. Any other information furnished by a respondent shall be marked "confidential" if the respondent does not wish it to be released to the complainant.(b) Departmental review.  The Department shall review the plan decision to
determine
whether it is consistent with the plan and Illinois law and rules. Upon receipt
of the respondent's
report, the Department shall evaluate the material submitted and:(1) advise the complainant of the action taken and     disposition of the complaint;(2) pursue further investigation with the respondent     or complainant; or(3) refer the investigation report to the appropriate     branch within the Department for further regulatory action.(c) The Department of Insurance and the Department of Public Health shall
coordinate
the complaint review and investigation process. The Department of Insurance and
the Department
of Public Health shall jointly establish rules under the Illinois
Administrative Procedure Act
implementing this complaint process.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/55)Sec. 55. 
		Record of complaints.(a) The Department shall maintain records concerning the complaints filed
against health care plans.  To that end, the Department shall require
health care
plans to annually report complaints made to and resolutions by health care
plans in a manner determined by rule.  The Department
shall make a summary of all data collected available upon request and publish
the summary on the World Wide Web.(b) The Department shall maintain records on the number of complaints filed
against each health care plan.(c) The Department shall maintain records classifying each complaint by
whether the complaint was filed by:(1) a consumer or enrollee;(2) a provider; or(3) any other individual.(d) The Department shall maintain records classifying each complaint
according to the nature of the complaint as it pertains to a specific function
of the health care plan.  The complaints shall be classified under the
following categories:(1) denial of care or treatment;(2) denial of a diagnostic procedure;(3) denial of a referral request;(4) sufficient choice and accessibility of health     care providers;(5) underwriting;(6) marketing and sales;(7) claims and utilization review;(8) member services;(9) provider relations; and(10) miscellaneous.(e) The Department shall maintain records classifying the disposition of
each complaint.  The disposition of the complaint shall be classified in one of
the following categories:(1) complaint referred to the health care plan and no     further action necessary by the Department;(2) no corrective action deemed necessary by the     Department; or(3) corrective action taken by the Department.(f) No Department publication or release of information shall identify any
enrollee, health care provider, or individual complainant.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/60)Sec. 60. 
		Choosing a physician.(a) A health care plan may also offer other arrangements under which
enrollees may
access health care services from contracted providers without a referral or
authorization from their primary care physician.(b) The enrollee may be required by the health care plan to select a
specialist physician or other health care provider who has a referral
arrangement with the enrollee's
primary care physician or to select a new primary care physician who has a
referral arrangement with the specialist physician or other health care
provider chosen by the enrollee.
If a health care plan requires an enrollee to select a new physician under
this subsection, the health care plan must provide the enrollee with
both
options provided in this subsection.(c) The Director of Insurance and the Department of Public Health each may
promulgate
rules to ensure appropriate access to and quality of care for enrollees in any
plan that allows enrollees to access health care services from contractual
providers without a referral or authorization from the primary care physician.
The rules may include, but shall not be limited to, a system for the retrieval
and compilation of enrollees' medical records.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/65)Sec. 65. 
		Emergency services prior to stabilization.(a) A health care plan
that provides or that is required by law to provide coverage for emergency
services shall provide coverage such that payment under this coverage is not
dependent upon whether the services are performed by a plan or non-plan health
care provider and without regard to prior authorization. This coverage shall be
at the same benefit level as if the services or treatment had been rendered by
the health care plan physician licensed to practice medicine in all
its branches or health care provider.(b) Prior authorization or approval by the plan shall not be required for
emergency services.(c) Coverage and payment shall only be retrospectively denied under the
following circumstances:(1) upon reasonable determination that the emergency     services claimed were never performed;(2) upon timely determination that the emergency     evaluation and treatment were rendered to an enrollee who sought emergency services and whose circumstance did not meet the definition of emergency medical condition;(3) upon determination that the patient receiving     such services was not an enrollee of the health care plan; or(4) upon material misrepresentation by the enrollee     or health care provider; "material" means a fact or situation that is not merely technical in nature and results or could result in a substantial change in the situation.(d) When an enrollee presents to a hospital seeking emergency services,
the determination as to whether the need for those
services exists shall be made for purposes of treatment by a
physician licensed to practice medicine in all its branches  or, to the extent
permitted by applicable law, by other appropriately licensed
personnel under the supervision of
or in collaboration with a physician licensed to practice medicine in all its
branches.
 The physician or other
appropriate personnel shall indicate in the patient's chart the results of the
emergency medical screening examination.(e) The appropriate use of the 911 emergency telephone system or its local
equivalent shall not be discouraged or penalized by the health care plan when
an emergency medical condition exists.
This provision shall not imply that the use of 911 or its local equivalent is a
factor in determining the existence of an emergency medical condition.(f) The medical director's or his or her designee's
determination of whether the enrollee meets the standard of an emergency
medical condition shall be based solely upon the presenting symptoms documented
in the medical record at the time care was
sought.
Only a clinical peer may make an adverse determination.(g) Nothing in this Section shall prohibit the imposition of deductibles,
copayments, and co-insurance.
Nothing in this Section alters the prohibition on billing enrollees contained
in the Health Maintenance Organization Act.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/70)Sec. 70. Post-stabilization medical services.(a) If prior authorization for covered post-stabilization services is
required by the health care
plan, the plan shall provide access 24 hours a day, 7 days a week to persons
designated by
the plan to make such determinations, provided that any determination made
under this Section must be made by a health care
professional.  The review shall be resolved in accordance with the provisions
of Section 85 and the time requirements of this Section.(a-5)   Prior authorization or approval by the plan shall not be required for post-stabilization services that constitute emergency services under Section 356z.3a of the Illinois Insurance Code.(b) The treating physician licensed to practice medicine in all its branches
or health care provider shall contact the health care plan or
delegated health care provider as
designated on the enrollee's health insurance card to obtain
authorization, denial, or
arrangements for an alternate plan of treatment or transfer of the
enrollee.(c) The treating physician  licensed to practice medicine in all its
branches or
 health care provider shall document in the enrollee's
medical record the enrollee's
presenting symptoms; emergency medical condition; and time, phone number
dialed,
and result of the communication for request for authorization of
post-stabilization medical services. The health care plan shall provide
reimbursement for covered
post-stabilization medical services if:(1) authorization to render them is received from the     health care plan or its delegated health care provider, or(2) after 2 documented good faith efforts, the     treating health care provider has attempted to contact the enrollee's health care plan or its delegated health care provider, as designated on the enrollee's health insurance card, for prior authorization of post-stabilization medical services and neither the plan nor designated persons were accessible or the authorization was not denied within 60 minutes of the request. "Two documented good faith efforts" means the health care provider has called the telephone number on the enrollee's health insurance card or other available number either 2 times or one time and an additional call to any referral number provided. "Good faith" means honesty of purpose, freedom from intention to defraud, and being faithful to one's duty or obligation. For the purpose of this Act, good faith shall be presumed.(d) After rendering any post-stabilization medical services,
the treating physician licensed to practice medicine
in all its branches or  health care
provider shall continue to make every reasonable effort to contact the health
care plan
or its delegated health care provider regarding authorization, denial, or
arrangements
for an
alternate plan of treatment or transfer of the enrollee until the
treating health care provider
receives instructions from the health care plan or delegated health care
provider for
continued care or the care is transferred to another health care provider or
the patient is discharged.(e) Payment for covered post-stabilization services may be denied:(1) if the treating health care provider does not     meet the conditions outlined in subsection (c);(2) upon determination that the post-stabilization     services claimed were not performed;(3) upon timely determination that the     post-stabilization services rendered were contrary to the instructions of the health care plan or its delegated health care provider if contact was made between those parties prior to the service being rendered;(4) upon determination that the patient receiving     such services was not an enrollee of the health care plan; or(5) upon material misrepresentation by the enrollee     or health care provider; "material" means a fact or situation that is not merely technical in nature and results or could result in a substantial change in the situation.(f) Nothing in this Section prohibits a health care plan from delegating
tasks associated with the responsibilities enumerated in this Section to the
health care plan's contracted health care providers or another
entity.  Only a clinical peer may make an adverse determination.  However, the
ultimate responsibility for
coverage and payment decisions may not be delegated.(g) Coverage and payment for post-stabilization medical services for which
prior
authorization or deemed approval is received shall not be retrospectively
denied.(h) Nothing in this Section shall prohibit the imposition of deductibles,
copayments, and co-insurance.
Nothing in this Section alters the prohibition on billing enrollees contained
in the Health Maintenance Organization Act.
(Source: P.A. 102-901, eff. 7-1-22.) (215 ILCS 134/72)Sec. 72. 
		Pharmacy providers.(a) Before  entering  into an  agreement  with  pharmacy  providers, a
health care plan must establish terms and conditions that must be met by
pharmacy providers desiring to contract with the health
care plan. The terms and conditions shall not discriminate against a pharmacy
provider. A health care plan may
not refuse to contract
with a pharmacy provider that meets the terms and conditions established by the
health care plan.
If a pharmacy provider rejects the
terms and conditions established, the health care plan may
offer other terms and conditions necessary to comply with network adequacy
requirements.(b) A health care plan shall apply the same co-insurance, copayment, and
deductible factors to all drug prescriptions filled by a pharmacy provider that
participates in the health care plan's network.
Nothing in this subsection, however, prohibits a health care plan
from applying different co-insurance,
copayment, and deductible factors between brand name drugs and generic drugs
when a generic equivalent exists for the brand name drug.(c) A health care
plan may not set a limit on
the quantity of drugs that an enrollee may obtain at one time with a
prescription unless the limit is applied uniformly to all pharmacy providers in
the health care plan's network.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/75)Sec. 75. 
		Consumer advisory committee.(a) A health care plan shall establish a consumer advisory committee.  The
consumer advisory committee shall have the authority to identify and review
consumer
concerns and make advisory recommendations to the health care plan.  The health
care plan may also make requests of the consumer advisory committee to provide
feedback to proposed changes in plan policies and procedures which will affect
enrollees.  However, the consumer advisory committee shall not have the
authority to hear or resolve specific complaints or grievances, but instead
shall refer such complaints or grievances to the health care plan's grievance
committee.(b) The health care plan shall randomly select 8 enrollees meeting the
requirements
of this Section to serve on the consumer advisory committee.
The health care plan must continue to randomly select enrollees
until 8 enrollees have agreed to serve on the consumer advisory committee.
Upon initial
formation of the consumer advisory committee, the health care plan shall
appoint 4 enrollees to a 2 year term and 4 enrollees to a one year term.
Thereafter, as an enrollee's term expires, the health care plan shall
re-appoint or appoint an enrollee to serve on the consumer advisory committee
for a 2 year term.
Members of the consumer advisory committee shall by majority vote elect a
member of the committee to serve as chair of the committee.(c) An enrollee may not serve on the consumer advisory committee if during
the 2 years preceding service the enrollee:(1) has been an employee, officer, or director of the     plan, an affiliate of the plan, or a provider or affiliate of a provider that furnishes health care services to the plan or affiliate of the plan; or(2) is a relative of a person specified in item (1).(d) A health care plan's consumer advisory committee shall meet not less
than quarterly.(e) All meetings shall be held within the State of Illinois.  The costs of
the meetings shall be borne by the health care plan.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/80)Sec. 80. Quality assessment program.(a) A health care plan shall develop and implement a quality assessment and
improvement strategy designed to identify and evaluate accessibility,
continuity, and quality of care.  The health care plan shall have:(1) an ongoing, written, internal quality assessment     program;(2) specific written guidelines for monitoring and     evaluating the quality and appropriateness of care and services provided to enrollees requiring the health care plan to assess:(A) the accessibility to health care providers;(B) appropriateness of utilization;(C) concerns identified by the health care plan's         medical or administrative staff and enrollees; and(D) other aspects of care and service directly         related to the improvement of quality of care;(3) a procedure for remedial action to correct     quality problems that have been verified in accordance with the written plan's methodology and criteria, including written procedures for taking appropriate corrective action;(4) follow-up measures implemented to evaluate the     effectiveness of the action plan.(b) The health care plan shall establish a committee that oversees the
quality assessment and improvement strategy which includes physician
and enrollee participation.(c) Reports on quality assessment and improvement activities shall be made
to the governing body of the health care plan not less than quarterly.(d) The health care plan shall make available its written description of
the quality assessment program to the Department of
Public Health.(e) With the exception of subsection (d), the Department of Public Health
shall accept evidence of accreditation with regard to the health care network
quality management and performance improvement standards of:(1) the National Commission on Quality Assurance     (NCQA);(2) the American Accreditation Healthcare Commission     (URAC);(3) the Joint Commission on Accreditation of     Healthcare Organizations (JCAHO);(4) the Accreditation Association for Ambulatory     Health Care (AAAHC); or(5) any other entity that the Director of Public     Health deems has substantially similar or more stringent standards than provided for in this Section.(f) If the Department of Public Health determines that a health care plan
is not in compliance with the terms of this Section, it shall certify the
finding to the Department of Insurance. The Department of Insurance shall
subject a health care plan to penalties, as provided in this Act, for such
non-compliance.
(Source: P.A. 99-111, eff. 1-1-16.) (215 ILCS 134/85)Sec. 85. Utilization review program registration.(a) No person may conduct a utilization review program in this State unless
once every 2 years the person
registers the utilization review program with the Department and certifies
compliance with the Health
Utilization Management Standards of the American Accreditation Healthcare
Commission (URAC) sufficient to achieve American Accreditation Healthcare
Commission (URAC) accreditation or submits evidence of accreditation by the
American
Accreditation Healthcare Commission (URAC) for its Health Utilization
Management Standards.
Nothing in this Act shall be construed to require a health care plan or its
subcontractors to become American Accreditation Healthcare Commission (URAC)
accredited.(b) In addition, the Director of the Department, in consultation with the
Director of the Department of Public Health, may certify alternative
utilization review standards of national accreditation organizations or
entities in order for plans to comply with this Section.  Any alternative
utilization review standards shall meet or exceed those standards required
under subsection (a).(b-5) The Department shall recognize the Accreditation Association for Ambulatory Health Care among the list of accreditors from which utilization organizations may receive accreditation and qualify for reduced registration and renewal fees.(c) The provisions of this Section do not apply to:(1) persons providing utilization review program     services only to the federal government;(2) self-insured health plans under the federal     Employee Retirement Income Security Act of 1974, however, this Section does apply to persons conducting a utilization review program on behalf of these health plans;(3) hospitals and medical groups performing     utilization review activities for internal purposes unless the utilization review program is conducted for another person.Nothing in this Act prohibits a health care plan or other entity from
contractually requiring an entity designated in item (3) of this subsection
 to adhere to
the
utilization review program requirements of
this Act.(d) This registration shall include submission of all of the following
information
regarding utilization review program activities:(1) The name, address, and telephone number of the     utilization review programs.(2) The organization and governing structure of the     utilization review programs.(3) The number of lives for which utilization review     is conducted by each utilization review program.(4) Hours of operation of each utilization review     program.(5) Description of the grievance process for each     utilization review program.(6) Number of covered lives for which utilization     review was conducted for the previous calendar year for each utilization review program.(7) Written policies and procedures for protecting     confidential information according to applicable State and federal laws for each utilization review program.(e) (1) A utilization review program shall have written procedures for
assuring that patient-specific information obtained during the process of
utilization review will be:(A) kept confidential in accordance with applicable     State and federal laws; and(B) shared only with the enrollee, the enrollee's     designee, the enrollee's health care provider, and those who are authorized by law to receive the information.Summary data shall not be considered confidential if it does not provide
information to allow identification  of individual patients or health care
providers.(2) Only a  health care professional may make     determinations regarding the medical  necessity of health care services during the course of utilization review.(3) When making retrospective reviews, utilization     review programs shall base reviews solely on the medical information available to the attending physician or ordering provider at the time the health care services were provided.(4) When making prospective, concurrent, and     retrospective determinations, utilization review programs shall collect only information that is necessary to make the determination and shall not routinely require health care providers to numerically code diagnoses or procedures to be considered for certification, unless required under State or federal Medicare or Medicaid rules or regulations, but may request such code if available, or routinely request copies of medical records of all enrollees reviewed. During prospective or concurrent review, copies of medical records shall only be required when necessary to verify that the health care services subject to review are medically necessary. In these cases, only the necessary or relevant sections of the medical record shall be required.(f) If the Department finds that a utilization review program is
not in compliance with this Section, the Department shall issue a corrective
action plan and allow a reasonable amount of time for compliance with the plan.
 If the utilization review program does not come into compliance, the
Department may issue a cease and desist order.  Before issuing a cease and
desist order under this Section, the Department shall provide the
utilization review program with a written notice of the reasons for the
order and allow a reasonable amount of time to supply additional information
demonstrating compliance with requirements of this Section and to request a
hearing.  The hearing notice shall be sent by certified mail, return receipt
requested, and the hearing shall be conducted in accordance with the Illinois
Administrative Procedure Act.(g) A utilization review program subject to a corrective action may continue
to conduct business
until a final decision has been issued by the Department.(h) Any adverse determination made by a health care plan or its
subcontractors may be appealed
in accordance with subsection (f) of Section 45.(i) The Director may by rule establish a registration fee for each person
conducting a utilization review program.  All fees paid to and collected by the
Director under this Section shall be deposited into
the Insurance Producer Administration Fund.
(Source: P.A. 99-111, eff. 1-1-16.) (215 ILCS 134/90)Sec. 90. 
		Office of Consumer Health Insurance.(a) The Director of Insurance shall establish the Office of Consumer
Health Insurance within the Department of Insurance to provide assistance and
information to all health care consumers within the State. Within the
appropriation allocated, the Office shall provide information and assistance to
all health care consumers by:(1) assisting consumers in understanding health     insurance marketing materials and the coverage provisions of individual plans;(2) educating enrollees about their rights within     individual plans;(3) assisting enrollees with the process of filing     formal grievances and appeals;(4) establishing and operating a toll-free "800"     telephone number line to handle consumer inquiries;(5) making related information available in languages     other than English that are spoken as a primary language by a significant portion of the State's population, as determined by the Department;(6) analyzing, commenting on, monitoring, and making     publicly available reports on the development and implementation of federal, State, and local laws, regulations, and other governmental policies and actions that pertain to the adequacy of health care plans, facilities, and services in the State;(7) filing an annual report with the Governor, the     Director, and the General Assembly, which shall contain recommendations for improvement of the regulation of health insurance plans, including recommendations on improving health care consumer assistance and patterns, abuses, and progress that it has identified from its interaction with health care consumers; and(8) performing all duties assigned to the Office by     the Director.(b) The report required under subsection (a)(7) shall be filed by January
31, 2001 and each January 31 thereafter.(c) Nothing in this Section shall be interpreted to authorize access to or
disclosure of individual patient or health care professional or provider
records.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/95)Sec. 95. 
		Prohibited activity. 
		No health care plan or its subcontractors
by contract, written
policy, or procedure shall contain any clause attempting to transfer or
transferring to a health care provider by indemnification, hold harmless, or
contribution requirements concerning any
liability relating to activities, actions, or omissions of the health
care plan or its officers, employees, or agents.
Nothing in this Section shall relieve any person or health care provider
from liability for his, her,
or its own negligence in the performance of his, her, or its duties arising
from treatment of a patient.
 The Illinois General Assembly finds it to be against public policy for a
person to transfer liability
in such a manner.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/100)Sec. 100. 
		Prohibition of waiver of rights. 
		No health care plan or
contract shall contain any provision, policy, or
procedure that limits, restricts, or waives any of the rights set forth in this
Act.  Any such policy or procedure shall be void and unenforceable.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/105)Sec. 105. 
		Administration and enforcement. 
		The Director of Insurance may adopt rules necessary to implement the
Department's responsibilities under this Act.To enforce the provisions of this Act, the Director may
issue a cease and desist order or require a health care plan to submit a plan
of correction for violations
of this Act, or both.
Subject to the provisions of the
Illinois Administrative Procedure Act, the Director
may, pursuant to Section 403A of the Illinois Insurance Code, impose upon
a health care plan an administrative fine not to exceed $250,000 for failure to
submit a requested plan of correction, failure to comply with its plan of
correction, or repeated violations of the Act.Any person who believes that his or her health care plan is in violation of
the
provisions of this Act may file a complaint with the Department. The Department
shall review all complaints received and investigate all of those complaints
that it deems to state a potential violation. The Department shall establish
rules to fairly, efficiently, and timely review and investigate complaints.
Health care plans found to be in violation of this Act shall be penalized in
accordance with this Section.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/110)Sec. 110. 
		Applicability and scope. 
		This Act applies to policies and
contracts
amended, delivered, issued, or renewed on or after the effective date of this
Act.
This Act does not diminish a health care plan's duties and responsibilities
under other federal or State law or rules promulgated thereunder.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/115)Sec. 115. 
		
		Effect on benefits under Workers' Compensation Act and Workers'
Occupational Diseases Act.  Nothing in this Act shall be construed to expand,
modify, or restrict the health care benefits provided to employees under the
Workers' Compensation Act and Workers' Occupational Diseases Act.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/120)Sec. 120. 
		Severability. 
		The provisions of this Act are severable under
Section 1.31 of the Statute on Statutes.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 134/200)Sec. 200. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 91-617, eff. 8-19-99; text omitted.) (215 ILCS 134/205)Sec. 205. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 91-617, eff. 1-1-00; text omitted.) (215 ILCS 134/210)Sec. 210. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 91-617, eff. 1-1-00; text omitted.) (215 ILCS 134/215)Sec. 215. 
		(Amendatory provisions, text omitted). 
		(Source: P.A. 91-617, eff. 1-1-00; text omitted.) (215 ILCS 134/220)Sec. 220. 
		
		(Amendatory provisions; text omitted.)
		(Source: P.A. 91-617, eff. 1-1-00; text omitted.) (215 ILCS 134/225)Sec. 225. 
		
		(Amendatory provisions; text omitted.)
		(Source: P.A. 91-617, eff. 1-1-00; text omitted.) (215 ILCS 134/230)Sec. 230. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 91-617, eff. 1-1-00; text omitted.) (215 ILCS 134/235)Sec. 235. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 91-617, eff. 1-1-00; text omitted.) (215 ILCS 134/240)Sec. 240. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 91-617, eff. 1-1-00; text omitted.) (215 ILCS 134/245)Sec. 245. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 91-617, eff. 1-1-00; text omitted.) (215 ILCS 134/250)Sec. 250. 
		
		(Amendatory provisions; text omitted.)
		(Source: P.A. 91-617, eff. 1-1-00; text omitted.) (215 ILCS 134/299)Sec. 299. 
		Effective date. 
		This Section and Section 200 of this Act take
effect upon becoming law;
Sections 25 and 85 take effect July 1, 2000; and the remaining Sections of
this Act take effect January 1, 2000.
		(Source: P.A. 91-617, eff. 8-19-99.)
(215 ILCS 136/1)Sec. 1. Short title. This Act may be cited as the Portable Electronics Insurance Act.
(Source: P.A. 97-366, eff. 1-1-12.) (215 ILCS 136/5)Sec. 5. Definitions. For purposes of this Act, the following terms have the following meanings:"Customer" means a person who purchases portable electronics or services."Department" means the Department of Insurance."Director" means the Director of Insurance."Enrolled customer" means a customer who elects coverage under a portable electronics insurance policy issued to a vendor of portable electronics."Location" means any physical location in this State or any website, call center site, or similar location directed to residents of this State."Portable electronics" means electronic devices that are portable in nature, including their accessories and services related to the use of the device."Portable electronics insurance" means insurance providing coverage for the repair or replacement of portable electronics, which may provide coverage for portable electronics against any one or more of the following causes of loss: loss, theft, inoperability due to mechanical failure, malfunction, damage, or other similar causes of loss. "Portable electronics insurance" does not include a service contract pursuant to the Service Contract Act, a policy of insurance covering a seller's or a manufacturer's obligations under a warranty, or a homeowner's, renter's, private passenger automobile, commercial multi-peril, or similar policy."Portable electronics transaction" means  the sale or lease of portable electronics by a vendor to a customer or the sale of a service related to the use of portable electronics by a vendor to a customer."Supervising entity" means a business entity that is a licensed insurance producer or insurer."Vendor" means a person in the business of engaging in portable electronics transactions directly or indirectly.

(Source: P.A. 97-366, eff. 1-1-12.) (215 ILCS 136/10)Sec. 10. Licensure of vendors.(a) In order to sell or offer coverage under a policy of portable electronics
insurance, a vendor is required to hold a limited-lines license.(b) A limited-lines license issued under this Act shall authorize any employee or authorized representative of the vendor to sell or offer coverage under a policy of portable electronics insurance to a customer at each location at which the vendor engages in portable electronics transactions.(c) The supervising entity shall maintain a registry of vendor locations that are authorized to sell or solicit portable electronics insurance coverage in this State.  Upon request by the Director and with 10 days notice to the supervising entity, the registry shall be open to inspection and examination by the Director during the regular business hours of the supervising entity.(d) Notwithstanding any other provision of law, a license issued pursuant to this Act shall authorize the licensee and its employees or authorized representatives to engage only in those activities that are permitted in this Act.
(Source: P.A. 97-366, eff. 1-1-12; 97-939, eff. 1-1-13.) (215 ILCS 136/15)Sec. 15. Requirements for sale of portable electronics insurance.(a) At every location where portable electronics insurance is offered to customers, brochures or other written materials must be made available to a prospective customer. The brochures or other written materials shall do all of the following:(1) disclose that portable electronics insurance may     provide a duplication of coverage already provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of coverage;(2) state that the enrollment by the customer in a     portable electronics insurance program is not required in order to purchase or lease portable electronics or services;(3) summarize the material terms of the insurance     coverage, including:(A) the identity of the insurer;(B) the identity of the supervising entity;(C) the amount of any applicable deductible and         how it is to be paid;(D) benefits of the coverage; and(E) key terms and conditions of coverage, such as         whether portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment;(4) summarize the process for filing a claim,     including a description of how to return portable electronics and the maximum fee applicable in the event the enrolled customer fails to comply with any equipment return requirements; and(5) state that the enrolled customer may cancel     enrollment for coverage under a portable electronics insurance policy at any time and the person paying the premium shall receive a refund or credit of any applicable unearned premium.(a-5) Any refund or credit due to an enrolled customer shall be issued within 15 days after receipt of the refund by the vendor.(b) Portable electronics insurance may be offered on a month-to-month or other periodic basis as a group or master commercial inland marine policy issued to a vendor of portable electronics for its enrolled customers.(c) Eligibility and underwriting standards for customers electing to enroll in coverage shall be established for each portable electronics insurance program. 
(Source: P.A. 97-366, eff. 1-1-12; 97-939, eff. 1-1-13.) (215 ILCS 136/20)Sec. 20. Authority of vendors of portable electronics.(a) The employees and authorized representatives of vendors may sell or offer portable electronics insurance to customers and shall not be subject to licensure as an insurance producer under the Illinois Insurance Code provided that:(1) the vendor obtains a limited-lines license to     authorize its employees or authorized representatives to sell or offer portable electronics insurance pursuant to this Act;(2) the insurer issuing the portable electronics     insurance either directly supervises or appoints a supervising entity to supervise the administration of the program, including development of a training program for employees and authorized representatives of the vendors; the training required by this subsection (a) shall comply with the following:(A) the training shall be delivered to employees         and authorized representatives of a vendor who is directly engaged in the activity of selling or offering portable electronics insurance;(B) the training may be provided in electronic         form; if conducted in electronic form, then the supervising entity shall implement a supplemental education program regarding portable electronics insurance that is conducted and overseen by licensed employees of the supervising entity; and(C) each employee and authorized representative         shall receive basic instruction about the portable electronics insurance offered to customers and the disclosures required under Section 15 of this Act;(3) no employee or authorized representative of a     vendor of portable electronics shall advertise, represent, or otherwise hold himself or herself out as a nonlimited-lines licensed insurance producer.(b) The charges for portable electronics insurance coverage may be billed and collected by the vendor of portable electronics. If the portable electronics insurance coverage is included in the purchase or lease of portable electronics or related services, then the vendor shall clearly and conspicuously disclose to the customer that the portable electronics insurance coverage is included with the portable electronics or related services. If the charge for coverage is included in the cost associated with the purchase or lease of portable electronics or related services, then the vendor shall clearly and conspicuously disclose to the enrolled customer that the charge for the portable electronics or related services includes the charge for coverage. Vendors billing and collecting such charges shall not be required to maintain the funds in a segregated account, provided that the vendor is authorized by the insurer to hold such funds in an alternative manner and remits the amounts to the supervising entity within 60 days after receipt. All funds received by a vendor from an enrolled customer for the sale of portable electronics insurance shall be considered funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer. Vendors may receive compensation for billing and collection services.
(Source: P.A. 97-366, eff. 1-1-12.) (215 ILCS 136/25)Sec. 25. Suspension or revocation of license and other penalties.  If a vendor of portable electronics or its employee or authorized representative violates any provision of this Act, then the Director may do any of the following:(1) take any action in accordance with Section 500-70     of the Illinois Insurance Code;(2) impose other penalties that the Director deems     necessary and reasonable to carry out the purpose of this Act, including, but not limited to:(A) suspending the privilege of transacting         portable electronics insurance pursuant to this Section at specific business locations where violations have occurred; and(B) suspending or revoking the ability of         individual employees or authorized representatives to act under the license.A supervising entity that violates any provision of this Act shall be subject to all appropriate regulatory action as set forth in the Illinois Insurance Code.
(Source: P.A. 97-366, eff. 1-1-12.) (215 ILCS 136/30)Sec. 30. Termination of portable electronics insurance. Notwithstanding any other provision of law:(1) An insurer may terminate or otherwise change the     terms and conditions of a policy of portable electronics insurance only upon providing the policyholder and enrolled customers with at least 60 days notice.(2) If the insurer changes the terms and conditions,     then the insurer shall provide the vendor policyholder with a revised policy or endorsement and each enrolled customer with a revised certificate, endorsement, updated brochure, or other evidence indicating that a change in the terms and conditions has occurred and a summary of the material changes.(3) Notwithstanding item (2) of this Section, an     insurer may terminate an enrolled customer's enrollment under a portable electronics insurance policy upon 15 days notice for discovery of fraud or material misrepresentation in obtaining coverage or in the presentation of a claim thereunder.(4) Notwithstanding item (2) of this Section, an     insurer may immediately terminate an enrolled customer's enrollment under a portable electronics insurance policy:(A) for nonpayment of premium;(B) if the enrolled customer ceases to have an         active service with the vendor of portable electronics; or(C) if an enrolled customer exhausts the         aggregate limit of liability, if any, under the terms of the portable electronics insurance policy and the insurer sends notice of termination to the enrolled customer within 30 calendar days after exhaustion of the limit; however, if notice is not timely sent, enrollment shall continue, notwithstanding the aggregate limit of liability, until the insurer sends notice of termination to the enrolled customer.(5) When a portable electronics insurance policy is     terminated by a policyholder, the policyholder shall mail or deliver written notice to each enrolled customer advising the enrolled customer of the termination of the policy and the effective date of termination. The written notice shall be mailed or delivered to the enrolled customer at least 30 days prior to the termination.(6) Whenever notice or correspondence with respect to     a policy of portable electronics insurance is required pursuant to this Section or is otherwise required by law, it shall be in writing and sent within the notice period, if any, specified within the statute or regulation requiring the notice or correspondence.  Notwithstanding any other provision of law, notices and correspondence may be sent either by mail or by electronic means as set forth in this paragraph (6).  If the notice or correspondence is mailed, it shall be sent to the vendor of portable electronics at the vendor's mailing address specified for such purpose and to its affected enrolled customers' last known mailing addresses on file with the insurer.  The insurer or vendor of portable electronics, as the case may be, shall maintain proof of mailing in a form authorized or accepted by the United States Postal Service or other commercial mail delivery service.   If the notice or correspondence is sent by electronic means, it shall be sent to the vendor of portable electronics at the vendor's electronic mail address specified for such purpose and to its affected enrolled customer's last known electronic mail address as provided by each enrolled customer to the insurer or vendor of portable electronics, as the case may be.  For purposes of this paragraph (6), an enrolled customer's provision of an electronic mail address to the insurer or vendor of portable electronics, as the case may be, shall be deemed consent to receive notices and correspondence by electronic means.  The insurer or vendor of portable electronics, as the case may be, shall maintain proof that the notice or correspondence was sent.(7)  Notice or correspondence required by this     Section or otherwise required by law may be sent on behalf of an insurer or vendor, as the case may be, by the supervising entity appointed by the insurer. (Source: P.A. 97-366, eff. 1-1-12; 97-939, eff. 1-1-13.) (215 ILCS 136/35)Sec. 35. Application for license and fees.(a) A sworn application for a license under this Act shall be made to and filed with the Department on forms prescribed and furnished by the Director.(b) In addition to other information required by the Director, the application shall provide the following:(1) the name, residential address, and other     information required by the Director for an employee or officer of the vendor that is designated by the applicant as the person responsible for the vendor's compliance with the requirements of this Act; however, if the vendor derives more than 50% of its revenue from the sale of portable electronics insurance, then the information required pursuant to this paragraph (1) shall be provided for all officers, directors, and shareholder of record having beneficial ownership of 10% or more of any class of securities registered under the federal securities laws; and(2) the location of the applicant's home office.(c) Any vendor engaging in portable electronics insurance transactions on or before the effective date of this Act must apply for licensure within 90 days after the effective date of this Act. Any applicant commencing operations after the effective date of this Act must obtain a license prior to offering portable electronics insurance.(d) Initial licenses issued pursuant to this Act shall be valid for a period of 24 months and expire on May 31 of the renewal year assigned by the Director.(e) Each vendor of portable electronics licensed under this Act shall pay to the Department a fee of $500 for an initial and renewal portable electronics limited-lines license.
(Source: P.A. 97-366, eff. 1-1-12.) (215 ILCS 136/99)Sec. 99. Effective date. This Act takes effect January 1, 2012.
(Source: P.A. 97-366, eff. 1-1-12.)
(215 ILCS 138/1)Sec. 1. 
		Short title. 
		This Act may be cited as the Uniform Prescription Drug Information Card Act.
		(Source: P.A. 91-777, eff. 1-1-01.) (215 ILCS 138/5)Sec. 5. 
		Legislative intent. 
		It is the intent of the legislature to
lessen patients'
waiting times, decrease administrative burdens for pharmacies, and improve care
to
patients by minimizing confusion, eliminating unnecessary paperwork, and
streamlining
the dispensing of prescription products paid for by third-party payors. This
Act
shall be
broadly applied and interpreted to effectuate this purpose.
		(Source: P.A. 91-777, eff. 1-1-01.) (215 ILCS 138/10)Sec. 10. 
		Definitions. 
		As used in this Act, the following terms have the
meanings given in this Section."Department" means the Department of Insurance."Director" means the Director of Insurance."Health benefit plan" means an accident and health insurance policy or
certificate
subject to the Illinois Insurance Code, a voluntary health services plan
subject to the
Voluntary Health Services Plans Act, a health maintenance organization
subscriber
contract subject to the Health Maintenance Organization Act, a plan provided by
a
multiple employer welfare arrangement, or a plan provided by another benefit
arrangement.
Without limitation, "health benefit plan" does not
mean any of
the following types of insurance:(1) accident;(2) credit;(3) disability income;(4) long-term or nursing home care;(5) specified disease;(6) dental or vision;(7) coverage issued as a supplement to liability     insurance;(8) medical payments under automobile or homeowners;(9) insurance under which benefits are payable with     or without regard to fault as statutorily required to be contained in any liability policy or equivalent self-insurance;(10) hospital income or indemnity;(11) self-insured health benefit plans under the     federal Employee Retirement Income Security Act of 1974.		(Source: P.A. 91-777, eff. 1-1-01.) (215 ILCS 138/15)(Text of Section before amendment by P.A. 102-902)Sec. 15. Uniform prescription drug information cards required.(a) A health benefit plan that issues a card or other technology and
provides coverage for prescription drugs or
devices
and an administrator of such a plan including, but not limited to, third-party
administrators for self-insured plans and state-administered plans shall issue
to its
insureds a card or other technology containing uniform prescription drug
information.  The uniform prescription drug information card or other
technology shall
specifically identify and display the following
mandatory data elements on the front of the card:(1) BIN number;(2) Processor control number if required for claims     adjudication;(3) Group number;(4) Card issuer identifier;(5) Cardholder ID number; and(6) Cardholder name.The uniform prescription drug information card or other technology shall
specifically identify and display the following mandatory data elements on the
back of the card:(1) Claims submission names and addresses; and(2) Help desk telephone numbers and names.(b) A new uniform prescription drug information card or other technology
shall be
issued by a health benefit plan upon enrollment and reissued upon any change in
the insured's coverage that affects mandatory data elements contained on the
card.(c) Notwithstanding subsections (a) and (b) of this Section, a discounted health care services plan administrator providing discounts on prescription drugs or devices shall issue to its beneficiaries a card containing the following mandatory data elements:(1) an Internet website for beneficiaries to access     up-to-date lists of preferred providers;(2) a toll-free help desk number for beneficiaries     and providers to access up-to-date lists of preferred providers and additional information about the discounted health care services plan;(3) the name or logo of the provider network;(4) a group number;(5) a cardholder ID number;(6) the cardholder's name or a space to permit the     cardholder to print his or her name, if the cardholder pays a periodic charge for use of the card;(7) a processor control number, if required for     claims adjudication; and(8) a statement that the plan is not insurance.(d) As used in this Section, "discounted health care services plan administrator" means any person, partnership, or corporation, other than an insurer, health service corporation, limited health service organization holding a certificate of authority under the Limited Health Service Organization Act, or health maintenance organization holding a certificate of authority under the Health Maintenance Organization Act that arranges, contracts with, or administers contracts with a provider whereby insureds or beneficiaries are provided an incentive to use health care services provided by health care services providers under a discounted health care services plan in which there are no other incentives, such as copayment, coinsurance, or any other reimbursement differential, for beneficiaries to utilize the provider. "Discounted health care services plan administrator" also includes any person, partnership, or corporation, other than an insurer, health service corporation, limited health service organization holding a certificate of authority under the Limited Health Service Organization Act, or health maintenance organization holding a certificate of authority under the Health Maintenance Organization Act that enters into a contract with another administrator to enroll beneficiaries or insureds in a preferred provider program marketed as an independently identifiable program based on marketing materials or member benefit identification cards. (Source: P.A. 96-1326, eff. 1-1-11.)(Text of Section after amendment by P.A. 102-902)Sec. 15. Uniform prescription drug information cards required.(a) A health benefit plan that issues a physical or electronic card or other technology and
provides coverage for prescription drugs or
devices
and an administrator of such a plan including, but not limited to, third-party
administrators for self-insured plans and state-administered plans shall issue
to its
insureds a card or other technology containing uniform prescription drug
information.  The uniform prescription drug information card or other
technology shall
specifically identify and display the following
mandatory data elements on the front of the card:(1) BIN number;(2) Processor control number if required for claims     adjudication;(3) Group number;(4) Card issuer identifier;(5) Cardholder ID number;(6) The regulatory entity that holds authority over     the plan; for the purpose of this requirement, the Department of Healthcare and Family Services is the regulatory entity that holds authority over plans that the Department of Healthcare and Family Services has contracted with to provide services under the medical assistance program;(7) Any deductible applicable to the plan; if there     is a deductible specific to prescription drugs, that shall be the applicable deductible for this card;(8) Any out-of-pocket maximum limitation applicable     to the plan; if there is an out-of-pocket maximum limitation specific to prescription drugs, that shall be the applicable limitation for this card;(9) A toll-free telephone number and Internet website     address through which the cardholder may seek consumer assistance information, such as up-to-date lists of preferred pharmacist and pharmacy providers and additional information about the plan's prescription drug benefits; and(10) Cardholder name.The uniform prescription drug information card or other technology shall
specifically identify and display the following mandatory data elements on the
back of the card:(1) Claims submission names and addresses; and(2) Help desk telephone numbers and names.(b) A new uniform prescription drug information card or other technology
shall be
issued by a health benefit plan upon enrollment and reissued upon any change in
the insured's coverage that affects mandatory data elements contained on the
card.(c) Notwithstanding subsections (a) and (b) of this Section, a discounted health care services plan administrator providing discounts on prescription drugs or devices shall issue to its beneficiaries a card containing the following mandatory data elements:(1) an Internet website for beneficiaries to access     up-to-date lists of preferred providers;(2) a toll-free help desk number for beneficiaries     and providers to access up-to-date lists of preferred providers and additional information about the discounted health care services plan;(3) the name or logo of the provider network;(4) a group number;(5) a cardholder ID number;(6) the cardholder's name or a space to permit the     cardholder to print his or her name, if the cardholder pays a periodic charge for use of the card;(7) a processor control number, if required for     claims adjudication; and(8) a statement that the plan is not insurance.(d) As used in this Section, "discounted health care services plan administrator" means any person, partnership, or corporation, other than an insurer, health service corporation, limited health service organization holding a certificate of authority under the Limited Health Service Organization Act, or health maintenance organization holding a certificate of authority under the Health Maintenance Organization Act that arranges, contracts with, or administers contracts with a provider whereby insureds or beneficiaries are provided an incentive to use health care services provided by health care services providers under a discounted health care services plan in which there are no other incentives, such as copayment, coinsurance, or any other reimbursement differential, for beneficiaries to utilize the provider. "Discounted health care services plan administrator" also includes any person, partnership, or corporation, other than an insurer, health service corporation, limited health service organization holding a certificate of authority under the Limited Health Service Organization Act, or health maintenance organization holding a certificate of authority under the Health Maintenance Organization Act that enters into a contract with another administrator to enroll beneficiaries or insureds in a preferred provider program marketed as an independently identifiable program based on marketing materials or member benefit identification cards. (Source: P.A. 102-902, eff. 1-1-24.) (215 ILCS 138/20)Sec. 20. 
		Applicability and enforcement.(a) This Act applies to health benefit plans that are amended, delivered,
issued, or renewed on and after the effective date of this amendatory Act  of
the 91st General Assembly.(b) The Director may adopt rules necessary to implement the
Department's
responsibilities under this Act.  To enforce the provisions of this Act, the
Director may issue a cease and desist order or require a health benefit plan to
submit a plan of correction for violations of this Act, or both.  Subject to
the provisions of the Illinois Administrative Procedure Act, the Director may,
pursuant to Section 403A of the Illinois Insurance Code, impose upon a health
benefit plan an administrative fine not to exceed $250,000 for failure to
submit a requested plan of correction, failure to comply with its plan or
correction, or repeated violations of this Act.
		(Source: P.A. 91-777, eff. 1-1-01.) (215 ILCS 138/99)Sec. 99. 
		Effective date. 
		This Act takes effect on January 1, 2001.
		(Source: P.A. 91-777, eff. 1-1-01.)
(215 ILCS 139/1)Sec. 1. 
		Short title. 
		This Act may be cited as the Uniform Health Care Service Benefits Information Card Act.
		(Source: P.A. 92-106, eff. 1-1-02.) (215 ILCS 139/5)Sec. 5. 
		Legislative intent. 
		It is the intent of the legislature to lessen
patients' waiting times, decrease administrative burdens for health care
professionals and health care institutions, and improve care to patients by
minimizing confusion, eliminating unnecessary paperwork, and streamlining the
administrative aspects of care paid for by third-party payors.  This Act shall
be broadly applied and interpreted to effectuate this purpose.
		(Source: P.A. 92-106, eff. 1-1-02.) (215 ILCS 139/10)Sec. 10. Definitions. As used in this Act, the following terms have the
meanings given in this Section."Dental plan" means an entity that provides coverage for dental care services, including an entity subject to the Dental Service Plan Act."Department" means the Department of Insurance."Director" means the Director of Insurance."Health benefit plan" means an accident and health insurance policy or
certificate subject to the Illinois Insurance Code, a voluntary health services
plan subject to the Voluntary Health Services Plans Act, a health maintenance
organization subscriber contract subject to the Health Maintenance
Organization Act, a plan provided by a multiple employer welfare arrangement,
or a plan provided by another benefit arrangement.  Without limitation, "health
benefit plan" does not mean any of the following types of insurance:(1) accident;(2) credit;(3) disability income;(4) long-term or nursing home care;(5) specified disease;(6) dental or vision;(7) coverage issued as a supplement to liability     insurance;(8) medical payments under automobile or homeowners;(9) insurance under which benefits are payable with     or without regard to fault as statutorily required to be contained in any liability policy or equivalent self-insurance;(10) hospital income or indemnity; and(11) self-insured health benefit plans under the     federal Employee Retirement Income Security Act of 1974.(Source: P.A. 100-1013, eff. 1-1-19.) (215 ILCS 139/15)(Text of Section before amendment by P.A. 102-902)Sec. 15. Uniform health care benefit information cards required.(a) A health benefit plan or a dental plan that issues a card or other technology and
provides coverage for health care services including prescription drugs or
devices also referred to as health care benefits and an administrator of such a
plan including, but not limited to, third-party administrators for self-insured
plans and state-administered plans shall issue to its insureds a card or other
technology containing uniform health care benefit information.  The health care
benefit information card or other technology shall specifically identify and
display the following mandatory data elements on the card:(1) processor control number, if required for claims     adjudication;(2) group number;(3) card issuer identifier;(4) cardholder ID number; and(5) cardholder name.(b) The uniform health care benefit information card or other technology
shall specifically identify and display the following mandatory data elements
on the back of the card:(1) claims submission names and addresses; and(2) help desk telephone numbers and names.(b-5) A uniform health care benefit information card or other technology for a health benefit plan offering dental coverage or  dental plan shall include a statement indicating whether the health benefit plan offering dental coverage or dental plan is subject to regulation by the Department of Insurance.(c) A new uniform health care benefit information card or other technology
shall be issued by a health benefit plan or dental plan upon enrollment and reissued upon any
change in the insured's coverage that affects mandatory data elements contained
on the card.(d) Notwithstanding subsections (a), (b), and (c) of this Section, a discounted health care services plan administrator shall issue to its beneficiaries a card containing the following mandatory data elements:(1) an Internet website for beneficiaries to access     up-to-date lists of preferred providers;(2) a toll-free help desk number for beneficiaries     and providers to access up-to-date lists of preferred providers and additional information about the discounted health care services plan;(3) the name or logo of the provider network;(4) a group number, if necessary for the processing     of benefits;(5) a cardholder ID number;(6) the cardholder's name or a space to permit the     cardholder to print his or her name, if the cardholder pays a periodic charge for use of the card;(7) a processor control number, if required for     claims adjudication; and(8) a statement that the plan is not insurance.(e) As used in this Section, "discounted health care services plan administrator" means any person, partnership, or corporation, other than an insurer, health service corporation, limited health service organization holding a certificate of authority under the Limited Health Service Organization Act, or health maintenance organization holding a certificate of authority under the Health Maintenance Organization Act that arranges, contracts with, or administers contracts with a provider whereby insureds or beneficiaries are provided an incentive to use health care services provided by health care services providers under a discounted health care services plan in which there are no other incentives, such as copayment, coinsurance, or any other reimbursement differential, for beneficiaries to utilize the provider. "Discounted health care services plan administrator" also includes any person, partnership, or corporation, other than an insurer, health service corporation, limited health service organization holding a certificate of authority under the Limited Health Service Organization Act, or health maintenance organization holding a certificate of authority under the Health Maintenance Organization Act that enters into a contract with another administrator to enroll beneficiaries or insureds in a preferred provider program marketed as an independently identifiable program based on marketing materials or member benefit identification cards. (Source: P.A. 100-1013, eff. 1-1-19.)(Text of Section after amendment by P.A. 102-902)Sec. 15. Uniform health care benefit information cards required.(a) A health benefit plan or a dental plan that issues a physical or electronic card or other technology and
provides coverage for health care services including prescription drugs or
devices also referred to as health care benefits and an administrator of such a
plan including, but not limited to, third-party administrators for self-insured
plans and state-administered plans shall issue to its insureds a card or other
technology containing uniform health care benefit information.  The health care
benefit information card or other technology shall specifically identify and
display the following mandatory data elements on the card:(1) processor control number, if required for claims     adjudication;(2) group number;(3) card issuer identifier;(4) cardholder ID number;(5) except for dental plans, the regulatory entity     that holds authority over the plan; for the purpose of this requirement, the Department of Healthcare and Family Services is the regulatory entity that holds authority over plans that the Department of Healthcare and Family Services has contracted with to provide services under the medical assistance program;(6) except for dental plans, any deductible     applicable to the plan;(7) except for dental plans, any out-of-pocket     maximum limitation applicable to the plan;(8) a toll-free telephone number and Internet website     address through which the cardholder may seek consumer assistance information, such as up-to-date lists of preferred providers, including health care professionals, hospitals, and other facilities, offices, or sites that are contracted to furnish items or services under the plan, and additional information about the plan; and(9) cardholder name.(b) The uniform health care benefit information card or other technology
shall specifically identify and display the following mandatory data elements
on the back of the card:(1) claims submission names and addresses; and(2) help desk telephone numbers and names.(b-5) A uniform health care benefit information card or other technology for a health benefit plan offering dental coverage or  dental plan shall include a statement indicating whether the health benefit plan offering dental coverage or dental plan is subject to regulation by the Department of Insurance.(c) A new uniform health care benefit information card or other technology
shall be issued by a health benefit plan or dental plan upon enrollment and reissued upon any
change in the insured's coverage that affects mandatory data elements contained
on the card.(d) Notwithstanding subsections (a), (b), and (c) of this Section, a discounted health care services plan administrator shall issue to its beneficiaries a card containing the following mandatory data elements:(1) an Internet website for beneficiaries to access     up-to-date lists of preferred providers;(2) a toll-free help desk number for beneficiaries     and providers to access up-to-date lists of preferred providers and additional information about the discounted health care services plan;(3) the name or logo of the provider network;(4) a group number, if necessary for the processing     of benefits;(5) a cardholder ID number;(6) the cardholder's name or a space to permit the     cardholder to print his or her name, if the cardholder pays a periodic charge for use of the card;(7) a processor control number, if required for     claims adjudication; and(8) a statement that the plan is not insurance.(e) As used in this Section, "discounted health care services plan administrator" means any person, partnership, or corporation, other than an insurer, health service corporation, limited health service organization holding a certificate of authority under the Limited Health Service Organization Act, or health maintenance organization holding a certificate of authority under the Health Maintenance Organization Act that arranges, contracts with, or administers contracts with a provider whereby insureds or beneficiaries are provided an incentive to use health care services provided by health care services providers under a discounted health care services plan in which there are no other incentives, such as copayment, coinsurance, or any other reimbursement differential, for beneficiaries to utilize the provider. "Discounted health care services plan administrator" also includes any person, partnership, or corporation, other than an insurer, health service corporation, limited health service organization holding a certificate of authority under the Limited Health Service Organization Act, or health maintenance organization holding a certificate of authority under the Health Maintenance Organization Act that enters into a contract with another administrator to enroll beneficiaries or insureds in a preferred provider program marketed as an independently identifiable program based on marketing materials or member benefit identification cards. (Source: P.A. 102-902, eff. 1-1-24.) (215 ILCS 139/20)Sec. 20. 
		Coordination with Uniform Prescription Drug Information Card. 
		A
health benefit plan may comply with this Act by including the information
required in Section 15 on one card if a card is also required under the Uniform
Prescription Drug Information Card Act.
		(Source: P.A. 92-106, eff. 1-1-02.) (215 ILCS 139/25)Sec. 25. 
		Applicability and enforcement.(a) This Act applies to health care benefit plans that are amended,
delivered, issued, or renewed on and after the effective date of this
amendatory Act of the 92nd General Assembly.(b) The Director may adopt rules necessary to implement the Department's
responsibilities under this Act.  To enforce the provisions of this Act, the
Director may issue a cease and desist order or require a health benefit plan to
submit a plan of correction for violations of this Act, or both.  Subject to
the provisions of the Illinois Administrative Procedure Act, the Director may,
pursuant to Section 403A of the Illinois Insurance Code, impose upon a health
benefit plan an administrative fine not to exceed $250,000 for failure to
submit a requested plan of correction, failure to comply with its plan or
correction, or repeated violations of this Act.
		(Source: P.A. 92-106, eff. 1-1-02.) (215 ILCS 139/99)Sec. 99. 
		Effective date. 
		This Act takes effect on January 1, 2002.
		(Source: P.A. 92-106, eff. 1-1-02.)
(215 ILCS 145/0.1) (from Ch. 73, par. 1152.1)Sec. 0.1. 
		This Act shall be known and may be cited as the "Property Fire Loss Act". 
		(Source: P.A. 81-682.) (215 ILCS 145/1) (from Ch. 73, par. 1153)Sec. 1. 
(a) The Fire Marshal, the director of the Department of Insurance
or personnel from any other authorized fire department or
law enforcement agency charged with the responsibility of investigating
a fire loss or potential fire loss, may request any insurance company that
has investigated or is investigating a fire loss or potential fire loss
of real or personal property to release any factual information in its
possession which is pertinent to this type of loss or potential loss and
has some relationship to the loss or potential loss itself. The company
shall release the information and cooperate with any official authorized to
request such information pursuant to this Section. The information shall
include, but is not limited to:(1) any insurance policy relevant to a fire loss or     potential fire loss under investigation and any application for such a policy;(2) policy premium payment records;(3) history of previous claims made by the insured     for fire loss;(4) material relating to the investigation of the     loss or potential loss, including statements of any person, proof of loss, and any other relevant evidence.(b) If an insurance company has reason to believe that a fire loss
to its insured's real or personal property was caused by other than
accidental means, the company shall notify the Fire Marshal, the director
of the Department of Insurance or any other appropriate law enforcement
agency charged with the responsibility to investigate fire losses and
furnish such persons with all relative material acquired during its
investigation of the fire loss, cooperate with and take such reasonable
action as may be requested by any law enforcement agency, and cooperate
with the Court and administrative agencies of the State, and any official
from the Fire Marshal's office, the office of the director of the
Department of Insurance or any law enforcement agency charged with the
responsibility to investigate the fire. Such insurance company may request
officials and departmental and agency personnel receiving information on
fire losses or potential fire losses to release information relative to any
investigation it has made concerning any such fire loss or potential loss
reported by such company. Subject to the provisions of subsection (a) of this Section and subparagraphs
 (i), (iii), (iv), (v), (vi), and (vii) of paragraph (d) of subsection (1) of
Section 7 of the Freedom of Information Act, such insurance company shall
have the right to receive, within a reasonable time, not to exceed 30 days
after the receipt of such request, the relevant information requested.(c) In the absence of malice, no insurance company, or person who
furnishes information on its behalf, or authorized person, department or
agency as defined in subsection (a) who releases information, is liable for
damages in a civil action or subject to criminal prosecution for any oral
or written statement made or any other action taken that is necessary to
supply information required pursuant to this Section.(d) The officials and departmental and agency personnel receiving
any information furnished pursuant to this Section shall hold the
information in confidence until such time as its release is required
pursuant to this Section or a criminal or civil proceeding.(e) Any official referred to in paragraph (a) of this Section may be
required to testify as to any information in his possession regarding
the fire loss of real or personal property in any civil action in which
any person seeks recovery under a policy against an insurance company
for the fire loss.(f) As used in this Section, "insurance company" includes the
Illinois Fair Plan Underwriting Association, and all district, county and
township mutual insurance companies.(g) (1) No person shall intentionally or knowingly refuse to release
any information properly requested, pursuant to paragraph (a) of this Section.(2) No person shall refuse to make the necessary notification of a
fire loss pursuant to paragraph (b) of this Section.(3) No person shall refuse to supply to the proper authorities
pertinent information required to be furnished pursuant to paragraph (b)
of this Section.(4) No person shall fail to hold in confidence information required
to be held in confidence by paragraph (d) of this Section.(h) Whoever violates paragraph (g) (1), (2), (3) or (4) of this
Section is guilty of a Class C misdemeanor and is subject to a fine not
to exceed $100. It shall not be considered a violation of this Section
if an insurance company in good faith, believes it has done everything
required of it by this Statute.(i) A fire department or law enforcement agency that has investigated
or is investigating a fire loss or potential fire loss of real or personal
property may release to an insurer of such property any factual information,
including statements, in its possession which is pertinent or related to
the type of loss or potential loss.
(Source: P.A. 99-159, eff. 1-1-16.)
(215 ILCS 150/1) (from Ch. 148, par. 201)Sec. 1. 
		
		This Act shall be known and may be cited
as the "Religious and Charitable Risk Pooling Trust Act".
		(Source: P.A. 80-530.) (215 ILCS 150/2) (from Ch. 148, par. 202)Sec. 2. 
		Authorized organizations; purpose. 
		Any number of organizations
which are all exempt from
taxation under paragraph (3) of
subsection (c) of Section 501 of the
Internal Revenue Code of 1954 as amended or as it may be amended
hereafter
are authorized to establish and become beneficiaries of a
trust fund for the purpose of: (1) providing protection for
themselves against the risk of financial loss due to damage, destruction or
loss to property or the imposition of legal liability; or (2) providing
protection for their employees or full-time students, but not dependents,
against the risk of
financial loss due to accident, sickness, or disablement.  Any of such
organizations' affiliated title holding corporations that are
exempt from taxation under paragraph (2) of subsection (c) of Section 501 of
the
Internal Revenue Code of 1954, as amended or as it may be amended hereafter,
are authorized to establish or become beneficiaries of a trust for the purpose
of providing protection for themselves against the risk of financial loss due
to damage, destruction, or loss to property or the imposition of legal
liability.A hospital or long-term care facility owned and operated by a tax
exempt unit of local government and such unit of local government, in
relation to and to the extent of its liabilities arising from the ownership
or operation of such hospital or long-term care facility, may
participate in the establishment of and may become beneficiaries of a trust
fund established under this Act for the purpose of providing protection
against the risk of financial loss due to the imposition of legal liability.
		(Source: P.A. 92-99, eff. 7-20-01.) (215 ILCS 150/3) (from Ch. 148, par. 203)Sec. 3. 
		
		The trust fund shall be established and amended only
by a written instrument which shall be filed with and approved
by the Director of Insurance prior to its becoming effective.
The Director of Insurance shall withhold approval of any
instrument if it does not comply with the provisions of this
Act or any rule or regulation of the Director of Insurance.
		(Source: P.A. 80-530.) (215 ILCS 150/4) (from Ch. 148, par. 204)Sec. 4. 
		
		No corporation or entity shall be a beneficiary of the trust fund
unless it either shall be incorporated under the laws of this State or
shall have first procured a Certificate of Authority from the Secretary
of State, except that a hospital owned and operated by a tax exempt unit
of local government and such unit of local government, in relation to and
to the extent of its liabilities arising from the ownership or operation
of such hospital, may be beneficiaries of the trust fund.
		(Source: P.A. 81-602.) (215 ILCS 150/5) (from Ch. 148, par. 205)Sec. 5. 
		The trust fund is authorized to indemnify: 
		(1) the beneficiaries
thereof against the risk of loss due to damage, destruction or loss to
property or imposition of legal liability; or (2) employees or
full-time students of the beneficiaries against the risk of loss due to
accident, sickness, or disablement.  The trustees may determine and
establish contributions
to the trust fund required to fund the operations and carry out the
purposes of the trust fund and may enter into contracts in order to
carry out the purposes for which the trust fund was established,
provided however, that any such contracts shall not provide for
compensation or payments in excess of that which is reasonable in
relation to the services actually performed thereunder.
		(Source: P.A. 84-989.) (215 ILCS 150/6) (from Ch. 148, par. 206)Sec. 6. 
		Risk pools; risk retention groups.(a) A trust fund may enter into written agreements
with other trust funds established under this Act whereby the
risks assumed by any such trust fund may be pooled and shared
with such other trust funds.(b) A trust fund may enter into written agreements for the purpose of
assuming risks from (i) risk pools or risk retention groups established or
organized pursuant to the laws of any other state exclusively to provide
protections, as described in this Act, to organizations
which are exempt
from taxation under paragraph (3) of
subsection (c) of Section 501 of the
Internal Revenue Code, as amended from time to time, and their affiliated
title holding corporations that are exempt from taxation under paragraph (2)
of subsection (c) of Section 501 of the Internal Revenue Code of 1954, as
amended from time to time,
or (ii) insurance
companies with regard to protections, as described in this Act, exclusively
for organizations which are exempt from taxation, as aforesaid.  As a
condition to such authority, any trust fund so assuming risk from any risk
pool, risk retention group or insurance company, shall,
directly or through an underwriting manager controlled by it, underwrite
risks assumed by it either on a facultative basis or on a primary basis
pursuant to an underwriting management agreement with the entity from which
risk is being assumed.  Such underwriting management agreement shall
provide for underwriting risks assumed on behalf of both the ceding entity
and the assuming trust fund.  For purposes of this subsection (b), the term
"underwrite" shall include, but not be limited to, classification,
selection and pricing of risks.
		(Source: P.A. 92-99, eff. 7-20-01.) (215 ILCS 150/7) (from Ch. 148, par. 207)Sec. 7. 
		
		The trustees of all trust funds established
under this Act shall be natural persons over the age of
18 who are residents of this State.
		(Source: P.A. 80-530.) (215 ILCS 150/8) (from Ch. 148, par. 208)Sec. 8. 
		
		Every such trust fund shall have no fewer
than 3 nor more than 30 trustees.  No less than 2/3 of
the trustees shall be officers, directors, trustees or
full time employees of a beneficiary of the trust fund.
		(Source: P.A. 80-530.) (215 ILCS 150/9) (from Ch. 148, par. 209)Sec. 9. 
		
		(a) No trustee shall be paid a salary or receive
other compensation, except the written trust instrument may
provide for reimbursement for actual
expenses incurred on behalf of the trust fund.  No trustee or
any employer or affiliate of any trustee shall enter into any
contract with the trust fund for, or receive any monies or
other compensation or thing of value whatsoever from, the
trust fund for services performed for or on behalf of such
trust fund, except as provided in this Act.(b) The trust fund shall have authority to indemnify its trustees,
officers, employees and agents to the same extent as provided to not for
profit corporations to indemnify its directors, officers, employees and
agents under Section 108.75 of the General Not For Profit Corporation Act
of 1986, as now or hereafter amended.
		(Source: P.A. 86-847.) (215 ILCS 150/10) (from Ch. 148, par. 210)Sec. 10. 
		
		The trustees shall serve pursuant to the
terms of the written trust instrument except that at any
time no less than a majority of the beneficiaries may
remove a trustee with or without cause.
		(Source: P.A. 80-530.) (215 ILCS 150/11) (from Ch. 148, par. 211)Sec. 11. 
		
		In case any trustee shall be removed, resign,
or cease to serve for any reason, no less than a majority of
the beneficiaries shall appoint a successor.
		(Source: P.A. 80-530.) (215 ILCS 150/12) (from Ch. 148, par. 212)Sec. 12. 
		
		No trustees or successor trustee shall serve
for more than 3 consecutive years unless he is reappointed
by a majority of the beneficiaries.
		(Source: P.A. 80-530.) (215 ILCS 150/13) (from Ch. 148, par. 213)Sec. 13. 
		
		The trustees shall have the powers specified
in the written trust instrument which established the trust fund.
		(Source: P.A. 80-530.) (215 ILCS 150/14) (from Ch. 148, par. 214)Sec. 14. 
		
		Each trust fund shall by June 1 of each year file with the
Director of Insurance a full independently audited financial statement
as of December 31 of the preceding year, accompanied by a report of the
trustees detailing the operations of the trust fund and including a list
of all beneficiaries during the year and a statement that each
beneficiary was not ineligible except as provided for in this Act.  The
financial statement and report shall be in such form and contain such
matters as the Director of Insurance may prescribe.  The truth and
accuracy of the financial statement and report shall be attested to by
each trustee.
		(Source: P.A. 81-460.) (215 ILCS 150/14.1) (from Ch. 148, par. 214.1)Sec. 14.1. 
		Contribution Certificate. 
		A trust fund may issue
contribution certificates, evidencing a contingent obligation to repay
amounts advanced to the trust fund, for the purpose of obtaining funds to
defray the expenses of organization, or providing surplus funds to the
trust fund, or for any purpose required by its business, subject to the
following provisions:(a) Any such contribution certificate shall be evidenced by a written
agreement providing that payments of principal and accrued interest may be
made only out of the trust fund's net fund balance (surplus) in excess of
that stipulated in the agreement.  Any such agreement shall, at a minimum,
provide that repayments of principal or payments of accrued interest shall
be made only to the extent that trust fund assets exceed the sum of (i) all
trust fund liabilities (including but not limited to reserves for losses,
reinsurance payables, unpaid production and general expenses, unpaid taxes,
loans and advances, but excluding principal and interest obligations
evidenced by contribution certificates issued pursuant to this Section)
plus (ii) the then outstanding unpaid principal balance evidenced by
contribution certificates and, if the trust fund is reorganizing
or has reorganized as a mutual insurance company or a reciprocal
(inter-insurance exchange) pursuant to Section 25.1
of this Act, an amount equal to the amount of capital and surplus required
of a newly organized insurer to write like lines of business
pursuant to Section 43 of the Illinois Insurance Code if a mutual
insurance company, or pursuant to Section 66 of the Illinois Insurance Code
if a reciprocal. Any such agreement
may contain repayment terms and conditions which are more restrictive than
those provided herein.(b) In the financial statement of a trust fund required to be filed
pursuant to Section 14 of this Act or which may be published or distributed
by the issuing trust fund, the outstanding and unpaid principal balance on
contribution certificates may be reported as part of the trust fund's net
fund balance (surplus) and that portion of the accrued but unpaid interest
on contribution certificates which is in excess of the amount permitted to
be paid by the trust fund pursuant to subsection (a) need not be
reported as a liability of the trust fund, provided that the financial
statement shall contain an appropriate footnote identifying the essential
terms of repayment of the contribution certificates and the amount thereof
then unpaid together with any accrued but unpaid interest thereon.(c) Any agreement evidencing contribution certificates shall be filed
with and approved by the Director of Insurance prior to its effective date.
 The Director shall approve any such agreement which complies with the
provisions of this Section 14.1 provided that the terms of repayment are
reasonable and the interest rate provided therein is not excessive.  A rate
of not more than 2% above the prevailing prime bank rate, either fixed as
of the effective date of the agreement or floating during the term of the
agreement, shall not be considered excessive.(d) The repayment of principal and the payment of accrued interest on
contribution certificates by a trust fund shall be subject to approval by
the Director of Insurance.
		(Source: P.A. 86-847.) (215 ILCS 150/15) (from Ch. 148, par. 215)Sec. 15. 
		Ineligible beneficiaries. 
		A beneficiary is ineligible (1) if
it is not exempt from
taxation under paragraph (3) of subsection (c) of Section 501 of the
Internal Revenue Code of 1954 as amended, or an affiliate of a corporation
exempt from taxation under paragraph (3) of subsection (c) of Section 501 of
the Internal Revenue Code, as amended, and exempt from taxation under paragraph
(2) of subsection (c) of Section 501 of the Internal Revenue Code of 1954, as
amended, or tax exempt as a unit of local
government or as a hospital owned and operated by a unit of local government; (2) if a corporation, it
is not incorporated as a not-for-profit corporation; or (3) if a
foreign
or alien corporation, it no longer has a Certificate of Authority issued
by the Secretary of State.
		(Source: P.A. 92-99, eff. 7-20-01.) (215 ILCS 150/16) (from Ch. 148, par. 216)Sec. 16. 
		
		The written trust instrument may provide
that a beneficiary who becomes ineligible may continue
to receive benefits for no longer than 90 days beyond
the date the beneficiary or any trustee first discovers
such ineligibility.
		(Source: P.A. 80-530.) (215 ILCS 150/17) (from Ch. 148, par. 217)Sec. 17. 
		
		No beneficiary shall have any cause of action
against any other beneficiary arising solely out of the
insolvency or inability of the trust fund to meet its
obligations.  This Section shall not preclude the collection
of payments to the trust fund.
		(Source: P.A. 80-530.) (215 ILCS 150/18) (from Ch. 148, par. 218)Sec. 18. 
		
		No trust fund established under this Act
shall grant any power to the trustees which is inconsistent
with this Act or any other law of this State.
		(Source: P.A. 80-530.) (215 ILCS 150/19) (from Ch. 148, par. 219)Sec. 19. 
		
		Every trust fund established hereunder
shall include in the written trust instrument the basis
on which payments are made to and from the trust fund.
		(Source: P.A. 80-530.) (215 ILCS 150/20) (from Ch. 148, par. 220)Sec. 20. 
		
		The Director of Insurance may make reasonable
rules and regulations as may be necessary for the
administration of this Act.
		(Source: P.A. 80-530.) (215 ILCS 150/21) (from Ch. 148, par. 221)Sec. 21. 
		
		Trust funds established under this Act and all
persons interested therein or dealing therewith shall be
subject to the provisions of Sections 133, 149, 401, 402 and 403
of the Illinois Insurance Code, as amended.
		(Source: P.A. 83-1496.) (215 ILCS 150/22) (from Ch. 148, par. 222)Sec. 22. 
		
		The Director of Insurance shall have with
respect to trust funds established under this Act the
powers of examination conferred upon him relative to
insurance companies by Sections 132 through 132.7 of the
Illinois Insurance
Code.  The cost of an examination shall be
paid by the trust fund examined.
		(Source: P.A. 88-627, eff. 9-9-94.) (215 ILCS 150/23) (from Ch. 148, par. 223)Sec. 23. 
		
		The Director of Insurance shall charge, collect and give proper
acquittances for the payment of fees and charges as set forth in Section
408 of the Illinois Insurance Code.
		(Source: P.A. 87-757.) (215 ILCS 150/24) (from Ch. 148, par. 224)Sec. 24. 
		
		This Act shall apply regardless of any contrary
provisions of any instrument.
		(Source: P.A. 80-530.) (215 ILCS 150/25) (from Ch. 148, par. 225)Sec. 25. 
		
		Trust funds established under and which
fully comply with this Act shall not be considered
insurance companies or to be in the business of insurance
nor shall they be subject to regulation under the Illinois
Insurance Code, as amended, except as provided for in this Act.
		(Source: P.A. 80-530.) (215 ILCS 150/25.1) (from Ch. 148, par. 225.1)Sec. 25.1. 
		
		(a) Any trust fund organized under this Act may reorganize
itself as a mutual insurance company or a reciprocal in accordance with
the provisions of
this Section, provided that it has both (1) a net fund balance (surplus),
reported on a basis consistent with that prescribed in Section 136 of the
Illinois Insurance Code of (a) not less than that required of a newly
organized mutual insurance company under Section
43 of the Illinois Insurance Code and authorized to write like lines of
business, if the trust fund is reorganizing into a mutual insurance
company, or (b) not less than that required of a newly organized reciprocal
under Section 66 of the Illinois Insurance Code and Authorized to write
like lines of business, if the trust fund is reorganizing into a
reciprocal, and (2) an operating history of not less than 3
consecutive years
after organizational approval of the trust fund by the Director of
Insurance, during which period such trust fund shall have continuously
provided non-assessable benefits or indemnification contracts to its
beneficiaries.  A trust fund reorganized as a mutual insurance company shall,
after reorganization and notwithstanding any contrary provision of the
Illinois Insurance Code, have the powers of a mutual insurance company
organized under Article III of the Illinois Insurance Code together with
continuing powers and authority granted trust funds pursuant to Section 6
of this Act. A trust fund reorganized as a reciprocal shall, after
reorganization and notwithstanding any contrary provision of the Illinois
Insurance Code, have the power of a reciprocal organized under Article IV
of the Illinois Insurance Code together with continuing powers and
authority granted trust funds pursuant to Section 6 of this Act. In
addition, surplus amounts attributable to contribution
certificates meeting the requirements of Section 14.1 of this Act and issued
by a trust fund prior to reorganization as either a mutual insurance
company or a reciprocal or by the successor mutual insurance
company or reciprocal within a period of 5 years following reorganization, may be
reported as surplus on the successor insurance company's or reciprocal's financial
statements in a manner consistent with and subject to the terms of Section
14.1 of this Act.  After expiration of such 5 year period, the provisions
of Section 56 of the Illinois Insurance Code shall be applicable to a
reorganized mutual insurance company or reciprocal, with regard to
the accumulation of a guarantee fund.
Except as provided in this subsection (a), this Act shall not be applicable
to a reorganized mutual insurance company or reciprocal, and the
mutual insurance company or reciprocal shall be subject to all otherwise
applicable provisions of the Illinois Insurance Code.(b) The Trustees of any trust fund seeking to reorganize as a mutual
insurance company shall adopt articles of incorporation and by-laws as
shall be necessary to make the same conform to articles of incorporation
and by-laws of a mutual insurance company, as provided under Article III of
the Illinois Insurance Code.  Duplicate originals of such articles and
by-laws shall be delivered to the Director of Insurance, together with the
financial statements, as required under subsection (d).  The Director
shall approve the articles and by-laws after a finding that they are
consistent with the requirements applicable to companies organized under
Article III of the Illinois Insurance Code, relating to domestic mutual
companies, except as otherwise provided herein.  Upon approval by the
Director and the recordation of a certified copy of the articles of
incorporation in the office of the recorder in the county where the
principal office of the company is located, such company shall be subject
to and entitled to the benefits of Article III of the Illinois Insurance Code.(c) (i) The trustees of any trust fund seeking to reorganize as a
reciprocal shall, by resolution, approve a plan of reorganization setting
forth (1) a proposed declaration of organization, as provided under Article
IV of the Illinois Insurance Code; (2) a form of power of attorney
designating a person, as defined in Section 2 of the Illinois Insurance
Code, to act as attorney in fact on behalf of the beneficiaries of the
trust fund in exchanging contracts of insurance after reorganization of the
trust fund as a reciprocal, which form shall be consistent with the
provisions of Article IV; (3) the terms and conditions of the proposed
reorganization and the mode of carrying the same into effect; and (4) the
manner and basis of assuming the assets and liabilities of the trust fund,
including the benefit schedule theretofore issued by the trust fund,
whether or not then in force. Duplicate originals of the plan of
reorganization, as adopted by the trustees, shall be submitted to the
Director of Insurance, together with such other documents as are necessary
to satisfy the requirements of Article IV and the financial
statements, as required under subsection (d) below. The Director shall
approve the plan and the other documents upon finding each consistent with
the requirements applicable to reciprocals organized under Article IV
relating to domestic reciprocals, except as otherwise provided herein.(ii) Within 60 days after approval by the Director, the plan of
reorganization and other documents, as approved by the Director, shall then
be submitted by the trustees for approval by the beneficiaries of the trust
fund at a regularly scheduled or special meeting of beneficiaries. Written
or printed notice shall be given not less than 20 days before each such
meeting, either personally or by mail, to each beneficiary of the trust
fund. If mailed, such notice is deemed to be delivered when deposited in
the United States mail, with postage prepaid, addressed to the beneficiary
at his address as it appears on the records of the trust fund. Such notice
shall state the place, day, hour and purpose of the meeting. A copy of the
plan of reorganization shall be enclosed with such notice. Approval by
beneficiaries shall require (1) the affirmative vote of 2/3 of all
beneficiaries of the trust fund covered under benefit schedules in force
at the date of the notice, voting in person or by proxy at the meeting, and
(2) the execution by the beneficiaries voting in favor of the plan of the
power of attorney proposed as a part of the plan. Each beneficiary entitled
to vote shall have one vote regardless of the number of benefit schedules
that may have been issued or contributions paid therefor.(iii) Within 10 days after approval by the beneficiaries, the trust
fund, acting by and through its designated officers, shall certify to the
Director such approval, appending to such certification a true and correct
copy of the plan, as approved, the declaration of organization executed by
the attorney-in-fact, and the form of the power of attorney, as executed,
together with a list of the beneficiaries so approving and executing the
power of attorney. The Director shall thereafter issue to the
attorney-in-fact a certificate of authority, as provided in Section 73 of
the Illinois Insurance Code, but only after the termination by the trust
fund of all benefit schedules issued to beneficiaries who have declined to
execute the power of attorney, which termination may be accomplished by the
expiry, nonrenewal or cancellation of benefit schedules. Upon such
termination, the trust fund, acting by and through its designated officers,
shall so certify to the Director, and the date of such certification shall
constitute the effective date of reorganization
of the trust fund, being the date on which the reciprocal
shall become the successor in interest to the trust fund and thenceforth be
responsible and liable for all of the liabilities and obligations of the
trust fund in accordance with the approved plan of reorganization, and the
benefit schedules issued by the trust fund which then remain outstanding
shall be deemed to have been issued by the reciprocal. All of the property,
real, personal and mixed, and all other choses in action and all and every
other interest of the trust fund upon the effective date of reorganization
shall be deemed transferred to and vested in the reciprocal without further
act or deed. The reciprocal shall thereupon be subject to and entitled to
the benefits of Article IV of the Illinois Insurance Code and the trust
fund shall thereafter cease to exist.(d) The Trustees of any such trust fund shall deliver to the Director
of Insurance a statement of financial condition as of a date not more than
6 months prior to said date of delivery, prepared in accordance with
Section 136 of the Illinois Insurance Code and certified by an independent
public accountant as correctly stating the financial condition of such
trust fund in accordance with the standards of said Section 136.  The
Director shall review such statement of financial condition and may, in his
discretion, conduct an examination of such trust fund to determine its
financial condition.  Any such examination shall be commenced within 60
days after the date of delivery to the Director of such statement of
financial condition.(e) In the case of a trust fund reorganizing into a
mutual insurance company, provided that (i) such statement of financial
condition shall reflect, and the Director is satisfied from the
examination, if conducted, that a net fund balance (surplus) in an amount
at least equal at the time of reorganization to that required of a newly
organized company subject to Section 43 of the Illinois Insurance Code and
writing like lines of business and (ii) the articles of incorporation and
by-laws, as required by subsection (b), shall comply with the requirements
of Article III of the Illinois Insurance Code, the Director of Insurance
shall approve the reorganization and articles and by-laws within 60 days
after receipt thereof, or within 60 days after the completion of any
examination conducted by the Director, whichever date shall last occur, and
shall issue a certificate of authority, as provided under Section 51 of the
Illinois Insurance Code within 10 days after the receipt of evidence of
recordation of the articles and by-laws.(f) In the case of a trust fund reorganizing into a reciprocal,
provided that (i) the statement of financial condition shall reflect, and
the Director is satisfied from the examination, if conducted, that a net
fund balance (surplus) in an amount at least equal at the time of
reorganization to that required of a newly organized reciprocal subject to
Section 66 of the Illinois Insurance Code and writing like lines of
business and (ii) the declaration of organization and other documents, as
required by subsection (c), shall comply with the requirements of Article
IV of the Illinois Insurance Code, the Director of Insurance shall approve
the reorganization and declaration within 60 days after receipt thereof, or
within 60 days after the completion of any examination conducted by the
Director, whichever date shall last occur, and shall issue a certificate of
authority, as provided under Section 73 of the Illinois Insurance Code
within 10 days after the deposit with the Director by the reorganizing
reciprocal of cash or securities as required by Section 74 of the Illinois
Insurance Code.
		(Source: P.A. 90-381, eff. 8-14-97.) (215 ILCS 150/26) (from Ch. 148, par. 226)Sec. 26. 
		
		The provisions of the Administrative Review Law,
as amended, shall apply to and govern all proceedings for the
judicial review of final administrative decisions under this Act. 
		(Source: P.A. 82-783.) (215 ILCS 150/27) (from Ch. 148, par. 227)Sec. 27. 
		
		If any provision of this Act or the application
thereof to any person or circumstance is held invalid, the
invalidity shall not affect other provisions or applications
of this Act which can be given effect without the invalid
provision or application, and to this end the provisions of
this Act are severable.
		(Source: P.A. 80-530.) (215 ILCS 150/28) (from Ch. 148, par. 228)Sec. 28. 
		This Act shall become effective upon its becoming a law. 
		(Source: P.A. 80-530.)
(215 ILCS 152/1)Sec. 1. 
		Short title. 
		This Act may be cited as the Service Contract Act.
		(Source: P.A. 90-711, eff. 8-7-98.) (215 ILCS 152/5)Sec. 5. Definitions."Department" means the Department of Insurance."Director" means the Director of Insurance."Road hazard" means  a hazard that is encountered while driving a motor vehicle, including, but not limited to, potholes, rocks, wood debris, metal parts, glass, plastic, curbs, and composite scraps."Service contract" means a contract or agreement whereby a service
contract provider
undertakes for a specified period of time, for separate and identifiable
consideration, to
perform the repair, replacement, or maintenance, or indemnification for such
services, of
any automobile, system, or consumer product in connection with the operational
or
structural failure due to a defect in materials or workmanship, or normal wear
and tear,
with or without additional provision for incidental payment or indemnity under
limited
circumstances, for related expenses, including, but not limited to, towing,
rental, and
emergency road service.  Service contracts may provide for:(1) the repair, replacement, or maintenance of such     property for damage resulting from power surges and accidental damage from handling;(2) the repair or replacement of tires or wheels, or     both, on a motor vehicle damaged as the result of coming into contact with road hazards;(3) the removal of dents, dings, or creases on a     motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels, sanding, bonding, or painting;(4) the repair of chips or cracks in or the     replacement of motor vehicle windshields as a result of damage caused by road hazards;(5) the replacement of a motor vehicle key or key-fob     in the event that the key or key-fob becomes inoperable or is lost or stolen;(6) the payment of specified incidental costs in the     event that a vehicle protection product fails to prevent loss or damage as specified; the reimbursement of incidental costs must be tied to the purchase of a physical product that is formulated or designed to make the specified loss or damage less likely to occur; or(7) other services that may be approved by the     Director, if not inconsistent with other provisions of this Act.   Service contracts shall not include:(i) contracts of limited duration that provide for     scheduled maintenance only;(ii) fuel additives, oil additives, or other chemical     products applied to the engine, transmission, or fuel system of a motor vehicle;(iii) coverage for the repair or replacement, or     both, of damage to the interior surfaces of a vehicle, or for repair or replacement, or both, of damage to the exterior paint or finish of a vehicle; however, such coverage may be offered in connection with the sale of a vehicle protection product; and(iv) a vehicle product protection warranty included,     for no separate and identifiable consideration, with the purchase of a vehicle protection product."Service contract holder" means the person who purchases a service
contract or a
permitted transferee."Service contract provider" means a person who is contractually
obligated to the
service contract holder under the terms of the service contract.  A service
contract
provider does not include an insurer."Service contract reimbursement insurance policy" means a policy of
insurance that
is issued to the service contract provider to provide reimbursement to the
service
contract provider or to pay on behalf of the service contract provider all
covered
contractual obligations incurred by the service contract provider under the
terms and
conditions of the insured service contracts issued or sold by the service
contract
provider."System" means the heating, cooling, plumbing, electrical, ventilation,
or any other similar
system of a home."Vehicle protection product" has the same meaning as that term is defined in subsection (a) of Section 155.39 of the Illinois Insurance Code."Vehicle protection product warranty" has the same meaning as that term is defined in subsection (a) of Section 155.39 of the Illinois Insurance Code. (Source: P.A. 100-272, eff. 1-1-18.) (215 ILCS 152/10)Sec. 10. Exemptions. Service contract providers and related service
contract sellers and administrators complying with this Act are not required
to comply with and are not subject to any provision of the Illinois Insurance
Code.  A service contract provider who is the manufacturer or a wholly-owned
subsidiary of the manufacturer of the product or the builder, seller, or
lessor of the product that is the
subject of the service contract is required to comply only with Sections 30,
35, 45, and 50 of this Act; except that, a service contract provider who sells
a motor vehicle, excluding a motorcycle as defined in Section 1-147 of the
Illinois Vehicle Code, or who leases, but is not the manufacturer of, the motor
vehicle, excluding a motorcycle as defined in Section 1-147 of the Illinois
Vehicle Code, that is the subject of the service contract must comply with this
Act in its entirety.  Contracts for the repair and monitoring of private alarm
or private security systems regulated under the Private Detective, Private
Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004 are not
required to comply
with this Act and are not subject to any provision of the Illinois Insurance
Code.
					(Source: P.A. 95-613, eff. 9-11-07.) (215 ILCS 152/15)Sec. 15. 
		Financial requirements. 
		No service contract shall be issued, sold, or offered for sale in this State
unless one of the
following conditions are satisfied:(1) (A) The service contract provider is insured under a     service contract reimbursement insurance policy issued by an insurer authorized to do business in this State and providing that the insurer will pay to, or on behalf of, the service contract provider all sums that the service contract provider is legally obligated to pay according to the service contract provider's contractual obligations under the service contracts issued or sold by the service contract provider;(B) a true and correct copy of the service contract     reimbursement insurance policy has been filed with the Director by the service contract provider;(C) the service contract states that the  obligations     of the service contract provider to the service contract holder are covered under a service contract reimbursement insurance policy; and(D) the service contract states the name and address     of the issuer of the service contract reimbursement insurance policy and states that in the event covered service is not provided by the service contract provider within 60 days of proof of loss by the service contract holder, the service contract holder may file directly with the service contract reimbursement insurance company.(2) (A) The service contract provider maintains a funded     reserve account for its obligations under its service contracts issued and outstanding in this State.  The reserves shall not be less than 40% of the gross consideration received, less claims paid, for all service contracts sold and then in force;(B) the service contract provider places in trust     with the Director a financial security deposit, having a value of not less than 5% of the gross consideration received, less claims paid, for all service contracts sold and then in force, but not less than $25,000, consisting of securities of the type eligible for deposit by authorized insurers in this State and;(C) the service contract provider provides the     Director with an audited financial statement annually of the service contract revenues and claims.(3) (A) The service contract provider, or its parent     company in accordance with subdivision (3)(B), maintains a net worth or stockholders' equity of $100,000,000; and(B) the service contract provider provides the     Director with a copy of the service contract provider's or the service contract provider's parent company's most recent Form 10-K or Form 20-F filed with the Securities and Exchange Commission within the last calendar year or, if the service contract provider does not file with the Securities and Exchange Commission, a copy of the service contract provider's or the service contract provider's parent company's audited financial statements that shows a net worth of the service contract provider or its parent company of at least $100,000,000.  If the service contract provider's parent company's Form 10-K, Form 20-F, or audited financial statements are filed to meet the service provider's financial stability requirement, then the parent company shall agree to guarantee the obligations of the provider relating to service contracts issued by the service contract provider in this State.		(Source: P.A. 90-711, eff. 8-7-98.) (215 ILCS 152/20)Sec. 20. 
		Reimbursement policy; required provisions.(a) No service contract reimbursement insurance policy shall be issued,
sold, or offered for
sale in this State unless the policy states that the issuer of the policy will
reimburse or pay on
behalf of the service contract provider all covered sums which the service
contract
provider is legally obligated to pay or will provide the service that the
service contract
provider is legally obligated to perform according to the service contract
provider's
contractual obligations under the provisions of the insured service contracts
issued or
sold by the service contract provider.(b) If covered service is not provided by the service contract
provider within 60
days of proof of loss by the service contract holder, the service contract
holder may
file directly with the insurance company writing the service contract
reimbursement
insurance policy.(c) A service contract reimbursement insurance company that insures a
service
contract shall be deemed to have received payment of the premium if the service
contract
holder paid for the service contract coverage.(d) If a service contract is canceled by a service contract holder, the
service contract
reimbursement insurance company shall be required to return the unearned
service
contract reimbursement insurance premium for that contract to the insured
service
contract provider. If the service contract provider fails to refund the amounts
required
under Section 35 of this Act, the service contract reimbursement insurance
company shall
be responsible for the refund to the service contract holder.
		(Source: P.A. 90-711, eff. 8-7-98.) (215 ILCS 152/25)Sec. 25. 
		
		Registration requirements for service
contract providers.(a) No service contract shall be issued or sold in this State until the
following information has
been submitted to the Department:(1) the name of the service contract provider;(2) a list identifying the service contract     provider's executive officer or officers directly responsible for the service contract provider's service contract business;(3) the name and address of the service contract     provider's agent for service of process in this State, if other than the service contract provider;(4) a true and accurate copy of all service contracts     to be sold in this State; and(5) a statement indicating under which provision of     Section 15 the service contract provider qualifies to do business in this State as a service contract provider.(b) The service contract provider shall pay an initial registration fee of
$1,000 and a renewal
fee of $150 each year thereafter.  All fees and penalties collected
under this
Act shall be paid
to the Director and deposited in the Insurance Financial Regulation Fund.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 152/30)Sec. 30. 
		Required service contract disclosures. 
		All service contracts issued or sold in this State shall contain the following
disclosures
written in clear and understandable language.(1) the name and address of the service contract provider;(2) the total consideration for the service contract paid by the service
contract holder;(3) the conditions and procedures for obtaining service under the service
contract, including
the name, address, and local or toll-free telephone number of any person from
whom
approval is required before covered repairs may be commenced;(4) the existence and amount of a deductible, if any;(5) merchandise and services to be provided and any limitations, exceptions,
or exclusions;(6) the terms, conditions, and restrictions governing transferability of the
service contract, if
any;(7) the provisions governing cancellation and refunds in accordance with
Section 35 of this Act; and(8) whether or not the service contract covers failure resulting from normal
wear and tear.
		(Source: P.A. 90-711, eff. 8-7-98.) (215 ILCS 152/35)Sec. 35. Cancellation and refunds.(a) No service contract may be issued, sold, or offered for sale in this State
unless the service
contract clearly states that the service contract holder is allowed to cancel
the service
contract.  If the service contract holder elects cancellation, the service
contract provider may
retain a cancellation fee not to exceed the lesser of 10% of the service
contract price or
$50. The service contract cancellation provision must provide that the service
contract may be cancelled:(1) within 30 days after its purchase if no service     has been provided and that a full refund of the service contract consideration, less any cancellation fee stated in the service contract will be paid to the service contract holder; or(2) at any other time and a pro rata refund of the     service contract consideration for the unexpired term of the service contract, based on the number of elapsed months, miles, hours, or such other reasonably applicable measure which is clearly disclosed in the service contract, less the value of any service received, and any cancellation fee stated in the service contract will be paid to the service contract holder.(b) In the event of the cancellation of a service contract that includes the coverage described in paragraph (6) of the definition of "service contract" in Section 5 of this Act, the service contract provider is not required to, but may, refund the purchase price of the vehicle protection product. The coverage described in paragraph (6) of the definition of "service contract" in Section 5 of this Act may not be offered as or within a service contract unless the service contract clearly states whether the service contract holder is entitled to a refund of the purchase price of the vehicle protection product and, if applicable, the terms of such refund. (Source: P.A. 100-272, eff. 1-1-18.) (215 ILCS 152/40)Sec. 40. 
		Incidental benefits. 
		A service contract may provide full or partial reimbursement for other expenses
incurred by the
service contract holder as a direct and proximate result of an operational or
structural failure if
covered by the service contract.  A reimbursement for these expenses shall not
exceed the
purchase price of the property serviced per incident.
		(Source: P.A. 90-711, eff. 8-7-98.) (215 ILCS 152/45)Sec. 45. Record keeping requirements.(a) The service contract provider shall keep accurate accounts, books, and
records
concerning transactions regulated under this Act.(b) The service contract provider's accounts, books, and records shall
include the
following:(1) copies of each type of service contract sold;(2) the name and address of each service contract     holder, to the extent  that the name and address has been furnished by the service contract holder;(3) a list of the locations where service contracts     are marketed, sold, or offered for sale; and(4) written claims files which shall contain at least     the date and description of claims related to the service contracts.(c) Except as provided in subsection (e) of this Section, the service
contract provider
shall retain all
records required to be maintained by Section 45 for at least 3 years after
the
specified period of coverage has expired.(d) The records required under this Act may be, but are not required to
be,
maintained on a computer disk or other record keeping technology.  If the
records are maintained in other than hard copy, the records shall be capable of
duplication to legible hard copy at the request of the Director.(e) A service contract provider discontinuing business in this State shall
maintain its records
until it furnishes the Director satisfactory proof that it has discharged all
obligations to service
contract holders in this State.
(Source: P.A. 99-78, eff. 7-20-15.) (215 ILCS 152/50)Sec. 50. 
		Examinations and enforcement provisions.(a) The Director may conduct examinations of service contract providers,
administrators, or
other persons to enforce this Act and protect service contract holders in this
State.  Upon
request of the Director, a service contract provider shall make available to
the Director all accounts,
books, and
records concerning service contracts sold by the service contract provider
that are necessary to enable the Director to reasonably determine
compliance or noncompliance with this Act.(b) The Director may take action that is necessary or appropriate to
enforce the provisions
of this Act and the Director's rules and orders and to protect service
contract
holders in this State.
If a service contract provider engages in a pattern or
practice of conduct
that violates this Act and that the Director reasonably believes threatens to
render
the service contract provider insolvent or cause irreparable loss or injury to
the
property or business of any person or company located in this State, the
Director may (i)
issue an order directed to that service contract provider to cease and desist
from
engaging in further acts, practices, or transactions that are causing the
conduct; (ii)
issue an order prohibiting that service contract provider from selling or
offering
for sale service contracts in violation of this Act; (iii) issue an order
imposing a civil
penalty on that service contract provider; or (iv) issue any combination of the
foregoing,
as
applicable. Prior to the effective date of any order issued pursuant to this
subsection,
the Director must provide written notice of the order to the service contract
provider
and the opportunity for a hearing to be held within 10 business days after
receipt of the notice, except prior notice and hearing shall not be required if
the Director reasonably believes that the service contract provider has become,
or is about to become, insolvent.A person aggrieved by an order issued under this Section may request a
hearing
before the Director. The hearing request shall be filed with the Director
within 20
days after the date the Director's order is effective, and the Director must
hold
such a
hearing within 15 days after receipt of the hearing request.(c) At the hearing, the burden shall be on the Director to show why the
order
issued
pursuant to this Section is justified.  The provisions of Section 10-25
of the Illinois Administrative Procedure Act shall apply to
a hearing
request under this Section.(d) The Director may bring an action in any court of competent
jurisdiction for
an
injunction or other appropriate relief to enjoin threatened or existing
violations of this
Act or of the Director's orders or rules.  An action filed under this
Section also
may seek restitution on behalf of persons aggrieved by a violation of this Act
or orders
or rules of the Director.(e) A person who is found to have violated this Act or orders or
rules of the Director
may be ordered to pay to the Director a civil penalty in an amount, determined
by the
Director, of not more than $500 per violation and not more
than
$10,000 in the aggregate for all violations of a similar
nature.
For purposes of this Section, violations shall be of a similar nature if the
violation
consists of the same or similar course of conduct, action, or practice,
irrespective of
the number of times the conduct, action, or practice that is determined to be
a
violation of this Act occurred.
		(Source: P.A. 90-711, eff. 8-7-98.) (215 ILCS 152/55)Sec. 55. 
		Rulemaking power. 
		The Director may adopt such administrative rules as are necessary to
implement the
provisions of this Act.
		(Source: P.A. 90-711, eff. 8-7-98.) (215 ILCS 152/60)Sec. 60. 
		Applicability. 
		This Act applies to all service contracts sold
or offered for
sale 90 or more days after the effective date of this Act.
		(Source: P.A. 90-711, eff. 8-7-98.) (215 ILCS 152/99)Sec. 99. 
		Effective date. 
		This Act takes effect upon becoming law.
		(Source: P.A. 90-711, eff. 8-7-98.)
(215 ILCS 153/1)Sec. 1. 
		Short title. 
		This Act may be cited as the Structured Settlement
Protection Act.
		(Source: P.A. 93-502, eff. 1-1-04.) (215 ILCS 153/5)Sec. 5. Definitions. For purposes of this Act:"Annuity issuer" means an insurer that has issued a contract to fund
periodic payments under a structured settlement."Dependents" include a payee's spouse and minor children and all other
persons for whom the payee is legally obligated to provide support, including
maintenance."Discounted present value" means the present value of future payments
determined by discounting such payments to the present using the most recently
published Applicable Federal Rate for determining the present value of an
annuity, as issued by the United States Internal Revenue Service."Gross advance amount" means the sum payable to the payee or for the
payee's account as consideration for a transfer of structured settlement
payment
rights before any reductions for transfer expenses or other deductions to be
made from such consideration."Independent professional advice" means advice of an attorney,
certified public accountant, actuary, or other licensed professional adviser."Interested parties" means, with respect to any structured settlement, the
payee,
any beneficiary irrevocably designated under the annuity contract to receive
payments following the payee's death, the annuity issuer, the structured
settlement obligor, and any other party to the structured settlement that has continuing rights or
obligations
to receive or make payments under such structured settlement."Net advance amount" means the gross advance amount less the
aggregate amount of the actual and estimated transfer expenses required to be
disclosed under item (5) of Section 10 of this Act."Payee" means an individual who is receiving tax free payments under a
structured settlement and proposes to make a transfer of payment rights
thereunder."Periodic payments" includes both recurring payments and scheduled
future lump sum payments."Qualified assignment agreement" means an agreement providing for a
qualified assignment within the meaning of Section 130 of the United States
Internal Revenue Code, United States Code Title 26, as amended from time to
time."Settled claim" means the original tort claim resolved by a structured settlement."Structured settlement" means an arrangement for periodic payment of
damages for personal injuries or sickness established by settlement or judgment
in resolution of a tort claim."Structured settlement agreement" means the agreement, judgment,
stipulation, or release embodying the terms of a structured settlement."Structured settlement obligor" means, with respect to any structured
settlement, the party that has the continuing obligation to make periodic
payments to the payee under a structured settlement agreement or a qualified
assignment agreement."Structured settlement payment rights" means rights to receive periodic
payments under a structured settlement, whether from the structured settlement
obligor or the annuity issuer, when:(1) the payee is domiciled in, or the domicile or     principal place of business of the structured settlement obligor or the annuity issuer is located in, this State;(2) the structured settlement agreement was approved     by a court in this State; or(3) the structured settlement agreement is expressly     governed by the laws of this State."Terms of the structured settlement" include, with respect to any
structured settlement, the terms of the structured settlement agreement, the
annuity contract, any qualified assignment agreement, and any order or other
approval of any court or other
government authority that authorized or approved such structured settlement."Transfer" means any sale, assignment, pledge, hypothecation, or other
alienation or encumbrance of structured settlement payment rights made by a
payee for consideration; provided that the term "transfer" does not include the
creation or perfection of a security interest in structured settlement payment
rights under a blanket security agreement entered into with an insured
depository institution in the absence of any action to redirect the structured
settlement payments to such insured depository institution or an agent or
successor in interest thereof or otherwise to enforce such blanket security
interest against the structured settlement payment rights."Transfer agreement" means the agreement providing for a transfer of
structured settlement payment rights."Transfer expenses" means all expenses of a transfer that are required
under the transfer agreement to be paid by the payee or deducted from the
gross advance amount, including, without limitation, court filing fees,
attorneys
fees, escrow fees, lien recordation fees, judgment and lien search fees,
finders'
fees, commissions, and other payments to a broker or other intermediary;
"transfer expenses" do not include preexisting obligations of the payee payable
for the payee's account from the proceeds of a transfer."Transferee" means a party acquiring or proposing to acquire structured
settlement payment rights through a transfer.
(Source: P.A. 99-286, eff. 8-5-15.) (215 ILCS 153/10)Sec. 10. Required disclosures to payee. Not less than 10 days prior to the
date on which a payee signs a transfer agreement, the transferee shall provide
to the
payee a separate disclosure statement, in bold type no smaller than 14 points,
setting
forth all of the following:(1) the amounts and due dates of the structured     settlement payments to be transferred;(2) the aggregate amount of the payments;(3) the discounted present value of the payments to     be transferred, which shall be identified as the "calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities", and the amount of the Applicable Federal Rate used in calculating the discounted present value;(4) the gross advance amount;(5) an itemized listing of all applicable transfer     expenses, other than attorneys' fees and related disbursements payable in connection with the transferee's application for approval of the transfer, and the transferee's best estimate of the amount of any such fees and disbursements;(6) the net advance amount;(7) the amount of any penalties or liquidated damages     payable by the payee in the event of any breach of the transfer agreement by the payee;(8) a statement that the payee has the right to     cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee; and(9)  the effective annual interest rate, which must     be disclosed in the following statement:  "Based on the net amount that you will receive from us and the amounts and timing of the structured settlement payments that you are turning over to us, you will, in effect, be paying interest to us at a rate of .... percent per year.". (Source: P.A. 99-286, eff. 8-5-15.) (215 ILCS 153/15)Sec. 15. Approval of transfers of structured settlement payment rights. No
direct or indirect transfer of structured settlement payment rights shall be
effective and
no structured settlement obligor or annuity issuer shall be required to make
any payment
directly or indirectly to any transferee of structured settlement payment
rights unless the
transfer has been approved in advance in a final court order based on express findings by such court that:(1) the transfer is in the best interest of the     payee, taking into account the welfare and support of the payee's dependents;(2) the payee has been advised in writing by the     transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived in writing the opportunity to seek and receive such advice; and(3) the transfer does not contravene any applicable     statute or the order of any court or other government authority.(Source: P.A. 99-286, eff. 8-5-15.) (215 ILCS 153/20)Sec. 20. Effects of transfer of structured settlement payment rights. Following a transfer of structured settlement payment rights approved under this Act:(1) the structured settlement obligor and the annuity     issuer shall, as to all parties except the transferee or an assignee designated by the transferee, be discharged and released from any and all liability for the transferred payments, and the discharge and release shall not be affected by the failure of any party to the transfer to comply with this Act or with the order of the court approving the transfer;(2) the transferee shall be liable to the structured     settlement obligor and the annuity issuer:(A) if the transfer contravenes the terms of the         structured settlement, for any taxes incurred by the parties as a consequence of the transfer; and(B) for any other liabilities or costs, including         reasonable costs and attorneys' fees, arising from compliance by the structured settlement obligor or annuity issuer with the order of the court or from failure of any party to the transfer to comply with this Act;(3) neither the annuity issuer nor the structured     settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between 2 or more transferees or assignees; and(4) any further transfer of structured settlement     payment rights by the payee may be made only after compliance with all of the requirements of this Act.(Source: P.A. 99-286, eff. 8-5-15.) (215 ILCS 153/25)Sec. 25. Procedure for approval of transfers.(a) No annuity issuer or structured settlement obligor may make payments on
a structured settlement to anyone other than the payee or beneficiary of the
payee without prior approval of the circuit court.  No payee or beneficiary of a payee of a structured settlement may
assign in any manner the structured settlement payment rights without the prior
approval of the circuit court.(b) An application under this Act for approval of a transfer of structured
settlement payment rights shall be
made by the transferee and shall be brought in the circuit court of the
county in which the payee is domiciled, except that, if the payee is not domiciled in this State, the application may be filed in the court  in this State that approved the structured settlement agreement or in the circuit court of the county in this State  in which the structured settlement obligor or annuity issuer has its principal place of business.(c) A hearing shall be held on an application for approval of a transfer of structured settlement payment rights. The payee shall appear in person at the hearing unless the court determines that good cause exists to excuse the payee from appearing. Not less than 20 days prior to the scheduled hearing on an application, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application, including the information and documentation required under subsection (d) of this Section.(d) In addition to complying with the other requirements of this Act, the application shall include:(1) the payee's name, age, and county of domicile and     the number and ages of the payee's dependents;(2) a copy of the transfer agreement and disclosure     statement;(3) a description of the reasons why the payee seeks     to complete the proposed transfer;(4) a summary of:(i) any prior transfers by the payee to the         transferee or an affiliate, or through the transferee or an affiliate to an assignee, within the 4 years preceding the date of the transfer agreement and any proposed transfers by the payee to the transferee or an affiliate, or through the transferee or an affiliate to an assignee, applications for approval of which were denied within the 2 years preceding the date of the transfer agreement;(ii) any prior transfers by the payee to any         person or entity other than the transferee or an affiliate or an assignee of a transferee or affiliate  within the 3 years  preceding the date of the transfer agreement and any prior proposed transfers by the payee to any person or entity other than the transferee or an affiliate or an assignee of a transferee or affiliate, applications for approval which were denied within the one year preceding the date of the current transfer agreement, to the extent that the transfers or proposed transfers have been disclosed to the transferee by the payee in writing or otherwise are actually known by the transferee;(5)  notification that any interested party is     entitled to support, oppose, or otherwise respond to the transferee's application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing; and(6)  notification of the time and place of the     hearing and notification of the manner in which and the time by which written responses to the application must be filed, which shall be not less than 5 days prior to the hearing, in order to be considered by the court. (Source: P.A. 99-286, eff. 8-5-15.) (215 ILCS 153/30)Sec. 30. General provisions; construction.(a) The provisions of this Act may not be waived by any payee.(b) Any transfer agreement entered into on or after the effective
date of this Act by a payee who is domiciled in this State shall provide that
disputes
under the transfer agreement, including any claim that the payee has breached
the agreement, shall be determined in and under the laws of this State. No such
transfer agreement shall authorize the transferee or any other party to confess
judgment or consent to entry of judgment against the payee.(c) No transfer of structured settlement payment rights shall extend
to any payments that are life-contingent unless, prior to the date on which the
payee signs the transfer agreement, the transferee has established and has
agreed to maintain procedures reasonably satisfactory to the annuity issuer and
the structured settlement obligor for (1) periodically confirming the payee's
survival, and (2) giving the annuity issuer and the structured settlement
obligor
prompt written notice in the event of the payee's death.(d) No payee who proposes to make a transfer of structured
settlement payment rights shall incur any penalty, forfeit any application fee
or
other payment, or otherwise incur any liability to the proposed transferee or
any
assignee based on any failure of the transfer to satisfy the conditions of this
Act.(e) Nothing contained in this Act shall be construed to authorize
any transfer of structured settlement payment rights in contravention of any
law. A court shall not be precluded from hearing an application for approval of a transfer of payment rights under a structured settlement where the terms of the structured settlement prohibit sale, assignment, or encumbrance of such payment rights, nor shall the interested parties be precluded from waiving or asserting their rights under those terms. The court hearing an application for approval of a transfer of payment rights under such a settlement shall have authority to rule on the merits of the application and any objections to such application.(f) Compliance with the requirements set forth in Section 10 of this
Act and fulfillment of the conditions set forth in Section 15 of this Act shall
be
solely the responsibility of the transferee in any transfer of structured
settlement
payment rights, and neither the structured settlement obligor nor the annuity
issuer shall bear any responsibility for, or any liability arising from,
non-compliance with those requirements or failure to fulfill those conditions.(g) Following issuance of a court order approving a transfer of structured settlement payment rights under this Act, the structured settlement obligor and annuity issuer may rely on the court order in redirecting future structured settlement payments to the transferee or an assignee in accordance with the order.(h) The changes made to this Section by this amendatory Act of the 99th General Assembly are declarative of existing law. (Source: P.A. 99-286, eff. 8-5-15.) (215 ILCS 153/35)Sec. 35. Applicability. This Act shall apply to any transfer of
structured
settlement
payment rights under a transfer agreement entered into on or after the 30th day
after the
effective date of this Act, including any transfer in which the structured settlement obligor and annuity issuer have affirmatively waived, or have not objected to the transfer based upon, the terms of the settlement prohibiting sale, assignment, or encumbrance of the payee's structured settlement payment rights.  The changes made to this Section by this amendatory Act of the 99th General Assembly are declarative of existing law.
(Source: P.A. 99-286, eff. 8-5-15.)
(215 ILCS 155/1) (from Ch. 73, par. 1401)Sec. 1. 
		This Act may be cited as the Title Insurance Act. 
		(Source: P.A. 86-239.) (215 ILCS 155/2) (from Ch. 73, par. 1402)Sec. 2. Any corporation which has been or shall be
incorporated or qualified to do business under the
Business Corporation Act of 1983, as now or hereafter amended, or any
predecessor law for the purpose, in whole or part, of doing the business of title insurance, may transact such business during the time
for which it may be incorporated or qualified to do business
in this State, subject to the requirements of this Act.
					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/3) (from Ch. 73, par. 1403)Sec. 3. As used in this Act, the words and phrases following shall
have the following meanings unless the context requires otherwise:(1) "Title insurance business" or "business of title insurance" means:(A) Issuing as insurer or offering to issue as     insurer title insurance; and(B) Transacting or proposing to transact one or more     of the following activities when conducted or performed in contemplation of or in conjunction with the issuance of title insurance;(i) soliciting or negotiating the issuance of         title insurance;(ii) guaranteeing, warranting, or otherwise         insuring the correctness of title searches for all instruments affecting titles to real property, any interest in real property, cooperative units and proprietary leases, and for all liens or charges affecting the same;(iii) handling of escrows, settlements, or         closings;(iv) executing title insurance policies;(v) effecting contracts of reinsurance;(vi) abstracting, searching, or examining titles;         or(vii) issuing insured closing letters or closing         protection letters;(C) Guaranteeing, warranting, or insuring searches or     examinations of title to real property or any interest in real property, with the exception of preparing an attorney's opinion of title; or(D) Guaranteeing or warranting the status of title as     to ownership of or liens on real property and personal property by any person other than the principals to the transaction; or(E) Doing or proposing to do any business     substantially equivalent to any of the activities listed in this subsection, provided that the preparation of an attorney's opinion of title pursuant to paragraph (1)(C) is not intended to be within the definition of "title insurance business" or "business of title insurance".(1.5) "Title insurance" means insuring, guaranteeing, warranting, or
indemnifying owners of real or personal property or the holders of liens or
encumbrances thereon or others interested therein against loss or damage
suffered by reason of liens, encumbrances upon, defects in, or the
unmarketability of the title to the property; the invalidity or
unenforceability of any liens or encumbrances thereon; or doing any business in
substance equivalent to any of the foregoing.
"Warranting" for purpose of this provision shall not
include any warranty contained in instruments of encumbrance or conveyance.
Title insurance is a single line form of insurance, also known as monoline. An attorney's opinion of title pursuant to paragraph (1)(C) is not intended to
be within the definition of "title insurance".(2) "Title insurance company" means any domestic company organized under
the laws of this State for the purpose of conducting the business of
title insurance and any title insurance
company organized under the laws of another State, the District of Columbia
or foreign government and authorized to transact the business of
title insurance in this State.(3) "Title insurance agent" means a person, firm, partnership,
association, corporation or other legal entity registered by a title
insurance company and authorized by such company to determine insurability
of title in accordance with generally acceptable underwriting rules and
standards in reliance on either the public records or a search package
prepared from a title plant, or both, and authorized by such title insurance company in addition to do any
of the following:  act as an escrow agent pursuant to subsections (f), (g), and (h) of Section 16 of this Act, solicit title insurance, collect
premiums, or issue title insurance commitments,
policies, and endorsements of the title insurance company; provided, however, the term "title insurance agent"
shall not include officers and salaried employees of any title insurance
company.(4) "Producer of title business" is any person, firm, partnership,
association, corporation or other legal entity engaged in this State in the
trade, business, occupation or profession of (i) buying or selling
interests in real property, (ii) making loans secured by interests in real
property, or (iii) acting as broker, agent, attorney, or representative of
natural persons or other legal entities that buy or sell interests in real
property or that lend money with such interests as security.(5) "Associate" is any firm, association, partnership, corporation or
other legal entity organized for profit in which a producer of title
business is a director, officer, or partner thereof, or owner of a
financial interest, as defined herein, in such entity; any legal entity
that controls, is controlled by, or is under common control with a producer
of title business; and any natural person or legal entity with whom a
producer of title business has any agreement, arrangement, or understanding
or pursues any course of conduct the purpose of which is to evade the
provisions of this Act.(6) "Financial interest" is any ownership interest, legal or beneficial,
except ownership of publicly traded stock.(7) "Refer" means to place or cause to be placed, or to exercise any
power or influence over the placing of title business, whether or not the
consent or approval of any other person is sought or obtained with respect
to the referral.(8) "Escrow Agent" means any title insurance company or any title
insurance agent, including independent contractors of either, acting on behalf of a title insurance company, which
receives deposits, in trust, of funds or documents, or both, for the purpose
of effecting the sale, transfer, encumbrance or lease of real property to
be held by such escrow agent until title to the real property that is the
subject of the escrow is in a prescribed condition. An escrow agent conducting closings shall be subject to the provisions of paragraphs (1) through (4) of subsection (e) of Section 16 of this Act.(9) "Independent Escrowee" means any firm, person, partnership,
association, corporation or other
legal entity, other than a title insurance company or a title insurance
agent, which receives deposits, in trust, of funds or documents, or both, for
the purpose of effecting the sale, transfer, encumbrance or lease of real
property to be held by such escrowee until title to the real property that
is the subject of the escrow is in a prescribed condition.  Federal and
State chartered banks, savings and loan associations, credit unions,
mortgage bankers, banks or trust companies authorized to do business under
the Illinois Corporate Fiduciary Act, licensees under the Consumer
Installment Loan Act, real estate brokers licensed pursuant to the Real
Estate License Act of 2000, as such Acts are now or hereafter amended, and
licensed attorneys when engaged in the attorney-client relationship are
exempt from the escrow provisions of this Act. "Independent Escrowee" does not include employees or independent contractors of a title insurance company or title insurance agent authorized by a title insurance company to perform closing, escrow, or settlement services.(10) "Single risk" means the insured amount of any title insurance
policy, except that where 2 or more title insurance policies are issued
simultaneously covering different estates in the same real property, "single
risk" means the sum of the insured amounts of all such title insurance
policies.  Any title insurance policy insuring a mortgage interest, a claim
payment under which reduces the insured amount of a fee or leasehold title
insurance policy, shall be excluded in computing the amount of a single
risk to the extent that the insured amount of the mortgage title insurance
policy does not exceed the insured amount of the fee or leasehold title
insurance policy.(11) "Department" means the Department of Financial and Professional Regulation.(12) "Secretary" means the Secretary

of Financial and Professional Regulation.(13) "Insured closing letter" or "closing protection letter" means
an indemnification or undertaking to a party to a real property transaction, from
a principal such as a title insurance company, setting forth
in writing the extent of the principal's responsibility for intentional
misconduct or errors in closing the real property transaction on the part of a
settlement agent, such as a title insurance agent or other settlement service
provider, or an indemnification or  undertaking given by a title insurance company or an independent escrowee setting forth in writing the extent of the title insurance company's or independent escrowee's responsibility to a party to a real property transaction which indemnifies the party against the intentional misconduct or errors in closing the real property transaction on the part of the title insurance company or independent escrowee and includes protection afforded pursuant to subsections (f), (g), and (h) of Section 16, Section 16.1, subsection (h) of Section 17, and Section 17.1 of this Act even if such protection is afforded by contract.(14) "Residential real property" means a building or buildings consisting of one to 4 residential units or a residential condominium unit where at least one of the residential units or condominium units is occupied or intended to be occupied as a residence by the purchaser or borrower, or in the event that the purchaser or borrower is the trustee of a trust, by a beneficiary of that trust.(15) "Financial institution" means any bank subject to the Illinois Banking Act, any savings and loan association subject to the Illinois Savings and Loan Act of 1985, any savings bank subject to the Savings Bank Act, any credit union subject to the Illinois Credit Union Act, and any federally chartered commercial bank, savings and loan association, savings bank, or credit union organized and operated in this State pursuant to the laws of the United States. (Source: P.A. 100-485, eff. 9-8-17.) (215 ILCS 155/3.1)Sec. 3.1. 
		Public policy. 
		It is declared to be the public policy of this
State, pursuant to subsection (h) of Section 6 of Article VII of the Illinois
Constitution of 1970, that any power or function set forth in this Act to be
exercised by the State is an exclusive State power or function.  Such power or
function shall not be exercised concurrently, either directly or indirectly, by
any unit of local government, including home rule units, except as otherwise
provided in this Act.  The fees, charges, and taxes
provided for by this Act shall, as provided in Section 15.1 of this Act, be in
lieu of all license fees or privilege or occupation taxes or other fees levied
or assessed by any home rule unit.
		(Source: P.A. 90-317, eff. 8-1-97.) (215 ILCS 155/4) (from Ch. 73, par. 1404)Sec. 4. Deposits.(a) Before doing business in the State of Illinois, a
						
title insurance company must file with and have approved by the Secretary cash or bonds of the
United States, this State or any body politic of this State in amounts as
specified in subsection (b).  The deposit is not to be otherwise pledged or subject to distribution among creditors or stockholders until all claims of escrow depositors, claims of policyholders, and claims under reinsurance contracts have been paid in full or discharged, reinsured, or otherwise assumed by a title insurance company authorized to do business under this Act. The cash, bonds, and securities so deposited may be
exchanged for other such securities.  No such cash, bond, or security shall be
sold or transferred by the Secretary except on order of the circuit court or
as provided in subsection (d).  As long as the company depositing such
securities remains solvent, the company shall be permitted to receive from
the Secretary the interest on such deposit.(b) The deposit required under subsection (a) must have a then current value of $1,000,000. All deposits shall be held for the benefit of any insured under a policy the title insurance company issued or named party to a written escrow it accepted. The deposit is not to be otherwise pledged or subject to distribution among creditors or stockholders.(c) The Secretary may provide for custody of the deposits by any trust
company or bank located in this State and qualified to do business under
the Corporate Fiduciary Act, as now or hereafter amended.  The
compensation, if any, of such custodian shall be paid by the depositing
company.  When the required deposits
						
						have been made by a title insurance
company, the Secretary shall certify that the company has complied with the
provisions of this Section and is authorized to transact the business of
insuring and guaranteeing titles to real estate.(d) If, at any time, a title insurance company causes all of its
unexpired policies, escrow deposits, and reinsurance obligations in Illinois to be paid in full, cancelled, discharged, reinsured, or otherwise assumed by another title insurance company
						
authorized to do
business under this Act, the Secretary shall, upon application of the
						
company,
verified by the oath of its president or secretary and on being satisfied
by an examination of its books and its officers under oath that all of its
policies are paid in full, cancelled, discharged, reinsured, or otherwise assumed, authorize the release of any bond or deposit posted under this Section.(e)  The Secretary may revoke the certificate of authority of a company that fails to maintain the deposit required by this Section. The Secretary shall give notice of that revocation to the company as provided by this Act, and during the time of the revocation, the company may not conduct a title insurance business. A company may complete contractual obligations, such as issuing a policy where the obligations have already been assumed. However, it may not solicit new business, complete new searches or examinations, or close transactions. A revocation shall not be set aside until a good and sufficient deposit has been filed with the Secretary and the company is otherwise in compliance with this Act.
					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/4.1)Sec. 4.1. Minimum capital and surplus. Before doing business in the State of Illinois, a title insurance company must satisfy the Secretary that it has a minimum capital and surplus of $2,000,000. The Secretary may provide the forms and standards for this purpose by rule.
(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/5) (from Ch. 73, par. 1405)Sec. 5. Certificate of authority required.
					It is unlawful for any company
to engage or to continue in the business of title insurance without first procuring from the Secretary a certificate of
authority stating that the
						
company has complied with the requirements of
Section 4 of this Act.  An insurer that transacts any class of insurance other than title insurance anywhere in the United States is not eligible for the issuance of a certificate of authority to transact title insurance in this State nor for a renewal of a certificate of authority.
					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/6) (from Ch. 73, par. 1406)Sec. 6. Reinsurance.(a) A title insurance company may obtain reinsurance for all or
any part of its liability under one or more of its title insurance policies
or reinsurance agreements and may also reinsure title insurance policies
issued by other title insurance companies on risks located in this State
or elsewhere.(a-5) Notwithstanding any other provision of this Act, a title insurance company may obtain reinsurance for all or any part of its liability under one or more of its title insurance policies from an assuming insurer with a financial strength rating of A- or better from A.M. Best Company, Inc., or with an alternative rating the Department may approve that the Department determines is an equivalent rating by another recognized rating organization.(b) A title insurance company licensed to do business in this State shall retain at least $100,000 of primary liability for policies it issues, unless a lesser sum is authorized by the Secretary. A lesser sum may be retained at the request of an insured for a particular policy. This subsection (b) applies only to policies issued on or after the effective date of this amendatory Act of the 94th General Assembly.

(Source: P.A. 100-570, eff. 6-1-18.) (215 ILCS 155/7) (from Ch. 73, par. 1407)Sec. 7. Investments.(a) Subject to the specific provisions of this Section, the
Secretary may, after a notice and hearing, order a domestic title insurance
company to limit or withdraw from certain investments, or discontinue
certain investment practices, to the extent the Secretary finds that such
investments or investment practices endanger the solvency of the company.
The Secretary may consider the general investment provisions of the Illinois
Insurance Code, as now or hereafter amended, in exercising the authority
granted under this subsection (a).(b) A domestic title insurance company may invest in title plants.  For
determination of the financial condition of such title insurance company, a
title plant shall be treated as an asset valued at actual cost except that
the combined value of all title plants owned shall be limited for asset
valuation purposes to 50% of the surplus as regards policyholders as shown
on the most recent annual statement of the title insurance company.(c) Any investment of a domestic title insurance company acquired before
the effective date of this Act and which, under this Section, would be
considered ineligible as an investment on that date shall be disposed of
within 2 years of the effective date of this Act.  The Secretary, upon
application and proof that forced sale of any such investment would be
contrary to the best interests of the title insurer or its policyholders,
may extend the period for disposal of the investment for a reasonable time.
					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/8) (from Ch. 73, par. 1408)Sec. 8. Retained liability.(a) The net retained liability of a title insurance company
for a single risk on property located in this State, whether assumed
directly or as reinsurance, may not exceed the total
surplus to policyholders as shown in the most recent annual statement of
the title insurance company on file with the Department.(b) The Secretary may waive the limitation of this Section for a
particular risk upon application of the title insurance company and
for good cause shown.
(Source: P.A. 100-570, eff. 6-1-18.) (215 ILCS 155/9) (from Ch. 73, par. 1409)Sec. 9. Impairment of capital; discontinuance of issuance of new policies; penalty.(a) Whenever the capital of any title insurance company
authorized to do business under this Act is determined by the circuit
court, upon the application of the Secretary, to be impaired
to the extent of 25% of its capital, or to have otherwise become unsafe, the Secretary shall cancel the authority of the company
to do business.(b) The Secretary shall give notice as provided by this Act to the company to
discontinue doing business until its capital has been made
good. The title insurance company may continue to issue policies and perform other actions that are required to complete contractual obligations undertaken prior to the notice.(c) Any officer or management employee who continues to take orders for title insurance or close transactions on behalf of
a company after the notice to discontinue doing business, and before its
						
capital has been made good, may, for each offense, be fined as provided by this Act.
					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/10) (from Ch. 73, par. 1410)Sec. 10. Reserves.
					All title insurance companies authorized to do business
under this Act shall establish and maintain reserves against unpaid losses
and loss expenses.  Upon receiving notice from or on behalf of the insured
of a title defect, lien or adverse claim against the title of the
insured that may result in a loss or cause expense to be incurred in the
proper disposition of the claim, the title insurance company shall
determine the amount to be added to the reserve, which amount shall reflect
a careful estimate of the loss or loss expense likely to result by reason
of the claim.  Reserves required under this Section may be revised from
time to time and shall be redetermined at least once each year. A title insurance company must maintain its reserves for losses independent of any other form of insurance and therefore may not issue other lines of insurance.
					
					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/11) (from Ch. 73, par. 1411)Sec. 11. Statutory premium reserve.(a) A domestic title insurance company shall establish and
maintain a statutory premium reserve computed in accordance with this
Section. The reserve shall be reported as a liability of the title
insurance company in its financial statements. The statutory premium
reserve shall be maintained by the title insurance company for the
protection of holders of title insurance policies.  Except as provided in
this Section, assets equal in value to the statutory premium reserve are
not subject to distribution among creditors or stockholders of the title
insurance company until all claims of policyholders or claims  under
reinsurance contracts have been paid in full and discharged,
						
lawfully reinsured, or otherwise assumed by another title insurance company authorized to do business under this Act.(b) A foreign or alien title insurance company authorized to do business
under this Act shall maintain at least the same reserves on title insurance
policies issued on properties located in this State as are required of
domestic title insurance companies.(c) The statutory premium reserve shall consist of:(1) the amount of the statutory premium reserve on     January 1, 1990; and(2) a sum equal to 12 1/2 cents for each $1,000 of     net retained liability under each title insurance policy on a single risk written on properties located in this State after January 1, 1990.(d) Amounts placed in the statutory premium reserve in any year in
accordance with this Section shall be deducted in determining the net
profit of the title insurance company for that year.(e) A title insurance company shall release from the statutory premium
reserve a sum equal to 10% of the amount added to the reserve during
a calendar year on July 1 of each of the 5 years following the year in
which the sum was added, and shall release from the statutory premium
reserve a sum equal to 3 1/3% of the amount added to the reserve during
that year on each succeeding July 1 until the entire amount for that year
has been released.  The amount of the statutory premium reserve or similar
premium reserve maintained before January 1, 1990,
shall be released in accordance with the law in effect before January 1,
1990.(f) This reserve is independent of the deposit requirements of Section 4 of this Act.
					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/12) (from Ch. 73, par. 1412)Sec. 12. Examinations; compliance.(a) The Secretary or his authorized representative shall have
the power and authority, and it shall be his duty, to cause to be visited
and examined annually any title insurance company doing business under this
Act, and to verify and compel compliance with the provisions of law governing it.(b) The Secretary or his authorized agent shall have power and authority to
compel compliance with the provisions of this Act and shall, only upon the
showing of good cause, require any title insurance company to take all legal means to obtain the
appropriate records of its registered agents and make them available for
examination at a time and place designated by the Secretary.  Expenses incurred in
the course of such examinations will be the responsibility of the title insurance
company. In the event that a present or former registered agent or its successor refuses or is unable to cooperate with a title insurance company in furnishing the records requested by the Secretary or his or her authorized agent, then the Secretary or his or her authorized agent shall have the power and authority to obtain those records directly from the registered agent.
					
					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/13) (from Ch. 73, par. 1413)Sec. 13. Annual statement.(a)

Each title insurance company shall file with the Department
during the month of March of each year, a statement under oath, of the
condition of such company on the thirty-first day of December next
preceding disclosing the assets, liabilities, earnings and expenses of the
company. The report shall be in such form and shall contain such additional
statements and information as to the affairs, business, and conditions of
the company as the Secretary may from time to time prescribe or require.(b) By  June  1  of each year, a title insurance company must file with the Department a copy of its most recent audited financial statements.(c) If determined to be necessary and appropriate by the Department, a title insurance company shall provide a summary describing its professional reinsurance placed outside of the title insurance industry. (Source: P.A. 100-570, eff. 6-1-18.) (215 ILCS 155/14) (from Ch. 73, par. 1414)Sec. 14. Fees.(a)
Every title insurance company and
every independent
escrowee subject to this Act shall pay the following fees:(1) for filing the original application for a     certificate of authority and receiving the deposit required under this Act, $500;(2) for the certificate of authority, $10;(3) for every copy of a paper filed in the Department     under this Act, $1 per folio;(4) for affixing the seal of the Department and     certifying a copy, $2; and(5) for filing the annual statement, $50.(b)
Each title insurance company shall remit, for all of its title
insurance agents subject to this Act for filing an annual registration of
its agents, an amount equal to $3 for each policy issued by
all
of its
agents
in the immediately preceding calendar year.
(Source: P.A. 99-104, eff. 1-1-16.) (215 ILCS 155/14.1)Sec. 14.1. Financial Institution Fund.
All moneys received by the Department of Financial and Professional Regulation

under this Act shall be deposited in the Financial Institution Fund created
under Section 6z-26 of the State Finance Act.
(Source: P.A. 98-463, eff. 8-16-13.) (215 ILCS 155/15) (from Ch. 73, par. 1415)Sec. 15. Retaliatory provisions; fees.
					Whenever the existing or future laws of any State or country
shall require of title insurance companies incorporated or organized under
the laws of this State, as a condition precedent to their transacting in
such other State or country the business of title insurance, compliance with laws, rules, regulations or prohibitions
more onerous or burdensome than those imposed under this Act by this State
on foreign title insurance companies transacting such business in this
State, or shall require any deposit of securities or other obligations in
such State or country for the protection of policyholders, or otherwise,
in excess of the amounts required of foreign title insurance companies
by this Act, or shall require of Illinois title insurance companies doing such
business in such State or country, the payment of penalties, fees, charges
or taxes greater than the aggregate for like purposes imposed by the laws
of this State upon such foreign title insurance companies, then such laws,
rules, regulations, and prohibitions of said other State or country shall
apply to title insurance companies incorporated or organized under the laws
of such State or country doing business in this State, and all such
companies, doing business in this State, shall be required to make deposits
with the Department, and to pay to the Department penalties, fees, charges,
and taxes at least in amounts equal to those required in the aggregate for
like purpose of Illinois companies doing such business in such State or
country.
					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/15.1)Sec. 15.1. 
		No taxes to be imposed by political subdivisions. 
		The fees,
charges, and taxes provided for by this Act shall be in lieu of all license
fees or privilege or occupation taxes or other fees levied or assessed by any
municipality, county, or other political subdivision of this State.  No
municipality, county, or other political subdivision of this State shall impose
any license fee or privilege or occupation tax or fee upon any domestic,
foreign, or alien company, or upon any of its agents, for the
privilege of doing insurance business therein.  This Section shall not be
construed to prohibit the levy and collection of State, county, or municipal
taxes upon the real and personal property of the company, including the tax
imposed by subsections (c) and (d) of Section 201 of the Illinois Income Tax
Act.  This Section 15.1 is declared to be
a denial and limitation of the powers of home rule units pursuant to paragraph
(g) of Section 6 of Article VII of the Illinois Constitution of 1970.
		(Source: P.A. 90-317, eff. 8-1-97.) (215 ILCS 155/16) (from Ch. 73, par. 1416)Sec. 16. Title insurance agents.(a) No person, firm, partnership, association, corporation or other
legal entity shall act as or hold itself out to be a title insurance agent
unless duly registered by a title insurance company with the Secretary.(b) Each application for registration shall be made on a form specified
by the Secretary and prepared by each title insurance company
which the agent represents.  The title insurance company shall retain the
copy of the application and forward a copy to the Secretary.(c) Every applicant for registration, except a firm, partnership,
association, limited liability company, or corporation, must be 18 years or more of age. Included in every application for registration of a title insurance agent, including a firm, partnership,
association, limited liability company, or corporation, shall be an affidavit of the applicant title insurance agent, signed and notarized in front
of a notary public, affirming that the applicant and every owner, officer, director, principal, member, or
manager of the applicant has never been convicted or pled guilty to any felony or misdemeanor involving a crime of
theft or dishonesty or otherwise accurately disclosing any such felony or misdemeanor involving a crime of
theft or dishonesty. No person who has had a conviction or pled guilty to any felony or
misdemeanor involving theft or dishonesty may be registered by a title insurance company without a written notification to the Secretary disclosing the conviction or plea, and no such
person may serve as an owner, officer, director, principal, or manager of any registered title insurance
agent without the written permission of the Secretary.(d) Registration shall be made annually by a filing with the Secretary;
supplemental registrations for new title insurance agents to be added
between annual filings shall be made from time to time in the manner
provided by the Secretary; registrations shall remain in effect unless
revoked or suspended by the Secretary or
voluntarily withdrawn by the
registrant or the title insurance company.(e) Funds deposited in connection with any escrows, settlements, or closings shall be deposited in a separate fiduciary trust account or accounts in a bank or other financial institution insured by an agency of the federal government unless the instructions provide otherwise. The funds shall be the property of the person or persons entitled thereto under the provisions of the escrow, settlement, or closing and shall be segregated by escrow, settlement, or closing in the records of the escrow agent. The funds shall not be subject to any debts of the escrowee and shall be used only in accordance with the terms of the individual escrow, settlement, or closing under which the funds were accepted.Interest received on funds deposited with the escrow agent in connection with any escrow, settlement, or closing shall be paid to the depositing party unless the instructions provide otherwise.The escrow agent shall maintain separate records of all receipts and disbursements of escrow, settlement, or closing funds.The escrow agent shall comply with any rules adopted by the Secretary pertaining to escrow, settlement, or closing transactions.(f) A title insurance agent shall not act as an escrow agent in a nonresidential real property transaction where the amount of settlement funds on deposit with the escrow agent is less than $2,000,000 or in a residential real property transaction unless the title insurance agent, title insurance company, or another authorized title insurance agent has committed for the issuance of title insurance in that transaction and the title insurance agent is authorized to act as an escrow agent on behalf of the title insurance company for which the commitment for title insurance has been issued.  The authorization under the preceding sentence shall be given either (1) by an agency contract with the title insurance company which contract, in compliance with the requirements set forth in subsection (g) of this Section, authorizes the title insurance agent to act as an escrow agent on behalf of the title insurance company or (2) by a closing protection letter in compliance with the requirements set forth in Section 16.1 of this Act, issued by the title insurance company to the seller, buyer, borrower, and lender.  A closing protection letter shall not be issued by a title insurance agent.  The provisions of this subsection (f) shall not apply to the authority of a title insurance agent to act as an escrow agent under subsection (g) of Section 17 of this Act.(g) If an agency contract between the title insurance company and the title insurance agent is the source of the authority under subsection (f) of this Section for a title insurance agent to act as escrow agent for a real property transaction, then the agency contract shall provide for no less protection from the title insurance company to all parties to the real property transaction than the title insurance company would have provided to those parties had the title insurance company issued a closing protection letter in conformity with Section 16.1 of this Act.(h) A title insurance company shall be liable for the acts or omissions of its title insurance agent as an escrow agent if the title insurance company has authorized the title insurance agent under subsections (f) and (g) of this Section 16 and only to the extent of the liability undertaken by the title insurance company in the agency agreement or closing protection letter.  The liability, if any, of the title insurance agent to the title insurance company for acts and omissions of the title insurance agent as an escrow agent shall not be limited or otherwise modified because the title insurance company has provided closing protection to a party or parties to a real property transaction escrow, settlement, or closing.  The escrow agent shall not charge a fee for protection provided by a title insurance company to parties to real property transactions under subsections (f) and (g) of this Section 16 and Section 16.1, but shall collect from the parties the fee charged by the title insurance company and shall promptly remit the fee to the title insurance company. The title insurance company may charge the parties a reasonable fee for protection provided pursuant to subsections (f) and (g) of this Section 16 and Section 16.1 and shall not pay any portion of the fee to the escrow agent.  The payment of any portion of the fee to the escrow agent by the title insurance company, shall be deemed a prohibited inducement or compensation in violation of Section 24 of this Act.(i) The Secretary shall adopt and amend such rules as may be required for the proper administration and enforcement of this Section 16 consistent with the federal Real Estate Settlement Procedures Act and Section 24 of this Act. (Source: P.A. 98-398, eff. 1-1-14; 98-832, eff. 1-1-15; 99-104, eff. 1-1-16.) (215 ILCS 155/16.1)Sec. 16.1. Closing or settlement protection.(a) Notwithstanding the provisions of item (iii) of paragraph (B) of subsection (1) and subsections (3) and (8) of Section 3 and Section 16 of this Act, a title insurance company or title insurance agent is not authorized to act as an escrow agent in a nonresidential real property transaction where the amount of settlement funds on deposit with the escrow agent is less than $2,000,000 or in a residential real property transaction unless as part of the same transaction a commitment, binder, or title insurance policy and closing protection letters protecting the buyer's or borrower's, lender's, and seller's interests have been issued by the title insurance company on whose behalf the commitment, binder, or title insurance policy has been issued. Closing protection letters are not required when the authorization for the title insurance agent to act as an escrow agent is given by an agency contract with the title insurance company pursuant to subsections (f), (g), and (h) of Section 16 of this Act, but shall be issued by the title insurance company upon the request of a party to a nonresidential real property transaction where the amount of settlement funds on deposit with the escrow agent is less than $2,000,000 or in a residential real property transaction.(b) Unless otherwise agreed to between a title insurance company and a protected person or entity, a closing protection letter under this Section  shall indemnify all parties to a real property transaction against actual loss, not to exceed the amount of the settlement funds deposited with the escrow agent. The closing protection letter shall in any event indemnify all parties to a real property transaction when such losses arise out of:(1) failure of the escrow agent to comply with     written closing instructions to the extent that they relate to (A) the status of the title to an interest in land or the validity, enforceability, and priority of the lien of a mortgage on an interest in land, including the obtaining of documents and the disbursement of funds necessary to establish the status of title or lien or (B) the obtaining of any other document specifically required by a party to the real property transaction, but only to the extent that the failure to obtain such other document affects the status of the title to an interest in land or the validity, enforceability, and priority of the lien of a mortgage on an interest in land; or(2) fraud, dishonesty, or negligence of the escrow     agent in handling funds or documents in connection with closings to the extent that the fraud, dishonesty, or negligence relates to the status of the title to the interest in land or to the validity, enforceability, and priority of the lien of a mortgage on an interest in land or, in the case of a seller, to the extent that the fraud, dishonesty, or negligence relates to funds paid to or on behalf of, or which should have been paid to or on behalf of, the seller.(c)  The indemnification under a closing protection letter may include limitations on the liability of the title insurance company for any of the following:(1)  Failure of the escrow agent to comply with     closing instructions that require title insurance protection inconsistent with that set forth in the title insurance commitment for the real property transaction.  Instructions that require the removal of specific exceptions to title or compliance with the requirements contained in the title insurance commitment shall not be deemed to be inconsistent.(2)  Loss or impairment of funds in the course of     collection or while on deposit with a bank due to bank failure, insolvency, or suspension, except such as shall result from failure of the escrow agent closer to comply with written closing instructions to deposit the funds in a bank that is designated by name by a party to the real property transaction.(3)  Mechanics' and materialmen's liens in connection     with sale, purchase, lease, or construction loan transactions, except to the extent that protection against such liens is afforded by a title insurance commitment or policy issued by the escrow agent.(4)  Failure of the escrow agent to comply with     written closing instructions to the extent that such instructions require a determination by the escrow agent of the validity, enforceability, or effectiveness of any document described in subitem (B) of item (1) of subsection (b) of this Section.(5)   Fraud, dishonesty, or negligence of an     employee, agent, attorney, or broker, who is not also the escrow agent or an independent contract closer of the escrow agent, of the indemnified party to the real property transaction.(6)  The settlement or release of any claim by the     indemnified party to the real property transaction without the written consent of the title insurance company.(7)  Any matters created, suffered, assumed, or     agreed to by, or known to, the indemnified party to the real property transaction without the written consent of the title insurance company.The closing protection letter may also include reasonable additional provisions concerning the dollar amount of protection, provided such limit is not less than the amount deposited with the escrow agent, arbitration, subrogation, claim notices, and other conditions and limitations that do not materially impair the protection required by this Section 16.1.(d)  This Section shall not apply to the authority of a title insurance company and title insurance agent to act as an escrow agent under subsection (g) of Section 17 of this Act.(e) The Secretary shall adopt and amend such rules as may be required for the proper administration and enforcement of this Section 16.1 consistent with the federal Real Estate Settlement Procedures Act and Section 24 of this Act. 
(Source: P.A. 96-1454, eff. 1-1-11.) (215 ILCS 155/17) (from Ch. 73, par. 1417)Sec. 17. Independent escrowees.(a)
Every independent escrowee shall be subject to the same
certification and deposit requirements to which title insurance companies
are subject under Section 4 of this Act.(b) No person, firm, corporation or other legal entity shall hold itself
out to be an independent escrowee unless it has been issued a certificate
of authority by the Secretary.(c) Every applicant for a certificate of authority, except a firm,
partnership, association or corporation, must be 18 years or more of age.(d) Every certificate of authority shall remain in effect one year
unless revoked or suspended by the Secretary

or voluntarily surrendered
by the holder.(e) An independent escrowee may engage in the escrow, settlement, or closing
business, or any combination of such business, and operate as an escrow,
settlement, or closing agent, provided that:(1) Funds deposited in connection with any escrow,     settlement, or closing shall be deposited in a separate fiduciary trust account or accounts in a bank or other financial institution insured by an agency of the federal government unless the instructions provide otherwise.  Such funds shall be the property of the person or persons entitled thereto under the provisions of the escrow, settlement, or closing and shall be segregated by escrow, settlement or closing in the records of the independent escrowee.  Such funds shall not be subject to any debts of the escrowee and shall be used only in accordance with the terms of the individual escrow, settlement or closing under which the funds were accepted.(2) Interest received on funds deposited with the     independent escrowee in connection with any escrow, settlement or closing shall be paid to the depositing party unless the instructions provide otherwise.(3) The independent escrowee shall maintain separate     records of all receipt and disbursement of escrow, settlement or closing funds.(4) The independent escrowee shall comply with any     rules or regulations promulgated by the Secretary  pertaining to escrow, settlement or closing transactions.(f) The Secretary or his authorized representative shall have the power
and authority to visit and examine at any time any independent escrowee
certified under this Act and to verify and compel compliance with the provisions of
this Act.(g) A title insurance company or title
insurance agent, not qualified as an independent escrowee, may act in the
capacity of an escrow agent when it is supplying an abstract of title,
grantor-grantee search, tract search, lien search, tax assessment search, or
other limited purpose search to the parties to the transaction even if it is
not issuing a title insurance commitment or title insurance policy.  A title
insurance agent may act as an escrow agent only when specifically authorized in
writing on forms prescribed by the Secretary by a title insurance company that
has duly registered the agent with the Secretary and only when notice of the
authorization is provided to and receipt thereof is acknowledged by the
Secretary.  The authority granted to a title insurance agent may be limited or
revoked at any time by the title insurance company.(h) An independent escrowee may, pursuant to Section 17.1 of this Act, issue an insured closing letter if, in addition to complying with the same certification and deposit requirements that title insurance companies are subject to under Section 4 of this Act, the independent escrowee:(1) Satisfies the Secretary that it has a minimum     capital and surplus of $2,000,000. The Secretary may provide the forms and standards for this purpose by rule. This paragraph applies only to independent escrowees licensed under this Act for the first time on or after the effective date of this amendatory Act of the 100th General Assembly.(2) Files with and has approved by the Secretary     proof of a fidelity bond in the minimum amount of $2,000,000 per occurrence.(3) Establishes and maintains a statutory closing     protection letter reserve for the protection of parties named in warranties of services consisting of a sum of 25% of the closing protection letter revenue received by the independent escrowee on or after the effective date of this amendatory Act of the 100th General Assembly. The reserve shall be reported as a liability of the independent escrowee in its financial statements. Amounts placed in the statutory closing protection letter reserve shall be deducted in determining the net profit of the independent escrowee for the year. Except as provided in this subsection, assets in value equal to the statutory closing protection letter reserve are not subject to distribution among creditors, stockholders, or other owners of the independent escrowee until all claims of parties named in warranties of services have been paid in full and discharged.(4) Releases from the statutory closing protection     letter reserve a sum equal to 10% of the amount added to the reserve during a calendar year on July 1 of each of the 5 years following the year in which the sum was added and releases from the statutory closing protection letter reserve a sum equal to 3 1/3% of the amount added to the reserve during that year on each succeeding July 1 until the entire amount for that year has been released.The Secretary shall adopt and amend rules as may be required for the proper administration and enforcement of this subsection (h) consistent with the federal Real Estate Settlement and Procedures Act and Section 24 of this Act. (Source: P.A. 100-485, eff. 9-8-17.) (215 ILCS 155/17.1)Sec. 17.1. Closing or settlement protection; independent escrowees.(a) Notwithstanding the provisions of item (iii) of paragraph (B) of subsection (1) and subsection (9) of Section 3 of this Act, an independent escrowee is not authorized to act pursuant to subsection (9) of Section 3 of this Act in a nonresidential real property transaction where the amount of settlement funds on deposit with the escrow agent is less than $2,000,000 or in a residential real property transaction unless, as part of the same transaction, closing protection letters protecting the buyer's or borrower's, lender's, and seller's interests have been issued by the independent escrowee.(b) Unless otherwise agreed to between an independent escrowee and a protected person or entity, a closing protection letter under this Section shall indemnify all parties to a real property transaction against actual loss, not to exceed the amount of the settlement funds deposited with the independent escrowee. The closing protection letter shall in any event indemnify all parties to a real property transaction when such losses arise out of:(1) failure of the independent escrowee to comply     with written closing instructions to the extent that they relate to (A) the status of the title to an interest in land or the validity, enforceability, and priority of the lien of a mortgage on an interest in land, including the obtaining of documents and the disbursement of funds necessary to establish the status of title or lien or (B) the obtaining of any other document specifically required by a party to the real property transaction, but only to the extent that the failure to obtain such other document affects the status of the title to an interest in land or the validity, enforceability, and priority of the lien of a mortgage on an interest in land; or(2) fraud, dishonesty, or negligence of the     independent escrowee in handling funds or documents in connection with closings to the extent that the fraud, dishonesty, or negligence relates to the status of the title to the interest in land or to the validity, enforceability, and priority of the lien of a mortgage on an interest in land or, in the case of a seller, to the extent that the fraud, dishonesty, or negligence relates to funds paid to or on behalf of, or which should have been paid to or on behalf of, the seller.(c) The indemnification under a closing protection letter may include limitations on the liability of the independent escrowee for any of the following:(1) Failure of the independent escrowee to comply     with closing instructions that require title insurance protection inconsistent with that set forth in the title insurance commitment for the real property transaction. Instructions that require the removal of specific exceptions to title or compliance with the requirements contained in the title insurance commitment shall not be deemed to be inconsistent.(2) Loss or impairment of funds in the course of     collection or while on deposit with a bank due to bank failure, insolvency, or suspension, except such as shall result from failure of the independent escrowee closer to comply with written closing instructions to deposit the funds in a bank that is designated by name by a party to the real property transaction.(3) Mechanics' and materialmen's liens in connection     with sale, purchase, lease, or construction loan transactions, except to the extent that protection against such liens is afforded by a title insurance commitment or policy issued by the title insurance agent or title insurance company.(4) Failure of the independent escrowee to comply     with written closing instructions to the extent that such instructions require a determination by the independent escrowee of the validity, enforceability, or effectiveness of any document described in item (B) of paragraph (1) of subsection (b) of this Section.(5) Fraud, dishonesty, or negligence of an employee,     agent, attorney, or broker, who is not also the independent escrowee or an independent contract closer of the independent escrowee, of the indemnified party to the real property transaction.(6) The settlement or release of any claim by the     indemnified party to the real property transaction without the written consent of the independent escrowee.(7) Any matters created, suffered, assumed, or agreed     to by, or known to, the indemnified party to the real property transaction without the written consent of the independent escrowee.The closing protection letter may also include reasonable additional provisions concerning the dollar amount of protection, provided the limit is no less than the amount deposited with the independent escrowee, arbitration, subrogation, claim notices, and other conditions and limitations that do not materially impair the protection required by this Section.(d) The Secretary shall adopt and amend rules as may be required for the proper administration and enforcement of this Section consistent with the federal Real Estate Settlement Procedures Act and Section 24 of this Act. 
(Source: P.A. 100-485, eff. 9-8-17.) (215 ILCS 155/18) (from Ch. 73, par. 1418)Sec. 18. No referral payments; kickbacks.(a) Application of this Section is limited to residential
properties of 4 or fewer units, at least one of which units is occupied or
to be occupied by an owner, legal or beneficial.(b) No title insurance company, independent escrowee, or
title insurance agent may issue a title insurance
policy to, or provide services to an applicant if it knows or has reason
to believe that the applicant was referred to it by any producer of title
business or by any associate of such producer, where the producer, the
associate, or both, have a financial interest in the title insurance
company, independent escrowee, or title insurance agent to which business
is referred unless the producer has disclosed to any party paying for the
products or services, or his representative, the financial interest of the
producer of title business or associate referring the title business and a
disclosure of an estimate of those charges to be paid as described in
Section 19.  Such disclosure must be made in writing on forms prescribed by
the Secretary prior to the time that the commitment for title insurance is
issued.  The title insurance company, independent escrowee, or title
insurance agent shall maintain the disclosure forms for a period of 3 years.(c)
Each title insurance company, independent escrowee, and title
insurance agent shall file with the Secretary, on forms prescribed by the
Secretary, reports setting forth the names and addresses of those persons,
if any, who have had a financial interest in the title insurance company,
independent escrowee, or title insurance agent during the calendar year,
who are known or reasonably believed by the title insurance company,
independent escrowee, or title insurance agent to be producers of title
business or associates of producers.(1) Each title insurance company and independent     escrowee shall file the report required under this subsection with its application for a certificate of authority and at any time there is a change in the information provided in the last report.(2) Each title insurance agent shall file the report     required under this subsection with its title insurance company for inclusion with its application for registration and at any time there is a change in the information provided in its last report.(3) Each title insurance company, independent     escrowee, or title insurance agent doing business on the effective date of this Act shall file the report required under this subsection within 90 days after such effective date.					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/18.1)Sec. 18.1. Choice of title insurance company. It is  declared to be the public policy of this State that parties to a contract for the sale of residential real property who are obligated to provide and pay for title insurance have the right to choose the title insurance company and title insurance agent that will provide such title insurance.  No lender or producer of title business, as the term is defined in this Act, shall, as a condition of making a loan, providing services of any kind, including, but not limited to, services as a broker, agent, lender, attorney, or otherwise, require a party to a contract for the sale of residential real property who is obligated by that contract to furnish and pay for title insurance at their expense, to procure title insurance from a title insurance company or title insurance agent other than a title insurance company or title insurance agent that is chosen by the party paying for the title insurance.
(Source: P.A. 95-570, eff. 8-31-07.) (215 ILCS 155/19) (from Ch. 73, par. 1419)Sec. 19. Secretary powers; pricing.
					Nothing contained in this Act shall be construed as giving
any authority to the Secretary to set or otherwise adjust the fees charged
to the parties to the transaction for:(1) issuing a title insurance policy, including any     service charge or administration fee for the issuance of a title insurance policy;(2) abstracting, searching and examining title;(3) preparing or issuing preliminary reports,     property profiles, commitments, binders, or like product;(4) closing fees, escrow fees, settlement fees, and     like charges.					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/20) (from Ch. 73, par. 1420)Sec. 20. Rules and regulations.
					The Secretary
						
shall rely upon federal regulations and opinion
letters and may adopt rules and regulations as needed to
implement and interpret the provisions of this Act.
					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/21) (from Ch. 73, par. 1421)Sec. 21. Regulatory action.(a) The Secretary may refuse to grant, and may suspend or
revoke, any certificate of authority, registration,
or license issued
pursuant to this Act or may impose a fine for a violation of this Act if he determines that the holder of or applicant for
such certificate, registration or license:(1) has intentionally made a material misstatement or     fraudulent misrepresentation in relation to a matter covered by this Act;(2) has misappropriated or tortiously converted to     its own use, or illegally withheld, monies held in a fiduciary capacity;(3) has demonstrated untrustworthiness or     incompetency in transacting the business of guaranteeing titles to real estate in such a manner as to endanger the public;(4) has materially misrepresented the terms or     conditions of contracts or agreements to which it is a party;(5) has paid any commissions, discounts or any part     of its premiums, fees or other charges to any person in violation of any State or federal law or regulations or opinion letters issued under the federal Real Estate Settlement Procedures Act of 1974;(6) has failed to comply with the deposit and reserve     requirements of this Act or any other requirements of this Act;(7) has committed fraud or misrepresentation in     applying for or procuring any certificate of authority, registration, or license issued pursuant to this Act;(8) has a conviction or plea of guilty or plea of     nolo contendere in this State or any other jurisdiction to (i) any felony or (ii) a misdemeanor, an essential element of which is dishonesty or fraud or larceny, embezzlement, or obtaining money, property, or credit by false pretenses or by means of a confidence game;(9) has been disciplined by another state, the     District of Columbia, a territory, foreign nation, a governmental agency, or any entity authorized to impose discipline if at least one of the grounds for that discipline is the same as or equivalent to one of the grounds for which a title insurance company, title insurance agent, or independent escrowee may be disciplined under this Act or if at least one of the grounds for that discipline involves dishonesty;  a certified copy of the record of the action by the other state or jurisdiction shall be prima facie evidence thereof;(10) has advertising that is inaccurate, misleading,     or contrary to the provisions of this Act;(11) has knowingly and willfully made any substantial     misrepresentation or untruthful advertising;(12) has made any false promises of a character     likely to influence, persuade, or induce;(13) has knowingly failed to account for or remit any     money or documents coming into the possession of a title insurance company, title insurance agent, or independent escrowee that belong to others;(14) has engaged in dishonorable, unethical, or     unprofessional conduct of a character likely to deceive, defraud, or harm the public;(15) has violated the terms of a disciplinary order     issued by the Department;(16) has disregarded or violated any provision of     this Act or the published rules adopted by the Department to enforce this Act or has aided or abetted any individual, partnership, registered limited liability partnership, limited liability company, or corporation in disregarding any provision of this Act or the published rules; or(17) has acted as a title insurance company, title     insurance agent, or independent escrowee without a certificate of authority, registration, or license after the title insurance company, title insurance agent, or independent escrowee's certificate of authority, registration, or license was inoperative.(b) In every case where a registration or certificate is suspended or
revoked, or an application for a registration or certificate or renewal
thereof is refused, the Secretary shall serve notice of his action,
 including a statement of the reasons for his action, as provided by this Act. When a notice of suspension or revocation of a certificate of authority is given to a title insurance company, the Secretary shall also notify all the registered agents of that title insurance company of the Secretary's action.(c) In the case of a refusal to issue or renew a certificate or accept a
registration, the applicant or registrant may request in writing, within 30
days after the date of service, a hearing.  In the case of a
refusal to renew, the expiring registration or certificate shall be deemed
to continue in force until 30 days after the service of the notice of
refusal to renew, or if a hearing is requested during that period, until a
final order is entered pursuant to such hearing.(d) The suspension or revocation of a registration or certificate shall
take effect upon service of notice thereof.  The holder of any such
suspended registration or certificate may request in writing, within 30
days of such service, a hearing.(e) In cases of suspension or revocation of registration pursuant to
subsection (a), the Secretary may, in the public interest, issue an order of
suspension or revocation which shall take effect upon service of
notification thereof.  Such order shall become final 60 days from the date
of service unless the registrant requests in writing, within such 60 days,
a formal hearing thereon.  In the event a hearing is requested, the order
shall remain temporary until a final order is entered pursuant to such hearing.(f) Hearing shall be held at such time and place as may be designated by
the Secretary either in the City of Springfield, the City of Chicago, or in
the county in which the principal business office of the affected
registrant or certificate holder is located.(g) The suspension or revocation of a registration or certificate or the
refusal to issue or renew a registration or certificate shall not in any
way limit or terminate the responsibilities of any registrant or
certificate holder arising under any policy or contract of title insurance
to which it is a party.  No new contract or policy of title insurance may
be issued, nor may any existing policy or contract to title insurance be
renewed by any registrant or certificate holder during any period of
suspension or revocation of a registration or certificate.(h) The Secretary may issue a cease and desist order to a title insurance
company, agent, or other entity doing business without the required license or
registration, when in the opinion of the Secretary, the company, agent, or other
entity is violating or is about to violate any provision of this Act or any
law or of
any
rule or condition imposed in writing by the Department.The Secretary may issue the cease and desist order without notice and before a
hearing.The Secretary shall have the authority to prescribe rules for the
administration of this Section.If it is determined that the Secretary had the authority to issue the cease
and desist order, he may issue such orders as may be reasonably necessary to
correct, eliminate or remedy such conduct.Any person or company subject to an order pursuant to this Section is
entitled to judicial review of the order in accordance with the provisions of
the Administrative Review Law.The powers vested in the Secretary by this Section are additional to any and
all other powers and remedies vested in the Secretary by law, and nothing in
this Section shall be construed as requiring that the Secretary

shall employ the
powers conferred in this Section instead of or as a condition precedent to the
exercise of any other power or remedy vested in the Secretary.
(Source: P.A. 98-398, eff. 1-1-14.) (215 ILCS 155/21.1)Sec. 21.1. Receiver and involuntary liquidation.(a)  The Secretary's proceedings under this Section shall be the exclusive  remedy  and  the only proceedings commenced in any    court for the dissolution of, the winding up of the affairs of, or the appointment of a receiver for a title insurance company.(b)  If the Secretary, with respect to a title insurance company, finds that (i) its capital is impaired or it is otherwise in an unsound condition, (ii) its business is being conducted in an unlawful, fraudulent, or unsafe manner, (iii) it is unable to continue operations, or (iv) its examination has been obstructed or impeded, the Secretary may give notice to the board of directors of the title insurance company of his or her  finding or findings. If the Secretary's findings are not corrected to his or her satisfaction within 60 days after the    company receives the notice, the Secretary shall take possession and control of the title insurance company, its assets, and assets held by it for any person for the  purpose    of examination, reorganization, or liquidation through receivership.If, in addition to making a finding as provided in this subsection (b), the Secretary is of the opinion and finds that an emergency that may result in serious losses to any person exists, the Secretary may, in his or her discretion, without having given the notice provided for in this subsection,  and whether or not proceedings under subsection (a) of this Section have been instituted or are then pending, take possession and control of the title insurance company and its   assets for the purpose of examination, reorganization, or liquidation through receivership.(c) The Secretary may take possession and control of a title insurance company, its assets, and assets held by it for any person by posting upon the premises of each office located in the State of Illinois at which it transacts its business as a title insurance company a notice reciting that the Secretary is assuming possession pursuant to this Act and the time when the possession shall be deemed to commence.(d)  Promptly after taking possession and control of a title insurance company the Secretary, represented by the Attorney General, shall file a copy of the notice posted upon the premises in the Circuit Court of either Cook County or Sangamon County, which cause shall be entered as a court action upon the dockets of the court under the name and  style of "In the matter of the possession and control by the Secretary of the Department of Financial and Professional Regulation of (insert the name of the title  insurance  company)". If the Secretary determines (which determination may be made at the time of, or at any time subsequent to, taking possession and control of a title insurance company) that no practical possibility exists to reorganize the title insurance company after reasonable efforts have been made, the Secretary, represented by the Attorney General, shall also file a complaint, if it has not already been done, for the appointment of a receiver or other proceeding as is appropriate under the circumstances. The court where the cause  is docketed shall be vested with the exclusive jurisdiction to  hear and determine all issues and matters pertaining to or connected with the Secretary's possession and control of the title insurance company as provided in this Act, and any further issues and matters pertaining to or connected with the Secretary's possession and control as may be submitted to the court for its adjudication.The Secretary, upon taking possession and control of a title insurance company, may, and if not previously done shall, immediately upon filing a complaint for dissolution make an examination of the affairs of the title insurance company  or appoint a suitable person to make the examination as the Secretary's agent. The examination shall be conducted in accordance with and pursuant to the authority granted under Section 12 of this Act. The person conducting the examination  shall have and may exercise on behalf of the Secretary all of the powers and authority granted to the Secretary under Section  12. A copy of the report shall be filed in any dissolution proceeding filed  by the  Secretary. The reasonable fees and necessary expenses of the examining person, as approved by the Secretary or as recommended by the Secretary and approved by the  court if a dissolution proceeding has been filed, shall be borne by the subject title insurance company and shall have the same priority for payment as the reasonable and necessary  expenses of the Secretary in conducting an examination. The person appointed to make the examination shall make a proper accounting, in the manner and scope as determined by the Secretary to be practical and advisable under the circumstances, on behalf of the title insurance company and no guardian ad litem need be appointed to review the accounting.(e) The Secretary, upon taking possession and control of a title insurance company and its assets, shall be vested with the full powers of management and control including, but not limited to, the following:(1) the power to continue or to discontinue the     business;(2) the power to stop or to limit the payment of its     obligations;(3) the power to collect and to use its assets and to     give valid receipts and acquittances therefor;(4) the power to transfer title and liquidate any     bond or deposit made under Section 4 of this Act;(5) the power to employ and to pay any necessary     assistants;(6) the power to execute any instrument in the name     of the title insurance company;(7) the power to commence, defend, and conduct in the     title insurance company's name any action or proceeding in which it may be a party;(8) the power, upon the order of the court, to sell     and convey the title insurance company's assets, in whole or in part, and to sell or compound bad or doubtful debts upon such terms and conditions as may be fixed in that order;(9) the power, upon the order of the court, to make     and to carry out agreements with other title insurance companies, financial institutions, or with the United States or any agency of the United States for the payment or assumption of the title insurance company's liabilities, in whole or in part, and to transfer assets and to make guaranties, in whole or in part, in connection therewith;(10) the power, upon the order of the court, to     borrow money in the name of the title insurance company and to pledge its assets as security for the loan;(11) the power to terminate his or her possession and     control by restoring the title insurance company to its board of directors;(12) the power to appoint a receiver which may be the     Secretary of the Department of Financial and Professional Regulation, another title insurance company, or another suitable person and to order liquidation of the title insurance company as provided in this Act; and(13) the power, upon the order of the court and     without the appointment of a receiver, to determine that the title insurance company has been closed for the purpose of liquidation without adequate provision  being made for payment  of its obligations, and thereupon the title insurance company shall be deemed to have been closed on account of inability to meet its obligations to its insureds or escrow depositors.(f) Upon taking possession, the Secretary shall make an examination of the condition of the title insurance company, an inventory of the assets and, unless the time shall be extended by order of the court or unless the Secretary shall have otherwise settled the affairs of the title insurance company pursuant to the provisions of this Act, within 90 days  after the time of taking possession and control of the title insurance company, the Secretary shall either terminate his or her possession and control by restoring the title insurance company to its board of directors or appoint a receiver, which may be the Secretary of the Department of Financial and Professional Regulation, another title insurance company, or another suitable person and order the liquidation of the title   insurance company as provided in this Act. All necessary and reasonable expenses of the Secretary's possession and control shall be a priority claim and shall be borne by the title insurance company and may be paid by the Secretary from the title insurance company's own assets as distinguished from assets held for any other person.(g) If the Secretary takes possession and control of a title insurance company and its assets, any period of limitation fixed by a statute or agreement that would otherwise expire on a claim or right of action of the title insurance company, on its own behalf or on behalf of its insureds or escrow depositors, or upon which an appeal must be taken or a pleading or other document filed by the title insurance company in any pending action or proceeding, shall be tolled until 6 months after the commencement of the possession, and no judgment, lien, levy, attachment, or other similar legal process may be enforced upon or satisfied, in whole or in part, from any asset of the title insurance company or from any asset of an insured or escrow depositor while it is in the possession of the Secretary.(h) If the Secretary appoints a receiver to take possession  and control of the assets of insureds or escrow depositors for  the purpose of holding those assets as fiduciary for the benefit of the insureds or escrow depositors pending the winding up of the affairs of the title insurance company being liquidated and the appointment of a successor escrowee for those assets, any period of limitation fixed by statute, rule of court, or agreement that would otherwise expire on a claim or right of action in favor of or against the insureds or escrow depositors of those assets or upon which an appeal must be taken or a pleading or other document filed by a title insurance company on behalf of an insured or escrow depositor in any pending action or proceeding shall be tolled for a period of 6 months after the appointment of a receiver, and no judgment, lien, levy, attachment, or other similar legal process shall be enforced upon or satisfied, in whole or in part, from any asset of the insured or escrow depositor while it is in the possession of the receiver.(i) If the Secretary determines at any time that no reasonable possibility exists for the title insurance company to be operated by its board of directors in accordance with the provisions of this Act after reasonable efforts have been made and that it should be liquidated through receivership, he or she shall appoint a receiver. The Secretary may require of the receiver such bond and security as the Secretary deems proper. The Secretary, represented by  the  Attorney  General, shall file a complaint for the dissolution or winding up of the affairs of the title insurance company in a court of the county in which the principal office of the title insurance company is located and shall cause notice to be given in a newspaper of general circulation once each week for 4 consecutive weeks so that persons who may have claims against the title insurance company may present them to the receiver and make legal proof thereof and notifying those persons and all to whom it may concern of the filing of a complaint for the dissolution or winding up of the affairs of the title insurance company and stating the name and location of the court. All persons who may have claims against the assets of the title insurance company, as distinguished from the assets of insureds and escrow depositors held by the title insurance company, and the receiver to whom those persons have presented their claims may present the claims to the clerk of the court, and the allowance or disallowance of the claims by the court in connection with the proceedings shall be deemed an adjudication in a court of competent jurisdiction. Within a reasonable time after completion of publication, the receiver shall file with the court a correct list of all creditors of the title insurance company as shown by its books, who have not presented their claims and the amount of their respective claims after allowing adjusted credit, deductions, and set-offs as shown by the books of the title insurance company. The claims so filed shall be deemed proven unless objections are filed thereto by a party or parties interested therein within the time fixed by the court.(j) The receiver for a title insurance company has the power and authority and is charged with the duties and responsibilities as follows:(1) To take possession of and, for the purpose of the     receivership, title to the books, records, and assets of every description of the title insurance company.(2) To proceed to collect all debts, dues, and claims     belonging to the title insurance company.(3) To sell and compound all bad and doubtful debts     on such terms as the court shall direct.(4) To sell the real and personal property of the     title insurance company, as distinguished from the real and personal  property of the insureds or escrow depositors, on such terms as the court shall direct.(5) To file with the Secretary a copy of each report     that  he or she makes to the court, together with such other reports and records as the Secretary may require.(6) To sue and defend in his or her own name and with     respect to the affairs, assets, claims, debts, and choses in action of the title insurance company.(7) To surrender to the insureds and escrow     depositors of the title insurance company, when requested in writing directed to the receiver by them, the escrowed funds (on a pro rata basis), and escrowed documents in the receiver's possession upon satisfactory proof of ownership and determination by the receiver of available escrow funds.(8) To redeem or take down collateral hypothecated by     the  title insurance company to secure its notes and other evidence of indebtedness whenever the court deems it to be in the best interest of the creditors of the title insurance company and directs the receiver so to do.(k) Whenever the receiver finds it necessary in his or her opinion to use and employ money of the title insurance company  in order to protect fully and benefit the title insurance company by the purchase or redemption of property, real or personal, in  which the title insurance company may have any rights by reason of any bond, mortgage, assignment, or other claim thereto, the receiver may certify the facts together with the receiver's opinions as to the value of the property involved and the value of the equity the title insurance company may have in the property to the court, together with a request for the right and authority to use and employ so much of the money of the title insurance company as may be necessary to purchase the property, or to redeem the property from a sale if there was a sale, and if the request is granted, the receiver may use so much of the money of the title insurance company as the court may have authorized to purchase the property at the sale.The receiver shall deposit daily all moneys collected by him or her in any State or national bank approved by the court. The deposits shall be made in the name of the Secretary,  in trust for the receiver, and be subject to withdrawal upon the receiver's order or  upon the order of those persons the Secretary may designate. The moneys may be deposited without interest, unless otherwise agreed. The receiver shall do the things and take the steps from time to time under the direction and approval of the court that may reasonably appear  to be necessary to conserve the title insurance company's assets and secure the best interests of the creditors, insureds, and escrow depositors of the title insurance company. The receiver shall record any judgment of dissolution entered in a dissolution proceeding and thereupon turn over to the Secretary a certified copy of the judgment.The receiver may cause all assets of the insureds and  escrow depositors of the title insurance company to be registered in the name of the receiver or in the name of the receiver's nominee.For its services in administering the escrows held by the title insurance company during the period of winding up the affairs of the title insurance company, the receiver is entitled to be reimbursed for all costs and expenses incurred by the receiver and shall also be entitled to receive out of the assets of the individual escrows being administered by the receiver during the period of winding up the affairs of the title insurance company and prior to the appointment of a successor escrowee the usual and customary fees charged by an escrowee for escrows or reasonable fees approved by the court.The receiver, during its administration of the escrows of the title insurance company during the winding up of the affairs of the title insurance company, shall have all of the powers that are vested in trustees under the terms and provisions of the Illinois Trust Code.Upon the appointment of a successor escrowee, the receiver  shall deliver to the successor escrowee all of the assets belonging to each individual escrow to which the successor escrowee succeeds, and the receiver shall thereupon be relieved of any further duties or obligations with respect thereto.(l)  The receiver shall, upon approval by the court, pay all claims against the assets of the title insurance company allowed by the court pursuant to subsection (i) of this Section, as well as claims against the assets of insureds and escrow depositors of the title insurance company in accordance with the following priority:(1) All necessary and reasonable expenses of the     Secretary's possession and control and of its receivership shall be paid from the assets of the title insurance company.(2) All usual and customary fees charged for services     in administering escrows shall be paid from the assets of the individual escrows being administered. If the assets of the individual escrows being administered are insufficient, the fees shall be paid from the assets of the title insurance company.(3) Secured claims, including claims for taxes and     debts due the federal or any state or local government, that are secured by liens perfected prior to the date of filing of  the complaint for dissolution, shall be paid from the assets of the title insurance company.(4) Claims by policyholders, beneficiaries, insureds,     and escrow depositors of the title insurance company shall be paid from the assets of the insureds and escrow depositors. If there are insufficient assets of the insureds and escrow depositors, claims shall be paid from the assets of the title insurance company.(5) Any other claims due the federal government shall      be paid from the assets of the title insurance company.(6) Claims for wages or salaries, excluding vacation,     severance, and sick leave pay earned by employees for services rendered within 90 days prior to the date of filing of the complaint for dissolution, shall be paid from the assets of the title insurance company.(7) All other claims of general creditors not falling     within any priority under this subsection (l) including claims for taxes and debts due any state or local government which are not secured claims and claims for attorney's fees incurred by  the title insurance company in contesting the dissolution shall be paid from the assets of the title insurance company.(8) Proprietary claims asserted by an owner, member,     or  stockholder of the title insurance company in receivership shall be paid from the assets of the title insurance company.The receiver shall pay all claims of equal priority according to the schedule set out in this subsection, and shall not pay claims of lower priority until all higher priority claims are satisfied. If insufficient assets are available to meet all claims of equal priority, those assets shall be distributed pro rata among those claims. All unclaimed assets of the title insurance company shall be deposited with the receiver to be paid out by him or her when such claims are submitted and allowed by the court.(m)  At the termination of the receiver's administration, the receiver shall petition the court for the entry of a judgment of dissolution. After a hearing upon the notice as the court may prescribe, the court may enter a judgment of dissolution whereupon the title insurance company's corporate existence shall be terminated and the receivership concluded.(n) The receiver shall serve at the pleasure of the Secretary and upon the death, inability to act, resignation, or removal by the Secretary of a receiver, the Secretary may appoint a successor, and upon the appointment, all rights and duties of the predecessor shall at once devolve upon the appointee.(o) Whenever the Secretary shall have taken possession and control of a title insurance company or a title insurance agent and its assets for the purpose of examination, reorganization, or liquidation through receivership, or whenever the Secretary shall have appointed a receiver for a title insurance company or title insurance agent and filed a complaint for the dissolution or winding up of its affairs, and the title insurance company or title insurance agent denies the grounds for such actions, it may at any time within 10 days apply to the Circuit Court of Cook or Sangamon County to enjoin further proceedings in the premises; and the Court shall cite the Secretary to show cause why further proceedings should not be enjoined, and if the Court shall find that grounds do not exist, the Court shall make an order enjoining the Secretary or any receiver acting under his direction from all further proceedings on account of the alleged grounds.

(Source: P.A. 101-48, eff. 1-1-20.) (215 ILCS 155/21.2)Sec. 21.2. Notice.(a) Notice of any action by the Secretary under this Act or regulations or orders promulgated under it shall be made either personally or by registered or certified mail, return receipt requested, and by sending a copy of the notice by telephone facsimile or electronic mail, if known and operating, and if unknown or not operating, then by regular mail. Service by mail shall be deemed completed if the notice is deposited as registered or certified mail in the post office, postage paid, addressed to the last known address specified in the application for the certificate of authority to do business or certificate of registration of the holder or registrant.(b) The Secretary shall notify all registered agents of a title insurance company when that title insurance company's certificate of authority is suspended or revoked.
(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/21.3)Sec. 21.3. Record retention. Evidence of the examination of title, if any, and determination of insurability for business written by a title insurance company or its title insurance agent and records relating to escrow, closings, and security deposits shall be preserved and retained by the title insurance company or its title insurance agent for as long as appropriate to the circumstances, but in no event less than 7 years after the title insurance policy has been issued or the escrow, closing, or security deposit account has been closed or as provided by applicable federal law. This Section shall not apply to a title insurance company acting as a coinsurer if one of the other coinsurers has complied with this Section.
(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/22) (from Ch. 73, par. 1422)Sec. 22. Tax indemnity; notice.
A corporation authorized to do business under this Act
shall notify the Director of Revenue of the State
of Illinois, by notice directed to his office in the City of Chicago, of
each trust account or similar account established which relates to title
exceptions due to a judgment lien or any other lien arising
under any tax Act administered by the Illinois Department of Revenue, when
notice of such lien has been filed with the registrar of titles or
recorder or in the State Tax Lien Registry, as the case may be, in the manner prescribed by law.
Such notice shall contain the name, address, and tax
identification number of the debtor, the permanent real
estate index numbers, if any, and the address and
legal description of the property, the type of lien claimed by the
Department and identification of any trust fund or similar account held by
such corporation or any agent thereof relating to such lien.  Any trust
fund or similar account established by such corporation or agent relating
to any such lien shall include provisions requiring such corporation or
agent to apply such fund in satisfaction or release of such lien upon
written demand therefor by the Department of Revenue.
(Source: P.A. 100-22, eff. 1-1-18.) (215 ILCS 155/23) (from Ch. 73, par. 1423)Sec. 23. Violation; penalties.(a) Any violation of any of the provisions of this Act and, beginning January 1, 2013, any violation of any of the provisions of Article 3 of the Residential Real Property Disclosure Act shall
constitute a business offense and shall subject the party violating the
same to a penalty of $1000 for each offense.(b) Nothing contained in this Section shall affect the right of the Secretary to revoke or suspend a title  insurance company's or independent escrowee's certificate of authority or a title insurance agent's registration under any other Section of this Act.(Source: P.A. 97-891, eff. 8-3-12.) (215 ILCS 155/24) (from Ch. 73, par. 1424)Sec. 24. Referral fee; penalty.
					Except as permitted by this Act or by federal law,
regulations or opinion letters, no person shall pay or accept,
directly or indirectly, any commission, discount, referral fee
or other consideration as inducement or compensation for the
referral of title business or for the referral of any escrow or
other service from a title insurance company, independent escrowee
or title insurance agent.Any violation of this Section 24 is a Class A misdemeanor.
					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/24.5)Sec. 24.5. 
		Non-English language transactions. 
		A title insurance company,
title insurance agent, or independent escrowee may conduct
transactions in a language other than English through an employee or agent
acting as interpreter or through an interpreter provided by the customer.
		(Source: P.A. 92-578, eff. 6-26-02.) (215 ILCS 155/25) (from Ch. 73, par. 1425)Sec. 25. Actual damages; injunctive relief.(a) Any person or persons who violate the prohibitions or
limitations of subsection (a) of Section 21 of this Act shall be liable to
the person or persons charged for the settlement service involved in the
violation for actual damages.(b) Any title insurance company or a title insurance agent who violates
the prohibitions or limitations of subsection (a) of Section 21 of this Act
shall be subject to injunctive relief.  If a permanent injunction is
granted, the court may award actual damages.  Reasonable attorney's fees
and costs may be awarded to the prevailing party.
					(Source: P.A. 94-893, eff. 6-20-06.) (215 ILCS 155/26)Sec. 26. Settlement funds.(a) A title insurance company, title insurance agent, or independent escrowee shall not make disbursements in connection with any escrows, settlements, or closings out of a fiduciary trust account or accounts unless the funds in the aggregate amount of $50,000 or greater received from any single party to the transaction are good funds as defined in paragraphs (2), (6), or (7) of subsection (c) of this Section; or are collected funds as defined in subsection (d) of this Section.For the purposes of this subsection (a), where funds in the aggregate amount of $50,000 or greater are received from any purchaser of residential real property, as defined in paragraph (14) of Section 3 of this Act, the aggregate amount may consist of good funds of less than $50,000 per paragraph, as defined in paragraphs (3) and (5) of subsection (c) of this Section and of up to $5,000 in good funds, as defined in paragraph (4) of subsection (c) of this Section.(a-5) In addition to the good funds disbursement authorization set forth in subsection (a) of this Section, a title insurance company, title insurance agent, or independent escrowee is authorized to make disbursements in connection with any escrows, settlements, or closings out of a fiduciary trust account or accounts where the funds in the aggregate amount of $50,000 or greater are received from any single party to the transaction if:(1) the funds are transferred by a cashier's check,     teller's check, or certified check, as defined in the Uniform Commercial Code, that is drawn on or issued by a financial institution, as defined in this Act;(2) the title insurance company, title insurance     agent, or independent escrowee and the financial institution, as defined in this Act, agree to the use of cashier's checks, teller's checks, or certified checks to disburse the loan and related closing costs being funded by the financial institution as good funds under item (3) of subsection (c) of this Section; and(3) the cashier's check, teller's check, or certified     check is delivered to the title insurance company, title insurance agent, or independent escrowee in sufficient time for the check to be deposited into the title insurance company's, title insurance agent's, or independent escrowee's fiduciary trust account prior to disbursement from the fiduciary trust account of the title insurance company, title insurance agent, or independent escrowee.(b) A title insurance company or title insurance agent shall not make disbursements in connection with any escrows, settlements, or closings out of a fiduciary trust account or accounts unless the funds in the amount of less than $50,000 received from any single party to the transaction are collected funds or good funds as defined in subsection (c) of this Section.(c) "Good funds" means funds in one of the following forms:(1) lawful money of the United States;(2) wired funds unconditionally held by and credited     to the fiduciary trust account of the title insurance company, the title insurance agent, or independent escrowee;(3) cashier's checks, certified checks, bank money     orders, official bank checks, or teller's checks drawn on or issued by a financial institution and unconditionally held by the title insurance company, title insurance agent, or independent escrowee;(4) a personal check or checks in an aggregate amount     not exceeding $5,000 per closing, provided that the title insurance company, title insurance agent, or independent escrowee has reasonable grounds to believe that sufficient funds are available for withdrawal in the account upon which the check is drawn at the time of disbursement;(5) a check drawn on the trust account of any lawyer     or real estate broker licensed under the laws of any state, provided that the title insurance company, title insurance agent, or independent escrowee has reasonable grounds to believe that sufficient funds are available for withdrawal in the account upon which the check is drawn at the time of disbursement;(6) a check issued by this State, the United States,     or a political subdivision of this State or the United States; or(7) a check drawn on the fiduciary trust account of a     title insurance company, title insurance agent, or independent escrowee, provided that the title insurance company, title insurance agent, or independent escrowee has reasonable grounds to believe that sufficient funds are available for withdrawal in the account upon which the check is drawn at the time of disbursement.(d) "Collected funds" means funds deposited, finally settled, and credited to the title insurance company, title insurance agent, or independent escrowee's fiduciary trust account.(e) A purchaser, a seller, or a lender is each considered a single party to the transaction for the purposes of this Section, regardless of the number of people or entities making up the purchaser, seller, or lender. (Source: P.A. 101-301, eff. 1-1-20.)
(215 ILCS 156/1)Sec. 1. Short title. This Act may be cited as the Topical Eye Medication Prescription Act.
(Source: P.A. 99-226, eff. 1-1-16.) (215 ILCS 156/5)Sec. 5. Coverage. Every insurer that amends, delivers, issues, or renews an individual or group policy of accident and health insurance in this State that provides coverage for prescription topical eye medication shall not deny coverage for the refilling of a prescription for topical eye medication when:(1) the medication is to treat a chronic condition of     the eye;(2) the refill is requested by the insured prior to     the last day of the prescribed dosage period and after at least 75% of the predicted days of use; and(3) the prescribing physician licensed to practice     medicine in all its branches or optometrist indicates on the original prescription that refills are permitted and that the early refills requested by the insured do not exceed the total number of refills prescribed. (Source: P.A. 99-226, eff. 1-1-16.)
(215 ILCS 157/1)Sec. 1. 
		Short title. 
		This Act may be cited as the Use of Credit
Information in Personal Insurance Act.
		(Source: P.A. 93-114, eff. 10-1-03.) (215 ILCS 157/5)Sec. 5. 
		Purpose. 
		The purpose of this Act is to regulate the use of
credit
information for personal insurance so that consumers are afforded certain
protections
with respect to the use of that information.
		(Source: P.A. 93-114, eff. 10-1-03.) (215 ILCS 157/10)Sec. 10. Scope. This Act applies to personal insurance and not to
commercial
insurance. For purposes of this Act, "personal insurance" means private
passenger
automobile, homeowners, motorcycle, mobile-homeowners and non-commercial
dwelling fire insurance policies, and boat, personal watercraft, snowmobile,
and
recreational vehicle policies. Such policies must be individually underwritten
for
personal, family, or household use. No other type of insurance shall be
included as
personal insurance for the purpose of this Act.
(Source: P.A. 102-558, eff. 8-20-21.) (215 ILCS 157/15)Sec. 15. 
		Definitions. 
		For the purposes of this Act, these defined words
have the
following meanings:"Adverse action" means a denial or cancellation of, an increase in any charge
for, or
a reduction or other adverse or unfavorable change in the terms of coverage or
amount of, any insurance, existing or applied for, in connection with the
underwriting of personal insurance."Affiliate" means any company that controls, is controlled by, or is under
common
control with another company."Applicant" means an individual who has applied to be covered by a personal
insurance policy with an insurer."Consumer" means an insured or an applicant for a personal insurance policy
whose
credit information is used or whose insurance score is calculated in the
underwriting or rating of a personal insurance policy."Consumer reporting agency" means any person that, for monetary fees or dues
or on a
cooperative nonprofit basis, regularly engages in whole or in part in the
practice
of assembling or evaluating consumer credit information or other information on
consumers for the purpose of furnishing consumer reports to third parties."Credit information" means any credit-related information derived from a
credit
report, found on a credit report itself, or provided on an application for
personal
insurance. Information that is not credit-related shall not be considered
"credit
information," regardless of whether it is contained in a credit report or in an
application or is used to calculate an insurance score."Credit report" means any written, oral, or other communication of
information by a
consumer reporting agency bearing on a consumer's credit worthiness, credit
standing, or credit capacity, that is used or expected to be used or collected
in
whole or in part for the purpose of serving as a factor to determine personal
insurance premiums, eligibility for coverage, or tier placement."Department" means the Department of Insurance."Insurance score" means a number or rating that is derived from an algorithm,
computer
application, model, or other process that is based in whole or in part on
credit
information for the purposes of predicting the future insurance loss exposure
of an
individual applicant or insured.
		(Source: P.A. 93-114, eff. 10-1-03.) (215 ILCS 157/20)Sec. 20. Use of credit information.(a) An insurer authorized to do business
in this State that uses credit information to underwrite or rate risks shall
not:(1) Use an insurance score that is calculated using     income, gender, address, ethnic group, religion, marital status, or nationality of the consumer as a factor.(2) Deny, cancel, or nonrenew a policy of personal     insurance solely on the basis of credit information, without consideration of any other applicable underwriting factor independent of credit information and not expressly prohibited by item (1).  An insurer shall not be considered to have denied, cancelled, or nonrenewed a policy if coverage is available through an affiliate. If an insurer denies, cancels, or does not renew a policy of personal insurance based on credit information, it must provide the affected party with a notice as described in Section 35 of this Act and an opportunity for the affected party to explain its credit information under the procedures outlined in Section 22 of this Act.(3) Base an insured's renewal rates for personal     insurance solely upon credit information, without consideration of any other applicable factor independent of credit information.  An insurer shall not be considered to have based rates solely on credit information if coverage is available in a different tier of the same insurer.(4) Take an adverse action against a consumer solely     because he or she does not have a credit card account, without consideration of any other applicable factor independent of credit information.(5) Consider an absence of credit information or an     inability to calculate an insurance score in underwriting or rating personal insurance, unless the insurer does one of the following:(A) Treats the consumer as otherwise filed with         the Department, if the insurer presents information that such an absence or inability relates to the risk for the insurer and submits a filing certification form signed by an officer for the insurer certifying that such treatment is actuarially justified.(B) Treats the consumer as if the applicant or         insured had neutral credit information, as defined by the insurer.(C) Excludes the use of credit information as a         factor and uses only other underwriting criteria.(6) Take an adverse action against a consumer based     on credit information, unless an insurer obtains and uses a credit report issued or an insurance score calculated within 90 days from the date the policy is first written or renewal is issued.(7) (Blank).(8) Use the following as a negative factor in any     insurance scoring methodology or in reviewing credit information for the purpose of underwriting or rating a policy of personal insurance:(A) Credit inquiries not initiated by the         consumer or inquiries requested by the consumer for his or her own credit information.(B) Inquiries relating to insurance coverage, if         so identified on a consumer's credit report.(C) Collection accounts with a medical industry         code, if so identified on the consumer's credit report.(D) Multiple lender inquiries, if coded by the         consumer reporting agency on the consumer's credit report as being from the home mortgage industry and made within 30 days of one another, unless only one inquiry is considered.(E) Multiple lender inquiries, if coded by the         consumer reporting agency on the consumer's credit report as being from the automobile lending industry and made within 30 days of one another, unless only one inquiry is considered.(b) An insurer authorized to do business
in this State that uses credit information to underwrite or rate risks shall, at annual renewal upon the request of an insured or an insured's agent, re-underwrite and re-rate the insured's personal insurance policy based on a current credit report or insurance score unless one of the following applies:(1) The insurer's treatment of the consumer is     otherwise approved by the Department.(2) The insured is in the most favorably priced tier     of the insurer, within a group of affiliated insurers.(3) Credit information was not used for underwriting     or rating the insured when the personal insurance policy was initially written.(4) The insurer reevaluates the insured at least     every 36 months after a personal insurance policy is issued based on underwriting or rating factors other than credit information.(5) The insurer has recalculated an insurance score     or obtained an updated credit report of a consumer in the previous 12-month period.An insurer that uses credit information to underwrite or rate risks may obtain current credit information upon the renewal of a personal insurance policy when renewal occurs more frequently than every 36 months if consistent with the insurer's underwriting guidelines. 
(Source: P.A. 96-560, eff. 8-18-09.) (215 ILCS 157/22)Sec. 22. Extraordinary life events.(a) An insurer authorized to do business in this State that uses credit information to underwrite or rate risks shall review and consider an exception to the risk score based upon extraordinary life events after receiving a written and signed notification from the applicant or insured explaining how the applicant or insured believes the extraordinary life event adversely impacts the applicant's or insured's insurance risk score.(b) For the purposes of this Section, "extraordinary life event" means the following:(1) a catastrophic illness or injury to an applicant     or insured or an immediate family member of an applicant or insured;(2) the death of a spouse, child, or parent of an     applicant or insured;(3) involuntary loss of employment for a period of 3     months or more by an applicant or insured;(4) identity theft of an applicant or insured; or(5) dissolution of marriage of an applicant or     insured.		(Source: P.A. 94-245, eff. 7-1-06.) (215 ILCS 157/25)Sec. 25. 
		Dispute resolution and error correction. 
		If it is determined
through the
dispute resolution process set forth in the federal Fair Credit Reporting Act,
15 U.S.C.
1681i(a)(5), that the credit information of a current insured was incorrect or
incomplete
and if the insurer receives notice of that determination from either the
consumer reporting
agency or from the insured, the insurer shall re-underwrite and re-rate the
consumer
within 30 days after receiving the notice. After re-underwriting or re-rating
the
insured, the
insurer shall make any adjustments necessary, consistent with its underwriting
and rating
guidelines. If an insurer determines that the insured has overpaid premium, the
insurer
shall refund to the insured the amount of overpayment calculated back to the
shorter of
either the last 12 months of coverage or the actual policy period.
		(Source: P.A. 93-114, eff. 10-1-03.) (215 ILCS 157/30)Sec. 30. 
		Initial notification.(a) If an insurer writing personal insurance uses credit information in
underwriting or rating a consumer, the insurer or its agent shall disclose,
either on the
insurance application or at the time the insurance application is taken, that
it may obtain
credit information in connection with the application. The disclosure shall be
either
written or provided to an applicant in the same medium as the application for
insurance.
The insurer need not provide the disclosure statement required under this
Section to any
insured on a renewal policy, if the consumer has previously been provided a
disclosure
statement.(b) Use of the following example disclosure statement constitutes compliance
with this Section: "In connection with this application for insurance, we may
review
your credit report or obtain or use a credit-based insurance score based on the
information
contained in that credit report. We may use a third party in connection with
the
development of your insurance score.".
		(Source: P.A. 93-114, eff. 10-1-03.) (215 ILCS 157/35)Sec. 35. 
		Adverse action notification. 
		If an insurer takes an adverse
action
based upon credit information, the insurer must meet all of the notice
requirements of this
Section. The insurer shall:(1) Provide notification to the consumer that an     adverse action has been taken, in accordance with the requirements of the federal Fair Credit Reporting Act, 15 U.S.C. 1681m(a).(2) Provide notification to the consumer explaining     the reason for the adverse action. The reasons must be provided in sufficiently clear and specific language so that a person can identify the basis for the insurer's decision to take an adverse action. The notification shall include a description of up to 4 factors that were the primary influences of the adverse action. The use of generalized terms such as "poor credit history", "poor credit rating", or "poor insurance score" does not meet the explanation requirements of this Section. Standardized credit explanations provided by consumer reporting agencies or other third party vendors are deemed to comply with this Section.		(Source: P.A. 93-114, eff. 10-1-03.) (215 ILCS 157/40)Sec. 40. 
		Filing.(a) Insurers that use insurance scores to underwrite and rate risks must
file their
scoring models (or other scoring processes) with the Department. A
third
party may file scoring models on behalf of insurers. A filing that includes
insurance
scoring may include loss experience justifying the use of credit information.(b) Any filing relating to credit information is considered to be a trade
secret
under the
Illinois Trade Secrets Act.
		(Source: P.A. 93-114, eff. 10-1-03.) (215 ILCS 157/45)Sec. 45. 
		Enforcement; rates not regulated.(a) The Department shall enforce the provisions of this Act pursuant to the
enforcement powers granted to it under the Illinois Insurance Code. The
Department
may
promulgate rules necessary to enforce and administer this Act.(b) Nothing contained in this Act shall be construed to empower the
Department
to regulate or set the rates of any insurer pursuant to this Act.
		(Source: P.A. 93-114, eff. 10-1-03.) (215 ILCS 157/50)Sec. 50. 
		Sale of policy term information by consumer reporting agency.(a) No consumer reporting agency shall provide or sell data or lists that
include any
information that in whole or in part was submitted in conjunction with an
insurance inquiry about a consumer's credit information or a request for a
credit
report or insurance score. Such information includes, but is not limited to,
the
expiration dates of an insurance policy or any other information that may
identify
time periods during which a consumer's insurance may expire and the terms and
conditions of the consumer's insurance coverage.(b) The restrictions provided in subsection (a) of this Section do not apply
to data or
lists the consumer reporting agency supplies to the insurance agent or producer
from whom information was received, the insurer on whose behalf the agent or
producer acted, or the insurer's affiliates or holding companies.(c) Nothing in this Section shall be construed to restrict any insurer from
being able
to obtain a claims history report or a motor vehicle report.
		(Source: P.A. 93-114, eff. 10-1-03.) (215 ILCS 157/55)Sec. 55. 
		Severability. 
		If any Section, paragraph, sentence, clause,
phrase, or
part of this Act is declared invalid due to an interpretation of or a future
change in the
federal Fair Credit Reporting Act, the remaining Sections, paragraphs,
sentences, clauses,
phrases, or parts thereof shall be in no manner affected thereby but shall
remain in full
force and effect.
		(Source: P.A. 93-114, eff. 10-1-03.) (215 ILCS 157/95)Sec. 95. 
		
		The Illinois Insurance Code is amended by repealing Section
155.38.
		(Source: P.A. 93-114, eff. 10-1-03.) (215 ILCS 157/99)Sec. 99. 
		Effective date. 
		This Act takes effect on October 1, 2003.
		(Source: P.A. 93-114, eff. 10-1-03.)
(215 ILCS 159/1)Sec. 1. Short title. This Act may be cited as the Viatical Settlements Act of 2009.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/5)Sec. 5. Definitions."Accredited investor" means an accredited investor as defined in Rule 501(a) promulgated under the Securities Act of 1933 (15 U.S.C. 77 et seq.), as amended."Advertising" means any written, electronic, or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the Internet, or similar communications media, including film strips, digital picture slides, motion pictures, and videos published, disseminated, circulated, or placed before the public in this State, for the purpose of creating an interest in or inducing a person to sell, assign, devise, bequest, or transfer the death benefit or ownership of a policy pursuant to a viatical settlement contract."Alien licensee" means a licensee incorporated or organized under the laws of any country other than the United States."Business of viatical settlements" means any activity involved in, but not limited to, the offering, soliciting, negotiating, procuring, effectuating, purchasing, investing, financing, monitoring, tracking, underwriting, selling, transferring, assigning, pledging, or hypothecating or in any other manner acquiring an interest in a life insurance policy by means of a viatical settlement contract or other agreement."Chronically ill" means having been certified within the preceding 12-month period by a licensed health professional as:(1) being unable to perform, without substantial     assistance from another individual and for at least 90 days due to a loss of functional capacity, at least 2 activities of daily living, including, but not limited to, eating, toileting, transferring, bathing, dressing, or continence;(2) requiring substantial supervision to protect the     individual from threats to health and safety due to severe cognitive impairment; or(3) having a level of disability similar to that     described in paragraph (1) as determined by the Secretary of Health and Human Services."Controlling person" means any person, firm, association, or corporation that directly or indirectly has the power to direct or cause to be directed the management, control, or activities of the viatical settlement provider."Director" means the Director of the Division of Insurance of the Department of Financial and Professional Regulation."Division" means the Division of Insurance of the Department of Financial and Professional Regulation."Escrow agent" means an independent third-party person who, pursuant to a written agreement signed by the viatical settlement provider and viator, provides escrow services related to the acquisition of a life insurance policy pursuant to a viatical settlement contract. "Escrow agent" does not include
any person associated or affiliated with or under the control of a
licensee."Financial institution" means a financial institution as defined by the Financial Institutions Insurance Sales Law in Article XLIV of the Illinois Insurance Code."Financing entity" means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a viatical settlement provider, credit enhancer, or an entity that has a direct ownership in a policy that is the subject of a viatical settlement contract, and to which both of the following apply:(1) its principal activity related to the transaction     is providing funds to effect the viatical settlement or purchase of one or more viaticated policies; and(2) it has an agreement in writing with one or more     licensed viatical settlement providers to finance the acquisition of viatical settlement contracts."Financing entity" does not include an investor that is not an accredited investor."Financing transaction" means a transaction in which a viatical
settlement provider obtains financing from a financing entity,
including, without limitation, any secured or unsecured financing,
securitization transaction, or securities offering that
either is registered or exempt from registration under federal and
State securities law."Foreign licensee" means any viatical settlement provider incorporated or organized under the laws of any state of the United States other than this State."Insurance producer" means an insurance producer as defined by Section 10 of Article XXXI of the Illinois Insurance Code."Licensee" means a viatical settlement provider or viatical settlement broker."Life expectancy provider" means a person who determines or holds himself or herself out as determining life expectancies or mortality ratings used to determine life expectancies on behalf of or in connection with any of the following:(1) A viatical settlement provider, viatical     settlement broker, or person engaged in the business of viatical settlements.(2) A viatical investment as defined by Section 2.33     of the Illinois Securities Law of 1953 or a viatical settlement contract."NAIC" means the National Association of Insurance Commissioners."Person" means an individual or a legal entity, including, without limitation, a partnership, limited liability company, limited liability partnership, association, trust, business trust, or corporation."Policy" means an individual or group policy, group certificate, contract, or arrangement of insurance of the class defined by subsection (a) of Section 4 of the Illinois Insurance Code owned by a resident of this State, regardless of whether delivered or issued for delivery in this State."Qualified institutional buyer" means a qualified institutional buyer as defined in Rule 144 promulgated under the Securities Act of 1933, as amended."Related provider trust" means a titling trust or other trust established by a licensed viatical settlement provider or a financing entity for the sole purpose of holding the ownership or beneficial interest in purchased policies in connection with a financing transaction. The trust shall have a written agreement with the licensed viatical settlement provider under which the licensed viatical settlement provider is responsible for ensuring compliance with all statutory and regulatory requirements and under which the trust agrees to make all records and files related to viatical settlement transactions available to the Director as if those records and files were maintained directly by the licensed viatical settlement provider."Special purpose entity" means a corporation, partnership, trust, limited liability company, or other similar entity formed only to provide, directly or indirectly, access to institutional capital markets (i) for a financing entity or licensed viatical settlement provider; or (ii) in connection with a transaction in which the securities in the special purposes entity are acquired by the viator or by qualified institutional buyers or

the securities pay a fixed rate of return commensurate with established asset-backed institutional capital markets."Stranger-originated life insurance" or "STOLI" means an act, practice, or arrangement to initiate a life insurance policy for the benefit of a third-party investor who, at the time of policy origination, has no insurable interest in the insured.  STOLI practices include, but are not limited to, cases in which life insurance is purchased with resources or guarantees from or through a person or entity who, at the time of policy inception, could not lawfully initiate the policy himself or itself and where, at the time of policy inception, there is an arrangement or agreement, whether verbal or written, to directly or indirectly transfer the ownership of the policy or policy benefits to a third party.  Trusts created to give the appearance of an insurable interest and used to initiate policies for investors violate insurance interest laws and the prohibition against wagering on life.  STOLI arrangements do not include lawful viatical settlement contracts as permitted by this Act."Terminally ill" means certified by a physician as having an illness or physical condition that reasonably is expected to result in death in 24 months or less."Viatical settlement broker" means a licensed insurance producer who has been issued a license pursuant to paragraph (1) or (2) of subsection (a) of Section 500-35 of the Illinois Insurance Code  who, working exclusively on behalf of a viator and for a fee, commission, or other valuable consideration, offers, solicits, promotes, or attempts to negotiate viatical settlement contracts between a viator and one or more viatical settlement providers or one or more viatical settlement brokers. "Viatical settlement broker" does not include an attorney, certified public accountant, or a financial planner accredited by a nationally recognized accreditation agency, who is retained to represent the viator and whose compensation is not paid directly or indirectly by the viatical settlement provider or purchaser."Viatical settlement contract" means any of the following:(1) A written agreement between a viator and a     viatical settlement provider establishing the terms under which compensation or anything of value is or will be paid, which compensation or value is less than the expected death benefits of the policy, in return for the viator's present or future assignment, transfer, sale, devise, or bequest of the death benefit or ownership of any portion of the insurance policy.(2) A written agreement for a loan or other lending     transaction, secured primarily by an individual life insurance policy or an individual certificate of a group life insurance policy.(3) The transfer for compensation or value of     ownership of a beneficial interest in a trust or other entity that owns such policy, if the trust or other entity was formed or availed of for the principal purpose of acquiring one or more life insurance contracts and the life insurance contract insures the life of a person residing in this State.(4) A premium finance loan made for a life insurance     policy by a lender to a viator on, before, or after the date of issuance of the policy in either of the following situations:(A) The viator or the insured receives a         guarantee of the viatical settlement value of the policy.(B) The viator or the insured agrees to sell the         policy or any portion of the policy's death benefit on any date before or after issuance of the policy."Viatical settlement contract" does not include any of the following acts, practices, or arrangements listed below in subparagraphs (a) through (i) of this definition of "viatical settlement contract", unless part of a plan, scheme, device, or artifice to
avoid application of this Act; provided, however, that the list of excluded items contained in subparagraphs (a) through (i) is not intended to be an exhaustive list and that an act, practice, or arrangement that is not described below in subparagraphs (a) through (i) does not necessarily constitute a viatical settlement contract:(a) A policy loan or accelerated death benefit made     by the insurer pursuant to the policy's terms;(b) Loan proceeds that are used solely to pay:  (i)     premiums for the policy and  (ii) the costs of the loan, including, without limitation, interest, arrangement fees, utilization fees and similar fees, closing costs, legal fees and expenses, trustee fees and expenses, and third party collateral provider fees and expenses, including fees payable to letter of credit issuers;(c) A loan made by a bank or other financial     institution in which the lender takes an interest in a life insurance policy solely to secure repayment of a loan or, if there is a default on the loan and the policy is transferred, the transfer of such a policy by the lender, provided that neither the default itself nor the transfer of the policy in connection with the default is pursuant to an agreement or understanding with any other person for the purpose of evading regulation under this Act;(d) A loan made by a lender that does not violate     Article XXXIIa of the Illinois Insurance Code, provided that the premium finance loan is not described in this Act;(e) An agreement in which all the parties (i) are     closely related to the insured by blood or law or (ii) have a lawful substantial economic interest in the continued life, health, and bodily safety of the person insured, or trusts established primarily for the benefit of such parties;(f) Any designation, consent, or agreement by an     insured who is an employee of an employer in connection with the purchase by the employer, or trust established by the employer, of life insurance on the life of the employee;(g) A bona fide business succession planning     arrangement:  (i) between one or more shareholders in a corporation or between a corporation and one or more of its shareholders or one or more trusts established by its shareholders;  (ii) between one or more partners in a partnership or between a partnership and one or more of its partners or one or more trusts established by its partners; or  (iii) between one or more members in a limited liability company or between a limited liability company and one or more of its members or one or more trusts established by its members;(h) An agreement entered into by a service recipient,     or a trust established by the service recipient, and a service provider, or a trust established by the service provider, who performs significant services for the service recipient's trade or business;  or(i) Any other contract, transaction, or arrangement     exempted from the definition of viatical settlement contract by the Director based on the Director's determination that the contract, transaction, or arrangement is not of the type intended to be regulated by this Act."Viatical settlement investment agent" means a person who is an appointed or contracted agent of a licensed viatical settlement provider who solicits or arranges the funding for the purchase of a viatical settlement by a viatical settlement purchaser and who is acting on behalf of a viatical settlement provider.

A viatical settlement investment agent is deemed to represent the viatical settlement provider of whom the viatical settlement investment agent is an appointed or contracted agent."Viatical settlement provider" means a person, other than a viator, who enters into or effectuates a viatical settlement contract with a viator. "Viatical settlement provider" does not include:(1) a bank, savings bank, savings and loan     association, credit union, or other financial institution that takes an assignment of a policy as collateral for a loan;(2) a financial institution or premium finance     company making premium finance loans and exempted by the Director from the licensing requirement under the premium finance laws where the institution or company takes an assignment of a life insurance policy solely as collateral for a premium finance loan;(3) the issuer of the life insurance policy;(4) an authorized or eligible insurer that provides     stop loss coverage or financial guaranty insurance to a viatical settlement provider, purchaser, financing entity, special purpose entity, or related provider trust;(5) An individual person who enters into or     effectuates no more than one viatical settlement contract in a calendar year for the transfer of policies for any value less than the expected death benefit;(6) a financing entity;(7) a special purpose entity;(8) a related provider trust;(9) a viatical settlement purchaser; or(10) any other person that the Director determines is     consistent with the definition of viatical settlement provider."Viatical settlement purchaser" means a person who provides a sum of money as consideration for a life insurance policy or an interest in the death benefits of a life insurance policy, or a person who owns or acquires or is entitled to a beneficial interest in a trust that owns a viatical settlement contract or is the beneficiary of a life insurance policy, in each case where such policy has been or will be the subject of a viatical settlement contract, for the purpose of deriving an economic benefit. "Viatical settlement purchaser" does not include:

(i) a licensee under this Act;

(ii) an accredited investor or qualified institutional buyer;

(iii) a financing entity;

(iv) a special purpose entity; or

(v) a related provider trust."Viaticated policy" means a life insurance policy that has been acquired by a viatical settlement provider pursuant to a viatical settlement contract."Viator" means the owner of a life insurance policy or a certificate holder under a group policy who enters or seeks to enter into a viatical settlement contract. For the purposes of this Act, a viator is not limited to an owner of a life insurance policy or a certificate holder under a group policy insuring the life of an individual with a terminal or chronic illness or condition, except where specifically addressed.  "Viator" does not include:(1) a licensee;(2) a qualified institutional buyer;(3) a financing entity;(4) a special purpose entity; or(5) a related provider trust.

(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 159/10)Sec. 10. License and bond requirements.(a) A person shall not operate as a viatical settlement provider or viatical settlement broker without first obtaining a license from the chief insurance regulatory official of the state of residence of the viator. A viatical settlement provider transacting business in this State shall provide written notice to the Director that it is engaged in such business not less than 30 days prior to the effective date of this Act.  Viatical settlement providers shall apply for licensing annually thereafter in a form and manner as prescribed by this Act.(b) A person shall not operate as a viatical settlement broker without first obtaining an insurance producer license from the Director and completing the viatical settlement broker training requirements as provided by Section 11 of this Act.(c) An insurance producer shall not operate as a viatical settlement broker unless the producer has been duly licensed as a resident insurance producer with a life line of authority in this State or the insurance producer's home state for at least one year.(d) Before operating as a viatical settlement broker, the insurance producer, including a business entity licensed in this State as an insurance producer, shall notify the Director that the insurance producer is acting as a viatical settlement broker on a form prescribed by the Director, and shall pay a $500 registration fee which shall be deposited into the Insurance Producer Administration Fund.  Notification shall include an acknowledgement by the insurance producer that he or she will operate as a viatical settlement broker in accordance with this Act.If a business entity with an insurance producer license registers as a viatical settlement broker, then that registration authorizes all partners, officers, members, and designated employees to act as viatical settlement brokers. All persons acting as viatical settlement brokers pursuant to such a registration shall be named in the application and any supplements to the application.(e)  A duly licensed resident insurance producer with a life product line or authority in this State or the insurance producer's home state for at least one year, lawfully transacting business as a viatical settlement broker prior to the effective date of this Act may continue to do so, pending receipt by the Director of the notice required by subsection (d) of this Section, provided that the notice is received by the Director no later than 30 days after the effective date of this Act.(f) A person licensed as an attorney, certified public accountant, or financial planner accredited by a nationally recognized accreditation agency, who is retained to represent the viator, whose compensation is not paid directly or indirectly by the viatical settlement provider, may negotiate viatical settlement contracts on behalf of the viator without having to obtain a license as a viatical settlement broker.(g) A person shall not operate as a viatical settlement provider without first obtaining a license from the Director.(h) Application for a viatical settlement provider license shall be made to the Director by the applicant on a form prescribed by the Director. The applications shall be accompanied by a $3,000 fee, which shall be deposited into the Insurance Producer Administration Fund.(i) Viatical settlement provider licenses may be renewed from year to year on the anniversary date upon payment of the annual renewal fee of $1,500. Failure to pay the fees by the renewal date results in expiration of the license.(j) The applicant for a viatical settlement provider license shall provide information on forms required by the Director. The Director shall have authority, at any time, to require the applicant to fully disclose the identity of all stockholders, partners, officers, members, and employees, and the Director may, in the exercise of the Director's discretion, refuse to issue a license in the name of a legal entity if not satisfied that any officer, employee, stockholder, partner, or member thereof who may materially influence the applicant's conduct meets the standards of this Act.A viatical settlement provider license issued to a legal entity authorizes all partners, officers, members, and designated employees to act as viatical settlement providers, as applicable, under the license, and all those persons shall be named in the application and any supplements to the application.(k) Upon the filing of a viatical settlement provider license application and the payment of the license fee, the Director shall make an investigation of each applicant and issue a license if the Director finds that the applicant:(1) has provided a detailed plan of operation;(2) is competent and trustworthy and intends to act     in good faith in the capacity involved by the license applied for;(3) has a good business reputation and has had     experience, training, or education so as to be qualified in the business for which the license is applied for;(4) (A) has demonstrated evidence of financial     responsibility in a format prescribed by the Director through either a surety bond executed and issued by an insurer authorized to issue surety bonds in this State or a deposit of cash, certificates of deposit or securities or any combination thereof, or irrevocable letter of credit  in the amount of $125,000;(B) the Director may ask for evidence of         financial responsibility at any time the Director deems necessary;(C) any surety bond issued pursuant to this         subsection (k) shall be in the favor of this State and shall specifically authorize recovery by the Director on behalf of any person in this State who sustained damages as the result of erroneous acts, failure to act, conviction of fraud or conviction of unfair practices by the viatical settlement provider;(D) notwithstanding any other provision of this         Section to the contrary, the Director shall accept, as evidence of financial responsibility, proof that financial instruments in accordance with the requirements in this subsection (k) have been filed with one or more states where the applicant is licensed as a viatical settlement provider;(5) if a legal entity, provides a certificate of good     standing from the state of its domicile; and(6) has provided an anti-fraud plan that meets the     requirements of Section 65 of this Act.(l) The Director shall not issue a viatical settlement provider license to a nonresident applicant unless a written designation of an agent for service of process is filed and maintained with the Director or the applicant has filed with the Director the applicant's written irrevocable consent that any action against the applicant may be commenced against the applicant by service of process on the Director.(m) An applicant for a viatical settlement provider license shall provide all information requested by the Director. The Director may, at any time, require the applicant to fully disclose the identity of all stockholders, partners, officers, members, and employees of the viatical settlement provider, and the Director may refuse to issue a license to an applicant that is not an individual if the Director is not satisfied that each stockholder, partner, officer, member, and employee who may materially influence the applicant's conduct meets the standards set forth in this Act. The Director may also require the applicant to disclose the method the applicant will use to determine and receive life expectancies, the applicant's intended use of life expectancies, and a written plan containing policies and procedures to use when determining life expectancies.(n) A viatical settlement provider shall provide to the Director new or revised information about officers, 10% or more stockholders, partners, directors, members, or designated employees within 30 days after the change.(o) Viatical settlement providers licensed under the
Viatical Settlements Act as of the effective date of this amendatory Act of the  96th General Assembly shall be deemed licensed under this Act. All such providers are required to maintain or come into compliance with all of the license requirements of this Act and to provide evidence to the Director that they are in compliance with item (4) of subsection (k) of this Section, concerning financial responsibility; item (6) of subsection (k) of this Section, concerning an anti-fraud plan; and subsection (m) of this Section, concerning life expectancies no later than the effective date of this Act. Such providers shall not be exempt from the requirements for viatical settlement provider license renewal set forth in subsection (i) of this Section. The first anniversary date for the purpose of license renewal under subsection (i) shall be one year from the effective date of this amendatory Act of the 96th General Assembly.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/11)Sec. 11. Viatical settlement broker training requirements.(a) Viatical settlement broker training shall be required as follows:(1) An individual may not sell, solicit, or negotiate     viatical settlement contracts unless the individual is licensed as a life insurance producer or viatical settlement broker and has completed a one-time training course.  The training shall meet the requirements set forth in subsection (b) of this Section.(2) An individual already licensed and selling,     soliciting, or negotiating viatical settlement contracts on the effective date of this Act may not continue to sell, solicit, or negotiate viatical settlement contracts unless the individual has completed a one-time training course, as set forth in subsection (b) of this Section, within 6 months after the effective date of this Act or within 6 months after availability of the training course, whichever is later.(3) In addition to the one-time training course     required under items (1) and (2) of this subsection (a), an individual who sells, solicits, or negotiates viatical settlement contracts shall complete ongoing training as set forth in subsection (b) of this Section.(4) The training requirements of subsection (b) of     this Section may be approved as continuing education courses under Section 500-35(b)(1) of the Illinois Insurance Code.(b) Minimum education and training shall be required as follows:(1) The one-time training required by this Section     shall be no less than 4 hours and the ongoing training required by this Section shall be no less than 4 hours over a 24-month period.(2) The training required under item (1) of this     subsection (b) shall consist of topics related to viatical settlement contracts, including, but not limited to:(A) State and federal laws and regulations         regarding viatical settlement transactions;(B) potential tax implications for participants         in viatical settlement contracts;(C) potential impact on public benefits payments         to viatical settlement participants;(D) alternatives to viatical settlement         contracts; and(E) consumer suitability standards and guidelines.(3) The training required by this Section shall not     include training that is specific to or that includes any sales or marketing information, materials, or training of any company, other than those required by State or federal law.(c) Viatical settlement providers shall provide verification of training as follows:(1) Viatical settlement providers subject to this Act     shall obtain verification that a producer receives training required by subsection (a) of this Section before a producer is permitted to sell, solicit, or negotiate viatical settlement contracts. Viatical settlement providers shall maintain records for verification subject to the State's record retention requirements and make the verification available to the Director upon request.(2) Viatical settlement providers subject to this Act     shall maintain records with respect to the training of viatical settlement brokers with whom the provider contracts or otherwise engages in viatical settlement transactions. These records shall be maintained in accordance with the State's record retention requirements and shall be made available to the Director upon request.(d) The satisfaction of these training requirements in any state shall be deemed to satisfy the training requirements in this State.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/15)Sec. 15. License revocation for viatical settlement providers.(a) The Director may refuse to issue or renew or may suspend or revoke the license of any viatical settlement provider if the Director finds any of the following:(1) there was any material misrepresentation in the     application for the license;(2) the viatical settlement provider or any officer,     partner, member, or controlling person uses fraudulent or dishonest practices or is otherwise shown to be untrustworthy, incompetent, or financially irresponsible in this State or elsewhere;(3) the viatical settlement provider demonstrates a     pattern of unreasonable payments to viators;(4) the viatical settlement provider or any officer,     partner, member, or controlling person has violated any insurance laws or any rule, subpoena, or order of the Director or of another state's chief insurance regulatory official or is subject to a final administrative action brought by the Director or by the Illinois Secretary of State or by another state's chief insurance regulatory official or chief securities regulatory official;(5) the viatical settlement provider has used a     viatical settlement contract that has not been approved pursuant to this Act;(6) the viatical settlement provider has failed to     honor contractual obligations set out in a viatical settlement contract;(7) the viatical settlement provider no longer meets     the requirements for initial licensure;(8) the viatical settlement provider has assigned,     transferred, or pledged a purchased policy to a person other than a viatical settlement provider licensed in this State, a viatical settlement purchaser, a financing entity, a special purpose entity, or a related provider trust; or(9) the viatical settlement provider or any officer,     partner, member, or controlling person of the viatical settlement provider has violated any of the provisions of this Act.(b) If  the Director denies a viatical settlement provider license application or suspends, revokes, or refuses to renew the license of a viatical settlement provider, the Director shall notify the applicant or viatical settlement provider and advise, in writing, the applicant or viatical settlement provider of the reason for the suspension, revocation, denial, or nonrenewal of the applicant's or licensee's license.  The applicant or viatical settlement provider may make a written demand upon the Director within 30 days after the date of mailing for a hearing before the Director to determine the reasonableness of the Director's action.  The hearing must be held within not fewer than 20 days nor more than 30 days after the mailing of the notice of hearing and shall be held in accordance with the Illinois Administrative Procedure Act and 50 Ill. Adm. Code 2402.
(Source: P.A. 100-201, eff. 8-18-17.) (215 ILCS 159/17)Sec. 17. License revocation and denial for viatical settlement brokers. Insurance producers operating as viatical settlement brokers shall be subject to the license denial, nonrenewal, and revocation provisions established by Section 500-70 of the Illinois Insurance Code, in addition to any monetary or criminal penalties as may be appropriate.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/20)Sec. 20. Approval of viatical settlement contracts and disclosure statements. A person shall not use a viatical settlement contract form or provide to a viator a disclosure statement form in this State unless first filed with and approved by the Director. The Director shall disapprove a viatical settlement contract form or disclosure statement form if, in the Director's opinion, the contract or provisions contained therein fail to meet the requirements of this Act or are unreasonable, contrary to the interests of the public, or otherwise misleading or unfair to the viator. At the Director's discretion, the Director may require the submission of advertising material. If the Director disapproves a viatical settlement contract form or disclosure statement form, then the Director shall notify the viatical settlement provider and advise the viatical settlement provider, in writing, of the reason for the disapproval. The viatical settlement provider may make written demand upon the Director within 30 days after the date of mailing for a hearing before the Director to determine the reasonableness of the Director's action. The hearing must be held within not fewer than 20 days nor more than 30 days after the mailing of the notice of hearing and shall be held in accordance with the Illinois Administrative Procedure Act and 50 Ill. Admin. Code 2402.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/25)Sec. 25. Reporting requirements and privacy.(a) Each viatical settlement provider shall file with the
Director on or before March 1 of each year a copy of its
audited annual statement for the immediately preceding year ending
December 31. The Director may require newly licensed
entities to file annual statements for additional years. The
annual statement must be verified by 2 officers of the licensed entity on forms
prescribed by the Director. The forms prescribed by the
Director shall contain all information required by this Act
and shall conform substantially to the Viatical Settlement
Provider Reports adopted by the NAIC Viatical Settlements
Model Regulation, as amended. The approved annual statement
for a viatical settlement provider shall include all of the
following information:(1) A list of each life insurance policy, including     policy number, date of issue, unique internal identifier maintained by the viatical settlement provider and available upon examination, insurance company issuing the policy, date the viatical settlement contract is signed by viator, viatical settlement broker receiving compensation, and any premium finance companies, if known.(2) Addresses and contact information for those     persons listed in item (1) of this subsection (a).(3) A list of all life expectancy providers who have     directly or indirectly provided life expectancies to the viatical settlement provider for use in connection with a viatical settlement contract.(4) Any other information required by the Director.(b) The audited annual financial statement required by subsection (a) of this Section shall be completed by an independent certified public accountant along with a letter stating whether any significant deficiencies or material weaknesses were detected during the audit pursuant to the Auditing Standard Board's Statement on Auditing Standards Number 112, as amended or superseded.(c) A viatical settlement provider that willfully fails to file the annual statements required by this Section, or willfully fails to reply within 30 calendar days to a written inquiry from the Director or Director's designee, shall, in addition to other penalties provided by this Act, be subject to a penalty of up to $250 per day, not to exceed $25,000 in the aggregate for each such failure.(d) The Director shall keep confidential and not a matter of public record all individual transaction data regarding the business of viatical settlements and data that could compromise the privacy of personal, financial, and health information of the viator or the insured. All proprietary information received by
the Director from a viatical settlement provider pursuant to this
Section must be given confidential treatment, is not subject to
subpoena, and may not be made public by the Director or any other
persons.(e)  Except as otherwise allowed or required by law, a viatical settlement provider, viatical settlement broker, insurance company, insurance producer, information bureau, rating agency or company, or any other person with actual knowledge of the identity of an insured under a viatical
settlement contract shall not disclose the identity of the insured or the insured's financial or medical information to any other person unless the disclosure is:(1) necessary to effect a viatical settlement     contract between the viator and a viatical settlement provider and the viator or insured have provided prior written consent to the disclosure;(2) provided in response to an investigation or     examination by the Director or another governmental officer or agency or pursuant to the requirements of Section 65 of this Act;(3) a term of or condition to the transfer of a     policy by one viatical settlement provider to another viatical settlement provider;(4) necessary to permit a financing entity, related     provider trust, or special purpose entity to finance the purchase of policies by a viatical settlement provider and the viator and insured have provided prior written consent to the disclosure;(5) necessary to allow the viatical settlement     provider or the viatical settlement provider's authorized representatives to make contacts for the purpose of determining health status; or(6) required to purchase stop loss coverage or     financial guaranty insurance.(f) A viatical settlement investment agent shall not have any contact directly or indirectly with the viator or the insured or  have knowledge of the identity of the viator or the insured.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/30)Sec. 30. Examination or investigation.(a) The Director may when and as often as the Director deems it reasonably necessary to protect the interests of the public, examine the business affairs of any licensee.In scheduling and determining the nature, scope, and frequency of the examinations, the Director shall consider such matters as consumer complaints, results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, report of independent certified public accountants, and other relevant criteria as determined by the Director.(b) For purposes of completing an examination of a licensee under this Act, the Director may examine or investigate any person, or the business of any person, in so far as the examination or investigation is, in the sole discretion of the Director, necessary or material to the examination.(c) In lieu of an examination under this Act of any foreign licensee or alien licensee licensed in this State, the Director may, at the Director's discretion, accept an examination report on the licensee as prepared by the chief insurance regulatory official for the licensee's state of domicile or port-of-entry state.(d) As far as practical, the examination of a foreign licensee or alien licensee shall be made in cooperation with the insurance supervisory officials of other states in which the licensee transacts business.(e) Licensees shall for 5 years retain copies of:(1) all proposed, offered, or executed contracts,     purchase agreements, underwriting documents, policy forms, and applications from the date of the proposal, offer, or execution of the contract or purchase agreement, whichever is later;(2) all checks, drafts, or other evidence and     documentation related to the payment, transfer, deposit, or release of funds from the date of the transaction;(3) all other records and documents in any format     related to the requirements of this Act, including a record of complaints received against the licensee and agents representing the licensee and a list of all life expectancy providers that have provider services to the licensee.This subsection (e) does not relieve a person of the obligation to produce records required by this subsection to the Director after the retention period has expired if the person has retained the documents.Records required to be retained by this subsection (e) must be legible and complete and may be retained in paper, photograph, microprocessor, magnetic, mechanical, or electronic media, or by any process that accurately reproduces or forms a durable medium for the reproduction of a record.(f) Upon determining that an examination should be conducted, the Director shall appoint one or more examiners to perform the examination and instruct them as to the scope of the examination. The Director may employ any guidelines or procedures for purposes of this subsection (f) that the Director deems appropriate.Every licensee or person, including all officers, partners, members, directors, employees, controlling persons, and agents of any licensee or person, from whom information is sought shall provide to the examiners timely, convenient, and free access at all reasonable hours at the licensee's or person's offices to all books, records, accounts, papers, documents, assets, and computer or other recordings relating to the property, assets, business, and affairs of the licensee being examined. The officers, directors, employees, and agents of the licensee or person shall facilitate the examination and aid in the examination so far as it is in their power to do so. The refusal of a licensee by its officers, directors, employees, or agents to submit to examination or to comply with any reasonable written request of the Director shall be grounds for revocation, denial of issuance, or non-renewal of any license or authority held by the licensee to engage in the viatical settlement business or other business subject to the Director's jurisdiction.The Director shall have the power to issue subpoenas, to administer oaths, and to examine under oath any person as to any matter pertinent to the examination. Upon the failure or refusal of a person to obey a subpoena, the Director may petition a court of competent jurisdiction, and upon proper showing, the court may enter an order compelling the witness to appear and testify or produce documentary evidence. Failure to obey the court order shall be punishable as contempt of court. Subpoenas may be enforced pursuant to Section 403 of the Illinois Insurance Code.When making an examination under this Act, the Director may retain attorneys, appraisers, independent actuaries, independent certified public accountants, or other professionals and specialists as examiners, the reasonable cost of which shall be borne by the licensee that is the subject of the examination.(g) Nothing contained in this Act limits the Director's authority to terminate or suspend an examination in order to pursue other legal or regulatory action pursuant to the insurance laws of this State. Findings of fact and conclusions made pursuant to any examination shall be prima facie evidence in any legal or regulatory action.(h) Nothing contained in this Act shall be construed to limit the Director's authority to use and, if appropriate, to make public any final or preliminary examination report, any examiner or licensee workpapers or other documents, or any other information discovered or developed during the course of any examination in the furtherance of any legal or regulatory action that the Director may, in the Director's discretion, deem appropriate.(i) No later than 60 days following completion of the examination, the examiner in charge shall file with the Director a verified written report of examination under oath. Upon receipt of the verified report, the Director shall transmit the report to the licensee examined.(j) Examination reports shall be comprised only of facts appearing upon the books, records, or other documents of the licensee, its agents, or other persons examined, or as ascertained from the testimony of its officers or agents or other persons examined concerning its affairs and the conclusions and recommendations that the examiners find reasonably warranted from the facts.(k) The licensee may request a hearing within 10 days after receipt of the examination report by giving the Director written notice of that request, together with a statement of its objections.  The Director then must conduct a hearing in conjunction with Sections 402 and 403 of the Illinois Insurance Code.  The Director must issue a written order based upon the examination report and upon the hearing within 90 days after the report is filed or within 90 days after the hearing. After the hearing, the Director may make such order or orders as may be reasonably necessary to correct, eliminate, or remedy unlawful conduct.(l) If the Director determines that regulatory action is appropriate as a result of an examination, the Director may initiate any proceedings or actions provided by law.(m) Names and individual identification data for all viators in the
possession and control of the Director shall be considered private
and confidential and shall not be disclosed by the Director unless
required by law.Except as otherwise provided in this Act, all examination reports, working papers, recorded information, documents, and copies thereof produced by, obtained by or disclosed to the Director or any other person in the course of an examination made under this Act or the law of another state or jurisdiction that is substantially similar to this Act, or in the course of analysis or investigation by the Director of the financial condition or market conduct of a licensee are
           (i) confidential by law and privileged,
         (ii) not subject to the Freedom of Information Act,
         (iii) not subject to subpoena, and
(iv) not subject to discovery or admissible in evidence in any private civil action.The Director is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as part of the Director's official duties.Documents, materials, or other information, including, but not limited to, all working papers and copies thereof, in the possession or control of the NAIC and its affiliates and subsidiaries are:(1) confidential by law and privileged;(2) not subject to subpoena; and(3) not subject to discovery or admissible in     evidence in any private civil action if they are:(A) created, produced or obtained by, or         disclosed to the NAIC and its affiliates and subsidiaries in the course of assisting an examination made under this Act or assisting the Director or the chief insurance regulatory official in another state in the analysis or investigation of the financial condition or market conduct of a licensee; or(B) disclosed under this subsection (m) by the         Director or disclosed under a comparable provision in law of another state by that state's chief insurance regulatory official to the NAIC and its affiliates and subsidiaries.Neither the Director nor any person that received the documents, material, or other information while acting under the authority of the Director, including the NAIC and its affiliates and subsidiaries, shall be permitted to testify in any private civil action concerning any confidential documents, materials, or information subject to this subsection (m).(n) In order to assist in the performance of the Director's duties, the Director may:(1) share documents, materials, or other information,     including the confidential and privileged documents, materials, or information subject to subsection (m) of this Section, with other state, federal, and international regulatory agencies, with the NAIC and its affiliates and subsidiaries, and with state, federal, and international law enforcement authorities, provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, communication, or other information;(2) receive documents, materials, communications, or     information, including otherwise confidential and privileged documents, materials, or information, from the NAIC and its affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and(3) enter into agreements governing sharing and use     of information consistent with this Section.(o) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the Director under this Section or as a result of sharing as authorized in subsection (n) of this Section.(p) A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this Section shall be available and enforced in any proceeding in, and in any court of, this State.(q) Nothing contained in this Act prevents or prohibits the Director from disclosing the content of an examination report, preliminary examination report or results, or any matter relating to those reports or results, to the chief insurance regulatory official of any other state or country, or to law enforcement officials of this or any other state or agency of the federal government at any time or to the NAIC, if the agency or office receiving the report or matters relating to it agrees in writing to hold it confidential and in a manner consistent with this Act.(r) The expenses incurred in conducting an examination shall be paid by the licensee.(s) No cause of action shall arise nor shall any liability be imposed against the Director, the Director's authorized representatives, or any examiner appointed by the Director for any statements made or conduct performed in good faith while carrying out the provisions of this Act.No cause of action shall arise, nor shall any liability be imposed against any person for the act of communicating or delivering information or data to the Director or the Director's authorized representative or examiner pursuant to an examination made under this Section, if the act of communication or delivery was performed in good faith and without fraudulent intent or the intent to deceive. This subsection (s) does not abrogate or modify in any way any common law or statutory privilege or immunity heretofore enjoyed by any person identified in this subsection (s).A person identified in this subsection (s) shall be entitled to an award of attorney's fees and costs if he or she is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of this Section and the party bringing the action was not substantially justified in doing so. For purposes of this Section, a proceeding is "substantially justified" if it had a reasonable basis in law or fact at the time that it was initiated.(t)
The Director may investigate suspected viatical settlement fraud and persons engaged in the business of viatical settlements.

(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/35)Sec. 35. Disclosure to viator.(a) With each application for a viatical settlement contract, a viatical settlement provider or viatical settlement broker shall provide the viator with at least the following disclosures no later than the time the viatical settlement contract is signed by all parties. The disclosures shall include distribution of a brochure describing the process of viatical settlements. The NAIC form for the brochure shall be used unless another form is developed or approved by the Director. Other disclosures required by this subsection (a) shall be provided in a separate document that is signed by the viator and the viatical settlement provider or viatical settlement broker and shall provide the following information:(1) If a viator enters into a viatical settlement     contract, then the beneficiaries of the life insurance policy lose the life insurance policy's benefits, equity, and protection. In addition, by entering into this viatical settlement contract, the insured may not qualify for another life insurance policy or may be required to pay substantially higher premiums.(2) That there are possible alternatives to viatical     settlement contracts including any accelerated death benefits or policy loans offered under the viator's life insurance policy.(3)  That a viatical settlement broker represents     only the viator and not the insurer or the viatical settlement provider and owes a fiduciary duty to the viator, including a duty to act according to the viator's instructions and in the best interest of the viator.(4) That some or all of the proceeds of the viatical     settlement may be taxable under federal income tax and state franchise and income taxes, and assistance may be sought from a professional tax advisor.(5) That proceeds of the viatical settlement contract     may be subject to the claims of creditors.(6) That receipt of the proceeds of a viatical     settlement may adversely affect the viator's eligibility for Medicaid or other government benefits or entitlements and advice should be obtained from the appropriate government agencies.(7) That the viator has the right to rescind a     viatical settlement contract before the earlier of 30 calendar days after the date upon which the viatical settlement contract is executed by all parties or 15 calendar days after the viatical settlement proceeds have been paid to the viator. Rescission, if exercised by the viator, is effective only if both notice of the rescission is given and the viator repays all proceeds and any premiums, loans, and loan interest paid on the account of the viatical settlement within the rescission period. If the insured dies during the rescission period, the viatical settlement contract is deemed to have been rescinded, subject to repayment by the viator or the viator's estate to the viatical settlement provider of all viatical settlement proceeds and any premiums, loans, and loan interest paid on the account of the viatical settlement within 60 days after the insured's death.(8) That funds must be sent to the viator within 3     business days after the viatical settlement provider has received the insurer or group administrator's written acknowledgment that ownership of the policy has been transferred and the beneficiary has been designated.(9) That entering into a viatical settlement contract     may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy, to be forfeited by the viator. Assistance should be sought from a financial adviser.(10) That the disclosure document must contain the     following language: "A viatical settlement provider or viatical settlement broker may ask the insured for medical, financial, and personal information. All medical, financial, or personal information solicited or obtained by a viatical settlement provider or viatical settlement broker about an insured, including the insured's identity or the identity of the insured's family members, the insured's spouse or the insured's significant other, may be disclosed as necessary to effect the viatical settlement between the viator and the viatical settlement provider. If you are asked to provide this information, you will be asked to consent to the disclosure. The information may be provided to someone who buys the policy or provides funds for the purchase. You may be asked to renew your permission to share information every 2 years."(11) That, following execution of a viatical     settlement contract, the insured may be contacted for the purpose of determining the insured's health status and to confirm the insured's residential or business street address and telephone number, or for other purposes permitted by law. This contact is limited to once every 3 months if the insured has a life expectancy of more than one year, and no more than once each month if the insured has a life expectancy of one year or less. All such contacts shall be made only by a viatical settlement provider licensed in the state in which the viator resided at the time of the viatical settlement, or by the authorized representative of a duly licensed viatical settlement provider.(12) If the policy to be viaticated is group     coverage, the insured is advised to check with the manager of the group about whether permission is required to sell the policy or other conditions.(13) Entering into a viatical settlement contract     will result in investors having a financial interest in the insured's death.(b) With each application for a viatical settlement, a viatical settlement provider or viatical settlement broker shall provide the prospective viator with a document titled "Important Consumer Notices".  The document must be provided to the prospective viator and contain, in conspicuous type size and format, the following:"By entering into a viatical settlement contract:(1) You are making a complex financial decision that     may or may not be in your or your family's financial best interest.  Seek independent advice from financial planning experts and responsible government agencies.(2) You may not be able to purchase another life     insurance policy.(3) You could lose Medicaid and other valuable     government benefits.(4) You will receive proceeds that may be subject     federal and state taxes and to the claims of creditors.(5) You  have sold your life insurance policy to     strangers who have a financial interest in the life and death of the person whose life is insured by the policy.(6) You or your residence may be contacted on a     regular basis to determine if you have died or if your health status has deteriorated.".The disclosure document required by this subsection (b) shall be the cover page of the viatical settlement contract and shall be signed by the viator and the viatical settlement provider or viatical settlement broker.  The viator and viatical settlement provider or viatical settlement broker shall sign the disclosure prior to signing the viatical settlement contract.  A copy of the signed document must be provided to the viator.(c) A viatical settlement provider shall provide the viator with at least the following disclosures no later than the date the viatical settlement contract is signed by all parties. The disclosures must be displayed conspicuously in the viatical settlement contract or in a separate document signed by the viator and the viatical settlement provider, and provide the following information:(1) The affiliation, if any, between the viatical     settlement provider and the issuer of the policy to be acquired pursuant to a viatical settlement contract.(2) The name, business address, and telephone number     of the viatical settlement provider.(3) Whether any affiliations or contractual     arrangements exist between the viatical settlement provider and the viatical settlement purchaser.(4) If a policy to be acquired pursuant to a viatical     settlement contract has been issued as a joint policy or involves family riders or any coverage of a life other than the insured under the policy to be acquired pursuant to a viatical settlement contract, the viator must be informed of the possible loss of coverage on the other lives under the policy and must be advised to consult with the viator's insurance producer or the company issuing the policy for advice on the proposed viatical settlement contract.(5) The dollar amount of the current death benefit     payable to the viatical settlement provider under the policy. If known, the viatical settlement provider also shall disclose the availability of additional guaranteed insurance benefits, the dollar amount of accidental death and dismemberment benefits under the policy or certificate, and the extent to which the viator's interest in those benefits will be transferred as a result of the viator's settlement contract.(6) The name, business address, and telephone number     of the escrow agent, and that the viator may inspect or receive copies of the relevant escrow or trust agreements or documents. Also, that an escrow agent shall provide escrow services to the parties pursuant to a written agreement signed by the viatical settlement provider, the escrow agent, and the viator. At the close of escrow, the escrow agent must distribute the proceeds of the sale to the viator, minus any compensation to be paid to any other persons who provided services and to whom the viator has agreed to compensate out of the gross amount offered by the viatical settlement purchaser. All persons receiving any form of compensation under the escrow agreement shall be clearly identified, including name, business address, telephone number, and tax identification number.(d) A viatical settlement broker shall provide the viator with at least the following disclosures no later than the date the viatical settlement contract is signed by all parties. The disclosures shall be conspicuously displayed in the viatical settlement contract or in a separate document signed by the viator and provide the following information:(1) the name, business address, and telephone number     of the viatical settlement broker;(2) a full, complete, and accurate description of all     offers, counteroffers, acceptances, and rejections relating to the proposed viatical settlement contract;(3) any affiliations or contractual arrangements     between the viatical settlement broker and any person making an offer in connection with the proposed viatical settlement contracts;(4) the amount and method of calculating the broker's     compensation, which term "compensation" includes anything of value paid or given to a proposed settlement broker in connection with the  proposed viatical settlement contract;(5) if any portion of the viatical settlement     broker's compensation, as defined in paragraph (3) of this subsection (c), is taken from a proposed viatical settlement offer, the broker shall disclose the total amount of the viatical settlement offer and the percentage of the viatical settlement offer comprised by the viatical settlement broker's compensation; and(6) the name of the legal owner and beneficiary of     the insurance policy after the policy is sold pursuant to the viatical settlement contract and whether legal ownership of the policy and the beneficiary's right to collect benefits upon the viator's death can be sold.(e) If the viatical settlement provider transfers ownership
or changes the beneficiary of the insurance policy, then  the provider
shall communicate in writing the change in ownership or beneficiary
to the insured within 20 days after the change.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/40)Sec. 40. Disclosure to insurer. Prior to the initiation of a plan, transaction, or series of  transactions a viatical settlement broker or viatical settlement provider shall fully disclose to an insurer a plan, transaction, or series of transactions to which the viatical settlement broker or viatical settlement provider is a party to originate, renew, continue, or finance a life insurance policy with the insurer for the purpose of engaging in the business of viatical settlements at any time prior to or during the first 2 years after issuance of the policy. The viatical settlement provider, viatical settlement broker, viator, or applicant for a policy  shall, when requested, disclose that the prospective insured has undergone a life expectancy evaluation in connection with the issuance of a policy by a person or entity other than the insurer or its authorized representative. Any disclosure required under this Section must be made in writing.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/45)Sec. 45. General rules.(a)  A viatical settlement provider entering into a viatical settlement contract shall first obtain:(1) if the viator is the insured, a written statement     from a licensed attending physician that the viator is of sound mind and under no constraint or undue influence to enter into a viatical settlement contract; as used in this item (1), "physician" means a person licensed under the Medical Practice Act of 1987 to practice medicine and surgery or osteopathic medicine and surgery in all its branches; and(2) a document in which the insured consents in     writing to the release of his or her medical records to a licensed viatical settlement provider, viatical settlement broker, and the insurance company that issued the life insurance policy covering the life of the insured.(b) Within 20 days after a viator executes documents necessary to transfer any rights under an insurance policy or within 20 days after entering any agreement, option, promise, or any other form of understanding, expressed or implied, to viaticate the policy, the viatical settlement provider shall give written notice to the insurer that issued that insurance policy that the policy has or will become a viaticated policy. The notice shall be accompanied by the documents required by subsection (c) of this Section.(c) The viatical provider shall deliver a copy of the medical release required under paragraph (2) of subsection (a) of this Section, a copy of the viator's application for the viatical settlement contract, the notice required under subsection (b) of this Section and a request for verification of coverage to the insurer that issued the life insurance policy that is the subject of the viatical settlement transaction. The viatical settlement provider shall use the NAIC's form for verification of coverage unless another form is developed and approved by the Director.(d) Prior to or at the time of execution of the viatical settlement contract, the viatical settlement provider shall obtain a witnessed document in which the viator consents to the viatical settlement contract, represents that the viator has a full and complete understanding of the viatical settlement contract, that he or she has a full and complete understanding of the benefits of the life insurance policy, acknowledges that he or she is entering into the viatical settlement contract freely and voluntarily and, for persons with a terminal or chronic illness or condition, acknowledges that the insured has a terminal or chronic illness and that the terminal or chronic illness or condition was diagnosed after the life insurance policy was issued.(e) If a viatical settlement broker performs any of the activities required of a viatical settlement provider as described by subsection (a) through (d) of this Section, then the viatical settlement provider is deemed to have fulfilled that requirement.(f) The insurer shall respond to a request for verification of coverage submitted on an approved form by a viatical settlement provider or viatical settlement broker within 30 calendar days after the date the request is received and shall indicate whether, based on the medical evidence and documents provided, the insurer intends to pursue an investigation at this time regarding the validity of the insurance contract or possible fraud. The insurer shall accept a request for verification of coverage made on an NAIC form or any other form approved by the Director. The insurer shall accept an original or facsimile or electronic copy of such request and any accompanying authorization signed by the viator. Failure by the insurer to meet its obligations under this subsection shall be a violation of subsection (b) of Section 50 and Section 75 of this Act.(g) All medical information solicited or obtained by any licensee shall be subject to the applicable provisions of state law relating to confidentiality of medical information.(h) All viatical settlement contracts entered into in this State shall provide the viator with an absolute right to rescind the contract before the earlier of 30 calendar days after the date upon which the viatical settlement contract is executed by all parties or 15 calendar days after the viatical settlement proceeds have been sent to the viator as provided in Section 45. Rescission by the viator may be conditioned upon the viator both giving notice and repaying to the viatical settlement provider within the rescission period all proceeds of the settlement and any premiums, loans and loan interest paid by or on behalf of the viatical settlement provider in connection with or as a consequence of the viatical settlement. If the insured dies during the rescission period, the viatical settlement contract shall be deemed to have been rescinded, subject to repayment to the viatical settlement provider or purchaser of all viatical settlement proceeds, and any premiums, loans, and loan interest that have been paid by the viatical settlement provider or  viatical settlement purchaser, which shall be paid within 60 calendar days of the death of the insured. In the event of any rescission, if the viatical settlement provider has paid commissions or other compensation to a viatical settlement broker in connection with the rescinded transaction, the viatical settlement broker shall refund all such commissions and compensation to the viatical settlement provider within 5 business days following receipt of written demand from the viatical settlement provider, which demand shall be accompanied by either the viator's notice of rescission if rescinded at the election of the viator, or notice of the death of the insured if rescinded by reason of the death of the insured within the applicable rescission period.(i) If a viatical settlement contract is rescinded by the viator pursuant to this Section, then ownership of the insurance policy reverts to the viator or to the viator's estate.(j) The viatical settlement provider shall instruct the viator to send the executed documents required to effect the change in ownership, assignment, or change in beneficiary directly to the escrow agent. Within 3 business days after the date the escrow agent receives the document (or from the date the viatical settlement provider receives the documents, if the viator erroneously provides the documents directly to the viatical settlement provider), the viatical settlement provider shall pay or transfer the gross amount paid by the viatical settlement purchaser to the escrow agent for deposit in a trust account and set up for that purpose by the escrow agent in a state or federally chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). Upon payment of the settlement proceeds into the escrow or trust account, the escrow agent or trustee shall deliver the original change in ownership, assignment, or change in beneficiary forms to the viatical settlement provider, a representative of the viatical settlement provider, or related provider trust. Upon the escrow agent's receipt of the acknowledgment of the properly completed transfer of ownership, assignment, or designation of beneficiary from the insurance company, the escrow agent shall pay the settlement proceeds to the viator. Funds shall be deemed sent by a viatical settlement provider to a viator as of the date that the escrow agent either releases the funds for wire transfer to the viator or places a check for delivery to the viator via United States Postal Service or other nationally recognized delivery service.(k) Failure to transfer the proceeds to the viator for the viatical settlement contract within the time set forth in the disclosure pursuant to item (7) of subsection (a) of Section 35 of this Act renders the viatical settlement contract voidable by the viator for lack of consideration until the time consideration is tendered to and accepted by the viator. If a viatical settlement contract is voided by the viator pursuant to this subsection (k), then ownership of the policy reverts to the viator or to the viator's estate.(l) After the viatical settlement contract has been
effected, contacts with the insured for the purpose of
determining the health status of the insured shall be made
only by the viatical settlement provider or the authorized representative of the viatical
settlement provider. The
viatical settlement provider or
authorized representative shall not contact the insured with
the purpose of determining the insured's health status more
than once every 3 months if the insured has a life
expectancy of more than one year or more than once per month
if the insured has a life expectancy of one year or less. The
viatical settlement provider shall explain the procedure for making these contacts
at the time the viatical settlement contract is entered into.
For purposes of this Section, viatical settlement providers
are responsible for the
actions of their authorized representatives.(m) The insurer that issued the policy being settled pursuant to a viatical settlement contract shall not be responsible for any act or omission of a viatical settlement broker or viatical settlement provider arising out of or in connection with the viatical settlement transaction, unless the insurer receives compensation for the placement of a viatical settlement contract from the viatical settlement provider or viatical settlement broker in connection with the viatical settlement contract.(n) If there is more than one viator on a single policy and the viators are residents of different states, then the transaction shall be governed by the law of the state in which the viator having the largest percentage ownership resides or, if the viators hold equal ownership, the state of residence of one viator agreed upon in writing by all the viators.Subject to the provisions of this subsection (n), if the viator is a resident of this State, then all agreements to be signed by the viator shall provide exclusive jurisdiction to courts of this State and the laws of this State shall govern the agreements. Nothing in the agreements shall abrogate the viator's right to a trial by jury.(o) Notwithstanding the manner in which the viatical settlement broker is compensated, a viatical settlement broker is deemed to represent only the viator and not the insurer or the viatical settlement provider and owes a fiduciary duty to the viator to act according to the viator's instructions and in the best interest of the viator.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/50)Sec. 50. Prohibited practices.(a) It is a violation of this Act for any person to enter into a viatical settlement contract prior to the application of or issuance of a policy that is the subject of the viatical settlement contract. It is a violation of this Act for any person to enter into stranger-originated life insurance or STOLI as defined by this Act.(b) It is a violation of this Act for any person to enter into a viatical
settlement contract within a 2-year period commencing with the date of issuance of the insurance policy unless the viator certifies to the viatical settlement provider that one or more of the following conditions have been met within the 2-year period:(1) The policy was issued upon the viator's exercise     of conversion rights arising out of a group or individual policy, provided the total of the time covered under the conversion policy plus the time covered under the prior policy is at least 24 months. The time covered under a group policy shall be calculated without regard to any change in insurance carriers, provided the coverage has been continuous and under the same group sponsorship.(2) The viator certifies and submits independent     evidence to the viatical settlement provider that one or more of the following conditions have been met within the 2-year period:(A) the viator or insured is terminally or         chronically ill;(B) the viator's spouse dies;(C) the viator divorces his or her spouse;(D) the viator retires from full-time employment;(E) the viator becomes a person with a physical         or mental disability and a physician determines that the disability prevents the viator from maintaining full-time employment;(F) a court of competent jurisdiction enters a         final order, judgment, or decree on the application of a creditor of the viator, adjudicating the viator bankrupt or insolvent, or approving a petition seeking reorganization of the viator or appointing a receiver, trustee, or liquidator to all or a substantial part of the viator's assets;(G) the sole beneficiary of the policy is a         family member of the viator and the beneficiary dies; or(H) any other condition that the Director may         determine by regulation to be an extraordinary circumstance for the viator or the insured.(c) Copies of the independent evidence described in paragraph (2) of subsection (b) of this Section and documents required by Section 45 shall be submitted to the insurer when the viatical settlement provider or any other party entering into a viatical settlement contract with a viator submits a request to the insurer for verification of coverage. The copies shall be accompanied by a letter of attestation from the viatical settlement provider that the copies are true and correct copies of the documents received by the viatical settlement provider.(d) If the viatical settlement provider submits to the insurer a copy of the owner or insured's certification described in and the independent evidence required by paragraph (2) of subsection (b) of this Section when the viatical settlement provider submits a request to the insurer to effect the transfer of the policy to the viatical settlement provider, then the copy shall be deemed to conclusively establish that the viatical settlement contract satisfies the requirements of this Section, and the insurer shall timely respond to the request.(e) No insurer may, as a condition of responding to a request for verification of coverage or effecting the transfer of a policy pursuant to a viatical settlement contract, require that the viator, insured, viatical settlement provider, or viatical settlement broker sign any forms, disclosures, consent, or waiver form that has not been expressly approved by the Director for use in connection with viatical settlement contracts in this State.(f) Upon receipt of a properly completed request for change of ownership or beneficiary of a policy, the insurer shall respond in writing within 30 calendar days to confirm that the change has been effected or specifying the reasons why the requested change cannot be processed. No insurer shall unreasonably delay effecting change of ownership or beneficiary or seek to interfere with any viatical settlement contract lawfully entered into in this State.
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 159/55)Sec. 55. Prohibited practices and conflicts of interest.(a) With respect to any viatical settlement contract or insurance policy, no viatical settlement broker knowingly shall solicit an offer from, effectuate a viatical settlement with, or make a sale to any viatical settlement provider, viatical settlement purchaser, financing entity, or related provider that is controlling, controlled by, or under common control with such viatical settlement broker, unless such relationship is fully disclosed to the viator.(b) With respect to any viatical settlement contract or insurance policy, no viatical settlement provider knowingly may enter into a viatical settlement contract with a viator, if, in connection with such viatical settlement contract, anything of value will be paid to a viatical settlement broker that is controlling, controlled by, or under common control with such viatical settlement provider or the viatical settlement purchaser, financing entity, or related provider trust that is involved in such viatical settlement contract, unless such relationship is fully disclosed to the viator.(c) Any disclosure provided pursuant to subsections (a) and (b) of
this Section must be provided along with the disclosures required by
subsection (a) of Section 35 and contain the following language:
"The financial relationship between your viatical settlement broker
and the provider of the viatical settlement creates a potential
conflict of interest between your financial interests and the
financial interests of the viatical settlement broker and viatical
settlement provider. The individual brokering this viatical
transaction owes you a fiduciary duty or a duty of loyalty. Your
viatical settlement broker must advise you based exclusively upon
your best interests, not the best interests of the viatical
settlement broker or the viatical settlement provider.".(d) A violation of subsection (a), subsection (b), or subsection (c) shall be deemed viatical settlement fraud.(e) No person shall issue, solicit, or  market the purchase of an insurance policy for the purpose of
settling the policy. Nothing in this subsection (e) shall prohibit
persons from using and discussing the written materials that
the Director shall approve prior to the effective date of this
Act and that inform consumers of their rights with respect to
a life insurance policy, including the option of entering into
a lawful viatical settlement contract. Nothing in this subsection (e) limits or otherwise impairs the terms of a contract between an insurer and its producers.(f) A viatical settlement provider shall retain all copies of a viatical settlement promotional, advertising, and marketing materials and shall make these material available to the Director on request. In no event shall any marketing materials expressly reference that the insurance is "free" for any period of time. The inclusion of any reference in the marketing materials that would cause a viator to reasonably believe that the insurance is free for any period of time shall be considered a violation of this Act.(g) No insurance producer, insurance company, viatical settlement broker, or viatical settlement provider shall make any statement or representation to a potential or actual insured or potential or actual viator in connection with the sale or financing of a life insurance policy to the effect that the insurance is free or without cost to the policyholder for any period of time unless provided in the policy.

(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/60)Sec. 60. Advertising for viatical settlements.(a) The purpose of this Section is to provide prospective viators with clear and unambiguous statements in the advertisement of viatical settlements and to assure the clear, truthful, and adequate disclosure of the benefits, risks, limitations, and exclusions of any viatical settlement contract. All product descriptions must be presented in a manner that prevents unfair, deceptive, or misleading advertising and conducive to accurate presentation and description of viatical settlements through the advertising media and material used by licensees.(b) This Section applies to any advertising of viatical settlement contracts or related products or services circulated or placed directly before the public, including Internet advertising. Where disclosure requirements are established pursuant to federal regulation, this Section shall be interpreted so as to minimize or eliminate conflict with federal regulation wherever possible.(c) Every licensee shall establish and at all times maintain a system of control over the content, form, and method of dissemination of all advertisements of its contracts, products, and services. All advertisements, regardless of by whom written, created, designed, or presented, shall be the responsibility of the licensee, as well as the individual who created or presented the advertisement. A system of control shall include regular routine notification, at least once a year, to agents and others authorized by the licensee who disseminate advertisements of the requirements and procedures for approval prior to the use of any advertisements not furnished by the licensee.(d) Advertisements shall be truthful and not misleading in fact or by implication. The form and content of an advertisement of a viatical settlement contract product or service shall be sufficiently complete and clear so as to avoid deception. It shall not have the capacity or tendency to mislead or deceive. Whether an advertisement has the capacity or tendency to mislead or deceive shall be determined by the Director from the overall impression that the advertisement may be reasonably expected to create upon a person of average education or intelligence within the segment of the public to which it is directed.(e) The information required to be disclosed under this Section shall not be minimized, rendered obscure, or presented in an ambiguous fashion or intermingled with the text of the advertisement so as to be confusing or misleading.An advertisement shall not omit material information or use words, phrases, statements, references, or illustrations if the omission or use has the capacity, tendency, or effect of misleading or deceiving viators as to the nature or extent of any benefit, loss covered, premium payable, or state or federal tax consequence. The fact that the viatical settlement contract offered is made available for inspection prior to consummation of the sale, or an offer is made to refund the payment if the viator is not satisfied or that the viatical settlement contract includes a "free look" period that satisfies or exceeds legal requirements, does not remedy misleading statements.An advertisement shall not use the name or title of an insurance company or an insurance policy unless the advertisement has been approved by the insurer.An advertisement shall not state or imply that interest charged on an accelerated death benefit or a policy loan is unfair, inequitable, or in any manner an incorrect or improper practice.The words "free", "no cost", "without cost", "no additional cost", "at no extra cost", or words of similar import shall not be used with respect to any life insurance policy or to any benefit or service unless true. An advertisement may specify the charge for a benefit or a service or may state that a charge is included in the payment or use other appropriate language.Testimonials, appraisals, or analysis used in advertisements must be genuine; represent the current opinion of the author; be applicable to the viatical settlement contract, product, or service advertised, if any; and be accurately reproduced with sufficient completeness to avoid misleading or deceiving prospective viators as to the nature or scope of the testimonials, appraisal, analysis, or endorsement. In using testimonials, appraisals, or analyses, a licensee under this Act makes as its own all the statements contained therein, and the statements are subject to all the provisions of this Section.If the individual making a testimonial, appraisal, analysis, or endorsement has a financial interest in the subject of the testimonial, appraisal, analysis, or endorsement, either directly or indirectly as a stockholder, director, officer, employee, or otherwise, or receives any benefit directly or indirectly other than required union scale wages, that fact shall be prominently disclosed in the advertisement.An advertisement shall not state or imply that a viatical settlement contract, benefit, or service has been approved or endorsed by a group of individuals, society, association, or other organization unless that is the fact and unless any relationship between the group of individuals, society, association, or organization and the licensee is disclosed. If the entity making the endorsement or testimonial is owned, controlled, or managed by the licensee, or receives any payment or other consideration from the viatical settlement licensee for making an endorsement or testimonial, that fact shall be prominently disclosed in the advertisement.When an endorsement refers to benefits received under a viatical settlement contract all pertinent information shall be retained for a period of 5 years after its use.(f) An advertisement shall not contain statistical information unless the information accurately reflects recent and relevant facts. The source of all statistics used in an advertisement shall be identified.(g) An advertisement shall not disparage insurers, viatical settlement providers, viatical settlement brokers,  insurance producers, policies, services, or methods of marketing.(h) The name of the licensee shall be clearly identified in all advertisements about the licensee or its viatical settlement contract,  products, or services, and if any specific viatical settlement contract is advertised, the viatical settlement contract shall be identified either by form number or some other appropriate description. If an application is part of the advertisement, the name of the viatical settlement provider or providers shall be shown on the application.(i) An advertisement shall not use a trade name, group designation, name of the parent company of a  licensee, name of a particular division of the licensee, service mark, slogan, symbol, or other device or reference without disclosing the name of the licensee, if the advertisement would have the capacity or tendency to mislead or deceive as to the true identity of the licensee, or to create the impression that a company other than the licensee would have any responsibility for the financial obligation under a viatical settlement contract.(j) An advertisement shall not use any combination of words, symbols, or physical materials that by their content, phraseology, shape, color, or other characteristics are so similar to a combination of words, symbols, or physical materials used by a government program or agency or otherwise appear to be of such a nature that they tend to mislead prospective viators into believing that the solicitation is in some manner connected with a government program or agency.(k) An advertisement may state that a licensee is licensed in the state where the advertisement appears, provided it does not exaggerate that fact or suggest or imply that competing licensees may not be so licensed. The advertisement may ask the audience to consult the licensee's Internet website or contact the Division to find out if the state requires licensing and, if so, whether the viatical settlement provider, or viatical settlement broker, is licensed.(l) An advertisement shall not create the impression that the viatical settlement provider, its financial condition or status, the payment of its claims or the merits, desirability, or advisability of its viatical settlement contracts are recommended or endorsed by any government entity.(m) The name of the actual licensee shall be stated in all of a licensee's advertisements. An advertisement shall not use a trade name, any group designation, name of any affiliate or controlling entity of the licensee, service mark, slogan, symbol, or other device in a manner that would have the capacity or tendency to mislead or deceive as to the true identity of the actual licensee or create the false impression that an affiliate or controlling entity would have any responsibility for the financial obligation of the licensee.(n) An advertisement shall not directly or indirectly create the impression that any division or agency of the State or of the U. S. government endorses, approves, or favors:(1) any licensee or its business practices or methods     of operation;(2) any viatical settlement contract; or(3) any life insurance policy or life insurance     company.(o) If the advertiser emphasizes the speed with which the viatication will occur, the advertising must disclose the average time frame from completed application to the date of offer and from acceptance of the offer to receipt of the funds by the viator.(p) If the advertising emphasizes the dollar amounts available to viators, the advertising shall disclose, using the same type and font size as the dollar amount available to the viator, the average purchase price as a percent of face value obtained by viators contracting with the licensee during the past 6 months.

(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/65)Sec. 65. Fraud prevention and control.(a) A person shall not commit the offense of viatical settlement fraud.A person shall not knowingly or intentionally interfere with the enforcement of the provisions of this Act or investigations of suspected or actual violations of this Act.A person in the business of viatical settlements shall not knowingly or intentionally permit any person convicted of a felony involving dishonesty or breach of trust to participate in the business of viatical settlements.(b) Viatical settlements contracts and applications for viatical settlements, regardless of the form of transmission, shall contain the following statement:

"Any person who knowingly presents false information in an application for insurance or a viatical settlement contract is guilty of a crime and may be subject to fines and confinement in prison.".The lack of a statement as required in this subsection (b) does not constitute a defense in any prosecution for the offense of viatical settlement fraud.(c) Any person engaged in the business of viatical settlements having knowledge or a reasonable suspicion that  a viatical settlement fraud is being, will be, or has been committed shall provide to the Director such information as required by, and in a manner prescribed by, the Director.Any other person having knowledge or a reasonable belief that viatical settlement fraud is being, will be, or has been committed may provide to the Director the information required by, and in a manner prescribed by, the Director.(d) No civil liability shall be imposed on and no cause of action shall arise from a person's furnishing information concerning suspected, anticipated, or completed viatical settlement fraud or suspected or completed fraudulent insurance acts, if the information is provided to or received from:(1) the Director or the Director's employees, agents,     or representatives;(2) federal, State, or local law enforcement or     regulatory officials or their employees, agents, or representatives;(3) a person involved in the prevention and detection     of viatical settlement fraud or that person's agents, employees, or representatives;(4) the NAIC, the National Association of Securities     Dealers (NASD), the North American Securities Administrators Association (NASAA), or their employees, agents, or representatives, or other regulatory body overseeing life insurance, viatical settlements, securities, or investment fraud; or(5) the life insurer that issued the life insurance     policy covering the life of the insured.(e) The immunity provided by subsection (d) of this Section shall not apply to false statements made willfully or wantonly. In an action brought against a person for filing a report or furnishing other information concerning viatical settlement fraud, the party bringing the action shall plead specifically any allegation that subsection (d)  does not apply.(f) A person furnishing information as identified in subsection (d) of this Section  shall be entitled to an award of attorney's fees and costs if the person is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of this Act and the party bringing the action was not substantially justified in doing so. For purposes of this Section a proceeding is substantially justified if it had a reasonable basis in law or fact at the time that it was initiated. However, such an award does not apply to any person furnishing information concerning the person's own fraudulent viatical settlement acts.(g) This Section does not abrogate or modify common law or statutory privileges or immunities enjoyed by a person described in subsection (d) of this Section.Subsection (d) of this Section does not apply to a person furnishing information concerning that person's own suspected, anticipated, or completed viatical settlement fraud or suspected, anticipated, or completed fraudulent insurance acts.(h) The documents and evidence provided pursuant to subsection (d) of this Section or obtained by the Director in an investigation of suspected or actual viatical settlement fraud shall be privileged and confidential and shall not be a public record and shall not be subject to discovery or subpoena in a civil or criminal action. This subsection (h) does not prohibit release by the Director of documents and evidence obtained in an investigation of suspected or actual viatical settlement fraud: (1) in administrative or judicial proceedings to enforce laws administered by the Director;

(2) to federal, State, or local law enforcement or regulatory agencies, to an organization established for the purpose of detecting and preventing viatical settlement fraud or to the NAIC; or

(3) at the discretion of the Director, to a person in the business of viatical settlements that is aggrieved by a viatical settlement fraud. Release of documents and evidence under this subsection (h)  does not abrogate or modify the privilege granted in this subsection.(i) This Act shall not do any of the following:(1) Preempt the authority or relieve the duty of     other law enforcement or regulatory agencies to investigate, examine and prosecute suspected violations of law.(2) Prevent or prohibit a person from disclosing     voluntarily information concerning viatical settlement fraud to a law enforcement or regulatory agency other than the Division.(3) Limit the powers granted elsewhere by the laws of     this State to the Director or an insurance fraud unit to investigate and examine possible violations of law and to take appropriate action against wrongdoers.(j) Viatical settlement providers and viatical settlement brokers shall have in place antifraud initiatives reasonably calculated to detect, prosecute, and prevent viatical settlement fraud. At the discretion of the Director, the Director may order, or a licensee may request and the Director may grant, such modifications of the following required initiatives as necessary to ensure an effective antifraud program. The modifications may be more or less restrictive than the required initiatives so long as the modifications may reasonably be expected to accomplish the purpose of this Section.Antifraud initiatives shall include the following:(1) fraud investigators, who may be viatical     settlement providers or viatical settlement broker employees or independent contractors; and(2) an antifraud plan, which shall be submitted to     the Director. The antifraud plan shall include, but not be limited to:(A) a description of the procedures for detecting         and investigating possible viatical settlement fraud and procedures for resolving material inconsistencies between medical records and insurance applications;(B) a description of the procedures for reporting         possible viatical settlement fraud to the Director;(C) a description of the plan for antifraud         education and training of underwriters and other personnel;(D) a description or chart outlining the         organizational arrangement of the antifraud personnel who are responsible for the investigation and reporting of possible viatical settlement fraud and investigating unresolved material inconsistencies between medical records and insurance applications; and(E) a description of the procedures used to         perform initial and continuing review of the accuracy of life expectancies used in connection with a viatical settlement contract.Antifraud plans submitted to the Director shall be privileged and confidential and are not  public record and are not subject to discovery or subpoena in a civil or criminal action.

(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/70)Sec. 70. Injunctions; civil remedies; cease and desist.(a) In addition to the penalties and other enforcement provisions of this Act, if any person violates this Act or any rules implementing this Act, the Director may seek an injunction in a court of competent jurisdiction and may apply for temporary and permanent orders that the Director determines are necessary to restrain the person from committing the violation.(b) Any person damaged by the acts of a person in violation of this Act may bring a civil action against the person committing the violation in a court of competent jurisdiction.(c) The Director may issue, in accordance with Section 401.1 of the Illinois Insurance Code and the Illinois Administrative Procedure Act, a cease and desist order upon a person that violates any provision of this Act, any regulation or order adopted by the Director, or any written agreement entered into with the Director.(d) In addition to the penalties and other enforcement provisions of this Act, any person who violates this Act is subject to civil penalties of up to $50,000 per violation. Each separate violation of this Act shall be a separate offense. If a person is subject to an order of the Director for violations of this Act and continually fails to obey or neglects to obey the order, then each day of such failure or neglect shall be deemed a separate offense. Imposition of civil penalties shall be pursuant to an order of the Director. The Director's order may require a person found to be in violation of this Act to make restitution to persons aggrieved by violations of this Act.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/72)Sec. 72. Crimes and offenses.(a) A person acting in this State as a viatical settlement
provider without having been licensed pursuant to Section 10
of this Act who willfully violates any provision of this Act
or any rule adopted or order issued under this Act is guilty
of a Class A misdemeanor and may be subject to a fine of not
more than $3,000. When such violation results in a loss of
more than $10,000, the person shall be guilty of
a Class 3 felony and may be subject to a fine of not more than
$10,000.(b) A person acting in this State as a viatical settlement
broker without having met the licensure and notification
requirements established by Section 10 of this Act who
willfully violates any provision of this Act or any rule
adopted or order issued under this Act is guilty of a Class A misdemeanor and may be subject to a fine of not more
than $3,000. When such violation results in a loss of more
than $10,000, the person shall be guilty of a
Class 3 felony and may be subject to a fine of not more than
$10,000.(c) The Director may refer such evidence as is available
concerning violations of this Act or any rule adopted or order
issued under this Act or of the failure of a person to
comply with the licensing requirements of this Act to the
Attorney General or the proper county attorney who may, with
or without such reference, institute the appropriate criminal
proceedings under this Act.(d) A person commits the offense of viatical settlement fraud when:(1) For the purpose of depriving another of property     or for pecuniary gain any person knowingly:(A) presents, causes to be presented, or prepares         with knowledge or belief that it will be presented to or by a viatical settlement provider, viatical settlement broker, life expectancy provider, viatical settlement purchaser, financing entity, insurer, insurance producer, or any other person, false material information, or conceals material information, as part of, in support of or concerning a fact material to one or more of the following:(i) an application for the issuance of a             viatical settlement contract or insurance policy;(ii) the underwriting of a viatical             settlement contract or insurance policy;(iii) a claim for payment or benefit pursuant             to a viatical settlement contract or insurance policy;(iv) premiums paid on an insurance policy;(v) payments and changes in ownership or             beneficiary made in accordance with the terms of a viatical settlement contract or insurance policy;(vi) the reinstatement or conversion of an             insurance policy;(vii) in the solicitation, offer,             effectuation, or sale of a viatical settlement contract or insurance policy;(viii) the issuance of written evidence of a             viatical settlement contract or insurance; or(ix) a financing transaction; or(B) employs any plan, financial structure,         device, scheme, or artifice to defraud related to viaticated policies; or(C) enters into any act, practice, or arrangement         which involves stranger-originated life insurance;(2) In furtherance of a scheme to defraud, to further     a fraud, or to prevent or hinder the detection of a scheme to defraud any person knowingly does or permits his employees or agents to do any of the following:(A) remove, conceal, alter, destroy, or sequester         from the Director the assets or records of a licensee or other person engaged in the business of viatical settlements;(B) misrepresent or conceal the financial         condition of a licensee, financing entity, insurer, or other person;(C) transact the business of viatical settlements         in violation of laws requiring a license, certificate of authority, or other legal authority for the transaction of the business of viatical settlements; or(D) file with the Director or the equivalent         chief insurance regulatory official of another jurisdiction a document containing false information or otherwise conceals information about a material fact from the Director;(3) Any person knowingly steals, misappropriates, or     converts monies, funds, premiums, credits, or other property of a viatical settlement provider, insurer, insured, viator, insurance policyowner, or any other person engaged in the business of viatical settlements or insurance;(4) Any person recklessly enters into, negotiates,     brokers, or otherwise deals in a viatical settlement contract, the subject of which is a life insurance policy that was obtained by presenting false information concerning any fact material to the policy or by concealing, for the purpose of misleading another, information concerning any fact material to the policy, where the person or the persons intended to defraud the policy's issuer, the viatical settlement provider or the viator; or(5) Any person facilitates the change of state of     ownership of a policy or the state of residency of a viator to a state or jurisdiction that does not have a law similar to this Act for the express purposes of evading or avoiding the provisions of this Act.(e) For purposes of this Section, "person" means (i) an individual, (ii) a corporation, (iii) an officer, agent, or employee of a corporation, (iv) a member, agent, or employee of a partnership, or (v) a member, manager, employee, officer, director, or agent of a limited liability company who, in any such capacity described by this subsection (e), commits viatical settlement fraud.
(Source: P.A. 97-813, eff. 7-13-12; 98-756, eff. 7-16-14.) (215 ILCS 159/75)Sec. 75. Unfair trade practices. A violation of this Act, including the commission of viatical settlement fraud, shall be considered an unfair trade practice under Article XXVI of the Illinois Insurance Code.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/85)Sec. 85. Additional powers. In addition to any other hearing, examination, or investigation specifically provided for by this Act, the Director may conduct such hearings, examinations, and investigations as are provided for by Sections  402 and 403 of the Illinois Insurance Code.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/90)Sec. 90. Insurance Code Provisions. 
Insurance producers operating as viatical settlement brokers shall be subject to Article XXXI of the Illinois Insurance Code.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/95)Sec. 95. Applicability of securities laws. Nothing in this Act shall preempt or otherwise limit the provisions of the Illinois Securities Law of 1953 or any regulations, bulletins, or other interpretations issued by or through the Secretary of State acting pursuant to the Illinois Securities Law of 1953.  Compliance with the provisions of this Act shall not constitute compliance with any applicable provision of the Illinois Securities Law of 1953 and any amendments thereto or any regulations, notices, bulletins, or other interpretations issued by or through the Secretary of State acting pursuant to the Illinois Securities Law of 1953.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/100)Sec. 100. Viatical settlement provider application. A viatical settlement provider lawfully transacting business in this State may continue to do so pending approval or disapproval of the provider's application for a license as long as the application is filed with the Director not later than 30 days after the effective date of this Act.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/105)Sec. 105. Application of this Act. Notwithstanding any other provisions of this Act,
nothing in this Act shall apply in the following instances:(i) The purchase of the cash value of a life     insurance policy and rights impacting the cash value, including death benefits, for an amount approximately equal to the cash value, but only to the extent that such death benefits include cash value or its monetary equivalent.(ii) The collateral assignment of a life insurance     policy or an interest in a life insurance policy by an owner of such a policy or an interest in such a policy if such collateral assignment is effected for the sole purpose of financing or refinancing the purchase described in item (i).To be eligible for regulatory treatment pursuant to this Section 105, the individual or entity seeking such treatment must first provide written notice to the Director that the individual or entity engages in a business practice as described in items (i) or (ii).  Such notice shall be in a form and manner and at a fee  as prescribed by the Director and renewed 2 years from the date on which the prior notice is received by the Director. To the extent that an individual or entity is exempted pursuant to this Section and is then later determined to have been engaged in STOLI and to have circumvented the application of this Act through this Section, the Director shall take appropriate remedial action, including, but not limited to, license revocation, appropriate monetary penalties, or both, or other penalties as provided in Section 72 of this Act and subsections  (a) through (g) of Section 500-70 of the Illinois Insurance Code.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/900)Sec. 900. (Amendatory provisions; text omitted).
(Source: P.A. 96-736, eff. 7-1-10; text omitted.) (215 ILCS 159/905)Sec. 905. (Amendatory provisions; text omitted).
(Source: P.A. 96-736, eff. 7-1-10; text omitted.) (215 ILCS 159/910)Sec. 910. (Amendatory provisions; text omitted).
(Source: P.A. 96-736, eff. 7-1-10; text omitted.) (215 ILCS 159/950)Sec. 950. The Viatical Settlements Act is repealed.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/995)Sec. 995. No acceleration or delay. Where this Act makes changes in a statute that is represented in this Act by text that is not yet or no longer in effect (for example, a Section represented by multiple versions), the use of that text does not accelerate or delay the taking effect of (i) the changes made by this Act or (ii) provisions derived from any other Public Act.
(Source: P.A. 96-736, eff. 7-1-10.) (215 ILCS 159/999)Sec. 999. Effective date. This Act takes effect July 1, 2010.
(Source: P.A. 96-736, eff. 7-1-10.)
(215 ILCS 165/1) (from Ch. 32, par. 595)Sec. 1. 
		
		This Act may be cited as the
Voluntary Health Services Plans Act.
		(Source: P.A. 86-1475.) (215 ILCS 165/2) (from Ch. 32, par. 596)Sec. 2. For the purposes of this Act, the following terms have the respective
meanings set forth in this section, unless different meanings are plainly
indicated by the context:(a) "Health Services Plan Corporation" means a corporation organized under
the terms of this Act for the purpose of establishing and operating a voluntary
health services plan and providing other medically related services.(b) "Voluntary health services plan" means either a plan or system under which
medical, hospital, nursing and relating health services may
be rendered to a subscriber or beneficiary at the expense of a health
services plan corporation, or any contractual arrangement to provide,
either directly or through arrangements with others, dental care services
to subscribers and beneficiaries.(c) "Subscriber" means a natural person to whom a subscription certificate
has been issued by a health services plan corporation.  Persons eligible
under Section 5-2 of the Illinois Public Aid Code may be subscribers if
a written agreement exists, as specified in Section 25 of this Act, between
the Health Services Plan Corporation and the Department of Healthcare and Family Services.
A subscription certificate may be issued to such persons at no cost.(d) "Beneficiary" means a person designated in a subscription certificate
as one entitled to receive health services.(e) "Health services" means those services ordinarily rendered by physicians
licensed in Illinois to practice medicine in all of its branches, by podiatric physicians 
licensed in Illinois to practice podiatric medicine, by dentists and dental
surgeons licensed to practice in Illinois, by nurses registered in Illinois,
by dental hygienists licensed to practice in Illinois, and by assistants
and technicians acting under professional supervision; it likewise means
hospital services as usually and customarily rendered in Illinois, and the
compounding and dispensing of drugs and medicines by pharmacists and assistant
pharmacists registered in Illinois.(f) "Subscription certificate" means a certificate issued to a subscriber
by a health services plan corporation, setting forth the terms and conditions
upon which health services shall be rendered to a subscriber or a beneficiary.(g) "Physician rendering service for a plan" means a physician licensed
in Illinois to practice medicine in all of its branches who has undertaken
or agreed, upon terms and conditions acceptable both to himself and to the
health services plan corporation involved, to furnish medical service to
the plan's subscribers and beneficiaries.(h) "Dentist or dental surgeon rendering service for a plan" means a dentist
or dental surgeon licensed in Illinois to practice dentistry or dental surgery
who has undertaken or agreed, upon terms and conditions acceptable both
to himself and to the health services plan corporation involved, to furnish
dental or dental surgical services to the plan's subscribers and beneficiaries.(i) "Director" means the Director of Insurance of the State of Illinois.(j) "Person" means any of the following:  a natural person, corporation,
partnership or unincorporated association.(k) "Podiatric physician or podiatric surgeon rendering service for a plan" means
any podiatric physician or podiatric surgeon licensed in Illinois to practice podiatry,
who has undertaken or agreed, upon terms and conditions acceptable both
to himself and to the health services plan corporation involved, to furnish
podiatric or podiatric surgical services to the plan's subscribers and beneficiaries.
(Source: P.A. 98-214, eff. 8-9-13.) (215 ILCS 165/3) (from Ch. 32, par. 597)Sec. 3. 
		
		It shall be unlawful for any person, except a health services
plan corporation, incorporated under this Act, to establish, maintain or
operate a voluntary health services plan. This prohibition, however,
shall not be construed as preventing a person from furnishing health services to his employees or
from furnishing such medical services as are required under the
workers' compensation laws and related legislation, when the employees
are not charged for such services; nor shall it be construed to prohibit
an insurance company, or other corporation or society, which is subject
to the supervision of the Director from operating in accordance with the
laws governing insurance companies or such corporations or societies;
nor shall it be construed to prohibit the continued operation of any
medical or health service plan in existence and functioning at the
effective date of this Act.
		(Source: P.A. 88-364.) (215 ILCS 165/3.1) (from Ch. 32, par. 597.1)Sec. 3.1. 
		No new plans may be chartered. 
		No voluntary health services
plan shall be issued a charter for the purpose of doing business under this
Act after the effective date of this Amendatory Act of 1989.
		(Source: P.A. 86-600.) (215 ILCS 165/4) (from Ch. 32, par. 598)Sec. 4. 
		
		Five or more persons of legal age all of whom are residents of
Illinois and citizens of the United States may incorporate under the
provisions of this Act a health services plan corporation for the purpose
of establishing and operating a voluntary health services plan. Such
corporation shall be subject to regulation and supervision by the Director
as hereinafter provided, but shall not be subject to the laws of this state
with respect to insurance corporations except as provided in this Act.
		(Source: Laws 1951, p. 569.) (215 ILCS 165/5) (from Ch. 32, par. 599)Sec. 5. 
		
		The business and affairs of a health services plan
corporation shall be managed by a board of trustees, which shall have
the power to adopt, and to amend from time to time, by-laws governing
the conduct of the corporation's business. The board of trustees shall
consist of not less than seven persons, all of whom shall have the same
general qualifications as the incorporators, and at least 30% of whom
shall, in addition, be physicians or dentists, licensed in Illinois to practice
medicine in all of its branches or dentistry, respectively; provided, however,
that if in computing
the required number of physicians or dentists on the board of trustees, the amount
of 30% does not coincide with a whole number, but lies between whole
numbers, the smaller whole number shall be controlling as to the number
of physicians or dentists. The original board of trustees shall be appointed by the
incorporators. Trustees shall serve for a term of three years, except
that as to the original appointed board, not more than one-third of the
members thereof shall be appointed for three years, not more than
one-third thereof for two years and the balance thereof for one year. As
the terms of the members of the board of trustees expire, they shall be
replaced, from time to time, by election by the health services plan
subscribers who are members of the health services plan corporation. If
the corporation furnishes medical services to the plan's subscribers and
beneficiaries and these services are rendered by physicians licensed in
Illinois to practice medicine in all of its branches, the
board of trustees shall appoint a Medical Director who shall be a
physician licensed in Illinois to practice medicine in all of its
branches. The Medical Director may participate in all deliberations of
the board of trustees but shall not vote in any decisions or
determinations made by the board of trustees. The Medical Director,
under the board of trustees, shall have complete charge of and
responsibility for the medical and medically related scientific aspects
of the business of
the corporation.
		(Source: P.A. 81-1203.) (215 ILCS 165/6) (from Ch. 32, par. 600)Sec. 6. 
		
		A health services plan corporation may, in the discretion of its
board of trustees, through its by-laws, limit or define the classes of
persons who shall be eligible to become subscribers or beneficiaries, limit
and define the benefits which it will furnish, and may divide such benefits
as it undertakes to furnish into classes or kinds.
		(Source: Laws 1951, p. 569.) (215 ILCS 165/7) (from Ch. 32, par. 601)Sec. 7. 
Every physician licensed in Illinois to practice medicine in
all of its branches, every podiatric physician licensed to practice podiatric medicine
in Illinois,  and every dentist and dental surgeon licensed to
practice in Illinois may be eligible to render medical, podiatric or dental
services respectively, upon such terms and conditions as may be mutually
acceptable to such physician, podiatric physician, dentist or dental surgeon and to the
health services plan corporation involved. Such a corporation shall
impose no restrictions on the physicians, podiatric physicians, dentists or dental surgeons
who treat its subscribers as to methods of diagnosis or treatment. The
private physician-patient relationship shall be maintained, and
subscribers shall at all times have free choice of any physician, podiatric physician, dentist or dental surgeon who is rendering service on behalf of the
corporation. All of the records, charts, files and other data of a
health services plan corporation pertaining to the condition of health
of its subscribers and beneficiaries shall be and remain confidential,
and no disclosure of the contents thereof shall be made by the
corporation to any person, except upon the prior written authorization
of the particular subscriber or beneficiary concerned.
(Source: P.A. 98-214, eff. 8-9-13.) (215 ILCS 165/8) (from Ch. 32, par. 602)Sec. 8. 
		
		Except as otherwise provided by Section 3 of this Act, no
person shall offer to the public any voluntary health service plan or
otherwise engage in the business of a health service plan corporation
without having first received a charter from the Director. No charter
under this Act shall be approved by the Director for any organization
seeking to provide medical or hospital services unless the organization
files a concomitant application for a certificate of authority, and is
approved by the Director, as a health maintenance organization pursuant to
the requirements of the Health Maintenance Organization Act.  Application
therefor shall be made to the Director upon forms prescribed by him and
shall include the following information:(a) The names, places of residence, occupations, and qualifications
of the incorporators;(b) The location of the corporation's registered office, and the
name and address of its registered agent;(c) A detailed financial statement, including the amount of original
capital to be contributed to the corporation before it shall commence
doing business, as well as the name of each contributor, and the amount
by him contributed and the terms of such contribution;(d) A copy of the by-laws to be adopted by the board of trustees
upon the issuance of a charter;(e) Specimen copies of all subscription certificates which it is
proposed the corporation shall issue to subscribers, which certificates
shall set forth in detail the rates to be charged subscribers and the
nature and extent of the services which the subscriber or other
beneficiary shall be entitled to receive;(f) A detailed statement as to the health services plan or plans
which the corporation proposes to offer, including the rates to be
charged, the benefits to be provided and the names of the counties in
which it is proposed the corporation shall have authority to engage in
business;(g) A copy of the proposed charter under which the corporation
intends to operate.(h) Specimen copies of all agreements to be entered into between the
corporation and hospitals, physicians, dentists, pharmacists and nurses,
which agreements shall set forth in detail the terms and conditions upon
which each shall be obliged to render service to subscribers of the
corporations.After consideration of the statements and documents submitted to him
and such additional investigation as he deems necessary, the Director
shall issue a charter to the applicant corporation if he finds:(1) The corporation has complied with the requirements of this Act,(2) The subscription certificates to be offered by the corporation
and its methods of operation would not work a fraud on the subscriber,(3) The rates to be charged and the benefits to be provided are fair
and reasonable to both the subscriber and to the corporation,(4) The amount of money actually available for original capital is
sufficient to carry all acquisition costs and operating expenses for a
reasonable period of time from the issuance of the charter and is not
less than the minimum requirements set forth in subsection (5) of
Section 8 of this Act.(5) The amounts contributed as original capital of the corporation shall
aggregate not less than
$100,000 at the start of business.(6) Adequate and reasonable reserves are provided to insure the
contracts; and(7) The corporation has contracts or agreements with hospitals,
physicians, dentists, pharmacists, nurses and dental hygienists
sufficient in number to carry out the terms of the contracts to be
issued to these subscribers.Amendments to a charter shall be made by application to the Director
in the same manner as on original application.
		(Source: P.A. 85-1246.) (215 ILCS 165/9) (from Ch. 32, par. 603)Sec. 9. 
		
		After the issuance of a charter, the Director as he deems in the
public interest may authorize or require a health services plan corporation
to charge rates or to utilize soliciting methods different from those on
which the charter was based, provided that such contracts and practices are
in compliance with provisions of this Act and are not violative of other
laws of this State.The Director may revoke or amend, after reasonable notice and hearing,
any charter, certificates, order, authority or consent made by him to a
health services plan corporation on having found (1) that the further
solicitation of subscribers or further continuance of the practices in
question will work a fraud on subscribers, or (2) that the rates charged or
the benefits provided are not fair and reasonable to both the subscriber
and the corporation.
		(Source: Laws 1951, p. 569.) (215 ILCS 165/10) (from Ch. 32, par. 604)Sec. 10. Application of Insurance Code provisions. Health services
plan corporations and all persons interested therein or dealing therewith
shall be subject to the provisions of Articles IIA and XII 1/2 and Sections
3.1, 133, 136, 139, 140, 143, 143c, 149, 155.22a, 155.37, 354, 355.2, 355.3, 355b, 356g, 356g.5, 356g.5-1, 356q, 356r, 356t, 356u, 356v,
356w, 356x, 356y, 356z.1, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,
356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.30a, 356z.32, 356z.33, 356z.40, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 364.01, 364.3, 367.2, 368a, 401, 401.1,
402,
403, 403A, 408,
408.2, and 412, and paragraphs (7) and (15) of Section 367 of the Illinois
Insurance Code.Rulemaking authority to implement Public Act 95-1045, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized. (Source: P.A. 101-13, eff. 6-12-19; 101-81, eff. 7-12-19; 101-281, eff. 1-1-20; 101-393, eff. 1-1-20; 101-625, eff. 1-1-21; 102-30, eff. 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff. 1-1-23; 102-1117, eff. 1-13-23.) (215 ILCS 165/11) (from Ch. 32, par. 605)Sec. 11. 
		Examination of corporations. 
		The Director shall have with
respect to health services plan
corporations the powers of examination conferred upon him relative to
insurance companies by Sections 132 through 132.7 of the
Illinois Insurance Code. The
cost of any examination shall be paid by the corporation examined.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 165/12) (from Ch. 32, par. 606)Sec. 12. 
		
		All rates or formula base for experience rate subscriber contracts
shall be submitted to the Director prior to use.  The Director may disapprove
rates or formula base for rates for specific reason and must do so within
45 days of receipt of supporting information or rates will be deemed approved.
		(Source: P.A. 81-1203.) (215 ILCS 165/13) (from Ch. 32, par. 607)Sec. 13. 
		
		No subscription certificate shall be issued by any health services
plan corporation until the form thereof has been filed with and approved
by the Director, together with all applications, riders and endorsements
for use in connection with the issuance or renewal thereof.  It shall be
the duty of the Director of Insurance to withhold approval of any contract
form filed with him if it violates any provisions of this Act, or if it
violates or is contrary to any provisions of Sections 143, 355, and 355a
of the "Illinois Insurance Code", approved June 29, 1937, as amended, which
are not inconsistent or in conflict with provisions of this Act.
		(Source: P.A. 79-681.) (215 ILCS 165/14) (from Ch. 32, par. 608)Sec. 14. 
		
		Every subscription certificate issued by a health services plan
corporation shall provide for the rendering of health services as therein
specified for a period of 12 months from the date of issuance of the
subscription certificate subject to compliance with the by-laws and rules
and regulations of the corporation by the subscriber. Any such certificate
may provide that it shall ordinarily be renewed from year to year unless
there has been one month's written notice of termination either by the
subscriber or by the corporation. During the first contract year the
provisions of the contract may provide that the coverage by the contract
may be deferred for not more than two months from date of issue of the
contract and may exclude treatment for illness or other conditions
requiring service existing at the time of executing the contract.
		(Source: Laws 1951, p. 569.) (215 ILCS 165/15) (from Ch. 32, par. 609)Sec. 15. 
		
		
		Every contract entered into by a health services plan corporation and a
subscriber shall be in writing and a certificate stating the terms and
conditions thereof shall be furnished the subscriber. No such subscription
certificate shall be issued unless it contains the following provisions:(a) A statement of the nature of the health services     to be provided and the period during which the certificate shall be effective; and if there are any types of services to be excepted, a detailed statement of such exceptions printed as hereinafter specified;(b) A statement of the terms or conditions, if any,     upon which the certificate may be cancelled or otherwise terminated at the option of either party;(c) A statement that the subscription certificate     constitutes the entire contract between the corporation and the subscriber and includes any endorsements attached;(d) A statement that no statement by the subscriber     in his application for a certificate shall void the contract or be used in any legal proceeding thereunder, unless such application or an exact copy thereof is included in or attached to the certificate, and that no agent or representative of such corporation other than an officer or officers designated in the certificate, are authorized to change the contract or waive any of its provisions;(e) A statement that if the subscriber defaults in     making any payment under the certificate, the subsequent acceptance of a payment by the corporation or by one of its duly authorized agents shall reinstate the certificate, but with respect to sickness and injury may cover only such sickness or injury as may be first manifested more than a specified number of days, not exceeding ten, after the date of such acceptance;(f) A statement of the period of grace which will be     allowed the subscriber for making any payment due under the contract. Such period shall not be less than ten days;(g) A statement that indemnity in the form of cash     will not be paid to any subscriber except in reimbursement for payments made by the subscriber to a physician, dentist or dental surgeon for which the subscriber had received express authorization by the corporation and for which the corporation was liable at the time of such payment.(h) Every voluntary health services plan and each     subscription certificate issued by a health services plan corporation and providing coverage for hospital treatment shall provide coverage for treatment of alcoholism in a hospital licensed under the Hospital Licensing Act approved July 1, 1953 as amended or an approved public or private alcoholism treatment facility meeting the standards prescribed in Section 9 (1) of the Uniform Alcoholism and Intoxication Treatment Act enacted by the 78th General Assembly and approved under Section 9 (3) of the Uniform Alcoholism and Intoxication Treatment Act enacted by the 78th General Assembly.		(Source: P.A. 78-767.) (215 ILCS 165/15.1) (from Ch. 32, par. 609.1)Sec. 15.1. 
		
		
		No contract issued by a voluntary health services plan shall contain any
exception or exclusion from coverage which would preclude the payment of
expenses incurred for the processing and administration of blood and its
components.
		(Source: P.A. 77-2724.) (215 ILCS 165/15.2) (from Ch. 32, par. 609.2)Sec. 15.2. 
		
		
		No claim shall be denied, under a contract issued or renewed by a
voluntary health services plan after the effective date of this amendatory
Act, for treatment or services for mental illness rendered in a hospital
solely because such hospital lacks surgical facilities.
		(Source: P.A. 78-708.) (215 ILCS 165/15.3) (from Ch. 32, par. 609.3)Sec. 15.3. 
		
		(1)  No service plan contract of a health service plan
corporation which in addition to covering the subscriber, also covers
members of the subscriber's immediate family, shall contain any disclaimer,
waiver, or other limitation of coverage relative to the health service
benefits for or insurability of newborn infants of the subscriber from and
after the moment of birth.(2) Each such contract shall contain a provision stating that the health
service benefits applicable for children shall be granted immediately with
respect to a newly born child from the moment of birth.  The coverage for
newly born children shall include coverage of illness, injury, congenital
defects, birth abnormalities and premature birth.(3) If payment of a specific subscription fee is required to provide
coverage for a child, the contract may require that notification of birth of
a newly born child must be furnished to the corporation within 31 days after
the date of birth in order to have the coverage continue beyond such 31 day
period and may require payment of the appropriate fee.(4) The requirements of this Section shall apply to all contracts delivered,
issued for delivery, renewed, or amended on or after the sixtieth day
following the effective date of this Section.
		(Source: P.A. 79-74.) (215 ILCS 165/15.4) (from Ch. 32, par. 609.4)Sec. 15.4. 
		
		(1) No service plan contract of a health service plan
corporation which in addition to covering the subscriber, also covers
the subscriber's spouse shall contain a provision for termination of
coverage for a spouse covered under the service plan contract solely as
a result of a break in the marital relationship except by reason of an
entry of a valid judgment of dissolution of marriage
between the parties.(2) Every such service plan contract, other than a contract whose
continuance is contingent upon continued employment or membership, which
contains a provision for termination of coverage of the spouse upon
dissolution of marriage shall contain a provision to the effect that upon the entry of a
valid judgment of dissolution of marriage between the covered parties the
spouse whose marriage was dissolved shall be entitled to have issued to
her or him, without evidence of
insurability, and upon application made to the corporation within 60
days following the entry of such judgment, upon the payment of the
appropriate subscription fee, an individual service plan contract.  Such
contract shall provide the coverage then being issued by the corporation
which is most nearly similar to, but not greater than, such terminated
coverage.  Any and all probationary or waiting periods set forth in
the conversion contract shall be considered as being met to the extent
coverage was in force under the prior contract.(3) The requirements of this Section shall apply to all contracts
delivered, issued for delivery, renewed, or amended on or after the 60th
day following the effective date of this Section.
		(Source: P.A. 81-230.) (215 ILCS 165/15.5) (from Ch. 32, par. 609.5)Sec. 15.5. 
		Conversion Privilege-Group Type Contracts.(1) Every service plan contract of a health service plan corporation which
provides that the continued coverage of a beneficiary is contingent upon
the continued employment or membership of the subscriber with a particular
employer, union, or association shall further provide for the right of said
person to make application for an individual service plan contract under
the circumstances and in accordance with the requirements set forth in
Sections
367e and 367e.1 of the "Illinois Insurance Code".  The application of
Sections 367e and 367e.1 of the Code shall not be construed
in such a manner
as to require a health service plan corporation to furnish a service or
kind of benefit not customarily provided by such corporation and which is
inconsistent with the provision of this Act.(2) The requirements of this Section shall apply to all such contracts
delivered, issued for delivery, renewed or amended on or after 180 days
following the effective date of this Section.
		(Source: P.A. 93-477, eff. 1-1-04.) (215 ILCS 165/15.6-1) (from Ch. 32, par. 609.6-1)Sec. 15.6-1. Continuance privilege; group type contracts.(1) Every
service plan contract of a health service plan corporation which
provides that the continued coverage of a beneficiary is contingent upon
the continued employment of the subscriber with a particular employer shall
further provide for the continuance of such contract in accordance with
the requirements set forth in Section 367.2 of the Illinois Insurance Code.(2) The requirements of this Section shall apply to all such contracts
delivered, issued for delivery, renewed or amended on or after December 1, 1985 (the effective
date of Public Act 84-556).
(Source: P.A. 102-558, eff. 8-20-21.) (215 ILCS 165/15.7) (from Ch. 32, par. 609.7)Sec. 15.7. 
		
		No claim shall be denied, under a contract issued or renewed
by a voluntary health services plan after the effective day of this
amendatory Act, for treatment or services for rehabilitation following
either a physical or mental illness, rendered in a hospital solely
because such hospital lacks surgical facilities.
		(Source: P.A. 79-303; 79-1454.) (215 ILCS 165/15.8) (from Ch. 32, par. 609.8)Sec. 15.8. Sexual assault or abuse victims.(1) Policies, contracts or subscription certificates issued
by a health services plan corporation, which provide benefits for hospital
or medical expenses based upon the actual expenses incurred, shall to the
full extent of coverage provided for any other emergency or accident care,
provide for the payment of actual expenses incurred, without offset or
reduction
for benefit deductibles or co-insurance amounts, in the examination and
testing of a victim of an offense defined in Sections 11-1.20 through 11-1.60 or 12-13 through 12-16
of the Criminal Code of 1961 or the Criminal Code of 2012, or attempt to
commit such offense, to establish
that sexual contact did occur or did not occur, and to establish the presence
or absence of sexually transmitted disease or infection, and
examination and treatment
of injuries and trauma sustained by a victim of such offense.(2) For purposes of enabling the recovery of State Funds, any health
services
plan corporation subject to this Section shall upon reasonable demand
by the Department of Public Health disclose the names and identities of
its insureds or subscribers entitled to benefits under this provision to
the Department of Public Health whenever the Department of Public Health
has determined that it has paid, or is about to pay, hospital or medical
expenses for which a health care service corporation is liable under this
Section.  All information received by the Department of Public Health under
this provision shall be held on a confidential basis and shall not be subject
to subpoena and shall not be made public by the Department of Public Health
or used for any purpose other than that authorized by this Section.(3) Whenever the Department of Public Health finds that it has paid all
or part of any hospital or medical expenses which a health services plan
corporation is obligated to pay under this Section, the Department of Public
Health shall be entitled to receive reimbursement for its payments from
such corporation provided that the Department of Public Health has notified
the corporation of its claims before the corporation has paid such benefits
to its subscribers or in behalf of its subscribers.
(Source: P.A. 96-1551, eff. 7-1-11; 97-1150, eff. 1-25-13.) (215 ILCS 165/15.9) (from Ch. 32, par. 609.9)Sec. 15.9. 
		Coverage of services for mental illness. 
		To the
extent not inconsistent with this Act every Health Service Corporation
shall be subject to the provisions of Section 370c of the "Illinois
Insurance Code", approved June 29, 1937, as amended.
		(Source: P.A. 81-1509.) (215 ILCS 165/15.9-1) (from Ch. 32, par. 609.9-1)Sec. 15.9-1. 
		
		No service plan contract or any renewal thereof shall be
denied or cancelled by a health service plan corporation, nor shall any
such contract contain any exception or exclusion of benefits, solely because
the mother of a subscriber or his dependent has taken diethylstilbestrol,
commonly referred to as DES.
		(Source: P.A. 81-656.) (215 ILCS 165/15.10) (from Ch. 32, par. 609.10)Sec. 15.10. 
		
		Every service plan contract of a health service plan corporation
issued after the effective date of this amendatory Act of 1979 which provides
coverage for services coming within the practice of
optometry as defined in the Illinois Optometric Practice Act of
1987,
as now or hereafter amended shall, upon issuance, be accompanied by a
written notice to the subscriber that such subscriber may elect for
optometric services received to be reimbursed to either a physician
licensed to practice medicine in all its branches or to an optometrist
licensed in this State.
		(Source: P.A. 85-1440.) (215 ILCS 165/15.11) (from Ch. 32, par. 609.11)Sec. 15.11. 
		
		To the extent not inconsistent with this Act every health services
plan corporation shall be
subject to the provisions of Section 356g of the "Illinois Insurance Code",
approved June 29, 1937, as amended.
		(Source: P.A. 81-1470.) (215 ILCS 165/15.12) (from Ch. 32, par. 609.12)Sec. 15.12. 
		Medical assistance; coverage of child.(a) In this Section, "Medicaid" means medical assistance authorized under
Section 1902 of the Social Security Act.(b) A
contract delivered, issued for delivery, renewed, or amended by a health
services plan corporation may not contain any
provision which
limits or excludes
payments of hospital or medical benefits coverage to or on behalf of the
subscriber because the subscriber
or any covered dependent is eligible for or receiving Medicaid
benefits in this or any other state.(c) To the extent that payment for covered expenses has been made under
Article V, VI, or VII of the Illinois Public Aid Code for health care services
provided to an individual, if a third party has a legal liability to make
payments for those health care services, the State is considered to have
acquired the rights of the individual to payment.(d) If a child is covered under a voluntary health services plan in which
the child's noncustodial parent is a beneficiary, the health services plan
corporation shall:(1) Provide necessary information to the child's     custodial parent to enable the child to obtain benefits under that voluntary health services plan.(2) Permit the child's custodial parent (or the     provider, with the custodial parent's approval) to submit claims for payment for covered services without the approval of the noncustodial parent.(3) Make payments on claims submitted in accordance     with paragraph (2) directly to the custodial parent, the provider of health care services, or the state Medicaid agency.(e) A health services plan corporation may not deny enrollment of a child
under a voluntary health services plan in which the child's parent is
a beneficiary on any of the following grounds:(1) The child was born out of wedlock.(2) The child is not claimed as a dependent on the     parent's federal income tax return.(3) The child does not reside with the parent or in     the area covered by the plan.(f) If a parent is required by a court or administrative order to provide
coverage for a child under a voluntary health services plan and has a plan
which offers coverage for
eligible dependents, the health services plan corporation,
upon receiving a copy of the order, shall:(1) Upon application, permit the parent to enroll, as     a subscriber to the plan, a child who is otherwise eligible for that coverage, without regard to any enrollment season restrictions that might otherwise be applicable as to the time period within which a person may subscribe to the plan.(2) Enroll the child as a subscriber to the plan upon     application of the child's other parent, the state agency administering the Medicaid program, or the state agency administering a program for enforcing child support and establishing paternity under 42 U.S.C. 651 through 669 (or another child support enforcement program), if the parent is a beneficiary to the plan but fails to apply for enrollment of the child.(g) A health services plan corporation may not impose, on a state agency
that
has been assigned the rights of an individual who is a beneficiary to a
voluntary
health services plan who receives Medicaid benefits, requirements that are
different from requirements applicable to an assignee of any other individual
who is a beneficiary to that plan.(h) Nothing in subsections (e) and (f) prevents a health services plan
corporation from denying any such application if the child is not eligible for
coverage according to the health services plan corporation's medical
underwriting standards.(i) The health services plan corporation may not disenroll (or otherwise
eliminate coverage of)
the child from the plan unless the corporation is provided satisfactory written
evidence of either
of the following:(1) The court or administrative order is no longer in     effect.(2) The child is or will be enrolled in a comparable     health care plan obtained by the parent under such order and that enrollment is currently in effect or will take effect not later than the date the prior coverage is terminated.		(Source: P.A. 89-183, eff. 1-1-96.) (215 ILCS 165/15.13) (from Ch. 32, par. 609.13)Sec. 15.13. 
		(Repealed). 
		(Source: Repealed by P.A. 89-183, eff. 1-1-96.) (215 ILCS 165/15.14) (from Ch. 32, par. 609.14)Sec. 15.14. 
		Coverage for Organ Transplantation Procedures. 
		No voluntary
health services plan corporation providing coverage under this Act for hospital
or medical expenses shall deny reimbursement for an otherwise covered
expense incurred for any organ transplantation procedure solely on the basis
that such procedure is deemed experimental or investigational unless supported
by the determination of the Office of Health Care Technology Assessment
within the Agency for Health Care Policy and Research within the federal
Department of Health and Human Services that such procedure is either
experimental or investigational or that there is insufficient data or
experience to determine whether an organ transplantation procedure is
clinically acceptable.  If a voluntary health services plan corporation has
made written request, or had one made on its behalf by a national
organization, for determination by the Office of Health Care Technology
Assessment within the Agency for Health Care Policy and Research within the
federal Department of Health and Human Services as to whether a specific
organ transplantation procedure is clinically acceptable and said
organization fails to respond to such a request within a period of 90 days,
the failure to act may be deemed a determination that the procedure is
deemed to be experimental or investigational.
		(Source: P.A. 87-218.) (215 ILCS 165/15.15) (from Ch. 32, par. 609.15)Sec. 15.15. 
		
		All claims payable in the form of indemnities under the
terms of a service plan contract shall be paid within 30 days following
receipt by the corporation of due proof of loss.  Failure to pay within
such period shall entitle the subscriber to
interest at the rate of 9 per cent per annum from the 30th day
after receipt of such proof of loss to the date of late payment,
provided that interest amounting to less than one dollar need not be paid.The requirements of this section shall apply to any service plan
contract delivered, issued for delivery, renewed or amended on or after 180
days following the effective date of this amendatory Act of 1985.
		(Source: P.A. 84-280.) (215 ILCS 165/15.20)Sec. 15.20. 
		Post-parturition care. 
		A health service plan corporation is
subject to the provisions of Section 356s of the Illinois
Insurance Code.
		(Source: P.A. 89-513, eff. 9-15-96; 90-14, eff. 7-1-97.) (215 ILCS 165/15.25)Sec. 15.25. 
		Illinois Health Insurance Portability and Accountability Act. 
		The provisions of this Act are subject to the Illinois Health Insurance
Portability and Accountability Act as provided in Section 15 of that Act.
		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 165/15.30)Sec. 15.30. 
		Managed Care Reform and Patient Rights Act. 
		A health service
plan
corporation is subject to the provisions of the Managed Care Reform and Patient
Rights
Act.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 165/15a) (from Ch. 32, par. 609a)Sec. 15a. Dependent Coverage Termination.(a) The attainment of a limiting age under a voluntary health services
plan which provides that coverage of
a dependent of a subscriber terminates upon attainment of the limiting age
for dependent persons specified in the subscription certificate does not
operate to terminate
the coverage of a person who, because of a disabling condition
that occurred before attainment of the limiting age, is incapable of
self-sustaining employment and is dependent on his or her parents or other
care providers for lifetime care and supervision.(b) For purposes of subsection (a), "dependent on other care providers" is
defined as requiring a Community Integrated Living Arrangement, group home,
supervised apartment, or other residential services licensed or certified by
the Department of Human Services (as successor to the Department of Mental
Health and Developmental Disabilities), the Department
of Public Health, or the Department of Healthcare and Family Services (formerly Department of Public Aid).(c) The corporation may require, at reasonable intervals from the date
of the first claim filed on behalf of the person with a disability who is dependent or from
the date the corporation receives notice of a covered person's disability and
dependency, proof of the person's disability and dependency.(d) This amendatory Act of 1969 is applicable to subscription
certificates
issued or renewed after October 27, 1969.
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 165/16) (from Ch. 32, par. 610)Sec. 16. 
		In every subscription certificate, referred to in Section 15:(a) All printed portions shall be plainly printed in type of which the
face is not smaller than ten point;(b) There shall be a brief description of the subscription certificate
on its first page, and there shall also be such a description on its filing
back in type of which the face is not smaller than fourteen point;(c) The exceptions of the contract shall appear with the same prominence
in the certificate as the benefits to which they apply; and(d) If the contract contains any provisions purporting to make any
portion of the charter or of the by-laws of the corporation a part of the
contract, such portions shall be set forth in full in the subscription
certificate.
		(Source: Laws 1951, p. 569.) (215 ILCS 165/17) (from Ch. 32, par. 611)Sec. 17. 
A health services plan corporation may enter into agreements
with qualified physicians, podiatric physicians, dentists, dental surgeons, pharmacists,
hospitals, nurses, registered optometrists, dental hygienists and
assistants or technicians acting under professional supervision, and
with other organizations, state and Federal agencies, and corporations
in the field of voluntary health care.
(Source: P.A. 98-214, eff. 8-9-13.) (215 ILCS 165/18) (from Ch. 32, par. 612)Sec. 18. 
		
		No corporation subject to the provisions of this Act shall,
except under the approval of the Director, disburse during any one calendar
year more than 10% of the aggregate amount of payments received from
subscribers during that year as expenditures for the solicitation of
subscribers, except that during the first year after the issuance of a
charter such corporation may so disburse not more than 20% of such amount,
and during the second year not more than 15% thereof.
		(Source: Laws 1951, p. 569.) (215 ILCS 165/19) (from Ch. 32, par. 613)Sec. 19. 
		
		No such corporation shall disburse as administrative expenses
during any one year, except upon approval of the Director, a sum greater
than 20% of payments received from subscribers during that year. The term
"administrative expenses" shall include all expenditures for non-health
services and, in general, all expenses not directly connected with the
payment for health services, but shall not include expenditures for
purchasing, acquiring, leasing or renting land, premises, facilities,
equipment, instruments or supplies needed or useful for the purpose of
rendering health services, and shall also not include expenses of
soliciting subscriptions.
		(Source: Laws 1951, p. 569.) (215 ILCS 165/20) (from Ch. 32, par. 614)Sec. 20. 
		
		The funds of any health services plan corporation shall be
handled in accordance with the following rules:(a) All loans made to original capital of the corporation may be
repayable only out of earned surplus.(b) The funds of the corporation may be invested in accordance with
the requirements provided by law for the investment of funds of life
insurance companies and may also be invested in equipment of the
corporation provided such investment in equipment shall not exceed more
than 30% of the total admitted assets. The value of such equipment shall
be depreciated at a rate as rapidly as is provided under the Internal
Revenue Code.(c) Every health services plan corporation, after its first fiscal
year of doing business, shall accumulate and maintain a special
contingent reserve over and above its reserves and liabilities at the
rate of 2% annually of its subscription income net of reinsurance so long
as the special contingent reserve does not exceed 8% of its annual net income
for the preceding 12 month period.
Additional accumulations shall no longer be required at such time that the
total special contingent reserve is equal to $1,500,000.
		(Source: P.A. 90-794, eff. 8-14-98.) (215 ILCS 165/21)Sec. 21. (Repealed).
	 
	 (Source: Laws 1951, p. 569. Repealed by P.A. 97-486, eff. 1-1-12.) (215 ILCS 165/22)Sec. 22. (Repealed).
	 
	 (Source: Laws 1951, p. 569. Repealed by P.A. 97-486, eff. 1-1-12.) (215 ILCS 165/23) (from Ch. 32, par. 617)Sec. 23. 
		
		To the extent that the same are applicable and not inconsistent
with the provisions of this Act, all proceedings for the rehabilitation,
liquidation, conservation or dissolution of health services plan
corporations shall be subject to the provisions of Article XIII of the
"Illinois Insurance Code", approved June 29, 1937, as amended.
		(Source: Laws 1951, p. 569.) (215 ILCS 165/24) (from Ch. 32, par. 618)Sec. 24. 
		
		Every health services plan corporation shall pay to the
Director the fees and charges set forth in Sections 408 and 408.2 of
the Illinois Insurance Code.
		(Source: P.A. 84-989.) (215 ILCS 165/25) (from Ch. 32, par. 619)Sec. 25. A health services plan corporation may receive and accept
from governmental or private agencies or from other persons as defined
in this Act, payments covering all or part of the cost of subscriptions
to provide health services for needy and other individuals. However, all
contracts for health services concerning persons other than recipients of
public aid shall be between the corporation and the person to receive such
services.  No payments shall be made by the Department of Healthcare and Family Services to
any Health Services Plan Corporation except where the payment is made for
a covered service included in the Medical Assistance Program at the rate
established by the Department of Healthcare and Family Services, and where the service was rendered
to a public aid recipient, and where there was in full force and effect,
at the time the service was rendered, a written agreement governing such
provision of services between such Health Services Plan Corporation
and the Department.
					(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 165/26) (from Ch. 32, par. 620)Sec. 26. 
		
		A health services plan corporation incorporated prior to
January 1, 1965, operated on a not for profit basis, and neither owned or
controlled by a hospital shall not be liable for
injuries resulting from negligence, misfeasance, malfeasance, nonfeasance
or malpractice on the part of any officer or employee of the corporation,
or on the part of any person, organization, agency or corporation rendering
health services to the health services plan corporation's subscribers and
beneficiaries.
		(Source: P.A. 85-1246.) (215 ILCS 165/27) (from Ch. 32, par. 621)Sec. 27. 
		
		Health services plan corporations organized under this Act shall be
operated and conducted not-for-profit and shall be governed by the
provisions of the "General Not for Profit Corporation Act", approved July
17, 1943, as amended, to such extent as the same may be applicable and not
inconsistent with this Act. Every corporation organized hereunder is
declared to be a charitable and benevolent corporation, and all of its
funds and property shall be exempt from every State, county, district,
municipal and school tax or assessment, and all other taxes and license
fees, from the payment of which charitable and benevolent corporations or
institutions are now or may hereafter be exempt.
This exemption shall not prevail against the fees and charges imposed by
Sections 408 and 408.2 of the "Illinois Insurance Code", approved
June 29, 1937, as amended.
		(Source: P.A. 84-989.) (215 ILCS 165/28) (from Ch. 32, par. 622)Sec. 28. 
		
		Any person or any agent or officer of the corporation who violates
any provisions of this Act, or who makes any false statement with respect
to any report or statement required by this Act or required by the Director
under this Act is guilty of a Class A misdemeanor.
		(Source: P.A. 77-2830.) (215 ILCS 165/29) (from Ch. 32, par. 623)Sec. 29. 
		
		The provisions of this Act shall be severable, and if any
provision of this Act is declared unconstitutional or the applicability
thereof to any person or circumstances is held invalid, the
constitutionality of the remainder of the Act and the applicability thereof
to other persons and circumstances shall not be affected thereby.
		(Source: Laws 1951, p. 569.) (215 ILCS 165/30) (from Ch. 32, par. 624)Sec. 30. 
		
		Every final administrative decision of the Director shall be
subject to judicial review only under and in accordance with the Administrative
Review Law. The Administrative Review Law and all amendments and modifications
thereof, and the rules
adopted pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the Director
hereunder. The term "administrative decision" is defined as in Section
3-101 of the Code of Civil Procedure. This Section shall apply to all proceedings
for judicial review.
		(Source: P.A. 82-783.)
(215 ILCS 170/1)(Section scheduled to be repealed on October 1, 2024)Sec. 1. Short title. This Act may be cited as the Covering ALL KIDS Health Insurance  Act.
		(Source: P.A. 94-693, eff. 7-1-06.) (215 ILCS 170/5)(Section scheduled to be repealed on October 1, 2024)Sec. 5. Legislative intent. The General Assembly finds that, for the economic and social benefit of all residents of the State, it is important to enable all children of this State to access affordable health insurance that offers comprehensive coverage and emphasizes preventive healthcare.  Many children in working families, including many families whose family income ranges between $40,000 and $80,000, are uninsured. Numerous studies, including the Institute of Medicine's report, "Health Insurance Matters", demonstrate that lack of insurance negatively affects health status. The General Assembly further finds that access to healthcare is a key component for children's healthy development and successful education. The effects of lack of insurance also negatively impact those who are insured because the cost of paying for care to the uninsured is often shifted to those who have insurance in the form of higher health insurance premiums.  A Families USA 2005 report indicates that family premiums in Illinois are increased by $1,059 due to cost-shifting from the uninsured. It is, therefore, the intent of this legislation to provide access to affordable health insurance to all uninsured children in Illinois. 
		(Source: P.A. 94-693, eff. 7-1-06.) (215 ILCS 170/6)Sec. 6. Act inoperative. This Act is inoperative if (i) the Department of Healthcare and Family Services receives federal approval to make children younger than 19 who have countable income at or below 313% of the federal poverty level eligible for medical assistance under Article V of the Illinois Public Aid Code and (ii) the Department, upon federal approval, transitions children eligible for health care benefits under this Act into the medical assistance program established under Article V of the Illinois Public Aid Code.
(Source: P.A. 102-43, eff. 7-6-21.) (215 ILCS 170/7)(Section scheduled to be repealed on October 1, 2024)Sec. 7. Eligibility verification. Notwithstanding any other provision of this Act, with respect to applications for benefits provided under the Program, eligibility shall be determined in a manner that ensures program integrity and that complies with federal law and regulations while minimizing unnecessary barriers to enrollment. To this end, as soon as practicable, and unless the Department receives written denial from the federal government, this Section shall be implemented:(a) The Department of Healthcare and Family Services or its designees shall:(1) By July 1, 2011, require  verification of, at a     minimum, one month's income from all sources required for determining the eligibility of applicants to the Program. Such verification shall take the form of pay stubs, business or income and expense records for self-employed persons, letters from employers, and any other valid documentation of income including data obtained electronically by the Department or its designees from other sources as described in subsection (b) of this Section. A month's income may be verified by a single pay stub with the monthly income extrapolated from the time period covered by the pay stub.(2) By October 1, 2011, require verification of, at a     minimum, one month's income from all sources required for determining the continued eligibility of recipients at their annual review of eligibility under the Program. Such verification shall take the form of pay stubs, business or income and expense records for self-employed persons, letters from employers, and any other valid documentation of income including data obtained electronically by the Department or its designees from other sources as described in subsection (b) of this Section. A month's income may be verified by a single pay stub with the monthly income extrapolated from the time period covered by the pay stub. The Department shall send a notice to recipients  at  least  60  days  prior  to  the  end  of  their  period of eligibility that informs them of the requirements  for  continued  eligibility. Information the Department receives prior to the annual review, including information available to the Department as a result of the recipient's application for other non-health care benefits, that is sufficient to make a determination of continued eligibility for benefits provided under this Act, the Children's Health Insurance Program Act, or Article V of the Illinois Public Aid Code may be reviewed and verified, and subsequent action taken including client notification of continued eligibility for benefits provided under this Act, the Children's Health Insurance Program Act, or Article V of the Illinois Public Aid Code. The date of client notification establishes the date for subsequent annual eligibility reviews. If  a  recipient does  not  fulfill  the  requirements  for continued eligibility  by  the deadline established in the notice, a notice of cancellation shall be issued to the recipient  and coverage shall  end no later than the last day of the month following the last day of the eligibility period. A recipient's eligibility may be reinstated without requiring a new application if the recipient fulfills the requirements for continued eligibility prior to the end of the third month following the last date of coverage (or longer period if required by federal regulations). Nothing in this Section shall prevent an individual whose coverage has been cancelled from reapplying for health benefits at any time.(3) By July 1, 2011, require  verification  of      Illinois  residency.(b)  The  Department  shall  establish  or  continue  cooperative
arrangements with the Social Security Administration, the
Illinois  Secretary  of  State,  the  Department  of  Human  Services,
the Department of Revenue, the Department of Employment
Security,  and  any  other  appropriate  entity  to  gain  electronic
access,  to  the  extent  allowed  by  law,  to  information  available
to  those  entities  that  may  be  appropriate  for  electronically
verifying  any  factor  of  eligibility  for  benefits  under  the
Program.  Data  relevant  to  eligibility  shall  be  provided  for  no
other  purpose  than  to  verify  the  eligibility  of  new applicants or current recipients of health  benefits under the Program.  Data will be requested or provided for any new applicant or current recipient only insofar as that individual's circumstances are relevant to that individual's  or another individual's eligibility.(c) Within 90 days of the effective date of this amendatory Act of the 96th General Assembly, the Department of Healthcare and Family Services shall send notice to current recipients informing them of the changes regarding their eligibility verification. 
(Source: P.A. 101-209, eff. 8-5-19; 101-649, eff. 7-7-20.) (215 ILCS 170/8)Sec. 8. COVID-19 public health emergency. Notwithstanding any other provision of  this Act, the Department may take necessary actions to address the COVID-19 public health emergency to the extent such actions are required, approved, or authorized by the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services. Such actions may continue throughout the public health emergency and for up to 12 months after the period ends, and may include, but are not limited to: accepting an applicant's or recipient's attestation of income, incurred medical expenses, residency, and insured status when electronic verification is not available; eliminating resource tests for some eligibility determinations; suspending  redeterminations; suspending changes that would adversely affect an applicant's or recipient's eligibility; phone or verbal approval by an applicant to submit an application in lieu of applicant signature; allowing adult presumptive eligibility; allowing presumptive eligibility for children, pregnant women, and adults as often as twice per calendar year; paying for additional services delivered by telehealth; and suspending premium and co-payment requirements.The Department's authority under this Section shall only extend to encompass, incorporate, or effectuate the terms, items, conditions, and other provisions approved, authorized, or required by the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services, and shall not extend beyond the time of the COVID-19 public health emergency and up to 12 months after the period expires. 
(Source: P.A. 101-649, eff. 7-7-20.) (215 ILCS 170/10)(Section scheduled to be repealed on October 1, 2024)Sec. 10. Definitions. In this Act:"Application agent" means an organization or individual, such as a licensed  health care provider, school, youth service agency, employer, labor union, local chamber of commerce, community-based organization, or other organization, approved by the Department to assist in enrolling children in the Program."Child" means a person under the age of 19."Department" means the Department of Healthcare and Family Services."Medical assistance" means health care benefits provided under Article V of the Illinois Public Aid Code."Program" means the Covering ALL KIDS Health Insurance Program."Resident" means an individual (i) who is in the State for other than a temporary or transitory purpose during the taxable year or (ii) who is domiciled in this State but is absent from the State for a temporary or transitory purpose during the taxable year.

		(Source: P.A. 94-693, eff. 7-1-06.) (215 ILCS 170/15)(Section scheduled to be repealed on October 1, 2024)Sec. 15. Operation of Program. The Covering ALL KIDS Health Insurance Program is created.  The Program shall be administered by the Department of Healthcare and Family Services.  The Department shall have the same powers and authority to administer the Program as are provided to the Department in connection with the Department's administration of  the Illinois Public Aid Code, including, but not limited to, the provisions under Section 11-5.1 of the Code, and the Children's Health Insurance Program Act.  The Department shall coordinate the Program with the existing children's health programs operated by the Department and other State agencies. Effective October 1, 2013, the determination of eligibility under this Act shall comply with the requirements of 42 U.S.C. 1397bb(b)(1)(B)(v) and applicable federal regulations.  If changes made to this Section require federal approval, they shall not take effect until such approval has been received. 
(Source: P.A. 98-104, eff. 7-22-13.) (215 ILCS 170/20)(Section scheduled to be repealed on October 1, 2024)Sec. 20. Eligibility.(a) To be eligible for the Program, a person must be a child:(1) who is a resident of the State of Illinois;(2) who is ineligible for medical assistance under     the Illinois Public Aid Code or benefits under the Children's Health Insurance Program Act;(3)  who (i) effective July 1, 2014, in accordance     with 42 CFR 457.805 (78 FR 42313, July 15, 2013) or any other federal requirement necessary to obtain federal financial participation for expenditures made under this Act, has been without health insurance coverage for 90 days; (ii) is a newborn whose responsible relative does not have available affordable private or employer-sponsored health insurance; or (iii) within one year of applying for coverage under this Act, lost medical benefits under the Illinois Public Aid Code or the Children's Health Insurance Program Act; and(3.5) whose household income, as determined,     effective October 1, 2013, by the Department, is at or below 300% of the federal poverty level as determined in compliance with 42 U.S.C. 1397bb(b)(1)(B)(v) and applicable federal regulations.An entity that provides health insurance coverage (as defined in Section 2 of the Comprehensive Health Insurance Plan Act) to Illinois residents shall provide health insurance data match to the Department of Healthcare and Family Services as provided by and subject to Section 5.5 of the Illinois Insurance Code. The Department of Healthcare and Family Services may impose an administrative penalty as provided under Section 12-4.45 of the Illinois Public Aid Code on entities that have established a pattern of failure to provide the information required under this Section.The Department of Healthcare and Family Services, in collaboration with the  Department of Insurance, shall adopt rules governing the exchange of information under this Section.  The rules shall be consistent with all laws relating to the confidentiality or privacy of personal information or medical records, including provisions under the Federal Health Insurance Portability and Accountability Act (HIPAA).(b) The Department shall monitor the availability and retention of employer-sponsored dependent health insurance coverage and shall modify the period described in subdivision (a)(3) if necessary to promote retention of private or employer-sponsored health insurance and timely access to healthcare services, but at no time shall the period described in subdivision (a)(3) be less than 6 months.(c) The Department, at its discretion, may take into account the affordability of dependent health insurance when determining whether employer-sponsored dependent health insurance coverage is available upon reemployment of a child's parent as provided in subdivision (a)(3).(d) A child who is determined to be eligible for the Program shall remain eligible for 12 months, provided that the child maintains his or her residence in this State, has not yet attained 19 years of age, and is not excluded under subsection (e).(e) A child is not eligible for coverage under the Program if:(1) the premium required under Section 40 has not     been timely paid;  if the required premiums are not paid, the liability of the Program shall be limited to benefits incurred under the Program for the time period for which premiums have been paid; re-enrollment shall be completed before the next covered medical visit, and the first month's required premium shall be paid in advance of the next covered medical visit; or(2) the child is an inmate of a public institution or     an institution for mental diseases.(f) The Department may adopt rules, including, but not limited to: rules regarding annual renewals of eligibility for the Program in conformance with Section 7 of this Act; rules providing for re-enrollment, grace periods, notice requirements, and hearing procedures under subdivision (e)(1) of this Section; and rules regarding what constitutes availability and affordability of private or employer-sponsored health insurance, with consideration of such factors as the percentage of income needed to purchase children or family health insurance, the availability of employer subsidies, and other relevant factors.(g) Each child enrolled in the Program as of July 1, 2011 whose family income, as established by the Department, exceeds 300% of the federal poverty level may remain enrolled in the Program for 12 additional months commencing July 1, 2011. Continued enrollment pursuant to this subsection shall be available only if the child continues to meet all eligibility criteria established under the Program as of the effective date of this amendatory Act of the 96th General Assembly without a break in coverage. Nothing contained in this subsection shall prevent a child from qualifying for any other health benefits program operated by the Department. (Source: P.A. 98-130, eff. 8-2-13; 98-651, eff. 6-16-14.) (215 ILCS 170/21)(Section scheduled to be repealed on October 1, 2024)Sec. 21. Presumptive eligibility. Beginning on the effective date of this amendatory Act of the 96th General Assembly and except where federal law or regulation requires presumptive eligibility,  no adult may be presumed eligible for health care coverage under the Program and the Department may not cover any service rendered to an adult unless the adult has completed an application for benefits, all required verifications have been received, and the Department or its designee has found the adult eligible for the date on which that service was provided. Nothing in this Section shall apply to pregnant women.
(Source: P.A. 96-1501, eff. 1-25-11.) (215 ILCS 170/25)(Section scheduled to be repealed on October 1, 2024)Sec. 25. Enrollment in Program. The Department shall develop procedures to allow application agents to assist in enrolling children in the Program or other children's health programs operated by the Department.  At the Department's discretion, technical assistance payments may be made available for approved applications facilitated by an application agent. The Department shall permit day and temporary labor service agencies, as defined in the Day and Temporary Labor Services Act and doing business in Illinois, to enroll as unpaid application agents.  As established in the Free Healthcare Benefits Application Assistance Act, it shall be unlawful for any person to charge another person or family for assisting in completing and submitting an application for enrollment in this Program.
(Source: P.A. 96-326, eff. 8-11-09.) (215 ILCS 170/30)(Section scheduled to be repealed on October 1, 2024)Sec. 30. Program outreach and marketing. The Department may provide grants to application agents and other community-based organizations to educate the public about the availability of the Program.  The Department shall adopt rules regarding performance standards and outcomes measures expected of organizations that are awarded grants under this Section, including penalties for nonperformance of contract standards.The Department shall annually publish electronically on a State website the premiums or other cost sharing requirements of the Program.
(Source: P.A. 97-689, eff. 6-14-12.) (215 ILCS 170/35)(Section scheduled to be repealed on October 1, 2024)Sec. 35. Health care benefits for children.(a) The Department shall purchase or provide health care benefits for eligible children that are identical to the benefits provided for children under the Illinois Children's Health Insurance Program Act, except for non-emergency transportation.(b) As an alternative to the benefits set forth in subsection (a), and when cost-effective, the Department may offer families subsidies toward the cost of privately sponsored health insurance, including employer-sponsored health insurance.(c) Notwithstanding clause (i) of subdivision (a)(3) of Section 20, the Department may consider offering, as an alternative to the benefits set forth in subsection (a), partial coverage to children who are enrolled in a high-deductible private health insurance plan.(d) Notwithstanding clause (i) of subdivision (a)(3) of Section 20, the Department may consider offering, as an alternative to the benefits set forth in subsection (a), a limited package of benefits to children in families who have private or employer-sponsored health insurance that does not cover certain benefits such as dental or vision benefits.(e) The content and availability of benefits described in subsections (b), (c), and (d), and the terms of eligibility for those benefits, shall be at the Department's discretion and the Department's determination of efficacy and cost-effectiveness as a means of promoting retention of private or employer-sponsored health insurance.(f) On and after July 1, 2012, the Department shall reduce any rate of reimbursement for services or other payments or alter any methodologies authorized by this Act or the Illinois Public Aid Code to reduce any rate of reimbursement for services or other payments in accordance with Section 5-5e of the Illinois Public Aid Code. (Source: P.A. 97-689, eff. 6-14-12.) (215 ILCS 170/36)(Section scheduled to be repealed on October 1, 2024)Sec. 36. Moratorium on eligibility expansions. Beginning on the effective date of this amendatory Act of the 96th General  Assembly, there shall be a 2-year moratorium on the expansion  of eligibility through increasing financial eligibility standards, or through increasing income disregards, or through the creation of new programs that would add new categories of eligible individuals under the medical assistance program under the Illinois Public Aid Code in addition to those categories covered on January 1, 2011. This moratorium shall not apply to expansions required as a federal condition of State participation in the medical assistance program.
(Source: P.A. 96-1501, eff. 1-25-11.) (215 ILCS 170/40)(Section scheduled to be repealed on October 1, 2024)Sec. 40. Cost-sharing.(a) Children enrolled in the Program under subsection (a) of Section 35 are subject to the following cost-sharing requirements:(1) The Department, by rule, shall set forth     requirements concerning co-payments and coinsurance for health care services and monthly premiums.  This cost-sharing shall be on a sliding scale based on family income.  The Department may periodically modify such cost-sharing.(2) Notwithstanding paragraph (1), there shall be no     co-payment required for well-baby or well-child health care, including, but not limited to, age-appropriate immunizations as required under State or federal law.(b) Children enrolled in a privately sponsored health insurance plan under subsection (b) of Section 35 are subject to the cost-sharing provisions stated in the privately sponsored health insurance plan.(c) Notwithstanding any other provision of law, rates paid by the Department shall not be used in any way to determine the usual and customary or reasonable charge, which is the charge for health care that is consistent with the average rate or charge for similar services furnished by similar providers in a certain geographic area.
		(Source: P.A. 94-693, eff. 7-1-06.) (215 ILCS 170/41)(Section scheduled to be repealed on October 1, 2024)Sec. 41. Health care provider participation in State Employees Deferred Compensation Plan. Notwithstanding any other provision of law, a health care provider who participates under the Program may elect, in lieu of receiving direct payment for services provided under the Program, to participate in the State Employees Deferred Compensation Plan adopted under Article 24 of the Illinois Pension Code. A health care provider who elects to participate in the plan does not have a cause of action against the State for any damages allegedly suffered by the provider as a result of any delay by the State in crediting the amount of any contribution to the provider's plan account. 
(Source: P.A. 96-806, eff. 7-1-10.) (215 ILCS 170/45)(Section scheduled to be repealed on October 1, 2024)Sec. 45. Study; contracts.(a) The Department shall conduct a study that includes, but is not limited to, the following:(1) Establishing estimates, broken down by regions of     the State, of the number of children with and without health insurance coverage; the number of children who are eligible for Medicaid or the Children's Health Insurance Program, and, of that number, the number who are enrolled in Medicaid or the Children's Health Insurance Program; and the number of children with access to dependent coverage through an employer, and, of that number, the number who are enrolled in dependent coverage through an employer.(2) Surveying those families whose children have     access to employer-sponsored dependent coverage but who decline such coverage as to the reasons for declining coverage.(3) Ascertaining, for the population of children     accessing employer-sponsored dependent coverage or who have access to such coverage, the comprehensiveness of dependent coverage available, the amount of cost-sharing currently paid by the employees, and the cost-sharing associated with such coverage.(4) Measuring the health outcomes or other benefits     for children utilizing the Covering ALL KIDS Health Insurance Program and analyzing the effects on utilization of healthcare services for children after enrollment in the Program compared to the preceding period of uninsured status.(b) The studies described in subsection (a) shall be conducted in a manner that compares a time period preceding or at the initiation of the program with a later period.(c) The Department shall submit the preliminary results of the study to the Governor and the General Assembly no later than July 1, 2008 and shall submit the final results to the Governor and the General Assembly no later than July 1, 2010.(d) The Department shall submit copies of all contracts awarded for the administration of the Program to the Speaker of the House of Representatives, the Minority Leader of the House of Representatives, the President of the Senate, and the Minority Leader of the Senate.
(Source: P.A. 94-693, eff. 7-1-06; 95-985, eff. 6-1-09.) (215 ILCS 170/47)(Section scheduled to be repealed on October 1, 2024)Sec. 47. Program information. The Department shall report to the General Assembly no later than September 1 of each year beginning in 2007, all of the following information:(a) The number of professionals serving in the     primary care case management program, by licensed profession and by county, and, for counties with a population of 100,000 or greater, by geo zip code.(b) The number of non-primary care providers     accepting referrals, by specialty designation, by licensed profession and by county, and, for counties with a population of 100,000 or greater, by geo zip code.(c) The number of individuals enrolled in the     Covering ALL KIDS Health Insurance Program by income or premium level and by county, and, for counties with a population of 100,000 or greater, by geo zip code.		(Source: P.A. 95-650, eff. 6-1-08.) (215 ILCS 170/50)(Section scheduled to be repealed on October 1, 2024)Sec. 50. Consultation with stakeholders. The Department shall present details regarding implementation of the Program to the Medicaid Advisory Committee, and the Committee shall serve as the forum for healthcare providers, advocates, consumers, and other interested parties to advise the Department with respect to the Program. The Department shall consult with stakeholders on the rules for healthcare professional participation in the Program pursuant to Sections 52 and 53 of this Act.
					
		(Source: P.A. 94-693, eff. 7-1-06; 95-650, eff. 6-1-08.) (215 ILCS 170/52)(Section scheduled to be repealed on October 1, 2024)Sec. 52. Adequate access to specialty care.(a) The Department shall ensure adequate access to specialty physician care for Program participants by allowing referrals to be accomplished without undue delay.(b) The Department shall allow a primary care provider to make appropriate referrals to specialist physicians or other healthcare providers for an enrollee who has a condition that requires care from a specialist physician or other healthcare provider. The Department may specify the necessary criteria and conditions that must be met in order for an enrollee to obtain a standing referral. A referral shall be effective for the period necessary to provide the referred services or one year, whichever is less. A primary care provider may renew and re-renew a referral.(c) The enrollee's primary  care provider shall remain responsible for coordinating the care of an enrollee who has received a standing referral to a specialist physician or other healthcare provider. If a secondary referral is necessary, the specialist physician or other healthcare provider shall advise the primary care physician. The primary care physician or specialist physician shall be responsible for making the secondary referral. In addition, the Department shall require the specialist physician or other healthcare provider to provide regular updates to the enrollee's primary care provider.
		(Source: P.A. 95-650, eff. 6-1-08.) (215 ILCS 170/53)(Section scheduled to be repealed on October 1, 2024)Sec. 53. Program standards.(a) Any disease management program implemented by the Department must be or must have been developed in consultation with physician organizations, such as State, national, and specialty medical societies, and any available standards or guidelines of these organizations. These programs must be based on evidence-based, scientifically sound principles that are accepted by the medical community. An enrollee must be excused from participation in a disease management program if the enrollee's physician licensed to practice medicine in all its branches, in his or her professional judgment, determines that participation is not beneficial to the enrollee.(b) Any performance measures, such as primary care provider monitoring, implemented by the Department must be or must have been developed on consultation with physician organizations, such as State, national, and specialty medical societies, and any available standards or guidelines of these organizations. These measures must be based on evidence-based, scientifically sound principles that are accepted by the medical community.(c) The Department shall adopt variance procedures for the application of any disease management program or any performance measures to an individual enrollee.
		(Source: P.A. 95-650, eff. 6-1-08.) (215 ILCS 170/54)(Section scheduled to be repealed on October 1, 2024)Sec. 54. Dental home initiative. The Department, in cooperation with the dental community and other affected organizations such as Head Start, shall work to develop and promote the concept of a dental home for children covered under this Act.  Included in this dental home outreach should be an effort to ensure an ongoing relationship between the patient and the dentist with an effort to provide comprehensive, coordinated, oral health care so that all children covered under this Act have access to preventative and restorative oral health care.
(Source: P.A. 97-283, eff. 8-9-11.) (215 ILCS 170/55)(Section scheduled to be repealed on October 1, 2024)Sec. 55. Charge upon claims and causes of action; right of subrogation; recoveries. Sections 11-22, 11-22a, 11-22b, and 11-22c of the Illinois Public Aid Code apply to health care benefits provided to children under this Act, as provided in those Sections.
		(Source: P.A. 94-693, eff. 7-1-06.) (215 ILCS 170/56)(Section scheduled to be repealed on October 1, 2024)Sec. 56. Care coordination.(a) At least 50% of recipients eligible for comprehensive medical benefits in all medical assistance programs or other health benefit programs administered by the Department, including the Children's Health Insurance Program Act and the Covering ALL KIDS Health Insurance Act, shall be enrolled in a care coordination program by no later than  January  1,  2015.  For  purposes  of  this  Section,  "coordinated care" or "care coordination" means delivery  systems where recipients will receive their care from providers who participate under contract in integrated delivery systems that are responsible for providing or arranging the majority of care, including primary care physician services, referrals from primary care physicians, diagnostic and treatment services, behavioral health services, in-patient and outpatient hospital services, dental services, and rehabilitation and long-term care services. The Department shall designate or contract for such integrated delivery systems (i) to ensure enrollees have a choice of systems and of primary care providers within such systems; (ii) to ensure that enrollees receive quality care in a culturally and linguistically appropriate manner; and (iii) to ensure that coordinated care programs meet the diverse needs of enrollees with developmental, mental health, physical, and age-related disabilities.(b) Payment for such coordinated care shall be based on arrangements where the State pays for performance related to health care outcomes, the use of evidence-based practices, the use of primary care delivered through comprehensive medical homes, the use of electronic medical records, and the appropriate exchange of health information electronically made either on a capitated basis in which a fixed monthly premium per recipient is paid and full financial risk is assumed for the delivery of services, or through other risk-based payment arrangements.(c) To qualify for compliance with this Section, the 50% goal shall be achieved by enrolling medical assistance enrollees from each medical assistance enrollment category, including parents, children, seniors, and people with disabilities to the extent that current State Medicaid payment laws would not limit federal matching funds for recipients in care coordination programs. In addition, services must be more comprehensively defined and more risk shall be assumed than in the Department's primary care case management program as of the effective date of this amendatory Act of the 96th General Assembly.(d) The  Department  shall  report to the General Assembly  in  a  separate  part  of  its  annual medical assistance program report, beginning April, 2012  until  April,  2016,  on  the  progress  and  implementation  of  the  care coordination  program  initiatives  established by the  provisions  of  this  amendatory  Act  of  the  96th  General  Assembly. The Department shall include in its April 2011 report a full analysis of federal laws or regulations regarding upper payment limitations to providers and the necessary revisions or adjustments in rate methodologies and payments to providers under this Code that would be necessary to implement coordinated care with full financial risk by a party other than the Department. 
(Source: P.A. 96-1501, eff. 1-25-11.) (215 ILCS 170/60)(Section scheduled to be repealed on October 1, 2024)Sec. 60. Federal financial participation. The Department shall request any necessary state plan amendments or waivers of federal requirements in order to allow receipt of federal funds for implementing any or all of the provisions of the Program.  The failure of the responsible federal agency to approve a waiver or other State plan amendment shall not prevent the implementation of any provision of this Act. 
		(Source: P.A. 94-693, eff. 7-1-06.) (215 ILCS 170/63)(Section scheduled to be repealed on October 1, 2024)Sec. 63. Audits by the Auditor General. The Auditor General shall cause an audit to be made of the Program on or before June 30, 2022 and every 3 years thereafter. The audit shall include payments for health services covered by the Program and contracts entered into by the Department in relation to the Program.
(Source: P.A. 101-272, eff. 8-9-19.) (215 ILCS 170/65)Sec. 65. (Repealed). 
		(Source: P.A. 94-693, eff. 7-1-06. Repealed internally, eff. 7-1-08.) (215 ILCS 170/90)Sec. 90. 
		(Amendatory provisions; text omitted).
		(Source: P.A. 94-693, eff. 7-1-06; text omitted.) (215 ILCS 170/97)(Section scheduled to be repealed on October 1, 2024)Sec. 97. Severability. If any provision of this Act or its application to any person or circumstance is held invalid, the invalidity of that provision or application does not affect other provisions or applications of this Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
		(Source: P.A. 94-693, eff. 7-1-06.) (215 ILCS 170/98)(Section scheduled to be repealed on October 1, 2024)Sec. 98. Repealer.  This Act is repealed on October 1, 2024.
(Source: P.A. 101-272, eff. 8-9-19.) (215 ILCS 170/99)(Section scheduled to be repealed on October 1, 2024)Sec. 99. Effective date. This Act takes effect July 1, 2006.
		(Source: P.A. 94-693, eff. 7-1-06.)
(215 ILCS 175/1)Sec. 1. Short title.  This Act may be cited as the Organ Transplant Medication Notification Act.
(Source: P.A. 96-766, eff. 1-1-10.) (215 ILCS 175/5)Sec. 5. Applicability. This Act shall apply solely to cases of immunosuppressive therapy when (i) an immunosuppressant drug has been prescribed to a patient to prevent the rejection of transplanted organs and
tissues and (ii) as set forth in Section 15 of this Act, a prescribing physician has indicated on a prescription "may not substitute". This Act does not apply to medication orders issued for immunosuppressant drugs for any in-patient care in a licensed hospital.
(Source: P.A. 96-766, eff. 1-1-10.) (215 ILCS 175/10)Sec. 10. Definitions. For the purpose of this Act:"Health insurance policy or health care service plan" means any policy of health or accident insurance subject to the provisions of the Illinois Insurance Code, Health Maintenance Organization Act, Voluntary Health Services Plans Act, Counties Code, Illinois Municipal Code, School Code, and State Employees Group Insurance Act of 1971."Immunosuppressant drugs" mean drugs that are used in immunosuppressive therapy to inhibit or prevent the activity of the immune system. "Immunosuppressant drugs" are used clinically to prevent the rejection of transplanted organs and tissues. "Immunosuppressant drugs" do not include drugs for the treatment of autoimmune diseases or diseases that are most likely of autoimmune origin.
(Source: P.A. 102-558, eff. 8-20-21.) (215 ILCS 175/15)Sec. 15. Quality assurance in patient care. In accordance with the Pharmacy Practice Act, when a prescribing physician has indicated on a prescription "may not substitute", a health insurance policy or health care service plan that covers immunosuppressant drugs may not require or cause a pharmacist to interchange another immunosuppressant drug or formulation issued on behalf of a person to inhibit or prevent the activity of the immune system of a patient to prevent the rejection of transplanted organs and tissues without notification and the documented consent of the prescribing physician and the patient, or the parent or guardian if the patient is a child, or the spouse of a patient who is authorized to consent to the treatment of the person.Except as provided by subsections (a), (b), and (c) of Section 20 of this Act, patient co-payments, deductibles, or other
charges for the prescribed drug for which another immunosuppressant drug or formulation is not interchanged shall remain the same for the enrollment period established by the health insurance policy or plan.
(Source: P.A. 96-766, eff. 1-1-10.) (215 ILCS 175/20)Sec. 20. Provision of notice; formulary changes.(a) At least 60 days prior to making any formulary change that alters the terms of coverage for a patient receiving immunosuppressant drugs or discontinues coverage for a prescribed immunosuppressant drug that a patient is receiving, a policy or plan sponsor must, to the extent possible, notify the prescribing physician and the patient, or the parent or guardian if the patient is a child, or the spouse of a patient who is authorized to consent to the treatment of the patient. The notification shall be in writing and shall disclose the formulary change, indicate that the prescribing physician may initiate an appeal, and include information regarding the procedure for the prescribing physician to initiate the policy or plan sponsor's appeal process.(b) As an alternative to providing written notice, a policy or plan sponsor may provide the notice electronically if, and only if, the patient affirmatively elects to receive such notice electronically. The notification shall disclose the formulary change, indicate that the prescribing physician may initiate an appeal, and include information regarding the procedure for the prescribing physician to initiate the policy or plan sponsor's appeal process.(c) At the time a patient requests a refill of the immunosuppressant drug, a policy or plan sponsor may provide the patient with the written notification required under subsection (a) of this Section along with a 60-day supply of the immunosuppressant drug under the same terms as previously allowed.(d) Nothing in this Section shall prohibit insurers or pharmacy benefit managers from using managed pharmacy care tools, including, but not limited to, formulary tiers, generic substitution, therapeutic interchange, prior authorization, or step therapy, so long as an exception process is in place allowing the prescriber to petition for coverage of a non-preferred drug if sufficient clinical reasons justify an exception to the normal protocol.
(Source: P.A. 96-766, eff. 1-1-10.)
(215 ILCS 180/1)Sec. 1. Short title. This Act may be cited as the Health Carrier External Review Act.
(Source: P.A. 96-857, eff. 7-1-10.) (215 ILCS 180/5)Sec. 5. Purpose and intent. The purpose of this Act is to provide uniform standards for the establishment and maintenance of external review procedures to assure that covered persons have the opportunity for an independent review of an adverse determination or final adverse determination, as defined in this Act.
(Source: P.A. 96-857, eff. 7-1-10.) (215 ILCS 180/10)Sec. 10. Definitions. For the purposes of this Act:"Adverse determination" means:(1) a determination by a health carrier or its     designee utilization review organization that, based upon the information provided, a request for a benefit under the health carrier's health benefit plan upon application of any utilization review technique does not meet the health carrier's requirements for medical necessity, appropriateness, health care setting, level of care, or effectiveness or is determined to be experimental or investigational and the requested benefit is therefore denied, reduced, or terminated or payment is not provided or made, in whole or in part, for the benefit;(2) the denial, reduction, or termination of or     failure to provide or make payment, in whole or in part, for a benefit based on a determination by a health carrier or its designee utilization review organization that a preexisting condition was present before the effective date of coverage; or(3) a rescission of coverage determination, which     does not include a cancellation or discontinuance of coverage that is attributable to a failure to timely pay required premiums or contributions towards the cost of coverage."Authorized representative" means:(1) a person to whom a covered person has given     express written consent to represent the covered person for purposes of this Law;(2) a person authorized by law to provide substituted     consent for a covered person;(3)  a family member of the covered person or the     covered person's treating health care professional when the covered person is unable to provide consent;(4) a health care provider when the covered person's     health benefit plan requires that a request for a benefit under the plan be initiated by the health care provider; or(5) in the case of an urgent care request, a health     care provider with knowledge of the covered person's medical condition."Best evidence" means evidence based on:(1) randomized clinical trials;(2) if randomized clinical trials are not available,     then cohort studies or case-control studies;(3) if items (1) and (2) are not available, then     case-series; or(4) if items (1), (2), and (3) are not available,     then expert opinion."Case-series" means an evaluation of a series of patients with a particular outcome, without the use of a control group."Clinical review criteria" means the written screening procedures, decision abstracts, clinical protocols, and practice guidelines used by a health carrier to determine the necessity and appropriateness of health care services."Cohort study" means a prospective evaluation of 2 groups of patients with only one group of patients receiving specific intervention."Concurrent review" means a review conducted during a patient's stay or course of treatment in a facility, the office of a health care professional, or other inpatient or outpatient health care setting."Covered benefits" or "benefits" means those health care services to which a covered person is entitled under the terms of a health benefit plan."Covered person" means a policyholder, subscriber, enrollee, or other individual participating in a health benefit plan."Director" means the Director of the Department of Insurance."Emergency medical condition" means a medical condition manifesting itself by acute symptoms of sufficient severity, including, but not limited to, severe pain, such that a prudent layperson who possesses an average knowledge of health and medicine could reasonably expect the absence of immediate medical attention to result in:(1) placing the health of the individual or, with     respect to a pregnant woman, the health of the woman or her unborn child, in serious jeopardy;(2) serious impairment to bodily functions; or(3) serious dysfunction of any bodily organ or part."Emergency services" means health care items and services furnished or required to evaluate and treat an emergency medical condition."Evidence-based standard" means the conscientious, explicit, and judicious use of the current best evidence based on an overall systematic review of the  research in making decisions about the care of individual patients."Expert opinion" means a belief or an interpretation by specialists with experience in a specific area about the scientific evidence pertaining to a particular service, intervention, or therapy."Facility" means an institution providing health care services or a health care setting."Final adverse determination" means an adverse determination involving a covered benefit that has been upheld by a health carrier, or its designee utilization review organization, at the completion of the health carrier's internal grievance process procedures as set forth by the Managed Care Reform and Patient Rights Act."Health benefit plan" means a policy, contract, certificate, plan, or agreement offered or issued by a health carrier to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services."Health care provider" or "provider" means a physician, hospital facility, or other health care practitioner licensed, accredited, or certified to perform specified health care services consistent with State law, responsible for recommending health care services on behalf of a covered person."Health care services" means services for the diagnosis, prevention, treatment, cure, or relief of a health condition, illness, injury, or disease."Health carrier" means an entity subject to the insurance laws and regulations of this State, or subject to the jurisdiction of the Director, that contracts or offers to contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services, including a sickness and accident insurance company, a health maintenance organization, or any other entity providing a plan of health insurance, health benefits, or health care services.  "Health carrier" also means Limited Health Service Organizations (LHSO) and Voluntary Health Service Plans."Health information" means information or data, whether oral or recorded in any form or medium, and personal facts or information about events or relationships that relate to:(1) the past, present, or future physical, mental, or     behavioral health or condition of an individual or a member of the individual's family;(2) the provision of health care services to an     individual; or(3) payment for the provision of health care services     to an individual."Independent review organization" means an entity that conducts independent external reviews of adverse determinations and final adverse determinations."Medical or scientific evidence" means evidence found in the following sources:(1) peer-reviewed scientific studies published in or     accepted for publication by medical journals that meet nationally recognized requirements for scientific manuscripts and that submit most of their published articles for review by experts who are not part of the editorial staff;(2) peer-reviewed medical literature, including     literature relating to therapies reviewed and approved by a qualified institutional review board, biomedical compendia, and other medical literature that meet the criteria of the National Institutes of Health's Library of Medicine for indexing in Index Medicus (Medline) and Elsevier Science Ltd. for indexing in Excerpta Medicus (EMBASE);(3) medical journals recognized by the Secretary of     Health and Human Services under Section 1861(t)(2) of the federal Social Security Act;(4) the following standard reference compendia:(a) The American Hospital Formulary Service-Drug         Information;(b) Drug Facts and Comparisons;(c) The American Dental Association Accepted         Dental Therapeutics; and(d) The United States Pharmacopoeia-Drug         Information;(5) findings, studies, or research conducted by or     under the auspices of federal government agencies and nationally recognized federal research institutes, including:(a) the federal Agency for Healthcare Research         and Quality;(b) the National Institutes of Health;(c) the National Cancer Institute;(d) the National Academy of Sciences;(e) the Centers for Medicare & Medicaid Services;(f) the federal Food and Drug Administration; and(g) any national board recognized by the National         Institutes of Health for the purpose of evaluating the medical value of health care services; or(6) any other medical or scientific evidence that is     comparable to the sources listed in items (1) through (5)."Person" means an individual, a corporation, a partnership, an association, a joint venture, a joint stock company, a trust, an unincorporated organization, any similar entity, or any combination of the foregoing."Prospective review" means a review conducted prior to an admission or the provision of a health care service or a course of treatment in accordance with a health carrier's requirement that the health care service or course of treatment, in whole or in part, be approved prior to its provision."Protected health information" means health information (i) that identifies an individual who is the subject of the information; or (ii) with respect to which there is a reasonable basis to believe that the information could be used to identify an individual."Randomized clinical trial" means a controlled prospective study of patients that have been randomized into an experimental group and a control group at the beginning of the study with only the experimental group of patients receiving a specific intervention, which includes study of the groups for variables and anticipated outcomes over time."Retrospective review" means any review of a request for a benefit that is not a concurrent or prospective review request. "Retrospective review" does not include the review of a claim that is limited to veracity of documentation or accuracy of coding."Utilization review" has the meaning provided by the Managed Care Reform and Patient Rights Act."Utilization review organization" means a utilization review program as defined in the Managed Care Reform and Patient Rights Act.
(Source: P.A. 97-574, eff. 8-26-11; 97-813, eff. 7-13-12; 98-756, eff. 7-16-14.) (215 ILCS 180/15)Sec. 15. Applicability and scope.(a) Except as provided in subsection (b) of this Section, this Act shall apply to all health carriers.(b) The provisions of this Act shall not apply to a policy or certificate that provides coverage only for a specified disease, specified accident or accident-only coverage, credit, dental, disability income, hospital indemnity, long-term care insurance as defined by Article XIXA of the Illinois Insurance Code, vision care, or any other limited supplemental benefit; a Medicare supplement policy of insurance as defined by the Director by regulation; coverage under a plan through Medicare, Medicaid, or the federal employees health benefits program; any coverage issued under Chapter 55 of Title 10, U.S. Code and any coverage issued as supplement to that coverage; any coverage issued as supplemental to liability insurance, workers' compensation, or similar insurance; automobile medical-payment insurance or any insurance under which benefits are payable with or without regard to fault, whether written on a group blanket or individual basis.
(Source: P.A. 96-857, eff. 7-1-10.) (215 ILCS 180/20)Sec. 20. Notice of right to external review.(a) At the same time the health carrier sends written notice of a covered person's right to appeal a coverage decision upon an adverse determination or a final adverse determination, a health carrier shall notify a covered person, the covered person's authorized representative, if any, and a covered person's health care provider in writing of the covered person's right to request an external review as provided by this Act. The written notice required shall include the following, or substantially equivalent, language: "We have denied your request for the provision of or payment for a health care service or course of treatment. You have the right to have our decision reviewed by an independent review organization not associated with us by submitting a written request for an external review to the Department of Insurance, Office of Consumer Health Information, 320 West Washington Street, 4th Floor, Springfield, Illinois, 62767.". The written notice shall include a copy of the Department's Request for External Review form.(a-5) The Department may prescribe the form and content of the notice required under this Section.(b) In addition to the notice required in subsection (a), for a notice related to an adverse determination, the health carrier shall include a statement informing the covered person of all of the following:(1) If the covered person has a medical condition     where the timeframe for completion of (A) an expedited internal review of an appeal involving an adverse determination, (B) a final adverse determination, or (C) a standard external review as established in this Act, would seriously jeopardize the life or health of the covered person or would jeopardize the covered person's ability to regain maximum function, then the covered person or the covered person's authorized representative may file a request for an expedited external review.(2) The covered person or the covered person's     authorized representative may file an appeal under the health carrier's internal appeal process, but if the health carrier has not issued a written decision to the covered person or the covered person's authorized representative 30 days following the date the covered person or the covered person's authorized representative files an appeal of an adverse determination that involves a concurrent or prospective review request or 60 days following the date the covered person or the covered person's authorized representative files an appeal of an adverse determination that involves a retrospective review request with the health carrier and the covered person or the covered person's authorized representative has not requested or agreed to a delay, then the covered person or the covered person's authorized representative may file a request for external review and shall be considered to have exhausted the health carrier's internal appeal process for purposes of this Act.(3) If the covered person or the covered person's     authorized representative filed a request for an expedited internal review of an adverse determination and has not received a decision on such request from the health carrier within 48 hours, except to the extent the covered person or the covered person's authorized representative requested or agreed to a delay, then the covered person or the covered person's authorized representative may file a request for external review and shall be considered to have exhausted the health carrier's internal appeal process for the purposes of this Act.(4) If an adverse determination concerns a denial of     coverage based on a determination that the recommended or requested health care service or treatment is experimental or investigational and the covered person's health care provider certifies in writing that the recommended or requested health care service or treatment that is the subject of the request would be significantly less effective if not promptly initiated, then the covered person or the covered person's authorized representative may request an expedited external review at the same time the covered person or the covered person's authorized representative files a request for an expedited internal appeal involving an adverse determination. The independent review organization assigned to conduct the expedited external review shall determine whether the covered person is required to complete the expedited review of the appeal prior to conducting the expedited external review.(c) In addition to the notice required in subsection (a), for a notice related to a final adverse determination, the health carrier shall include a statement informing the covered person of all of the following:(1) if the covered person has a medical condition     where the timeframe for completion of a standard external review would seriously jeopardize the life or health of the covered person or would jeopardize the covered person's ability to regain maximum function, then the covered person or the covered person's authorized representative may file a request for an expedited external review; or(2) if a final adverse determination concerns an     admission, availability of care, continued stay, or health care service for which the covered person received emergency services, but has not been discharged from a facility, then the covered person, or the covered person's authorized representative, may request an expedited external review; or(3) if a final adverse determination concerns a     denial of coverage based on a determination that the recommended or requested health care service or treatment is experimental or investigational, and the covered person's health care provider certifies in writing that the recommended or requested health care service or treatment that is the subject of the request would be significantly less effective if not promptly initiated, then the covered person or the covered person's authorized representative may request an expedited external review.(d) In addition to the information to be provided pursuant to subsections (a), (b), and (c) of this Section, the health carrier shall include a copy of the description of both the required standard and expedited external review procedures. The description shall highlight the external review procedures that give the covered person or the covered person's authorized representative the opportunity to submit additional information, including any forms used to process an external review.(e) As part of any forms provided under subsection (d) of this Section, the health carrier shall include an authorization form, or other document approved by the Director, by which the covered person, for purposes of conducting an external review under this Act, authorizes the health carrier and the covered person's treating health care provider to disclose protected health information, including medical records, concerning the covered person that is pertinent to the external review, as provided in the Illinois Insurance Code. (Source: P.A. 99-480, eff. 9-9-15.) (215 ILCS 180/25)Sec. 25. Request for external review. A covered person or the covered person's authorized representative may make a request for a standard external or expedited external review of an adverse determination or final adverse determination. Except as set forth in Sections 40 and 42 of this Act, all requests for external review shall be made in writing to the Director. Health carriers must provide covered persons with forms to request external reviews.
(Source: P.A. 96-857, eff. 7-1-10; 97-574, eff. 8-26-11.) (215 ILCS 180/30)Sec. 30. Exhaustion of internal appeal process.(a) Except as provided in subsection (b) of this Section, a request for an external review shall not be made until the covered person has exhausted the health carrier's internal appeal process.(b) A covered person shall be considered to have exhausted the health carrier's internal appeal process for purposes of this Section if:(1) the covered person or the covered person's     authorized representative has filed an appeal under the health carrier's internal appeal process and has not received a written decision on the appeal 30 days following the date the covered person or the covered person's authorized representative files an appeal of an adverse determination that involves a concurrent or prospective review request or 60 days following the date the covered person or the covered person's authorized representative files an appeal of an adverse determination that involves a retrospective review request, except to the extent the covered person or the covered person's authorized representative requested or agreed to a delay;(2) the covered person or the covered person's     authorized representative filed a request for an expedited internal review of an adverse determination and has not received a decision on such request from the health carrier within 48 hours, except to the extent the covered person or the covered person's authorized representative requested or agreed to a delay;(3) the health carrier agrees to waive the exhaustion     requirement;(4) the covered person has a medical condition in     which the timeframe for completion of (A) an expedited internal review of an appeal involving an adverse determination, (B) a final adverse determination, or (C) a standard external review as established in this Act would seriously jeopardize the life or health of the covered person or would jeopardize the covered person's ability to regain maximum function;(5) an adverse determination concerns a denial of     coverage based on a determination that the recommended or requested health care service or treatment is experimental or investigational and the covered person's health care provider certifies in writing that the recommended or requested health care service or treatment that is the subject of the request would be significantly less effective if not promptly initiated; in such cases, the covered person or the covered person's authorized representative may request an expedited external review at the same time the covered person or the covered person's authorized representative files a request for an expedited internal appeal involving an adverse determination; the independent review organization assigned to conduct the expedited external review shall determine whether the covered person is required to complete the expedited review of the appeal prior to conducting the expedited external review; or(6) the health carrier has failed to comply with     applicable State and federal law governing internal claims and appeals procedures. (Source: P.A. 96-857, eff. 7-1-10; 97-574, eff. 8-26-11.) (215 ILCS 180/35)Sec. 35. Standard external review.(a) Within 4 months after the date of receipt of a notice of an adverse determination or final adverse determination, a covered person or the covered person's authorized representative may file a request for an external review with the Director.  Within one business day after the date of receipt of a request for external review, the Director shall send a copy of the request to the health carrier.(b) Within 5 business days following the date of receipt of the external review request, the health carrier shall complete a preliminary review of the request to determine whether:(1) the individual is or was a covered person in the     health benefit plan at the time the health care service was requested or at the time the health care service was provided;(2) the health care service that is the subject of     the adverse determination or the final adverse determination is a covered service under the covered person's health benefit plan, but the health carrier has determined that the health care service is not covered;(3) the covered person has exhausted the health     carrier's internal appeal process unless the covered person is not required to exhaust the health carrier's internal appeal process pursuant to this Act;(4) (blank); and(5) the covered person has provided all the     information and forms required to process an external review, as specified in this Act.(c) Within one business day after completion of the preliminary review, the health carrier shall notify the Director and covered person and, if applicable, the covered person's authorized representative in writing whether the request is complete and eligible for external review. If the request:(1) is not complete, the health carrier shall inform     the Director and covered person and, if applicable, the covered person's authorized representative in writing and include in the notice what information or materials are required by this Act to make the request complete; or(2) is not eligible for external review, the health     carrier shall inform the Director and covered person and, if applicable, the covered person's authorized representative in writing and include in the notice the reasons for its ineligibility.The Department may specify the form for the health carrier's notice of initial determination under this subsection (c) and any supporting information to be included in the notice.The notice of initial determination of ineligibility shall include a statement informing the covered person and, if applicable, the covered person's authorized representative that a health carrier's initial determination that the external review request is ineligible for review may be appealed to the Director by filing a complaint with the Director.Notwithstanding a health carrier's initial determination that the request is ineligible for external review, the Director may determine that a request is eligible for external review and require that it be referred for external review.  In making such determination, the Director's decision shall be in accordance with the terms of the covered person's health benefit plan, unless such terms are inconsistent with applicable law, and shall be subject to all applicable provisions of this Act.(d) Whenever the Director receives notice that a request is eligible for external review following the preliminary review conducted pursuant to this Section, within one business day after the date of receipt of the notice, the Director shall:(1) assign an independent review organization from     the list of approved independent review organizations compiled and maintained by the Director pursuant to this Act and notify the health carrier of the name of the assigned independent review organization; and(2) notify in writing the covered person and, if     applicable, the covered person's authorized representative of the request's eligibility and acceptance for external review and the name of the independent review organization.The Director shall include in the notice provided to the covered person and, if applicable, the covered person's authorized representative a statement that the covered person or the covered person's authorized representative may, within 5 business days following the date of receipt of the notice provided pursuant to item (2) of this subsection (d), submit in writing to the assigned independent review organization additional information that the independent review organization shall consider when conducting the external review. The independent review organization is not required to, but may, accept and consider additional information submitted after 5 business days.(e) The assignment by the Director of an approved independent review organization to conduct an external review in accordance with this Section shall be done on a random basis among those independent review organizations approved by the Director pursuant to this Act.(f) Within 5 business days after the date of receipt of the notice provided pursuant to item (1) of subsection (d) of this Section, the health carrier or its designee utilization review organization shall provide to the assigned independent review organization the documents and any information considered in making the adverse determination or final adverse determination; in such cases, the following provisions shall apply:(1) Except as provided in item (2) of this subsection     (f), failure by the health carrier or its utilization review organization to provide the documents and information within the specified time frame shall not delay the conduct of the external review.(2) If the health carrier or its utilization review     organization fails to provide the documents and information within the specified time frame, the assigned independent review organization may terminate the external review and make a decision to reverse the adverse determination or final adverse determination.(3) Within one business day after making the decision     to terminate the external review and make a decision to reverse the adverse determination or final adverse determination under item (2) of this subsection (f), the independent review organization shall notify the Director, the health carrier, the covered person and, if applicable, the covered person's authorized representative, of its decision to reverse the adverse determination.(g) Upon receipt of the information from the health carrier or its utilization review organization, the assigned independent review organization shall review all of the information and documents and any other information submitted in writing to the independent review organization by the covered person and the covered person's authorized representative.(h) Upon receipt of any information submitted by the covered person or the covered person's authorized representative, the independent review organization shall forward the information to the health carrier within 1 business day.(1) Upon receipt of the information, if any, the     health carrier may reconsider its adverse determination or final adverse determination that is the subject of the external review.(2) Reconsideration by the health carrier of its     adverse determination or final adverse determination shall not delay or terminate the external review.(3) The external review may only be terminated if the     health carrier decides, upon completion of its reconsideration, to reverse its adverse determination or final adverse determination and provide coverage or payment for the health care service that is the subject of the adverse determination or final adverse determination. In such cases, the following provisions shall apply:(A) Within one business day after making the         decision to reverse its adverse determination or final adverse determination, the health carrier shall notify the Director, the covered person and, if applicable, the covered person's authorized representative, and the assigned independent review organization in writing of its decision.(B) Upon notice from the health carrier that the         health carrier has made a decision to reverse its adverse determination or final adverse determination, the assigned independent review organization shall terminate the external review.(i) In addition to the documents and information provided by the health carrier or its utilization review organization and the covered person and the covered person's authorized representative, if any, the independent review organization, to the extent the information or documents are available and the independent review organization considers them appropriate, shall consider the following in reaching a decision:(1) the covered person's pertinent medical records;(2) the covered person's health care provider's     recommendation;(3) consulting reports from appropriate health care     providers and other documents submitted by the health carrier or its designee utilization review organization, the covered person, the covered person's authorized representative, or the covered person's treating provider;(4) the terms of coverage under the covered person's     health benefit plan with the health carrier to ensure that the independent review organization's decision is not contrary to the terms of coverage under the covered person's health benefit plan with the health carrier, unless the terms are inconsistent with applicable law;(5) the most appropriate practice guidelines, which     shall include applicable evidence-based standards and may include any other practice guidelines developed by the federal government, national or professional medical societies, boards, and associations;(6) any applicable clinical review criteria developed     and used by the health carrier or its designee utilization review organization;(7) the opinion of the independent review     organization's clinical reviewer or reviewers after considering items (1) through (6) of this subsection (i) to the extent the information or documents are available and the clinical reviewer or reviewers considers the information or documents appropriate;(8) (blank); and(9) in the case of medically necessary determinations     for substance use disorders, the patient placement criteria established by the American Society of Addiction Medicine.(i-5)   For an adverse determination or final adverse determination involving mental, emotional, nervous, or substance use disorders or conditions, the independent review organization shall:(1)   consider the documents and information as set     forth in subsection (i), except that all practice guidelines and clinical review criteria must be consistent with the requirements set forth in Section 370c of the Illinois Insurance Code; and(2)   make its decision, pursuant to subsection (j),     whether to uphold or reverse the adverse determination or final adverse determination based on whether the service constitutes medically necessary treatment of a mental, emotional, nervous, or substance use disorders or condition as defined in Section 370c of the Illinois Insurance Code.(j) Within 5 days after the date of receipt of all necessary information, but in no event more than 45 days after the date of receipt of the request for an external review, the assigned independent review organization shall provide written notice of its decision to uphold or reverse the adverse determination or the final adverse determination to the Director, the health carrier, the covered person, and, if applicable, the covered person's authorized representative. In reaching a decision, the assigned independent review organization is not bound by any claim determinations reached prior to the submission of information to the independent review organization. In such cases, the following provisions shall apply:(1) The independent review organization shall include     in the notice:(A) a general description of the reason for the         request for external review;(B) the date the independent review organization         received the assignment from the Director to conduct the external review;(C) the time period during which the external         review was conducted;(D) references to the evidence or documentation,         including the evidence-based standards, considered in reaching its decision;(E) the date of its decision;(F) the principal reason or reasons for its         decision, including what applicable, if any, evidence-based standards that were a basis for its decision; and(G) the rationale for its decision.(2) (Blank).(3) (Blank).(4) Upon receipt of a notice of a decision reversing     the adverse determination or final adverse determination, the health carrier immediately shall approve the coverage that was the subject of the adverse determination or final adverse determination.(Source: P.A. 102-579, eff. 1-1-22.) (215 ILCS 180/40)Sec. 40. Expedited external review.(a) A covered person or a covered person's authorized representative may file a request for an expedited external review with the Director either orally or in writing:(1) immediately after the date of receipt of a notice     prior to a final adverse determination as provided by subsection (b) of Section 20 of this Act;(2) immediately after the date of receipt of a notice     upon final adverse determination as provided by subsection (c) of Section 20 of this Act; or(3) if a health carrier fails to provide a decision     on request for an expedited internal appeal within 48 hours as provided by item (2) of Section 30 of this Act.(b) Upon receipt of a request for an expedited external review, the Director shall immediately send a copy of the request to the health carrier. Immediately upon receipt of the request for an expedited external review, the health carrier shall determine whether the request meets the reviewability requirements set forth in subsection (b) of Section 35. In such cases, the following provisions shall apply:(1)  The health carrier shall immediately notify the     Director, the covered person, and, if applicable, the covered person's authorized representative of its eligibility determination.(2)  The notice of initial determination shall     include a statement informing the covered person and, if applicable, the covered person's authorized representative that a health carrier's initial determination that an external review request is ineligible for review may be appealed to the Director.(3) The Director may determine that a request is     eligible for expedited external review notwithstanding a health carrier's initial determination that the request is ineligible and require that it be referred for external review.(4)  In making a determination under item (3) of this     subsection (b), the Director's decision shall be made in accordance with the terms of the covered person's health benefit plan, unless such terms are inconsistent with applicable law, and shall be subject to all applicable provisions of this Act.(5) The Director may specify the form for the health     carrier's notice of initial determination under this subsection (b) and any supporting information to be included in the notice.(c) Upon receipt of the notice that the request meets the reviewability requirements, the Director shall immediately assign an independent review organization from the list of approved independent review organizations compiled and maintained by the Director to conduct the expedited review. In such cases, the following provisions shall apply:(1) The assignment of an approved independent review     organization to conduct an external review in accordance with this Section shall be made from  those approved independent review organizations qualified to conduct external review as required by Sections 50 and 55 of this Act.(2) The Director shall immediately notify the health     carrier of the name of the assigned independent review organization. Immediately upon receipt from the Director of the name of the independent review organization assigned to conduct the external review, but in no case more than 24 hours after receiving such notice, the health carrier or its designee utilization review organization shall provide or transmit all necessary documents and information considered in making the adverse determination or final adverse determination to the assigned independent review organization electronically or by telephone or facsimile or any other available expeditious method.(3) If the health carrier or its utilization review     organization fails to provide the documents and information within the specified timeframe, the assigned independent review organization may terminate the external review and make a decision to reverse the adverse determination or final adverse determination.(4) Within one business day after making the decision     to terminate the external review and make a decision to reverse the adverse determination or final adverse determination under item (3) of this subsection  (c), the independent review organization shall notify the Director, the health carrier, the covered person, and, if applicable, the covered person's authorized representative of its decision to reverse the adverse determination or final adverse determination.(d) In addition to the documents and information provided by the health carrier or its utilization review organization and any documents and information provided by the covered person and the covered person's authorized representative, the independent review organization, to the extent the information or documents are available and the independent review organization considers them appropriate, shall consider information as required by subsection (i) of Section 35 of this Act in reaching a decision.(d-5)  For expedited external reviews involving mental, emotional, nervous, or substance use disorders or conditions, the independent review organization shall consider documents and information and shall make a decision to uphold or reverse the adverse determination or final adverse determination pursuant to subsection (i-5) of Section 35.(e) As expeditiously as the covered person's medical condition or circumstances requires, but in no event more than 72 hours after the date of receipt of the request for an expedited external review, the assigned independent review organization shall:(1) make a decision to uphold or reverse the final     adverse determination; and(2) notify the Director, the health carrier, the     covered person, the covered person's health care provider, and, if applicable, the covered person's authorized representative, of the decision.(f) In reaching a decision, the assigned independent review organization is not bound by any decisions or conclusions reached during the health carrier's utilization review process or the health carrier's internal appeal process.(g) Upon receipt of notice of a decision reversing the adverse determination or final adverse determination, the health carrier shall immediately approve the coverage that was the subject of the adverse determination or final adverse determination.(h) If the notice provided pursuant to subsection (e) of this Section was not in writing, then within 48 hours after the date of providing that notice, the assigned independent review organization shall provide written confirmation of the decision to the Director, the health carrier, the covered person, and, if applicable, the covered person's authorized representative including the information set forth in subsection (j) of Section 35 of this Act as applicable.(i) An expedited external review may not be provided for retrospective adverse or final adverse determinations.(j) The assignment by the Director of an approved independent review organization to conduct an external review in accordance with this Section shall be done on a random basis among those independent review organizations approved by the Director pursuant to this Act. (Source: P.A. 102-579, eff. 1-1-22.) (215 ILCS 180/42)Sec. 42. External review of experimental or investigational treatment adverse determinations.(a) Within 4 months after the date of receipt of a notice of an adverse determination or final adverse determination that involves a denial of coverage based on a determination that the health care service or treatment recommended or requested is experimental or investigational, a covered person or the covered person's authorized representative may file a request for an external review with the Director.(b) The following provisions apply to cases concerning expedited external reviews:(1) A covered person or the covered person's     authorized representative may make an oral request for an expedited external review of the adverse determination or final adverse determination pursuant to subsection (a) of this Section if the covered person's treating physician certifies, in writing, that the recommended or requested health care service or treatment that is the subject of the request would be significantly less effective if not promptly initiated.(2) Upon receipt of a request for an expedited     external review, the Director shall immediately notify the health carrier.(3) The following provisions apply concerning notice:(A) Upon notice of the request for an expedited         external review, the health carrier shall immediately determine whether the request meets the reviewability requirements of subsection (d) of this Section. The health carrier shall immediately notify the Director and the covered person and, if applicable, the covered person's authorized representative of its eligibility determination.(B) The Director may specify the form for the         health carrier's notice of initial determination under subdivision (A) of this item (3) and any supporting information to be included in the notice.(C) The notice of initial determination under         subdivision (A) of this item (3) shall include a statement informing the covered person and, if applicable, the covered person's authorized representative that a health carrier's initial determination that the external review request is ineligible for review may be appealed to the Director.(4) The following provisions apply concerning the     Director's determination:(A) The Director may determine that a request is         eligible for external review under subsection (d) of this Section notwithstanding a health carrier's initial determination that the request is ineligible and require that it be referred for external review.(B) In making a determination under subdivision         (A) of this item (4), the Director's decision shall be made in accordance with the terms of the covered person's health benefit plan, unless such terms are inconsistent with applicable law, and shall be subject to all applicable provisions of this Act.(5) Upon receipt of the notice that the expedited     external review request meets the reviewability requirements of subsection (d) of this Section, the Director shall immediately assign an independent review organization to review the expedited request from the list of approved independent review organizations compiled and maintained by the Director and notify the health carrier of the name of the assigned independent review organization.(6) At the time the health carrier receives the     notice of the assigned independent review organization, the health carrier or its designee utilization review organization shall provide or transmit all necessary documents and information considered in making the adverse determination or final adverse determination to the assigned independent review organization electronically or by telephone or facsimile or any other available expeditious method.(c) Except for a request for an expedited external review made pursuant to subsection (b) of this Section, within one business day after the date of receipt of a request for external review, the Director shall send a copy of the request to the health carrier.(d) Within 5 business days following the date of receipt of the external review request, the health carrier shall complete a preliminary review of the request to determine whether:(1) the individual is or was a covered person in the     health benefit plan at the time the health care service was recommended or requested or, in the case of a retrospective review, at the time the health care service was provided;(2) the recommended or requested health care service     or treatment that is the subject of the adverse determination or final adverse determination is a covered benefit under the covered person's health benefit plan except for the health carrier's determination that the service or treatment is experimental or investigational for a particular medical condition and is not explicitly listed as an excluded benefit under the covered person's health benefit plan with the health carrier;(3) the covered person's health care provider has     certified that one of the following situations is applicable:(A) standard health care services or treatments         have not been effective in improving the condition of the covered person;(B) standard health care services or treatments         are not medically appropriate for the covered person; or(C) there is no available standard health care         service or treatment covered by the health carrier that is more beneficial than the recommended or requested health care service or treatment;(4) the covered person's health care provider:(A) has recommended a health care service or         treatment that the physician certifies, in writing, is likely to be more beneficial to the covered person, in the physician's opinion, than any available standard health care services or treatments; or(B) who is a licensed, board certified or board         eligible physician qualified to practice in the area of medicine appropriate to treat the covered person's condition, has certified in writing that scientifically valid studies using accepted protocols demonstrate that the health care service or treatment requested by the covered person that is the subject of the adverse determination or final adverse determination is likely to be more beneficial to the covered person than any available standard health care services or treatments;(5) the covered person has exhausted the health     carrier's internal appeal process, unless the covered person is not required to exhaust the health carrier's internal appeal process pursuant to Section 30 of this Act; and(6) the covered person has provided all the     information and forms required to process an external review, as specified in this Act.(e) The following provisions apply concerning requests:(1) Within one business day after completion of the     preliminary review, the health carrier shall notify the Director and covered person and, if applicable, the covered person's authorized representative in writing whether the request is complete and eligible for external review.(2) If the request:(A) is not complete, then the health carrier         shall inform the Director and the covered person and, if applicable, the covered person's authorized representative in writing and include in the notice what information or materials are required by this Act to make the request complete; or(B) is not eligible for external review, then the         health carrier shall inform the Director and the covered person and, if applicable, the covered person's authorized representative in writing and include in the notice the reasons for its ineligibility.(3) The Department may specify the form for the     health carrier's notice of initial determination under this subsection (e) and any supporting information to be included in the notice.(4) The notice of initial determination of     ineligibility shall include a statement informing the covered person and, if applicable, the covered person's authorized representative that a health carrier's initial determination that the external review request is ineligible for review may be appealed to the Director by filing a complaint with the Director.(5) Notwithstanding a health carrier's initial     determination that the request is ineligible for external review, the Director may determine that a request is eligible for external review and require that it be referred for external review. In making such determination, the Director's decision shall be in accordance with the terms of the covered person's health benefit plan,  unless such terms are inconsistent with applicable law, and shall be subject to all applicable provisions of this Act.(f) Whenever a request for external review is determined eligible for external review, the health carrier shall notify the Director and the covered person and, if applicable, the covered person's authorized representative.(g) Whenever the Director receives notice that a request is eligible for external review following the preliminary review conducted pursuant to this Section, within one business day after the date of receipt of the notice, the Director shall:(1) assign an independent review organization from     the list of approved independent review organizations compiled and maintained by the Director pursuant to this Act and notify the health carrier of the name of the assigned independent review organization; and(2) notify in writing the covered person and, if     applicable, the covered person's authorized representative of the request's eligibility and acceptance for external review and the name of the independent review organization.The Director shall include in the notice provided to the covered person and, if applicable, the covered person's authorized representative a statement that the covered person or the covered person's authorized representative may, within 5 business days following the date of receipt of the notice provided pursuant to item (2) of this subsection (g), submit in writing to the assigned independent review organization additional information that the independent review organization shall consider when conducting the external review. The independent review organization is not required to, but may, accept and consider additional information submitted after 5 business days.(h) The following provisions apply concerning assignments and clinical reviews:(1) Within one business day after the receipt of the     notice of assignment to conduct the external review pursuant to subsection (g) of this Section, the assigned independent review organization shall select one or more clinical reviewers, as it determines is appropriate, pursuant to item (2) of this subsection (h) to conduct the external review.(2) The provisions of this item (2) apply concerning     the selection of reviewers:(A) In selecting clinical reviewers pursuant to         item (1) of this subsection (h), the assigned independent review organization shall select physicians or other health care professionals who meet the minimum qualifications described in Section 55 of this Act and, through clinical experience in the past 3 years, are experts in the treatment of the covered person's condition and knowledgeable about the recommended or requested health care service or treatment.(B) Neither the covered person, the covered         person's authorized representative, if applicable, nor the health carrier shall choose or control the choice of the physicians or other health care professionals to be selected to conduct the external review.(3) In accordance with subsection (l) of this     Section, each clinical reviewer shall provide a written opinion to the assigned independent review organization on whether the recommended or requested health care service or treatment should be covered.(4) In reaching an opinion, clinical reviewers are     not bound by any decisions or conclusions reached during the health carrier's utilization review process or the health carrier's internal appeal process.(i) Within 5 business days after the date of receipt of the notice provided pursuant to subsection (g) of this Section, the health carrier or its designee utilization review organization shall provide to the assigned independent review organization the documents and any information considered in making the adverse determination or final adverse determination; in such cases, the following provisions shall apply:(1) Except as provided in item (2) of this subsection     (i), failure by the health carrier or its utilization review organization to provide the documents and information within the specified time frame shall not delay the conduct of the external review.(2) If the health carrier or its utilization review     organization fails to provide the documents and information within the specified time frame, the assigned independent review organization may terminate the external review and make a decision to reverse the adverse determination or final adverse determination.(3) Immediately upon making the decision to terminate     the external review and make a decision to reverse the adverse determination or final adverse determination under item (2) of this subsection (i), the independent review organization shall notify the Director, the health carrier, the covered person, and, if applicable, the covered person's authorized representative of its decision to reverse the adverse determination.(j) Upon receipt of the information from the health carrier or its utilization review organization, each clinical reviewer selected pursuant to subsection (h) of this Section shall review all of the information and documents and any other information submitted in writing to the independent review organization by the covered person and the covered person's authorized representative.(k) Upon receipt of any information submitted by the covered person or the covered person's authorized representative, the independent review organization shall forward the information to the health carrier within one business day. In such cases, the following provisions shall apply:(1) Upon receipt of the information, if any, the     health carrier may reconsider its adverse determination or final adverse determination that is the subject of the external review.(2) Reconsideration by the health carrier of its     adverse determination or final adverse determination shall not delay or terminate the external review.(3) The external review may be terminated only if the     health carrier decides, upon completion of its reconsideration, to reverse its adverse determination or final adverse determination and provide coverage or payment for the health care service that is the subject of the adverse determination or final adverse determination. In such cases, the following provisions shall apply:(A) Immediately upon making its decision to         reverse its adverse determination or final adverse determination, the health carrier shall notify the Director, the covered person and, if applicable, the covered person's authorized representative, and the assigned independent review organization in writing of its decision.(B) Upon notice from the health carrier that the         health carrier has made a decision to reverse its adverse determination or final adverse determination, the assigned independent review organization shall terminate the external review.(l) The following provisions apply concerning clinical review opinions:(1) Except as provided in item (3) of this subsection     (l), within 20 days after being selected in accordance with subsection (h) of this Section to conduct the external review, each clinical reviewer shall provide an opinion to the assigned independent review organization on whether the recommended or requested health care service or treatment should be covered.(2) Except for an opinion provided pursuant to item     (3) of this subsection (l), each clinical reviewer's opinion shall be in writing and include the following information:(A) a description of the covered person's medical         condition;(B) a description of the indicators relevant to         determining whether there is sufficient evidence to demonstrate that the recommended or requested health care service or treatment is more likely than not to be beneficial to the covered person than any available standard health care services or treatments and the adverse risks of the recommended or requested health care service or treatment would not be substantially increased over those of available standard health care services or treatments;(C) a description and analysis of any medical or         scientific evidence considered in reaching the opinion;(D) a description and analysis of any         evidence-based standard; and(E) information on whether the reviewer's         rationale for the opinion is based on clause (A) or (B) of item (5) of subsection (m) of this Section.(3) The provisions of this item (3) apply concerning     the timing of opinions:(A) For an expedited external review, each         clinical reviewer shall provide an opinion orally or in writing to the assigned independent review organization as expeditiously as the covered person's medical condition or circumstances requires, but in no event more than 5 calendar days after being selected in accordance with subsection (h) of this Section.(B) If the opinion provided pursuant to         subdivision (A) of this item (3) was not in writing, then within 48 hours following the date the opinion was provided, the clinical reviewer shall provide written confirmation of the opinion to the assigned independent review organization and include the information required under item (2) of this subsection (l).(m) In addition to the documents and information provided by the health carrier or its utilization review organization and the covered person and the covered person's authorized representative, if any, each clinical reviewer selected pursuant to subsection (h) of this Section, to the extent the information or documents are available and the clinical reviewer considers appropriate, shall consider the following in reaching a decision:(1) the covered person's pertinent medical records;(2) the covered person's health care provider's     recommendation;(3) consulting reports from appropriate health care     providers and other documents submitted by the health carrier or its designee utilization review organization, the covered person, the covered person's authorized representative, or the covered person's treating physician or health care professional;(4) the terms of coverage under the covered person's     health benefit plan with the health carrier to ensure that, but for the health carrier's determination that the recommended or requested health care service or treatment that is the subject of the opinion is experimental or investigational, the reviewer's opinion is not contrary to the terms of coverage under the covered person's health benefit plan with the health carrier; and(5) whether (A) the recommended or requested health     care service or treatment has been   approved by the federal Food and Drug Administration, if applicable, for the condition or (B) medical or scientific evidence or evidence-based standards demonstrate that the expected benefits of the recommended or requested health care service or treatment is more likely than not to be beneficial to the covered person than any available standard health care service or treatment and the adverse risks of the recommended or requested health care service or treatment would not be substantially increased over those of available standard health care services or treatments.(n) The following provisions apply concerning decisions, notices, and recommendations:(1) The provisions of this item (1) apply concerning     decisions and notices:(A) Except as provided in subdivision (B) of this         item (1), within 20 days after the date it receives the opinion of each clinical reviewer, the assigned independent review organization, in accordance with item (2) of this subsection (n), shall make a decision and provide written notice of the decision to the Director, the health carrier, the covered person, and the covered person's authorized representative, if applicable.(B) For an expedited external review, within 48         hours after the date it receives the opinion of each clinical reviewer, the assigned independent review organization, in accordance with item (2) of this subsection (n), shall make a decision and provide notice of the decision orally or in writing to the Director, the health carrier, the covered person, and the covered person's authorized representative, if applicable.  If such notice is not in writing, within 48 hours after the date of providing that notice, the assigned independent review organization shall provide written confirmation of the decision to the Director, the health carrier, the covered person, and the covered person's authorized representative, if applicable.(2) The provisions of this item (2) apply concerning     recommendations:(A) If a majority of the clinical reviewers         recommend that the recommended or requested health care service or treatment should be covered, then the independent review organization shall make a decision to reverse the health carrier's adverse determination or final adverse determination.(B) If a majority of the clinical reviewers         recommend that the recommended or requested health care service or treatment should not be covered, the independent review organization shall make a decision to uphold the health carrier's adverse determination or final adverse determination.(C) The provisions of this subdivision (C) apply         to cases in which the clinical reviewers are evenly split:(i) If the clinical reviewers are evenly             split as to whether the recommended or requested health care service or treatment should be covered, then the independent review organization shall obtain the opinion of an additional clinical reviewer in order for the independent review organization to make a decision based on the opinions of a majority of the clinical reviewers pursuant to subdivision (A) or (B) of this item (2).(ii) The additional clinical reviewer             selected under clause (i) of this subdivision (C) shall use the same information to reach an opinion as the clinical reviewers who have already submitted their opinions.(iii) The selection of the additional             clinical reviewer under this subdivision (C) shall not extend the time within which the assigned independent review organization is required to make a decision based on the opinions of the clinical reviewers.(o) The independent review organization shall include in the notice provided pursuant to subsection (n) of this Section:(1) a general description of the reason for the     request for external review;(2) the written opinion of each clinical reviewer,     including the recommendation of each clinical reviewer as to whether the recommended or requested health care service or treatment should be covered and the rationale for the reviewer's recommendation;(3) the date the independent review organization     received the assignment from the Director to conduct the external review;(4) the time period during which the external review     was conducted;(5) the date of its decision;(6) the principal reason or reasons for its decision;     and(7) the rationale for its decision.(p) Upon receipt of a notice of a decision reversing the adverse determination or final adverse determination, the health carrier shall immediately approve the coverage that was the subject of the adverse determination or final adverse determination.(q) The assignment by the Director of an approved independent review organization to conduct an external review in accordance with this Section shall be done on a random basis among those independent review organizations approved by the Director pursuant to this Act.
(Source: P.A. 97-574, eff. 8-26-11.) (215 ILCS 180/45)Sec. 45. Binding nature of external review decision.  An external review decision is binding on the health carrier. An external review decision is binding on the covered person except to the extent the covered person has other remedies available under applicable federal or State law. A covered person or the covered person's authorized representative may not file a subsequent request for external review involving the same adverse determination or final adverse determination for which the covered person has already received an external review decision pursuant to this Act.

(Source: P.A. 96-857, eff. 7-1-10.) (215 ILCS 180/50)Sec. 50. Approval of independent review organizations.(a) The Director shall approve independent review organizations eligible to be assigned to conduct external reviews under this Act.(b) In order to be eligible for approval by the Director under this Section to conduct external reviews under this Act an independent review organization:(1) except as otherwise provided in this Section,     shall be accredited by a nationally recognized private accrediting entity that the Director has determined has independent review organization accreditation standards that are equivalent to or exceed the minimum qualifications for independent review; and(2) shall submit an application for approval in     accordance with subsection (d) of this Section.(c) The Director shall develop an application form for initially approving and for reapproving independent review organizations to conduct external reviews.(d) Any independent review organization wishing to be approved to conduct external reviews under this Act shall submit the application form and include with the form all documentation and information necessary for the Director to determine if the independent review organization satisfies the minimum qualifications established under this Act.
The Director may:(1) approve independent review organizations that are     not accredited by a nationally recognized private accrediting entity if there are no acceptable nationally recognized private accrediting entities providing independent review organization accreditation; and(2) by rule establish an application fee that     independent review organizations shall submit to the Director with an application for approval and renewing.(e) An approval is effective for 2 years, unless the Director determines before its expiration that the independent review organization is not satisfying the minimum qualifications established under this Act.(f) Whenever the Director determines that an independent review organization has lost its accreditation or no longer satisfies the minimum requirements established under this Act, the Director shall terminate the approval of the independent review organization and remove the independent review organization from the list of independent review organizations approved to conduct external reviews under this Act that is maintained by the Director.(g) The Director shall maintain and periodically update a list of approved independent review organizations.(h) The Director may promulgate regulations to carry out the provisions of this Section.
(Source: P.A. 96-857, eff. 7-1-10.) (215 ILCS 180/55)Sec. 55. Minimum qualifications for independent review organizations.(a) To be approved to conduct external reviews, an independent review organization shall have and maintain written policies and procedures that govern all aspects of both the standard external review process and the expedited external review process set forth in this Act that include, at a minimum:(1) a quality assurance mechanism that ensures that:(A) external reviews are conducted within the         specified timeframes and required notices are provided in a timely manner;(B) selection of qualified and impartial clinical         reviewers to conduct external reviews on behalf of the independent review organization and suitable matching of reviewers to specific cases and that the independent review organization employs or contracts with an adequate number of clinical reviewers to meet this objective;(C) for adverse determinations involving         experimental or investigational treatments, in assigning clinical reviewers, the independent review organization selects physicians or other health care professionals who, through clinical experience in the past 3 years, are experts in the treatment of the covered person's condition and knowledgeable about the recommended or requested health care service or treatment;(D) the health carrier, the covered person, and         the covered person's authorized representative shall not choose or control the choice of the physicians or other health care professionals to be selected to conduct the external review;(E) confidentiality of medical and treatment         records and clinical review criteria; and(F) any person employed by or under contract with         the independent review organization adheres to the requirements of this Act;(2) a toll-free telephone service operating on a     24-hour-day, 7-day-a-week basis that accepts, receives, and records information related to external reviews and provides appropriate instructions; and(3) an agreement to maintain and provide to the     Director the information set out in Section 70 of this Act.(b) All clinical reviewers assigned by an independent review organization to conduct external reviews shall be physicians or other appropriate health care providers who meet the following minimum qualifications:(1) be an expert in the treatment of the covered     person's medical condition that is the subject of the external review;(2) be knowledgeable about the recommended health     care service or treatment through recent or current actual clinical experience treating patients with the same or similar medical condition of the covered person;(3) hold a non-restricted license in a state of the     United States and, for physicians, a current certification by a recognized American medical specialty board in the area or areas appropriate to the subject of the external review; and(4) have no history of disciplinary actions or     sanctions, including loss of staff privileges or participation restrictions, that have been taken or are pending by any hospital, governmental agency or unit, or regulatory body that raise a substantial question as to the clinical reviewer's physical, mental, or professional competence or moral character.(c) In addition to the requirements set forth in subsection (a), an independent review organization may not own or control, be a subsidiary of, or in any way be owned, or controlled by, or exercise control with a health benefit plan, a national, State, or local trade association of health benefit plans, or a national, State, or local trade association of health care providers.(d) Conflicts of interest prohibited.

 In addition to the requirements set forth in subsections (a), (b), and (c) of this Section, to be approved pursuant to this Act to conduct an external review of a specified case, neither the independent review organization selected to conduct the external review nor any clinical reviewer assigned by the independent organization to conduct the external review may have a material professional, familial or financial conflict of interest with any of the following:(1) the health carrier that is the subject of the     external review;(2) the covered person whose treatment is the subject     of the external review or the covered person's authorized representative;(3) any officer, director or management employee of     the health carrier that is the subject of the external review;(4) the health care provider, the health care     provider's medical group or independent practice association recommending the health care service or treatment that is the subject of the external review;(5) the facility at which the recommended health care     service or treatment would be provided; or(6) the developer or manufacturer of the principal     drug, device, procedure, or other therapy being recommended for the covered person whose treatment is the subject of the external review.(e) An independent review organization that is accredited by a nationally recognized private accrediting entity that has independent review accreditation standards that the Director has determined are equivalent to or exceed the minimum qualifications of this Section shall be presumed to be in compliance with this Section and shall be eligible for approval under this Act.(f) An independent review organization shall be unbiased. An independent review organization shall establish and maintain written procedures to ensure that it is unbiased in addition to any other procedures required under this Section.(g) Nothing in this Act precludes or shall be interpreted to preclude a health carrier from contracting with approved independent review organizations to conduct external reviews.
(Source: P.A. 96-857, eff. 7-1-10; 97-574, eff. 8-26-11.) (215 ILCS 180/60)Sec. 60. Hold harmless for independent review organizations. No independent review organization or clinical reviewer working on behalf of an independent review organization or an employee, agent or contractor of an independent review organization shall be liable for damages to any person for any opinions rendered or acts or omissions performed within the scope of the organization's or person's duties under the law during or upon completion of an external review conducted pursuant to this Act, unless the opinion was rendered or act or omission performed in bad faith or involved gross negligence.
(Source: P.A. 96-857, eff. 7-1-10.) (215 ILCS 180/65)Sec. 65. External review reporting requirements.(a) Each health carrier shall maintain written records in the aggregate, by state, and for each type of health benefit plan offered by the health carrier on all requests for external review that the health carrier received notice from the Director for each calendar year and submit a report to the Director in the format specified by the Director by June 1 of each year.(a-5) An independent review organization assigned pursuant to this Act to conduct an external review shall maintain written records in the aggregate by state and by health carrier on all requests for external review for which it conducted an external review during a calendar year and submit a report in the format specified by the Director by March 1 of each year.(a-10) The report required by subsection (a-5) shall include in the aggregate by state, and for each health carrier:(1) the total number of requests for external review;(2) the number of requests for external review     resolved and, of those resolved, the number resolved upholding the adverse determination or final adverse determination and the number resolved reversing the adverse determination or final adverse determination;(3) the average length of time for resolution;(4) a summary of the types of coverages or cases for     which an external review was sought, as provided in the format required by the Director;(5) the number of external reviews that were     terminated as the result of a reconsideration by the health carrier of its adverse determination or final adverse determination after the receipt of additional information from the covered person or the covered person's authorized representative; and(6) any other information the Director may request or     require.(a-15) The independent review organization shall retain the written records required pursuant to this Section for at least 3 years.(b) The report required under subsection (a) of this Section shall include in the aggregate, by state, and by type of health benefit plan:(1) the total number of requests for external review;(2) the total number of requests for expedited     external review;(3) the total number of requests for external review     denied;(4) the number of requests for external review     resolved, including:(A) the number of requests for external review         resolved upholding the adverse determination or final adverse determination;(B) the number of requests for external review         resolved reversing the adverse determination or final adverse determination;(C) the number of requests for expedited external         review resolved upholding the adverse determination or final adverse determination; and(D) the number of requests for expedited external         review resolved reversing the adverse determination or final adverse determination;(5) the average length of time for resolution for an     external review;(6) the average length of time for resolution for an     expedited external review;(7) a summary of the types of coverages or cases for     which an external review was sought, as specified below:(A) denial of care or treatment (dissatisfaction         regarding prospective non-authorization of a request for care or treatment recommended by a provider excluding diagnostic procedures and referral requests;  partial approvals and care terminations are also considered to be denials);(B) denial of diagnostic procedure         (dissatisfaction regarding prospective non-authorization of a request for a diagnostic procedure recommended by a provider; partial approvals are also considered to be denials);(C) denial of referral request (dissatisfaction         regarding non-authorization of a request for a referral to another provider recommended by a PCP);(D) claims and utilization review         (dissatisfaction regarding the concurrent or retrospective evaluation of the coverage, medical necessity, efficiency or appropriateness of health care services or treatment plans; prospective "Denials of care or treatment", "Denials of diagnostic procedures" and "Denials of referral requests" should not be classified in this category, but the appropriate one above);(8) the number of external reviews that were     terminated as the result of a reconsideration by the health carrier of its adverse determination or final adverse determination after the receipt of additional information from the covered person or the covered person's authorized representative; and(9) any other information the Director may request or     require. (Source: P.A. 99-537, eff. 1-1-17.) (215 ILCS 180/70)Sec. 70. Funding of external review. The health carrier shall be solely responsible for paying the cost of external reviews conducted by independent review organizations.
(Source: P.A. 96-857, eff. 7-1-10.) (215 ILCS 180/75)Sec. 75. Disclosure requirements.(a) Each health carrier shall include a description of the external review procedures in, or attached to, the policy, certificate, membership booklet, and outline of coverage or other evidence of coverage it provides to covered persons.(b) The description required under subsection (a) of this Section shall include a statement that informs the covered person of the right of the covered person to file a request for an external review of an adverse determination or final adverse determination with the Director. The statement shall explain that external review is available when the adverse determination or final adverse determination involves an issue of medical necessity, appropriateness, health care setting, level of care, or effectiveness. The statement shall include the toll-free telephone number and address of the Office of Consumer Health Insurance within the Department of Insurance.
(Source: P.A. 96-857, eff. 7-1-10; 97-574, eff. 8-26-11.) (215 ILCS 180/80)Sec. 80. Administration and enforcement.(a) The Director of Insurance may adopt rules necessary to implement the Department's responsibilities under this Act.(b) The Director is authorized to make use of any of the powers established under the Illinois Insurance Code to enforce the laws of this State. This includes but is not limited to, the Director's administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders, including, without limitation, orders pursuant to Article XII 1/2 and Section 401.1 of the Illinois Insurance Code, and impose penalties.
(Source: P.A. 97-574, eff. 8-26-11.) (215 ILCS 180/90)Sec. 90. (Amendatory provisions; text omitted).
(Source: P.A. 96-857, eff. 7-1-10; text omitted.) (215 ILCS 180/95)Sec. 95. (Amendatory provisions; text omitted).
(Source: P.A. 96-857, eff. 7-1-10; text omitted.) (215 ILCS 180/96)Sec. 96. No acceleration or delay. Where this Act makes changes in a statute that is represented in this Act by text that is not yet or no longer in effect (for example, a Section represented by multiple versions), the use of that text does not accelerate or delay the taking effect of (i) the changes made by this Act or (ii) provisions derived from any other Public Act.
(Source: P.A. 96-857, eff. 7-1-10.) (215 ILCS 180/97)Sec. 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.
(Source: P.A. 96-857, eff. 7-1-10.) (215 ILCS 180/99)Sec. 99. Effective date. This Act takes effect January 1, 2010, except that the changes to Section 155.36 of the Illinois Insurance Code and Sections 40 and 45 of the Managed Care Reform and Patient Rights Act and the Health Carrier External Review Act take effect July 1, 2010.
(Source: P.A. 96-857, eff. 1-5-10.)
(215 ILCS 185/1)Sec. 1. Short title. This Act may be cited as the Unclaimed Life Insurance Benefits Act.
(Source: P.A. 99-893, eff. 1-1-17.) (215 ILCS 185/5)Sec. 5. Purpose.   This Act shall require recognition of the Revised Uniform Unclaimed Property Act and require the complete and proper disclosure, transparency, and accountability relating to any method of payment for life insurance, annuity, or retained asset agreement death benefits.
(Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18.) (215 ILCS 185/10)Sec. 10. Definitions.  As used in this Act:"Annuity contract" does not include an annuity contract used to fund an employment-based retirement plan or program where (1) the insurer does not perform the record keeping services or (2) the insurer is not committed by the terms of the annuity contract to pay death benefits to the beneficiaries of specific plan participants."Date of death" means the date on which an insured, annuity owner, or retained asset account holder died."Date of death notice" means the date the insurer first has notice of the date of death of an insured, annuity owner, or retained asset account holder. "Date of death notice" includes, but is not limited to, the date the insurer received information or gained knowledge of a Death Master File match or any other source or record maintained or located in insurer records of the death of an insured, annuity owner, or retained asset account holder."Death Master File" means the United States Social Security Administration's Death Master File or any other database or service that is at least as comprehensive as the United States Social Security Administration's Death Master File for determining that a person has reportedly died."Death Master File match" means a match of the social security number or the name and date of birth of an insured, annuity owner, or retained asset account holder resulting from a search of the Death Master File."Department" means the Department of Insurance."Lost policy finder" means a service made available by the Department on its website or otherwise developed by the Department to assist consumers with locating unclaimed life insurance benefits."Policy" means any policy or certificate of life insurance that provides a death benefit, including a policy that has lapsed or been terminated. "Policy" does not include any policy or certificate of credit life or accidental death insurance or health coverages, including, but not limited to, disability and long-term care arising from the reported death of a person insured under the coverage, or any policy issued to a group master policyholder for which the insurer does not provide record keeping services."Record keeping services" means services provided under circumstances in which the insurer has agreed with a group policy or annuity contract customer to be responsible for obtaining, maintaining, and administering its own or its agents' systems information about each individual insured under an insured's group insurance contract, or a line of coverage thereunder, including, but not limited to, the following: (1) social security number or name and date of birth, (2) beneficiary designation information, (3) coverage eligibility, (4) benefit amount, and (5) premium payment status."Retained asset account" means any mechanism whereby the settlement of proceeds payable under a policy or annuity contract is accomplished by the insurer or an entity acting on behalf of the insurer depositing the proceeds into an account with check or draft writing privileges, where those proceeds are retained by the insurer or its agent pursuant to a supplementary contract not involving annuity benefits other than death benefits.
(Source: P.A. 99-893, eff. 1-1-17; 100-543, eff. 1-1-18.) (215 ILCS 185/15)Sec. 15. Insurer conduct.(a) An insurer shall initially perform a comparison of its insureds', annuitants', and retained asset account holders' in-force policies, annuity contracts, and retained asset accounts in force on or after January 1, 2017 by using the full Death Master File. The initial comparison shall be completed on or before December 31, 2017.  An insurer required to perform a comparison of its insureds', annuitants', and retained asset account holders' in-force policies, annuity contracts, and retained asset accounts in force on or after January 1, 2012 shall perform a comparison of policies, annuity contracts, and retained asset accounts in force between January 1, 2012 and December 31, 2016 on or before December 31, 2018 by using the full Death Master File. An insurer required to perform a comparison of electronic searchable files concerning its insureds', annuitants', and retained asset account holders' in-force policies, annuity contracts, and retained asset accounts in force on or after January 1, 2000 shall perform a comparison of policies, annuity contracts, and retained asset accounts in force between January 1, 2000 and December 31, 2016 on or before December 31, 2018 by using the full Death Master File. Thereafter, an insurer shall perform a comparison on at least a semi-annual basis using the Death Master File update files for comparisons to identify potential matches of its insureds, annuitants, and retained asset account holders. In the event that one of the insurer's lines of business conducts a search for matches of its insureds, annuitants, and retained asset account holders against the Death Master File at intervals more frequently than semi-annually, then all lines of the insurer's business shall conduct searches for matches against the Death Master File with the same frequency. Within 6 months after acquisition of policies, annuity contracts, or retained asset accounts from another insurer, the acquiring insurer shall compare all newly acquired policies, annuity contracts, and retained asset accounts that were not searched by the previous insurer in compliance with this Act against the complete Death Master File to identify potential matches of its insureds, annuitants, and retained asset account holders. Upon any subsequent acquisition of policies, annuity contracts, or retained asset accounts from another insurer, when the previous insurer has already conducted a search of the newly acquired policies, annuity contracts, and retained asset accounts using the complete Death Master File, the acquiring insurer shall compare all newly acquired policies, annuity contracts, and retained asset accounts using all of the Death Master File updates since the time the previous insurer conducted the complete search to identify potential matches of its insureds, annuitants, and retained asset account holders.An insured, an annuitant, or a retained asset account holder is presumed dead if the date of his or her death is indicated by the comparison required in this subsection (a), unless the insurer has competent and substantial evidence that the person is living, including, but not limited to, a contact made by the insurer with the person or his or her legal representative.For those potential matches identified as a result of a Death Master File match, the insurer shall within 120 days after the date of death notice, if the insurer has not been contacted by a beneficiary, determine whether benefits are due in accordance with the applicable policy or contract and, if benefits are due in accordance with the applicable policy or contract:(1) use good faith efforts, which shall be documented     by the insurer, to locate the beneficiary or beneficiaries; the Department shall establish by administrative rule minimum standards for what constitutes good faith efforts to locate a beneficiary, which shall include: (A) searching insurer records; (B) the appropriate use of First Class United States mail, e-mail addresses, and telephone calls; and (C) reasonable efforts by insurers to obtain updated contact information for the beneficiary or beneficiaries; good faith efforts shall not include additional attempts to contact the beneficiary at an address already confirmed not to be current; and(2) provide the appropriate claims forms or     instructions to the beneficiary or beneficiaries to make a claim, including the need to provide an official death certificate if applicable under the policy or annuity contract.(b) Insurers shall implement procedures to account for the following when conducting searches of the Death Master File:(1) common nicknames, initials used in lieu of a     first or middle name, use of a middle name, compound first and middle names, and interchanged first and middle names;(2) compound last names, maiden or married names, and     hyphens, blank spaces, or apostrophes in last names;(3) transposition of the "month" and "date" portions     of the date of birth; and(4) incomplete social security numbers.(c) To the extent permitted by law, an insurer may disclose the minimum necessary personal information about the insured, annuity owner, retained asset account holder, or beneficiary to a person whom the insurer reasonably believes may be able to assist the insurer with locating the beneficiary or a person otherwise entitled to payment of the claims proceeds.(d) An insurer or its service provider shall not charge any beneficiary or other authorized representative for any fees or costs associated with a Death Master File search or verification of a Death Master File match conducted pursuant to this Act.(e) The benefits from a policy, annuity contract, or a retained asset account, plus any applicable accrued interest, shall first be payable to the designated beneficiaries or owners and, in the event the beneficiaries or owners cannot be found, shall be reported and delivered to the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. Nothing in this subsection (e) is intended to alter the amounts reportable under the existing provisions of the Revised Uniform Unclaimed Property Act or to allow the imposition of additional statutory interest under Article XIV of the Illinois Insurance Code.(f) Failure to meet any requirement of this Section with such frequency as to constitute a general business practice is a violation of Section 424 of the Illinois Insurance Code. Nothing in this Section shall be construed to create or imply a private cause of action for a violation of this Section.
(Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18; 100-543, eff. 1-1-18; 100-863, eff. 8-14-18.) (215 ILCS 185/20)Sec. 20. Revised Uniform Unclaimed Property Act.  Nothing in this Act shall be construed to amend, modify, or supersede the Revised Uniform Unclaimed Property Act, including the authority of the State Treasurer to examine the records of any person if the State Treasurer has reason to believe that such person has failed to report property that should have been reported pursuant to the Revised Uniform Unclaimed Property Act.
(Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18.) (215 ILCS 185/25)Sec. 25. Lost policy finder.(a) The Department shall develop and implement a lost policy finder to assist requesters with locating unclaimed life insurance benefits.  The lost policy finder shall be available online and via other means. The Department shall assist a requester with using the lost policy finder, including informing the requester of the information that an insurer may need to facilitate responding to the request.(b) As soon as practicable, but no later than 30 days after receiving a request from a requester via the lost policy finder, the Department shall:(1) forward the request to all insurers deemed     necessary by the Department in order to successfully respond to the request; and(2) inform the requester that the Department received     the request and forwarded the request to all insurers deemed necessary by the Department in order to successfully respond to the request.(c) Upon receiving a request forwarded by the Department through a lost policy finder, an insurer shall search for policies and any accounts subject to this Act that insure the life of or are owned by an individual named as the decedent in the request forwarded by the Department.(d) Within 30 days after receiving the request referenced in subsection (b) of this Section, or within 45 days after receiving the request where the insurer contracts with another entity to maintain the insurer's records, the insurer shall:(1) report to the Department through the lost policy     finder the findings of the search conducted pursuant to subsection (c) of this Section;(2) for each identified policy and account insuring     the life of, or owned by, the individual named as the decedent in the request, provide to a requester who is:(A) also the beneficiary of record on the         identified policy or account, the information necessary to make a claim pursuant to the terms of the policy or account; and(B) not the beneficiary of record on the         identified policy or account, the requested information to the extent permissible to be disclosed in accordance with any applicable law, rule, or regulation and take such other steps necessary to facilitate the payment of any benefit that may be due under the identified policy or account.(e) The Department shall, within 30 days after receiving from all insurers the information required in item (1) of subsection (d) of this Section, inform the requester of the results of the search.(f) When a beneficiary identified in subsection (d) of this Section submits a claim or claims to an insurer, the insurer shall process such claim or claims and make prompt payments and distributions in accordance with all applicable laws, rules, and regulations.(g) Within 30 days after the final disposition of the request, an insurer shall report to the Department through the lost policy finder any benefits paid and any other information requested by the Department.
(Source: P.A. 99-893, eff. 1-1-17.) (215 ILCS 185/30)Sec. 30. Administrative rules. The Department shall adopt rules to administer and implement this Act, including defining "electronic searchable files" for the purposes of this Act.
(Source: P.A. 99-893, eff. 1-1-17; 100-543, eff. 1-1-18.) (215 ILCS 185/35)Sec. 35. Application.(a) Except as provided in subsections (b), (c), and (d), the provisions of this Act apply to policies, annuity contracts, and retained asset accounts in force at any time on or after January 1, 2012.(b)   For an insurer that has entered into a written agreement with the State Treasurer on or before December 31, 2018 to resolve an unclaimed property examination pursuant to the Uniform Disposition of Unclaimed Property Act or the Revised Uniform Unclaimed Property Act, the provisions of this Act apply to policies, annuity contracts, and retained asset accounts in force on or after January 1, 2017.(c)   Notwithstanding subsection (a), the provisions of this Act shall apply to policies, annuity contracts, and retained asset accounts in force at any time on or after January 1, 2000 to the extent that an insurer has electronic searchable files concerning such policies, annuity contracts, and retained asset accounts.(d)   This Act does not apply to a lapsed or terminated policy with no benefits payable that was compared against the Death Master File within the 18 months following the date of the lapse or termination of the applicable policy or that was searched more than 18 months prior to the most recent comparison against the Death Master File conducted by the insurer. (Source: P.A. 99-893, eff. 1-1-17; 100-543, eff. 1-1-18; 100-863, eff. 8-14-18.) (215 ILCS 185/40)Sec. 40. (Amendatory provisions; text omitted).
(Source: P.A. 99-893, eff. 1-1-17; text omitted.)
(215 ILCS 190/1)Sec. 1. Short title. This Act may be cited as the Short-Term, Limited-Duration Health Insurance Coverage Act.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 190/5)Sec. 5. Definitions.  In this Act:"Department" means the Department of Insurance."Health insurance coverage" has the meaning given to that term in the Illinois Health Insurance Portability and Accountability Act."Health insurance issuer" has the meaning given to that term in the Illinois Health Insurance Portability and Accountability Act."Fraud" means an intentional misrepresentation of a material fact in connection with the coverage."Short-term, limited-duration health insurance coverage" means health insurance coverage provided pursuant to a policy with an issuer, regardless of the situs of the delivery of the policy, that is less than 365 days after the effective date of the policy.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 190/10)Sec. 10. Application; scope; duration of coverage.(a) This Act applies to health insurance issuers that offer short-term, limited-duration health insurance coverage to individuals in this State and to short-term, limited-duration health insurance coverage that is delivered or issued for delivery in this State, including coverage issued outside of this State that covers individuals in this State.(b) A short-term, limited-duration health insurance coverage policy may not be issued or delivered to any person residing in this State unless the policy, when delivered or issued for delivery in this State, complies with the provisions of this Act.(c) Any short-term, limited-duration health insurance coverage policy that is delivered or issued for delivery in this State must have an expiration date in the policy that is less than 181 days after the effective date and shall not be renewable or extendable within a period of 365 days after the individual's coverage under the policy ends, either at the option of the issuer or the individual. Renewal of a short-term, limited-duration health insurance coverage policy includes the issuance of a new short-term, limited-duration health insurance policy by an issuer to a policyholder within 60 days after the expiration of a policy previously issued by the issuer to the policyholder.(d) Any short-term, limited-duration health insurance coverage policy that is delivered or issued for delivery in this State may not be rescinded before the expiration date in the policy, except in cases of nonpayment of premiums, fraud, or as provided in subsection (e).(e) Any short-term, limited-duration health insurance coverage policy that is delivered or issued for delivery in this State shall contain an option for an individual to cancel coverage after any 30-day interval during the term of the plan.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 190/15)Sec. 15. Disclosure requirements.(a) A health insurance issuer that offers short-term, limited-duration health insurance coverage to be delivered or issued for delivery in this State shall, in addition to all other documents required, including, but not limited to, the policy, the certificate, the membership booklet, and a description of appeal and external review rights, deliver an outline of coverage to an applicant for or an enrollee in short-term, limited-duration health insurance coverage delivered or issued for delivery in this State.(b) Any short-term, limited-duration health insurance coverage policy that is delivered or issued for delivery in the State shall display prominently in the policy, any application, sales, and marketing materials provided in connection with enrollment in such coverage, and the outline of coverage for such coverage, in at least 14-point, bold type, the following: "NOTICE:  THE SHORT-TERM, LIMITED-DURATION INSURANCE BENEFITS UNDER THIS COVERAGE DO NOT MEET ALL FEDERAL REQUIREMENTS TO QUALIFY AS "MINIMUM ESSENTIAL COVERAGE" FOR HEALTH INSURANCE UNDER THE AFFORDABLE CARE ACT.  THIS PLAN OF COVERAGE DOES NOT INCLUDE ALL ESSENTIAL HEALTH BENEFITS AS REQUIRED BY THE AFFORDABLE CARE ACT.  PREEXISTING CONDITIONS ARE NOT COVERED  UNDER THIS PLAN OF COVERAGE.   BE SURE TO CHECK YOUR POLICY CAREFULLY TO MAKE SURE YOU UNDERSTAND WHAT THE POLICY DOES AND DOES NOT COVER. IF THIS COVERAGE EXPIRES OR YOU LOSE ELIGIBILITY FOR THIS COVERAGE, YOU MIGHT HAVE TO WAIT UNTIL THE NEXT OPEN ENROLLMENT PERIOD TO GET OTHER HEALTH INSURANCE COVERAGE.   YOU MAY BE ABLE TO GET LONGER TERM INSURANCE THAT QUALIFIES AS "MINIMUM ESSENTIAL COVERAGE" FOR HEALTH INSURANCE UNDER THE AFFORDABLE CARE ACT NOW AND HELP TO PAY FOR IT AT WWW.HEALTHCARE.GOV.".(c) Any individual selling a short-term, limited-duration health insurance coverage policy in this State in face-to-face or telephonic sales interactions must read out loud the disclosure in subsection (b) to a prospective purchaser. An entity selling a short-term, limited-duration health insurance coverage policy in Illinois must display the disclosure in subsection (b) on the webpage where a prospective purchaser would purchase coverage.(d) Nothing in this Section precludes an insurer from providing disclosures in addition to those required in subsections (b) and (c). Nothing in this Section precludes an insurer from providing disclosures intended to clarify those required in subsections (b) and (c) if approved by the Department.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 190/20)Sec. 20. Filing and approval.(a) Coverage subject to this Act may not be delivered or issued for delivery in this State unless the policy evidencing such coverage has been filed with and been approved by the Department.(b) A health insurance issuer who intends to deliver or issue for delivery a short-term, limited-duration health insurance coverage policy in this State shall file with the Department:(1) all paperwork required for individual health     insurance coverage pursuant to 50 Ill. Adm. Code 916; and(2) all sales and marketing materials provided in     connection with enrollment in such coverage for informational purposes.(c) The Department shall adopt any rules necessary to carry out the provisions of this Act.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 190/90)Sec. 90. (Amendatory provisions; text omitted).
(Source: P.A. 100-1118, eff. 11-27-18; text omitted.) (215 ILCS 190/95)Sec. 95. The Illinois Insurance Code is amended by repealing Sections 123C-4 and 460.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 190/99)Sec. 99. Effective date. This Act takes effect upon becoming law, except that the provisions changing Sections 456, 457, and 458 of the Illinois Insurance  Code and the provisions repealing Section 460 of the Illinois Insurance  Code take effect February 1, 2019.
(Source: P.A. 100-1118, eff. 11-27-18.)
(215 ILCS 200/1)Sec. 1. Short title. This Act may be cited as the Prior Authorization Reform Act.
(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/5)Sec. 5. Purpose.  The General Assembly hereby finds and declares that:(1)     the health care professional-patient     relationship is paramount and should not be subject to third-party intrusion;(2)     prior authorization programs shall be subject     to member coverage agreements and medical policies but shall not hinder the independent medical judgment of a physician or health care provider; and(3)     prior authorization programs must be     transparent to ensure a fair and consistent process for health care providers and patients. (Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/10)Sec. 10. Applicability; scope.  This Act applies to health insurance coverage as defined in the Illinois Health Insurance Portability and Accountability Act, and policies issued or delivered in this State to the Department of Healthcare and Family Services and providing coverage to persons who are enrolled under Article V of the Illinois Public Aid Code or under the Children's Health Insurance Program Act, amended, delivered, issued, or renewed on or after the effective date of this Act, with the exception of employee or employer self-insured health benefit plans under the federal Employee Retirement Income Security Act of 1974, health care provided pursuant to the Workers' Compensation Act or the Workers' Occupational Diseases Act, and State, employee, unit of local government, or school district health plans. This Act does not diminish a health care plan's duties and responsibilities under other federal or State law or rules promulgated thereunder. This Act is not intended to alter or impede the provisions of any consent decree or judicial order to which the State or any of its agencies is a party.
(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/15)Sec. 15. Definitions.  As used in this Act:"Adverse determination" has the meaning given to that term in Section 10 of the Health Carrier External Review Act."Appeal" means a formal request, either orally or in writing, to reconsider an adverse determination."Approval" means a determination by a health insurance issuer or its contracted utilization review organization that a health care service has been reviewed and, based on the information provided, satisfies the health insurance issuer's or its contracted utilization review organization's requirements for medical necessity and appropriateness."Clinical review criteria" has the meaning given to that term in Section 10 of the Health Carrier External Review Act."Department" means the Department of Insurance."Emergency medical condition" has the meaning given to that term in Section 10 of the Managed Care Reform and Patient Rights Act."Emergency services" has the meaning given to that term in federal health insurance reform requirements for the group and individual health insurance markets, 45 CFR 147.138."Enrollee" has the meaning given to that term in Section 10 of the Managed Care Reform and Patient Rights Act."Health care professional" has the meaning given to that term in Section 10 of the Managed Care Reform and Patient Rights Act."Health care provider" has the meaning given to that term in Section 10 of the Managed Care Reform and Patient Rights Act, except that facilities licensed under the Nursing Home Care Act and long-term care facilities as defined in Section 1-113 of the Nursing Home Care Act are excluded from this Act."Health care service" means any services or level of services included in the furnishing to an individual of medical care or the hospitalization incident to the furnishing of such care, as well as the furnishing to any person of any other services for the purpose of preventing, alleviating, curing, or healing human illness or injury, including behavioral health, mental health, home health, and pharmaceutical services and products."Health insurance issuer" has the meaning given to that term in Section 5 of the Illinois Health Insurance Portability and Accountability Act."Medically necessary" means a health care professional exercising prudent clinical judgment would provide care to a patient for the purpose of preventing, diagnosing, or treating an illness, injury, disease, or its symptoms and that are: (i) in accordance with generally accepted standards of medical practice; (ii) clinically appropriate in terms of type, frequency, extent, site, and duration and are considered effective for the patient's illness, injury, or disease; and (iii) not primarily for the convenience of the patient, treating physician, other health care professional, caregiver, family member, or other interested party, but focused on what is best for the patient's health outcome."Physician" means a person licensed under the Medical Practice Act of 1987 or licensed under the laws of another state  to practice medicine in all its branches."Prior authorization" means the process by which health insurance issuers or their contracted utilization review organizations determine the medical necessity and medical appropriateness of otherwise covered health care services before the rendering of such health care services. "Prior authorization" includes any health insurance issuer's or its contracted utilization review organization's requirement that an enrollee, health care professional, or health care provider notify the health insurance issuer or its contracted utilization review organization before, at the time of, or concurrent to providing a health care service."Urgent health care service" means a health care service with respect to which the application of the time periods for making a non-expedited prior authorization that in the opinion of a health care professional with knowledge of the enrollee's medical condition:(1) could seriously jeopardize the life or health of     the enrollee or the ability of the enrollee to regain maximum function; or(2) could subject the enrollee to severe pain that     cannot be adequately managed without the care or treatment that is the subject of the utilization review."Urgent health care service" does not include emergency services."Utilization review organization" has the meaning given to that term in 50 Ill. Adm. Code 4520.30.

(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/20)Sec. 20. Disclosure and review of prior authorization requirements.(a)   A health insurance issuer shall maintain a complete list of services for which prior authorization is required, including for all services where prior authorization is performed by an entity under contract with the health insurance issuer.(b)   A health insurance issuer shall make any current prior authorization requirements and restrictions, including the written clinical review criteria, readily accessible and conspicuously posted on its website to enrollees, health care professionals, and health care providers. Content published by a third party and licensed for use by a health insurance issuer or its contracted utilization review organization may be made available through the health insurance issuer's or its contracted utilization review organization's secure, password-protected website so long as the access requirements of the website do not unreasonably restrict access. Requirements shall be described in detail, written in easily understandable language, and readily available to the health care professional and health care provider at the point of care. The website shall indicate for each service subject to prior authorization:(1)      when prior authorization became required for     policies issued or delivered in Illinois, including the effective date or dates and the termination date or dates, if applicable, in Illinois;(2)      the date the Illinois-specific requirement     was listed on the health insurance issuer's or its contracted utilization review organization's website;(3)     where applicable, the date that prior     authorization was removed for Illinois; and(4) where applicable, access to a standardized     electronic prior authorization request transaction process.(c)   The clinical review criteria must:(1)   be based on nationally recognized, generally     accepted standards except where State law provides its own standard;(2)   be developed in accordance with the current     standards of a national medical accreditation entity;(3)   ensure quality of care and access to needed     health care services;(4)   be evidence-based;(5)   be sufficiently flexible to allow deviations     from norms when justified on a case-by-case basis; and(6)   be evaluated and updated, if necessary, at     least annually.(d)   A health insurance issuer shall not deny a claim for failure to obtain prior authorization if the prior authorization requirement was not in effect on the date of service on the claim.(e)   A health insurance issuer or its contracted utilization review organization shall not deem as incidental or deny supplies or health care services that are routinely used as part of a health care service when:(1)   an associated health care service has received     prior authorization; or(2)   prior authorization for the health care service     is not required.(f)   If a health insurance issuer intends either to implement a new prior authorization requirement or restriction or amend an existing requirement or restriction, the health insurance issuer shall provide contracted health care professionals and contracted health care providers of enrollees written notice of the new or amended requirement or amendment no less than 60 days before the requirement or restriction is implemented. The written notice may be provided in an electronic format, including email or facsimile, if the health care professional or health care provider has agreed in advance to receive notices electronically. The health insurance issuer shall ensure that the new or amended requirement is not implemented unless the health insurance issuer's or its contracted utilization review organization's website has been updated to reflect the new or amended requirement or restriction.(g)   Entities using prior authorization shall make statistics available regarding prior authorization approvals and denials on their website in a readily accessible format. The statistics must be updated annually and include all of the following information:(1)    a list of all health care services, including     medications, that are subject to prior authorization;(2)   the total number of prior authorization     requests received;(3)   the number of prior authorization requests     denied during the previous plan year by the health insurance issuer or its contracted utilization review organization with respect to each service described in paragraph (1) and the top 5 reasons for denial;(4)   the number of requests described in paragraph     (3) that were appealed, the number of the appealed requests that upheld the adverse determination, and the number of appealed requests that reversed the adverse determination;(5)   the average time between submission and     response; and(6)   any other information as the Director     determines appropriate. (Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/25)Sec. 25. Health insurance issuer's and its contracted utilization review organization's obligations with respect to prior authorizations in nonurgent circumstances.  Notwithstanding any other provision of law, if a health insurance issuer requires prior authorization of a health care service, the health insurance issuer or its contracted utilization review organization must make an approval or adverse determination and notify the enrollee, the enrollee's health care professional, and the enrollee's health care provider of the approval or adverse determination as required by applicable law, but no later than 5 calendar days after obtaining all necessary information to make the approval or adverse determination. As used in this Section, "necessary information" includes the results of any face-to-face clinical evaluation, second opinion, or other clinical information that is directly applicable to the requested service that may be required.
(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/30)Sec. 30. Health insurance issuer's and its contracted utilization review organization's obligations with respect to prior authorizations concerning urgent health care services.(a)    Notwithstanding any other provision of law, a health insurance issuer or its contracted utilization review organization must render an approval or adverse determination concerning urgent care services and notify the enrollee, the enrollee's health care professional, and the enrollee's health care provider of that approval or adverse determination as required by law, but not later than 48 hours after receiving all information needed to complete the review of the requested health care services.(b)   To facilitate the rendering of a prior authorization determination in conformance with this Section, a health insurance issuer or its contracted utilization review organization must establish a mechanism to ensure health care professionals have access to appropriately trained and licensed clinical personnel who have access to physicians for consultation, designated by the plan to make such determinations for prior authorization concerning urgent care services.

(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/35)Sec. 35. Personnel qualified to make adverse determinations of a prior authorization request.  A health insurance issuer or its contracted utilization review organization must ensure that all adverse determinations are made by a physician when the request is by a physician or a representative of a physician. The physician must:(1)   possess a current and valid nonrestricted     license in any United States jurisdiction; and(2)   have experience treating and managing patients     with the medical condition or disease for which the health care service is being requested.Notwithstanding the foregoing, a licensed health care professional who satisfies the requirements of this Section may make an adverse determination of a prior authorization request submitted by a health care professional licensed in the same profession.
(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/40)Sec. 40. Requirements for adverse determination.  If a health insurance issuer or its contracted utilization review organization makes an adverse determination, the health insurance issuer or its contracted utilization review organization shall include the following in the notification to the enrollee, the enrollee's health care professional, and the enrollee's health care provider:(1) the reasons for the adverse determination and     related evidence-based criteria, including a description of any missing or insufficient documentation;(2) the right to appeal the adverse determination;(3) instructions on how to file the appeal; and(4) additional documentation necessary to support the     appeal.(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/45)Sec. 45. Requirements applicable to the personnel who can review appeals.  A health insurance issuer or its contracted utilization review organization must ensure that all appeals are reviewed by a physician when the request is by a physician or a representative of a physician. The physician must:(1)   possess a current and valid nonrestricted     license to practice medicine in any United States jurisdiction;(2)   be in the same or similar specialty as a     physician who typically manages the medical condition or disease;(3)   be knowledgeable of, and have experience     providing, the health care services under appeal;(4)   not have been directly involved in making the     adverse determination; and(5)   consider all known clinical aspects of the     health care service under review, including, but not limited to, a review of all pertinent medical records provided to the health insurance issuer or its contracted utilization review organization by the enrollee's health care professional or health care provider and any medical literature provided to the health insurance issuer or its contracted utilization review organization by the health care professional or health care provider.Notwithstanding the foregoing, a licensed health care professional who satisfies the requirements in this Section may review appeal requests submitted by a health care professional licensed in the same profession.
(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/50)Sec. 50. Review of prior authorization requirements.  A health insurance issuer shall periodically review its prior authorization requirements and consider removal of prior authorization requirements:(1)   where a medication or procedure prescribed is     customary and properly indicated or is a treatment for the clinical indication as supported by peer-reviewed medical publications; or(2)  for  patients currently managed with an     established treatment regimen.(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/55)Sec. 55. Denial.(a) The health insurance issuer or its contracted utilization review organization may not revoke or further  limit, condition, or restrict a previously issued prior authorization approval while it remains valid under this Act.(b) Notwithstanding any other provision of law, if a claim is properly coded and submitted timely to a health insurance issuer, the health insurance issuer shall make payment according to the terms of coverage on claims for health care services for which prior authorization was required and approval received before the rendering of health care services, unless one of the following occurs:(1)   it is timely determined that the enrollee's     health care professional or health care provider knowingly provided health care services that required prior authorization from the health insurance issuer or its contracted utilization review organization without first obtaining prior authorization for those health care services;(2)   it is timely determined that the health care     services claimed were not performed;(3)   it is timely determined that the health care     services rendered were contrary to the instructions of the health insurance issuer or its contracted utilization review organization or delegated reviewer if contact was made between those parties before the service being rendered;(4)   it is timely determined that the enrollee     receiving such health care services was not an enrollee of the health care plan; or(5)   the approval was based upon a material     misrepresentation by the enrollee, health care professional, or health care provider; as used in this paragraph (5), "material" means a fact or situation that is not merely technical in nature and results or could result in a substantial change in the situation.(c) Nothing in this Section shall preclude a utilization review organization or a health insurance issuer from performing post-service reviews of health care claims for purposes of payment integrity or for the prevention of fraud, waste, or abuse.
(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/60)Sec. 60. Length of prior authorization approval.  A prior authorization approval shall be valid for the lesser of 6 months after the date the health care professional or health care provider receives the prior authorization approval or the length of treatment as determined by the patient's health care professional or the renewal of the plan, and the approval period shall be effective regardless of any changes, including any changes in dosage for a prescription drug prescribed by the health care professional. All dosage increases must be based on established evidentiary standards and nothing in this Section shall prohibit a health insurance issuer from having safety edits in place. This Section shall not apply to the prescription of benzodiazepines or Schedule II narcotic drugs, such as opioids. Except to the extent required by medical exceptions processes for prescription drugs set forth in Section 45.1 of the Managed Care Reform and Patient Rights Act, nothing in this Section shall require a policy to cover any care, treatment, or services for any health condition that the terms of coverage otherwise completely exclude from the policy's covered benefits without regard for whether the care, treatment, or services are medically necessary.
(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/65)Sec. 65. Length of prior authorization approval for treatment for chronic or long-term conditions.  If a health insurance issuer requires a prior authorization for a recurring health care service or maintenance medication for the treatment of a chronic or long-term  condition, the approval shall remain valid for the lesser of 12 months from the date the health care professional or health care provider receives the prior authorization approval or the length of the treatment as determined by the patient's health care professional. This Section shall not apply to the prescription of benzodiazepines or Schedule II narcotic drugs, such as opioids. Except to the extent required by medical exceptions processes for prescription drugs set forth in Section 45.1 of the Managed Care Reform and Patient Rights Act, nothing in this Section shall require a policy to cover any care, treatment, or services for any health condition that the terms of coverage otherwise completely exclude from the policy's covered benefits without regard for whether the care, treatment, or services are medically necessary.
(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/70)Sec. 70. Continuity of care for enrollees.(a)    On receipt of information documenting a prior authorization approval from the enrollee or from the enrollee's health care professional or health care provider, a health insurance issuer shall honor a prior authorization granted to an enrollee from a previous health insurance issuer or its contracted utilization review organization for at least the initial 90 days of an enrollee's coverage under a new health plan, subject to the terms of the member's coverage agreement.(b)   During the time period described in subsection (a), a health insurance issuer or its contracted utilization review organization may perform its own review to grant a prior authorization approval subject to the terms of the member's coverage agreement.(c)   If there is a change in coverage of or approval criteria for a previously authorized health care service, the change in coverage or approval criteria does not affect an enrollee who received prior authorization approval before the effective date of the change for the remainder of the enrollee's plan year.(d)   Except to the extent required by medical exceptions processes for prescription drugs, nothing in this Section shall require a policy to cover any care, treatment, or services for any health condition that the terms of coverage otherwise completely exclude from the policy's covered benefits without regard for whether the care, treatment, or services are medically necessary.

(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/75)Sec. 75. Health care services deemed authorized if a health insurance issuer or its contracted utilization review organization fails to comply with the requirements of this Act.  A failure by a health insurance issuer or its contracted utilization review organization to comply with the deadlines and other requirements specified in this Act shall result in any health care services subject to review to be automatically deemed authorized by the health insurance issuer or its contracted utilization review organization.
(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/80)Sec. 80. Severability.  If any provision of this Act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are declared to be severable.
(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/85)Sec. 85. Administration and enforcement.(a)   The Department shall enforce the provisions of this Act pursuant to the enforcement powers granted to it by law. To enforce the provisions of this Act, the Director is hereby granted specific authority to issue a cease and desist order or require a utilization review organization or health insurance issuer to submit a plan of correction for violations of this Act, or both, in accordance with the requirements and authority set forth in Section 85 of the Managed Care Reform and Patient Rights Act. Subject to the provisions of the Illinois Administrative Procedure Act, the Director may, pursuant to Section 403A of the Illinois Insurance Code, impose upon a utilization review organization or health insurance issuer an administrative fine not to exceed $250,000 for failure to submit a requested plan of correction, failure to comply with its plan of correction, or repeated violations of this Act.(b)   Any person who believes that his or her utilization review organization or health insurance issuer is in violation of the provisions of this Act may file a complaint with the Department. The Department shall review all complaints received and investigate all complaints that it deems to state a potential violation. The Department shall fairly, efficiently, and timely review and investigate complaints. Health insurance issuers and utilization review organizations found to be in violation of this Act shall be penalized in accordance with this Section.(c)    The Department of Healthcare and Family Services shall enforce the provisions of this Act as it applies to persons enrolled under Article V of the Illinois Public Aid Code or under the Children's Health Insurance Program Act.

(Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 200/900)Sec. 900. (Amendatory provisions; text omitted).
(Source: P.A. 102-409, eff. 1-1-22; text omitted.) (215 ILCS 200/905)Sec. 905. (Amendatory provisions; text omitted).
(Source: P.A. 102-409, eff. 1-1-22; text omitted.) (215 ILCS 200/910)Sec. 910. (Amendatory provisions; text omitted).
(Source: P.A. 102-409, eff. 1-1-22; text omitted.) (215 ILCS 200/999)Sec. 999. Effective date. This Act takes effect January 1, 2022. 
(Source: P.A. 102-409, eff. 1-1-22.)
(215 ILCS 205/1)Sec. 1. Short title. This Act may be cited as the Private Primary Residential Flood Insurance Act.
(Source: P.A. 102-720, eff. 1-1-23.) (215 ILCS 205/3)Sec. 3. Purpose. To provide protection of lives and property from the peril of flood, this Act is designed to encourage a robust private primary residential flood insurance market to provide consumer choices and alternatives to the existing National Flood Insurance Program.
(Source: P.A. 102-720, eff. 1-1-23.) (215 ILCS 205/5)Sec. 5. Definitions. As used in this Act:"Authorized insurer" means an insurer that is authorized by the Department of Insurance to write insurance under a certificate of authority issued by the Department of Insurance to transact insurance in this State."Department" means the Department of Insurance."National Flood Insurance Program" means the program of flood insurance coverage and floodplain management administered under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) and applicable federal regulations promulgated in Title 44 of the Code of Federal Regulations."Primary residential flood insurance" means an insurance policy covering losses from flood to residential property, other than commercial property insurance, written in this State by any insurer authorized to do business that is not written to apply coverage in excess of the coverage provided under another flood insurance policy, whether issued by a private insurer or the National Flood Insurance Program.

(Source: P.A. 102-720, eff. 1-1-23.) (215 ILCS 205/10)Sec. 10. Forms. The coverage for residential properties required to have flood insurance that are in a special flood hazard area designated by the Federal Emergency Management Agency shall meet the private flood insurance requirements specified in subsection (b) of 42 U.S.C. 4012a and applicable federal regulations.

(Source: P.A. 102-720, eff. 1-1-23.) (215 ILCS 205/15)Sec. 15. Regulatory notice of intent. Authorized insurers must:(1) notify the Department of plans to sell primary     residential flood insurance products in accordance with the State's rate filing laws at least 30 days before writing primary residential flood insurance in this State; and(2) obtain the approval of the Director of Insurance     for a plan of operation or material revisions to such plan, including plans to sell primary residential flood insurance.(Source: P.A. 102-720, eff. 1-1-23.) (215 ILCS 205/20)Sec. 20. Notice to consumers.(a)   If a consumer currently has no coverage under the National Flood Insurance Program, the consumer applicant must be informed of the existence of the National Flood Insurance Program before being placed with private flood insurance.(b)   All consumers must be informed that the coverage under the National Flood Insurance Program may be provided at a subsidized rate and that the full-risk rate for flood insurance may apply to the property if the applicant later seeks to reinstate coverage under the program. The insurance producer, the surplus lines broker, or the insurer, upon its election or if there is no insurance producer or surplus lines broker, must provide the notice under subsection (a).(c)   This Section only applies if the applicant lives in a special flood hazard area. This Section is inoperative if federal legislation is enacted allowing the insured to switch between private flood insurance and National Flood Insurance Program coverage without risk of penalty.

(Source: P.A. 102-720, eff. 1-1-23.) (215 ILCS 205/25)Sec. 25. Other provisions.(a)     With respect to the regulation of private flood insurance coverage written in this State by authorized insurers, this Section supersedes any other provision of the Illinois Insurance Code in the event of a conflict.(b)     An insurer shall certify that the insurance policy meets the definition of "private flood insurance", as specified in paragraph (7) of subsection (b) of 42 U.S.C. 4012a and applicable federal regulations.(c) Nothing in this Act is intended to restrict the use of existing filings by an insurer or limit the ability of private insurers to provide flood insurance coverage of any type not addressed in this Act. 
(Source: P.A. 102-720, eff. 1-1-23.) (215 ILCS 205/30)Sec. 30. Rules. The Department may adopt rules to implement this Act.
(Source: P.A. 102-720, eff. 1-1-23.)
(215 ILCS 210/1)Sec. 1. Short title. This Act may be cited as the Health Insurance Coverage Premium Misalignment Study Act.
(Source: P.A. 102-900, eff. 1-1-23.) (215 ILCS 210/5)Sec. 5. Purpose. This Act is intended to enable the State to study possible misalignment in the Illinois health insurance marketplace that would produce increased premium or cost sharing for some consumers and drive some consumers into lower value qualified health plans or out of the marketplace altogether.
(Source: P.A. 102-900, eff. 1-1-23.) (215 ILCS 210/10)Sec. 10. Findings. The General Assembly finds that:(1) Section 1402 of the Patient Protection and Affordable Care Act requires health insurance issuers to provide cost-sharing reductions to low-income marketplace consumers below the 250% federal poverty level who choose a silver level plan; it also requires the United States Department of Health and Human Services to reimburse issuers for cost-sharing reductions. Cost-sharing reductions are important because they help low-income marketplace consumers afford out-of-pocket costs, including deductibles and copayments, and therefore keep them in the marketplace.(2) On October 12, 2017, the federal government, through executive action, announced that it would be discontinuing cost-sharing reduction payments to issuers in the Patient Protection and Affordable Care Act marketplace. Illinois, like the majority of other states, took action to mitigate the losses that Illinois issuers would endure without the federal cost-sharing reduction payments by adopting a practice called "silver loading" or "cost-sharing reduction uncertainty cost" beginning in the 2018 plan year. Silver loading allows issuers to increase their silver plan baseline premiums to make up the costs lost from the missing federal cost-sharing reduction payments. Most of these premium increases are offset by higher advanced premium tax credits from the federal government.(3) However, due to silver loading and resulting pricing of silver plans in the Illinois marketplace, it appears that the current metal-level premiums in the Illinois marketplace are misaligned and do not reflect coverage generosity of the plans. The fact that silver plans are now overpriced for enrollees ineligible for generous cost-sharing reductions has driven some of those enrollees into non-silver (mostly bronze) plans with levels of cost sharing that are a worse match for their needs. In other words, Illinois marketplace consumers could be currently paying more than they should for low value plans and less than they should for high value plans.

(Source: P.A. 102-900, eff. 1-1-23.) (215 ILCS 210/15)Sec. 15. Premium misalignment study.(a) The Department of Insurance shall oversee a study to explore rate setting approaches that may yield a misalignment of premiums across different tiers of coverage in Illinois' individual health insurance market. The study shall examine these approaches with a view to attempts to make coverage more affordable for low-income and middle-income residents. The study shall follow the best practices of other states targeted at addressing metal-level premium misalignment and include an Illinois-specific analysis of:(1) the number of consumers who are eligible for a     premium subsidy under the Patient Protection and Affordable Care Act (Pub. L. 111-148) and the relative affordability of the plans;(2) if the plan is in the silver level, as described     by 42 U.S.C. 18022(d), the relation of the premium amount compared to premiums charged for qualified health plans offering different levels of coverage, taking into account any funding or lack of funding for cost-sharing reductions and the covered benefits for each level of coverage; and(3) whether the plan issuer utilized the induced     demand factors developed by the Centers for Medicare and Medicaid Services for the risk adjustment program established under 42 U.S.C. 18063 for the level of coverage offered by the plan or any State-specific induced demand factors established by Department rules.(b) The study shall produce cost estimates for Illinois residents addressing metal-level premium misalignment policy as studied in subsection (a) along with the impact of the policy on health insurance affordability and access and the uninsured rates for low-income and middle-income residents, with break-out data by geography, race, ethnicity, and income level. The study shall evaluate how premium realignment, if implemented, would affect costs and outcomes for Illinoisans.(c) The Department of Insurance shall develop and submit, no later than January 1, 2024, a report to the General Assembly and the Governor concerning the design, costs, benefits, and implementation of premium realignment to increase affordability and access to health care coverage that leverages existing State infrastructure.
(Source: P.A. 102-900, eff. 1-1-23.)
(215 ILCS 5/Art. I heading) ARTICLE I.  
		SHORT TITLE, DEFINITIONS AND CLASSIFICATIONS (215 ILCS 5/1) (from Ch. 73, par. 613)Sec. 1. Short
title. This Act shall be known and may be cited as the Illinois Insurance Code.
(Source: P.A. 96-328, eff. 8-11-09.) (215 ILCS 5/2) (from Ch. 73, par. 614)Sec. 2. 
		
		General
definitions.In this Code, unless the context otherwise requires,(a) "Director" means the Director of Insurance.(b) "Department" means the Department of Insurance.(c) "State" or "State of the United States" includes the District of
Columbia and a territory or possession of the United States.(d) "Country" or "Foreign Country" includes a state, province or
political subdivision thereof.(e) "Company" means an insurance or surety company and shall be deemed
to include a corporation, company, partnership, association, society,
order, individual or aggregation of individuals engaging in or proposing or
attempting to engage in any kind of insurance or surety business, including
the exchanging of reciprocal or inter-insurance contracts between
individuals, partnerships and corporations.(f) "Domestic Company" means a company incorporated or organized under
the laws of this State.(g) "Foreign Company" means a company incorporated or organized under
the laws of any state of the United States other than this State.(h) "Alien Company" means a company incorporated or organized under the
laws of any country other than the United States.(i) "Mutual Legal Reserve Life Company" means a mutual life company
issuing contracts without contingent liability on the policyholder.(j) "Assessment Legal Reserve Life Company" means a life company issuing
contracts providing for contingent liability on the policyholder.(k) "Reciprocal" includes Inter-Insurance Exchange.(l) "Person" includes an individual, aggregation of individuals,
corporation, association and partnership.(m) Personal pronouns include all genders, the singular includes the
plural and the plural includes the singular.(n) "Policy" means an insurance policy or contract and includes
certificates of fraternal benefit societies, assessment companies, mutual
benefit associations, and burial societies.(o) "Policyholder" means a holder of an insurance policy or contract and
includes holders of certificates of fraternal benefit societies, assessment
companies, mutual benefit associations, and burial societies.(p) "Articles of Incorporation" means the basic instrument of an
incorporated company and all amendments thereto and includes "Charter,"
"Articles of Organization," "Articles of Reorganization," "Articles of
Association," and "Deed of Settlement."(q) "Officer" when used to refer to an officer of a company includes an
attorney-in-fact for a reciprocal or Lloyds.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/2.1) (from Ch. 73, par. 614.1)Sec. 2.1. 
		
		Public
Policy.It is declared to be the public policy of this State, pursuant to
paragraphs (h) and (i) of Section 6 of Article VII of the Illinois
Constitution of 1970, that any power or function set forth in this Act to
be exercised by the State is an exclusive State power or function. Such
power or function shall not be exercised concurrently, either directly or
indirectly, by any unit of local government, including home rule units,
except as otherwise provided in this Act. Provided further that the fees,
charges and taxes provided for by this Act shall, as provided for in
Section 415 of this Act, be in lieu of all license fees or privilege or
occupation taxes or other fees levied or assessed by any home rule unit and
said Section 415 of this Act is declared to be a denial and limitation of
the powers of home rule units pursuant to paragraph (g) of Section 6 of
Article VII of the Illinois Constitution of 1970.
		(Source: P.A. 78-1224.) (215 ILCS 5/2.5)Sec. 2.5. 
		Exemption. 
		This Code shall not be construed to apply to the
administration of the Drycleaner Environmental Response Trust Fund under the
Drycleaner Environmental Response Trust Fund Act.
		(Source: P.A. 90-502, eff. 8-19-97.) (215 ILCS 5/3.1) (from Ch. 73, par. 615.1)Sec. 3.1. 
		Definitions of admitted assets. 
		"Admitted Assets" includes the
investments authorized or permitted by this Code, the credit for reinsurance
allowed by this Code, and in addition thereto, only the following:(1) Amounts, other than premium, receivable from affiliates,
not outstanding for more than 3 months, and arising under,
management contracts or
service agreements which meet the requirements of Section 141.1 of the
Illinois Insurance Code to the extent that the affiliate has liquid assets
sufficient to pay the balance.  The amount of those
receivables included in admitted assets may not exceed the
lesser of 5% of the company's admitted assets or 10% of the company's surplus
as regards policyholders.  For purposes of this
subsection, "affiliate" has the meaning given that term in Article VIII 1/2 of
the Illinois Insurance Code.(2) Amounts permitted under Section 136.
		(Source: P.A. 90-418, eff. 8-15-97; 91-549, eff. 8-14-99.) (215 ILCS 5/4) (from Ch. 73, par. 616)Sec. 4. Classes of insurance. Insurance and insurance business shall
be classified as follows:Class 1. Life, Accident and Health.(a) Life. Insurance on the lives of persons and every insurance
appertaining thereto or connected therewith and granting, purchasing or
disposing of annuities. Policies of life or endowment insurance or
annuity contracts or contracts supplemental thereto which contain
provisions for additional benefits in case of death by accidental means
and provisions operating to safeguard such policies or contracts against
lapse, to give a special surrender value, or special benefit, or an
annuity, in the event, that the insured or annuitant shall become
a person  with a total and permanent disability as defined by the policy or contract,
or which contain benefits providing acceleration of life or endowment or
annuity benefits in advance of the time they would otherwise be
payable, as an indemnity for long term care which is certified or
ordered by a physician, including but not limited to, professional nursing
care, medical care expenses, custodial nursing care, non-nursing custodial
care provided in a nursing home or at a residence of the insured, or
which contain benefits providing acceleration of life or endowment or
annuity benefits in advance of the time they would otherwise be payable, at
any time during the insured's
lifetime, as an indemnity for a terminal illness shall be deemed to be
policies of life or endowment insurance or annuity contracts within the
intent of this clause.Also to be deemed as policies of life or endowment insurance or annuity
contracts within the intent of this clause shall be those policies or
riders that provide for the payment of up to 75% of the face amount
of
benefits in advance of the time they would otherwise be payable upon a
diagnosis by a physician licensed to practice medicine in all of its
branches that the insured has incurred a covered
condition listed
in the policy or rider."Covered condition", as used in this clause, means:
heart attack, stroke, coronary artery surgery,
life threatening cancer, renal failure,
Alzheimer's disease,
paraplegia, major organ transplantation, total and permanent
disability, and any other medical condition that the Department may approve for
any particular filing.The Director may issue rules that specify prohibited policy provisions,
not otherwise specifically prohibited by law, which in the opinion of the
Director are unjust, unfair, or unfairly discriminatory to the
policyholder,
any person insured under the policy, or beneficiary.(b) Accident and health. Insurance against bodily injury,
disablement or death by accident and against disablement resulting from
sickness or old age and every insurance appertaining thereto, including
stop-loss insurance.  Stop-loss insurance is insurance against the risk of
economic loss issued to a single employer self-funded employee disability
benefit plan or an employee welfare benefit plan as described in 29 U.S.C. 100
et seq. The insurance laws of this State, including
this Code, do not apply to arrangements between a religious organization and the organization's members
or participants when the arrangement and organization meet all of the
following criteria:(i) the organization is described in Section     501(c)(3) of the Internal Revenue Code and is exempt from taxation under Section 501(a) of the Internal Revenue Code;(ii) members of the organization share a common set     of ethical or religious beliefs and share medical expenses among members in accordance with those beliefs and without regard to the state in which a member resides or is employed;(iii) no funds that have been given for the purpose     of the sharing of medical expenses among members  described in paragraph (ii) of this subsection (b) are held by the organization in an off-shore trust or bank account;(iv) the organization provides at least monthly to     all of its members a written statement listing the dollar amount of qualified medical expenses that members have submitted for sharing, as well as the amount of expenses actually shared among the members;(v) members of the organization retain membership     even after they develop a medical condition;(vi) the organization or a predecessor organization     has been in existence at all times since December 31, 1999, and medical expenses of its members have been shared continuously and without interruption since at least December 31, 1999;(vii) the organization conducts an annual audit that     is performed by an independent certified public accounting firm in accordance with generally accepted accounting principles and is made available to the public upon request;(viii) the organization includes the following     statement, in writing, on or accompanying all applications and guideline materials:"Notice: The organization facilitating the sharing of         medical expenses is not an insurance company, and neither its guidelines nor plan of operation constitute or create an insurance policy.  Any assistance you receive with your medical bills will be totally voluntary.  As such, participation in the organization or a subscription to any of its documents should never be considered to be insurance.  Whether or not you receive any payments for medical expenses and whether or not this organization continues to operate, you are always personally responsible for the payment of your own medical bills.";(ix) any membership card or similar document issued     by the organization and any written communication sent by the organization to a hospital, physician, or other health care provider shall include a statement that the organization does not issue health insurance and that the member or participant is personally liable for payment of his or her medical bills;(x)  the organization provides to a participant,     within 30 days after the participant joins, a complete set of its rules for the sharing of medical expenses, appeals of decisions made by the organization, and the filing of complaints;(xi)  the organization does not offer any other     services that are regulated under any provision of the Illinois Insurance Code or other insurance laws of this State; and(xii)  the organization does not amass funds as     reserves intended for payment of medical services, rather the organization facilitates the payments provided for in this subsection (b) through payments made directly from one participant to another.(c) Legal Expense Insurance.  Insurance which involves
the assumption of a contractual obligation to reimburse the beneficiary
against or pay on behalf of the beneficiary, all or a portion of his fees,
costs, or expenses related to or arising out of services performed by or
under the supervision of an attorney licensed to practice in the jurisdiction
wherein the services are performed, regardless of whether the payment is made
by the beneficiaries individually or by a third person for them, but does
not include the provision of or reimbursement for legal services incidental
to other insurance coverages.  The insurance laws of this State, including
this Act do not apply to:(i) retainer contracts made by attorneys at law with     individual clients with fees based on estimates of the nature and amount of services to be provided to the specific client, and similar contracts made with a group of clients involved in the same or closely related legal matters;(ii) plans owned or operated by attorneys who are the     providers of legal services to the plan;(iii) plans providing legal service benefits to     groups where such plans are owned or operated by authority of a state, county, local or other bar association;(iv) any lawyer referral service authorized or     operated by a state, county, local or other bar association;(v) the furnishing of legal assistance by labor     unions and other employee organizations to their members in matters relating to employment or occupation;(vi) the furnishing of legal assistance to members or     dependents, by churches, consumer organizations, cooperatives, educational institutions, credit unions, or organizations of employees, where such organizations contract directly with lawyers or law firms for the provision of legal services, and the administration and marketing of such legal services is wholly conducted by the organization or its subsidiary;(vii) legal services provided by an employee welfare     benefit plan defined by the Employee Retirement Income Security Act of 1974;(viii) any collectively bargained plan for legal     services between a labor union and an employer negotiated pursuant to Section 302 of the Labor Management Relations Act as now or hereafter amended, under which plan legal services will be provided for employees of the employer whether or not payments for such services are funded to or through an insurance company.Class 2. Casualty, Fidelity and Surety.(a) Accident and health. Insurance against bodily injury,
disablement or death by accident and against disablement resulting from
sickness or old age and every insurance appertaining thereto, including
stop-loss insurance.  Stop-loss insurance is insurance against the risk of
economic loss issued to a single employer self-funded employee disability
benefit plan or
an employee welfare benefit plan as described in 29 U.S.C. 1001 et seq.(b) Vehicle. Insurance against any loss or liability resulting from
or incident to the ownership, maintenance or use of any vehicle (motor
or otherwise), draft animal or aircraft. Any policy insuring against any
loss or liability on account of the bodily injury or death of any person
may contain a provision for payment of disability benefits to injured
persons and death benefits to dependents, beneficiaries or personal
representatives of persons who are killed, including the named insured,
irrespective of legal liability of the insured, if the injury or death
for which benefits are provided is caused by accident and sustained
while in or upon or while entering into or alighting from or through
being struck by a vehicle (motor or otherwise), draft animal or
aircraft, and such provision shall not be deemed to be accident
insurance.(c) Liability. Insurance against the liability of the insured for
the death, injury or disability of an employee or other person, and
insurance against the liability of the insured for damage to or
destruction of another person's property.(d) Workers' compensation. Insurance of the obligations accepted by
or imposed upon employers under laws for workers' compensation.(e) Burglary and forgery. Insurance against loss or damage by
burglary, theft, larceny, robbery, forgery, fraud or otherwise;
including all householders' personal property floater risks.(f) Glass. Insurance against loss or damage to glass including
lettering, ornamentation and fittings from any cause.(g) Fidelity and surety. Become surety or guarantor for any person,
copartnership or corporation in any position or place of trust or as
custodian of money or property, public or private; or, becoming a surety
or guarantor for the performance of any person, copartnership or
corporation of any lawful obligation, undertaking, agreement or contract
of any kind, except contracts or policies of insurance; and underwriting
blanket bonds. Such obligations shall be known and treated as suretyship
obligations and such business shall be known as surety business.(h) Miscellaneous. Insurance against loss or damage to property and
any liability of the insured caused by accidents to boilers, pipes,
pressure containers, machinery and apparatus of any kind and any
apparatus connected thereto, or used for creating, transmitting or
applying power, light, heat, steam or refrigeration, making inspection
of and issuing certificates of inspection upon elevators, boilers,
machinery and apparatus of any kind and all mechanical apparatus and
appliances appertaining thereto; insurance against loss or damage by
water entering through leaks or openings in buildings, or from the
breakage or leakage of a sprinkler, pumps, water pipes, plumbing and all
tanks, apparatus, conduits and containers designed to bring water into
buildings or for its storage or utilization therein, or caused by the
falling of a tank, tank platform or supports, or against loss or damage
from any cause (other than causes specifically enumerated under Class 3
of this Section) to such sprinkler, pumps, water pipes, plumbing, tanks,
apparatus, conduits or containers; insurance against loss or damage
which may result from the failure of debtors to pay their obligations to
the insured; and insurance of the payment of money for personal services
under contracts of hiring.(i) Other casualty risks. Insurance against any other casualty risk
not otherwise specified under Classes 1 or 3, which may lawfully be the
subject of insurance and may properly be classified under Class 2.(j) Contingent losses. Contingent, consequential and indirect
coverages wherein the proximate cause of the loss is attributable to any
one of the causes enumerated under Class 2. Such coverages shall, for
the purpose of classification, be included in the specific grouping of
the kinds of insurance wherein such cause is specified.(k) Livestock and domestic animals. Insurance against mortality,
accident and health of livestock and domestic animals.(l) Legal expense insurance.  Insurance against risk resulting from the
cost of legal services as defined under Class 1(c).Class 3. Fire and Marine, etc.(a) Fire. Insurance against loss or damage by fire, smoke and
smudge, lightning or other electrical disturbances.(b) Elements. Insurance against loss or damage by earthquake,
windstorms, cyclone, tornado, tempests, hail, frost, snow, ice, sleet,
flood, rain, drought or other weather or climatic conditions including
excess or deficiency of moisture, rising of the waters of the ocean or
its tributaries.(c) War, riot and explosion. Insurance against loss or damage by
bombardment, invasion, insurrection, riot, strikes, civil war or
commotion, military or usurped power, or explosion (other than explosion
of steam boilers and the breaking of fly wheels on premises owned,
controlled, managed, or maintained by the insured).(d) Marine and transportation. Insurance against loss or damage to
vessels, craft, aircraft, vehicles of every kind, (excluding vehicles
operating under their own power or while in storage not incidental to
transportation) as well as all goods, freights, cargoes, merchandise,
effects, disbursements, profits, moneys, bullion, precious stones,
securities, choses in action, evidences of debt, valuable papers,
bottomry and respondentia interests and all other kinds of property and
interests therein, in respect to, appertaining to or in connection with
any or all risks or perils of navigation, transit, or transportation,
including war risks, on or under any seas or other waters, on land or in
the air, or while being assembled, packed, crated, baled, compressed or
similarly prepared for shipment or while awaiting the same or during any
delays, storage, transshipment, or reshipment incident thereto,
including marine builder's risks and all personal property floater
risks; and for loss or damage to persons or property in connection with
or appertaining to marine, inland marine, transit or transportation
insurance, including liability for loss of or damage to either arising
out of or in connection with the construction, repair, operation,
maintenance, or use of the subject matter of such insurance, (but not
including life insurance or surety bonds); but, except as herein
specified, shall not mean insurances against loss by reason of bodily
injury to the person; and insurance against loss or damage to precious
stones, jewels, jewelry, gold, silver and other precious metals whether
used in business or trade or otherwise and whether the same be in course
of transportation or otherwise, which shall include jewelers' block
insurance; and insurance against loss or damage to bridges, tunnels and
other instrumentalities of transportation and communication (excluding
buildings, their furniture and furnishings, fixed contents and supplies
held in storage) unless fire, tornado, sprinkler leakage, hail,
explosion, earthquake, riot and civil commotion are the only hazards to
be covered; and to piers, wharves, docks and slips, excluding the risks
of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot
and civil commotion; and to other aids to navigation and transportation,
including dry docks and marine railways, against all risk.(e) Vehicle. Insurance against loss or liability resulting from or
incident to the ownership, maintenance or use of any vehicle (motor or
otherwise), draft animal or aircraft, excluding the liability of the
insured for the death, injury or disability of another person.(f) Property damage, sprinkler leakage and crop. Insurance against
the liability of the insured for loss or damage to another person's
property or property interests from any cause enumerated in this class;
insurance against loss or damage by water entering through leaks or
openings in buildings, or from the breakage or leakage of a sprinkler,
pumps, water pipes, plumbing and all tanks, apparatus, conduits and
containers designed to bring water into buildings or for its storage or
utilization therein, or caused by the falling of a tank, tank platform
or supports or against loss or damage from any cause to such sprinklers,
pumps, water pipes, plumbing, tanks, apparatus, conduits or containers;
insurance against loss or damage from insects, diseases or other causes to
trees, crops or other products of the soil.(g) Other fire and marine risks. Insurance against any other
property risk not otherwise specified under Classes 1 or 2, which may
lawfully be the subject of insurance and may properly be classified
under Class 3.(h) Contingent losses. Contingent, consequential and indirect
coverages wherein the proximate cause of the loss is attributable to any
of the causes enumerated under Class 3. Such coverages shall, for the
purpose of classification, be included in the specific grouping of the
kinds of insurance wherein such cause is specified.(i) Legal expense insurance.  Insurance against risk resulting from the
cost of legal services as defined under Class 1(c).
(Source: P.A. 101-81, eff. 7-12-19.) (215 ILCS 5/5) (from Ch. 73, par. 617)Sec. 5. 
		
		Classes of
companies.(1) All Companies now or hereafter authorized to transact business in
this State shall be classified according to their functions into one or
more of the classes of insurance enumerated in section 4.(2) No company shall be authorized to transact any kind or kinds of
business other than those enumerated in its respective class, or classes,
except as otherwise specifically provided in this Code, but any company,
upon complying with all applicable provisions of this Code, may be
authorized to transact all or any part of its business on the basis of
reinsurance, except that no certificate of authority shall be limited in
whole or in part to reinsurance unless the restriction as to such
reinsurance is expressed in the articles of incorporation of said company.
		(Source: Laws 1959, p. 638.) (215 ILCS 5/5.5)Sec. 5.5. Compliance with the Department of Healthcare and Family Services. A company authorized to do business in this State or accredited by the State to issue policies of health insurance, including but not limited to, self-insured plans, group health plans (as defined in Section 607(1) of the Employee Retirement Income Security Act of 1974), service benefit plans, managed care organizations, pharmacy benefit managers, or other parties that are by statute, contract, or agreement legally responsible for payment of a claim for a health care item or service as a condition of doing business in the State must:(1) provide to the  Department of Healthcare and     Family Services, or any successor agency, on at least a quarterly basis if so requested by the Department, information to determine during what period any individual may be, or may have been, covered by a health insurer and the nature of the coverage that is or was provided by the health insurer, including the name, address, and identifying number of the plan;(2)  accept the State's right of recovery and the     assignment to the State of any right of an individual or other entity to payment from the party for an item or service for which payment has been made under the medical programs of the Department of Healthcare and Family Services, or any successor agency, under this Code or the Illinois Public Aid Code;(3) respond to any inquiry by the Department of     Healthcare and Family Services regarding a claim for payment for any health care item or service that is submitted not later than 3 years after the date of the provision of such health care item or service; and(4) agree not to deny a claim submitted by the     Department of Healthcare and Family Services solely on the basis of the date of submission of the claim, the type or format of the claim form, or a failure to present proper documentation at the point-of-sale that is the basis of the claim if (i) the claim is submitted by the Department of Healthcare and Family Services within the 3-year period beginning on the date on which the item or service was furnished and (ii) any action by the Department of Healthcare and Family Services to enforce its rights with respect to such claim is commenced within 6 years of its submission of such claim.The Department of Healthcare and Family Services may impose an administrative penalty as provided under Section 12-4.45 of the Illinois Public Aid Code on entities that have established a pattern of failure to provide the information required under this Section, or in cases in which the Department of Healthcare and Family Services has  determined that an entity that provides health insurance coverage has established a pattern of failure to provide the information required under this Section, and has subsequently certified that determination, along with supporting documentation, to the Director of the Department of Insurance, the Director of the Department of Insurance, based upon the certification of determination made by the Department of Healthcare and Family Services,  may commence regulatory proceedings in accordance with all applicable provisions of  the Illinois Insurance Code. (Source: P.A. 98-130, eff. 8-2-13.)
(215 ILCS 5/Art. II heading) ARTICLE II.  
		DOMESTIC STOCK COMPANIES
(Article scheduled to be repealed on January 1, 2027)  (215 ILCS 5/6) (from Ch. 73, par. 618)(Section scheduled to be repealed on January 1, 2027)Sec. 6. 
		Scope of
Article. 
		This Article shall apply to all domestic stock companies transacting or
being organized to transact any of the kinds of insurance business
enumerated in Section 4.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/7) (from Ch. 73, par. 619)(Section scheduled to be repealed on January 1, 2027)Sec. 7. 
		Name. 
		
		The corporate name of any company organized under this Article shall not
be the same as, or deceptively similar to, the name of any domestic
company, or of any foreign or alien company authorized to transact business
in this State.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/8) (from Ch. 73, par. 620)(Section scheduled to be repealed on January 1, 2027)Sec. 8. 
		Principal
office and place of business. 
The principal office of any company
organized under this Article shall be located in this State.
Unless the Director has approved otherwise, the principal place of business
of any company organized under this Article shall be located in this State.
		(Source: P.A. 82-498.) (215 ILCS 5/9) (from Ch. 73, par. 621)(Section scheduled to be repealed on January 1, 2027)Sec. 9. 
		Authorized kinds of business.(1) Companies may be organized under this Article either for the purpose
of transacting any of the kind or kinds of business enumerated in Class 1
of Section 4, or for the purpose of transacting any of the kind or kinds of
business enumerated in Classes 2 and 3 of that Section, except that those
companies offering mortgage pool or mortgage guaranty insurance may provide
no other types of insurance.(2) A domestic company may, notwithstanding limitations otherwise
applicable, and provided it maintains books and records which account for
such business, engage directly in any of the following businesses: (a)
rendering investment advice; (b) rendering services related to the
functions involved in the operation of its insurance business including,
but not limited to, actuarial, loss prevention, safety engineering, data
processing, accounting, claims, appraisal and collection services; (c)
acting as administrative agent for a government instrumentality which is
performing an insurance function for a health or welfare program; (d)
reinsuring the business of title insurance companies, provided such
domestic company if organized as a stock company shall have capital and
surplus of not less than $5,000,000 and if organized as a domestic
mutual or reciprocal company have surplus of not less than $5,000,000; (e) any
other business activity reasonably complementary or supplementary to its
insurance business; either to the extent necessarily or properly incidental
to the insurance business the company is authorized to do in this State or
to the extent approved by the Director and subject to any limitations he
may prescribe for the protection of the interests of the policyholders of
the company taking into account the effect of such business on the
company's existing insurance business and its surplus, the proposed
allocation of the estimated cost of such business and the risks inherent in
such business as well as the relative advantages to the company and its
policyholders of conducting such business directly instead of through a
subsidiary.
		(Source: P.A. 86-1156.) (215 ILCS 5/10) (from Ch. 73, par. 622)(Section scheduled to be repealed on January 1, 2027)Sec. 10. 
		Directors.(1) After the date of incorporation, as determined
by Section 18, and until the first meeting of shareholders, the
incorporators shall have the powers and perform the duties ordinarily
possessed and exercised by a board of directors.(2) Upon the issuance of a certificate of authority to a company
organized under this article, the corporate powers shall be exercised by,
and its business and affairs shall be under the control of, a board of
directors composed of not less than 3 nor more than 21 natural persons who
are shareholders, except where the Company is a wholly owned subsidiary, and
who are at least 18 years of age and at least 3 of whom are residents and
citizens of this State.
After June 30, 2002, at least 20%, but not less than one,
of the directors of a company that is not subject to Section 131.20b shall be
persons who are not officers or employees of the company.  A person convicted
of a
felony may not be a director, and all directors shall be of good character and
known professional, administrative, or business ability, such business ability
to include a practical knowledge of insurance, finance, or investment.
The first
board of directors shall be elected at
the first meeting of shareholders, and, except as provided in subsection
(3) below, all directors shall be elected annually thereafter.(3) If the board of directors consists of 6 or more members, in lieu of
electing the membership of the whole board of directors annually, the
articles of incorporation may provide that the directors shall be divided
into two or three classes, each class to be as nearly equal in number as is
possible.  The term of office of directors of the first class shall expire
at the first annual meeting of shareholders after their election, that of
the second class shall expire at the second annual meeting after their
election, and that of the third class, if any, shall expire at the third
annual meeting after their election.  At each annual meeting after such
classification, a number of directors equal to the number of directors in
the class whose terms expire at the time of such meeting shall be elected
to hold office until the second succeeding annual meeting, if there are two
classes, or until the third succeeding annual meeting, if there are three
classes.(4) In all elections for directors every shareholder of common shares
has the right to vote, in person or by proxy, for the number of common
shares owned by him, for as many persons as there are directors to be
elected, or to cumulate his shares, and give one candidate as many votes as
the number of directors multiplied by the number of his shares equals, or
to distribute them on the same principle among as many candidates as he
thinks fit, and directors shall not be elected in any other manner.(5) Meetings of the board of directors, regular or special, may be held
either within or without the State. Meetings of the board of directors
shall be upon such notice as the by-laws may prescribe. Attendance of a
director at any meeting shall constitute a waiver of notice of such meeting
except where a director attends the meeting for the express purpose of
objecting to the transaction of any business because the meeting is not
lawfully called or convened. Neither the business to be transacted at, nor
the purpose of, any regular or special meeting of the board of directors
need be specified in the notice or waiver of notice of such meeting, unless
expressly otherwise provided by this Code.
Unless specifically prohibited by the articles of incorporation or
by-laws, members of the board of directors or of any committee of the board
of directors may participate in and act at any meeting of such board or
committee through the use of a conference telephone or other communications
equipment by means of which all persons participating in the meeting can
hear each other.  Participation in such meeting shall constitute attendance
and presence in person at the meeting of the person or persons so
participating.  Unless specifically prohibited by the articles of
incorporation or by-laws, members of the board of directors or of any
committee of the board of directors may take action without a meeting, if a
consent in writing setting forth the action so taken shall be signed by all
of the directors entitled to vote with respect to the subject matter
thereof, or by all of the members of such committee, as the case may be.
The consent shall be evidenced by one or more written approvals, each of
which sets forth the action taken and bears the signature of one or more
directors or committee members.  All approvals evidencing the consent shall
be filed in the company's corporate records.  The action taken shall be
effective when all of the directors, or members of the committee, have
approved the consent unless the consent specifies a different effective date.(6) If the number of directors provided for in the articles of
incorporation be indefinite, the number of directors to be elected, within
the minimum and maximum limits set forth in paragraph (2), shall be as
provided in the by-laws. The number of directors may be increased or
decreased from time to time by amendment to the by-laws.
The by-laws may establish a variable range for the size of the board by
prescribing a minimum and maximum number of directors.  The maximum may not
exceed the minimum by more than 5.  If a variable range is established, the
number of directors may be fixed or changed from time to time, within the
minimum and maximum, by the directors or the shareholders without further
amendment to the by-laws.(7) (a) A company may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the company) by
reason of the fact that he or she is or was a director, officer, employee
or agent, against expenses (including attorneys' fees), judgments, fines
and amounts paid in settlement actually and reasonably incurred by such
person in connection with such action, suit or proceeding, if such person
acted in good faith and in a manner he or she reasonably believed to be in,
or not opposed to the best interests of the company, and, with respect to
any criminal action or proceeding, had no reasonable cause to believe his
or her conduct was unlawful.  The termination of any action, suit or
proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its equivalent, shall not, of itself, create a presumption
that the person did not act in good faith and in a manner which he or she
reasonably believed to be in or not opposed to the best interest of the company
or, with respect to any criminal action or proceeding, that the person had
reasonable cause to believe that his or her conduct was unlawful.(b) A company may indemnify any person who was or is a party, or is
threatened to be made a party to any threatened, pending
or completed action or suit by or in the right of the company to procure a
judgment in its favor by reason of the fact that such person is or was a
director, officer, employee or agent of the company, or is or was serving at
the request of the company as a director, officer, employee or agent of
another company, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys' fees) actually and reasonably
incurred by such person in connection with the defense or settlement of
such action or suit, if such person acted in good faith and in a manner he
or she reasonably believed to be in, or not opposed to the best interests
of the company, provided that no indemnification shall be made in respect
of any claim, issue or matter as to which such person shall have been
adjudged to be liable for negligence or misconduct in the performance of
his or her duty to the company, unless, and only to the extent that the
court in which such action or suit was brought shall determine upon
application that, despite the adjudication of liability, but in view of all
the circumstances of the case, such person is fairly and reasonably
entitled to indemnification for such expenses as the court shall deem proper.(c) To the extent that a director, officer, employee or agent of a
company has been successful, on the merits or otherwise, in the defense of
any action, suit or proceeding referred to in subsections (a) and (b), or
in defense of any claim, issue or matter therein, such person shall be
indemnified against expenses (including attorneys' fees) actually and
reasonably incurred by such person in connection therewith.(d) Any indemnification under subsections (a) and (b) (unless ordered by
a court) shall be made by the company only as authorized in the specific
case, upon a determination that indemnification of the director, officer,
employee or agent is proper in the circumstances because he or she has met
the applicable standard of conduct set forth in subsections (a) or (b).
Such determination shall be made (1) by the board of directors by a majority
vote of a quorum consisting of directors who were not parties to such
action, suit or proceeding, or (2) if such a quorum is not obtainable, or
even if obtainable, if a quorum of disinterested directors so directs, by
independent legal counsel in a written opinion, or (3) by the shareholders.(e) Expenses incurred in defending a civil or criminal action, suit or
proceeding may be paid by the company in advance of the final disposition
of such action, suit or proceeding, as authorized by the board of directors
in the specific case, upon receipt of an undertaking by or on behalf of the
director, officer, employee or agent to repay such amount, unless it shall
ultimately be determined that he or she is entitled to be indemnified by
the company as authorized in this Section.(f) The indemnification provided by this Section shall not be deemed
exclusive of any other rights to which those seeking indemnification may be
entitled under any by-law, agreement, vote of shareholders or
disinterested directors, or otherwise, both as to action in his or her
official capacity and as to action in another capacity while holding such
office, and shall continue as to a person who has ceased to be a director,
officer, employee or agent, and shall inure to the benefit of the heirs,
executors and administrators of such a person.(g) A company may purchase and maintain insurance on  behalf of any
person who is or was a director, officer, employee or agent of the company,
or who is or was serving at the request of the company as a director,
officer, employee or agent of another company, partnership, joint venture,
trust or other enterprise, against any liability asserted against such
person and incurred by such person in any such capacity, or arising out of
his or her status as such, whether or not the company would have the power
to indemnify such person against such liability under the provisions of this Section.(h) If a company has paid indemnification or has advanced expenses to a
director, officer, employee or agent, the company shall report the
indemnification or advance in writing to the shareholders with or before
the notice of the next shareholders meeting.(i) For purposes of this Section, references to "the company" shall
include, in addition to the surviving company, any merging company
(including any company having merged with a merging company) absorbed in a
merger which, if its separate existence had continued, would have had the
power and authority to indemnify its directors, officers, and employees or
agents, so that any person who was a director, officer, employee or agent
of such merging company, or was serving at the request of such merging
company as a director, officer, employee or agent of another company,
partnership, joint venture, trust or other enterprise, shall stand in the
same position under the provisions of this Section with respect to the
surviving company as such person would have with respect to such merging
company if its separate existence had continued.(j) For purposes of this Section, references to "other enterprises"
shall include employee benefit plans; references to "fines" shall include
any excise taxes assessed on a person with respect to any employee benefit
plan; and references to "serving at the request of the company" shall
include any service as a director, officer, employee or agent of the
company which imposes duties on, or involves services by such director,
officer, employee, or agent with respect to any employee benefit plan, its
participants, or beneficiaries.  A person who acted in good faith and in a
manner he or she reasonably believed to be in the best interests of the
participants and beneficiaries of any employee benefit plan shall be deemed
to have acted in a manner "not opposed to the best interest of the company"
as referred to in this Section.
		(Source: P.A. 92-140, eff. 7-24-01.) (215 ILCS 5/11) (from Ch. 73, par. 623)(Section scheduled to be repealed on January 1, 2027)Sec. 11. 
		Executive
committee. 
		If the by-laws of any company subject to the provisions of this article,
so provide, the board of directors, by a resolution adopted by a majority
of the whole board, may designate three or more directors to constitute an
executive committee, which committee, to the extent provided in the
resolution or in the by-laws, shall have and exercise, during the interim
between the meetings of the board, all of the authority of the board in the
management of the company, but the designation of such committee shall not
relieve the board nor any member thereof of any responsibility imposed by
law.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/12) (from Ch. 73, par. 624)(Section scheduled to be repealed on January 1, 2027)Sec. 12. 
		By-laws.(1) The incorporators shall adopt by-laws for the company and such
by-laws may not be altered, amended, or repealed, prior to the issuance of
a certificate of authority to the company, except by written consent of
subscribers representing at least two-thirds of the shares subscribed, and
the approval of the Director.(2) After a certificate of authority is issued to a company, the power
to make, alter, amend or repeal by-laws shall be vested in the board of
directors unless reserved to the shareholders by the articles of
incorporation.
		(Source: Laws 1937, 696.) (215 ILCS 5/13) (from Ch. 73, par. 625)(Section scheduled to be repealed on January 1, 2027)Sec. 13. 
		Minimum capital and surplus requirements.(1) A company organized after  December 31, 1985 under this Article
must have and at all times maintain a paid-up capital of not less than
the minimum capital requirement applicable to the class or classes and
clause or clauses of section 4 describing the kind or kinds of insurance
which it is authorized to write, as follows:
		Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), $1,000,000;     more than one clause, $1,000,000.
		Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j) $1,000,000; more than one clause, $1,000,000.
		Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l) or Class 3,     any or all clauses or any combination thereof, $400,000.
		Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, $1,000,000.
		Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $100,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.Any company organized prior to January 1, 1986 and
regulated under this Article must have and
at all times maintain paid-up capital of not less than the minimum
capital that was required for that particular company at the time it was
organized, unless any clause or clauses have been added. If any clause
or clauses have been added, then such company must have and at all times
maintain paid-up capital of not less than the minimum capital requirement
applicable to the class or classes and clause or clauses of Section 4 at
the time that the additional clause or clauses are authorized.(2) A company organized after December 31, 1985 under this Article
must have at the time its Certificate of Authority is issued by the
Director paid-in surplus of not less than the minimum paid-in surplus
requirement applicable to the class or classes and clause or clauses of
Section 4 describing the kind or kinds of insurance which it is authorized
to write, as follows:
		Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), $1,000,000;     more than one clause, $1,000,000.
		Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), $1,000,000; more than one clause, $1,000,000.
		Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l), or Class 3,     any or all clauses or any combination thereof, $600,000.
		Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, $1,000,000.
		Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $150,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(3) Any company organized after December 31, 1985 under this Article
must have and at all times maintain, in addition to the minimum capital
required by paragraph (1) of this Section, minimum surplus requirement
applicable to the class or classes and clause or clauses of Section 4
describing the kind or kinds of insurance which it is authorized to write,
as follows:
		Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), $500,000; more     than one clause, $500,000.
		Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), $500,000; more than one clause, $500,000.
		Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l), or Class 3,     any or all clauses or any combination thereof, $300,000.
		Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, $500,000.
		Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $50,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(4) Any company organized prior to January 1, 1986 and regulated
under this Article, in addition to the minimum capital which is required by
paragraph (1) of this Section, must have and at all times maintain until
December 31, 1986, minimum surplus of $300,000; and on December 31, 1986
and thereafter such company must have and maintain at all times, surplus of
no less than the following amounts:
		Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), $500,000; more     than one clause, $500,000.
		Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), $500,000; more than one clause, $500,000.
		Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l), or Class 3,     any or all clauses or any combination thereof, $300,000.
		Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, $500,000.
		Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $50,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(5) Any company organized prior to January 1, 1986 and regulated
under this Article must have on December 31, 1990 and thereafter maintain
until December 31, 1995 the greater of (a) minimum capital required by
paragraph (1) of this Section plus the surplus required to be maintained
after December 31, 1986 by paragraph (4) of this Section; or (b) combined
capital and surplus of not less than the minimum requirement applicable to
the class or classes and clause or clauses of Section 4 describing the kind
or kinds of insurance which it is authorized to write as follows:
		Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), $1,200,000;     more than one clause, $1,200,000.
		Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), $1,200,000; more than one clause, $1,200,000.
		Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l), or Class 3,     any or all clauses or any combination thereof, $600,000.
		Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, $1,200,000.
		Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $100,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(6) Any company organized prior to January 1, 1986 and regulated
under this Article must have on December 31, 1995 and thereafter maintain
at all times combined capital and surplus of not less than the minimum
requirement applicable to the class or classes and clause or clauses of
Section 4 describing the kind or kinds of insurance which it is authorized
to write as follows:
		Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), $1,500,000;     more than one clause, $1,500,000.
		Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), $1,500,000; more than one clause, $1,500,000.
		Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l), or Class 3,     any or all clauses or any combination thereof, $700,000.
		Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, $1,500,000.
		Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $150,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(7) Any company organized prior to January 1, 1986 and regulated under
this Article experiencing a change in control, as control is defined in
Section 131.1(b) of this Code, must have simultaneously with the change in
control and thereafter maintain at all times combined capital and surplus
of not less than the minimum requirement applicable to the class or classes
and clause or clauses of Section 4 describing the kind or kinds of
insurance which it is authorized to write as follows:
		Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), $1,500,000;     more than one clause, $1,500,000.
		Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), $1,500,000; more than one clause, $1,500,000.
		Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l), or Class 3,     any or all clauses or any combination thereof, $700,000.
		Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, $1,500,000.
		Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $150,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.Notwithstanding, the foregoing provisions of this paragraph (7), any
company which experiences a change in control, as control is defined in
Section 131.1(b) of this Code, by reason of any laws of descent,
distribution or probate, shall be exempt from the requirements of this
paragraph (7) for a period of 2 years following the date of death or
incompetency giving rise to the change in control.(8) Any company organized prior to September 10, 1971 or converted
from a mutual company to a stock company between July 1, 1983 and June 30,
1985, which had less than $1,000,000 capital and surplus on January 1,
1986, and whose authority is limited to Class 2 of Section 4 of this Code
and which is regulated under this Article, shall be exempt from the
requirements of paragraphs (5) and (6) of this Section.(9) The Director shall take action under Section 34 of this Code
against any company which fails to maintain the minimum
surplus required by this Section. The words "minimum surplus" mean the
net total of the following accounts, where applicable, as they appear in
the annual statement of a stock company on the usual and proper annual
statement form prescribed by the National Association of Insurance
Commissioners: paid-in surplus; contributed surplus; unassigned or
earned surplus; and special surplus.
		(Source: P.A. 87-315.) (215 ILCS 5/14) (from Ch. 73, par. 626)(Section scheduled to be repealed on January 1, 2027)Sec. 14. 
		Incorporators. 
		Any one or more natural persons, at least one of
whom is a resident of this State, who desire to form a company under this
Article shall sign and acknowledge before an officer authorized to take acknowledgments,
articles of incorporation in duplicate.
		(Source: P.A. 84-502.) (215 ILCS 5/14.1) (from Ch. 73, par. 626.1)(Section scheduled to be repealed on January 1, 2027)Sec. 14.1. 
		Articles of incorporation. 
		The articles shall set forth:(a) the corporate name;(b) the location of its principal office;(c) the period of duration, which may be perpetual;(d) the class or classes of insurance business as     provided in Section 4, in which it proposes to engage and the kinds of insurance in each class it proposes to write;(e) the number of its directors, or that the number     of directors shall be not less than the minimum nor more than the maximum stated in Section 10, the terms of office; and the manner of electing the directors;(f) the amount of its authorized capital, the number     of authorized common and non-voting preferred shares, the par value of each share, and the number of the common and non-voting preferred shares to be issued and sold in accordance with this Article to provide at least the minimum paid-up capital and paid-in surplus as set forth in Section 13 of this Article;(g) the terms and conditions on which preferred     shares may be converted to common shares, if any shares are issued with the right of conversion;(h) such other provisions not inconsistent with law     as may be deemed by the incorporators to be necessary or advisable.		(Source: P.A. 90-381, eff. 8-14-97.) (215 ILCS 5/15) (from Ch. 73, par. 627)(Section scheduled to be repealed on January 1, 2027)Sec. 15. Documents to be delivered to Director by incorporators.

Upon the execution of the articles of incorporation, there shall be
delivered to the Director:(a) duplicate originals of the articles of     incorporation;(b) a copy of the by-laws adopted by the     incorporators;(c) the form of subscription agreement to be used by     the company;(d) 2 organization bonds or the cash or securities     provided for in Section 16; and(e) the form of escrow agreement for the deposit of     cash or securities.(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 5/16) (from Ch. 73, par. 628)(Section scheduled to be repealed on January 1, 2027)Sec. 16. 
		Organization bonds.(1) The incorporators except as stated in
subsection (3) of this Section, shall deliver to the Director two bonds in favor
of the State of Illinois, in the penalty of $50,000 each, with
the incorporators as principals and a duly authorized surety company as
surety. One of such bonds shall be for the use and benefit of the State of
Illinois, and shall be conditioned upon the payment of costs incurred by
the State by reason of any legal proceedings for liquidation or dissolution
of such company prior to the issuance to it of a certificate of authority
to do an insurance business. The other bond shall be for the use and
benefit of subscribers, shareholders and creditors, and shall be
conditioned upon the full and complete accounting for all funds and
property coming into the possession of the incorporators or into the
possession of the company prior to the issuance to it of a certificate of
authority to do an insurance business.(2) In lieu of delivering the above bonds, the incorporators may deposit
with the Director $100,000 in cash or securities of the
United States Government or of the State of Illinois, having a market value
of at least $100,000. The cash or securities so deposited
shall be held in trust by the Director, until the issuance of a certificate
of authority to the company, to indemnify the State of Illinois and all
subscribers, shareholders and creditors of the company for the same matters
and things set forth as conditions of the organization bonds mentioned in
subsection (1).(3) No bonds are required if the stock of the company is to be
purchased by a sole shareholder.
		(Source: P.A. 84-1431.) (215 ILCS 5/17) (from Ch. 73, par. 629)(Section scheduled to be repealed on January 1, 2027)Sec. 17. Publication
of intention.(1) Upon complying with the provisions of Section 15, the
incorporators shall cause to be published in a newspaper of general
circulation in this State, in the county where the principal office of the
company is to be located, once each week for 3 consecutive weeks, a
notice setting forth:(a) their intent to form the company and the proposed     name thereof;(b) the class or classes of insurance business in     which the company proposes to engage; and(c) the address where its principal office shall be     located.(2) Proof of such publication made by a certificate of the publisher or
his agent shall be delivered to the Director.
(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 5/18) (from Ch. 73, par. 630)(Section scheduled to be repealed on January 1, 2027)Sec. 18. 
		Approval of
documents.(1) If the Director finds that the documents and papers so delivered
comply with this Code, he must place on file in his office the by-laws,
form of subscription agreement, bonds or securities, and one of the
duplicate originals of the articles of incorporation, and endorse upon the
other duplicate original his approval, and the month, day and year of
approval and deliver it to the incorporators. The company is deemed to be
fully organized on the date of the approval of the articles of
incorporation by the Director, and that date is the date of incorporation
of the company.(2) If the Director finds that any of said documents are insufficient or
do not comply with this Code, he shall notify the incorporators in writing
in what respect said documents are found to be insufficient and if
requested so to do must grant the incorporators a hearing.
		(Source: P.A. 77-747.) (215 ILCS 5/19) (from Ch. 73, par. 631)(Section scheduled to be repealed on January 1, 2027)Sec. 19. 
		Recording
articles of incorporation. 
The duplicate original of the articles of incorporation returned by the
Director shall be filed for record, within 15 days after it is
delivered to the company, in the office of the recorder of the
county where the principal office of the company is to be located.
		(Source: P.A. 83-358.) (215 ILCS 5/20) (from Ch. 73, par. 632)(Section scheduled to be repealed on January 1, 2027)Sec. 20. 
		Authority
to solicit subscriptions.(1) Upon the approval of the articles of incorporation by the Director
and upon compliance with such reasonable regulations relating to the
offering and subscription of or for shares as may be promulgated by the
Director to the end that no inequity, fraud or deceit may be worked or tend
to be worked upon prospective subscribers to or purchasers of such shares,
he shall issue to the company a permit, which shall expire at the end of
two years from its date, authorizing it to solicit subscriptions in
accordance with such regulations, this Code and the form of subscription
agreement filed with him, to receive payment for its shares and to do such
other acts as may be necessary and proper in order to complete its
organization and to entitle it to receive a certificate of authority to
transact an insurance business.(2) No subscription for shares shall be solicited, until such
subscriptions or shares shall have been qualified or registered in
accordance with any law of this State or of the United States requiring
qualification or registration.(3) If the Director finds that any company in process of organization
has failed to comply with, or has violated any provision of the Code, he
may proceed against the company under Article XIII, and may after notice
and hearing, if any provision of the Code or any regulation promulgated
under subsection (1) has been violated, revoke the permit issued to it
under subsection (1).
		(Source: Laws 1959, p. 1428.) (215 ILCS 5/21) (from Ch. 73, par. 633)(Section scheduled to be repealed on January 1, 2027)Sec. 21. Subscription agreement.(1) The company and each subscriber shall enter into an agreement for
the subscription to the shares of the company and such agreement shall also
constitute an agreement between the several subscribers. It shall state:(a) the price of the shares, terms, time, and medium     of payment therefor;(b) the part of the price that may be used for     commission, promotion, organization, and other expenses;(c) the name of the bank or trust company in this     State in which the funds or securities are to be deposited pending the completion of the organization of the company; and(d) that the total cash or securities received in     payment will be returned to the subscribers who have made such payments in the event the organization of the company is not completed.(2) Subscriptions to shares shall be irrevocable unless subscribers
representing 50% or more of the amount subscribed consent to
the revocation.(3) Any subscription agreement may provide for payment in installments
but in the case of subscriptions prior to the issuance of a certificate of
authority to the company, such installments shall not extend beyond 2 
years from the date of the permit of the Director authorizing the
solicitation of subscriptions.
(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 5/21.1) (from Ch. 73, par. 633.1)(Section scheduled to be repealed on January 1, 2027)Sec. 21.1. 
		Escrow agreement. 
		The company and the bank or trust
company designated in the subscription agreement shall execute an escrow
agreement. The escrow agreement shall state that the proceeds of all
subscriptions to shares shall be placed in the bank or trust company and
remain until an organization examination has been completed, at which time
the escrow agent is authorized to purchase securities for deposit in the
amount required by Section 26 and forward them to the Director. The escrow
agent is authorized to release the balance of the escrowed funds to the
company only upon notification that a Certificate of Authority or similar
documentation has been issued by the Director.
		(Source: P.A. 84-502.) (215 ILCS 5/22) (from Ch. 73, par. 634)(Section scheduled to be repealed on January 1, 2027)Sec. 22. 
		Payments
for shares-Promotion expenses. 
		The net proceeds of all subscriptions to shares prior to the issuance of
a certificate of authority to the company to transact business shall not be
less than the paid up capital specified in the articles of incorporation
and the required paid-in surplus. Payments upon subscriptions shall be made
only in cash or securities that are eligible for investment under Article
VIII. The part of the subscription price, that may be used for
commission, promotion, organization, and other expenses, in no event shall
be in excess of 15% of the amount collected on the respective subscriptions
and in no case shall such expenses be paid out of the subscription proceeds
until such time as the sale of all of the shares constituting the offering
has been completed.
		(Source: Laws 1961, p. 3735.) (215 ILCS 5/23) (from Ch. 73, par. 635)(Section scheduled to be repealed on January 1, 2027)Sec. 23. 
		Deposit of proceeds of shares - When subscribers deemed shareholders.(1) The cash or securities received by the company upon subscriptions
for shares shall be placed in the bank or trust company designated in the
escrow and subscription agreements. No part of the
cash or securities so deposited
shall be used by the company prior to the issuance to it of a certificate
of authority to transact business, except when payments for all the shares to be issued and sold, as set forth
in the articles of incorporation, are completed, for the purpose of making
the deposit as provided for in Section 26.(2) Any officer, director or incorporator of a company who, prior to the
issuance of the certificate of authority to the company, withdraws, causes
to be withdrawn or knowingly permits the withdrawal of any cash or
securities on deposit in such bank or trust company, for any purposes other
than those authorized in subsection (1), shall be guilty of a Class A
misdemeanor.(3) The subscribers shall be deemed to be shareholders when full payment
upon the subscriptions for all shares which the company proposes to issue
and sell, as set forth in the articles of incorporation, shall have been
received by the company, but no certificate for shares may be issued by the
company prior to the issuance to it of a certificate of authority to
transact business.(4) In the event that payments for all shares to be issued and sold by
the company, as set forth in the articles of incorporation, are not
completed within the time provided in the permit of the Director
authorizing the solicitation of subscriptions the cash and securities
received in payment shall be returned to the subscribers who have made the
payments.
		(Source: P.A. 84-502.) (215 ILCS 5/24) (from Ch. 73, par. 636)(Section scheduled to be repealed on January 1, 2027)Sec. 24. 
		Certificate
of authority to do an insurance business. 
		When the Director has been notified that the capital required by the
articles of incorporation has been fully subscribed, and that such capital
and the required surplus has been fully collected, he shall conduct an
examination of the company. If he finds that the organization of the
company is complete, that the required capital provided in the articles of
incorporation and required surplus has been fully collected and deposited
with the designated bank or trust company, that the deposit provided for by
Section 26 has been made and that all of the requirements imposed by this
Code, have been met, he shall issue to the company a certificate of
authority to transact the kind or kinds of business specified therein. No
company shall transact any business of insurance until it has received a
certificate of authority as herein prescribed nor any business of insurance
not specified in such certificate of authority.
		(Source: Laws 1957, p. 603.) (215 ILCS 5/25) (from Ch. 73, par. 637)(Section scheduled to be repealed on January 1, 2027)Sec. 25. Voluntary
surrender of the articles of incorporation. At any time prior to the issuance of the certificate of authority to the
company the articles of incorporation may be voluntarily surrendered and
the company dissolved by written agreement filed with the Director, signed
by a majority of the incorporators, and by subscribers representing at
least two-thirds of the shares subscribed. Such surrender and dissolution
shall become effective only upon the approval thereof by the Director. The
Director shall approve the surrender of such articles of incorporation if
upon investigation he shall find that:(a) no insurance business has been transacted by the     company;(b) all sums of money or securities, if any,     collected upon subscriptions, have been returned to the subscribers; and(c) all obligations of the company have been paid or     discharged.(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 5/26) (from Ch. 73, par. 638)(Section scheduled to be repealed on January 1, 2027)Sec. 26. Deposit.(a) A company subject to the provisions of this
Article shall make and
maintain with the Director for the protection of all creditors,
policyholders and policy obligations of the company, a deposit of
securities having a
fair market value equal to the minimum capital and surplus required to be
maintained under Section 13.
The Director may release the required deposit of securities upon receipt of
an order of a court having proper jurisdiction or upon: (i)
certification by the company that it has no outstanding creditors,
policyholders, or policy obligations in effect and no plans to engage in the
business of insurance; (ii) receipt of a lawful resolution of the company's
board of directors effecting the surrender of its articles of incorporation for
administrative dissolution by the Director; and (iii) receipt of the name and
forwarding address for each of the final officers and directors of the company,
together with a plan of dissolution approved by the Director.(b) All deposits by insurers subject to this Article must be limited to the following types:(1) United States government bonds, notes, and bills     for which the full faith and credit of the government of the United States is pledged for the payment of principal and interest.(2) United States public bonds and notes of any state     or of the District of Columbia, or Canadian public bonds and notes of any province thereof, for which the full faith and credit of the issuer has been pledged for the payment of principal and interest.(3) United States and Canadian county, provincial,     municipal, and district bonds and notes for which the issuer has lawful authority to levy taxes or make assessments for the payment of principal and interest.(4) Bonds and notes of any federal agency that are     guaranteed as to payment of principal and interest by the United States.(5) International development bank bonds, bonds     issued by the State of Israel and sold through the Development Corporation for Israel or its successor entities, and notes issued, assumed, and guaranteed by the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, or the International Finance Corporation.(6) Corporate bonds and notes of any private     corporations that are not affiliates or subsidiaries of the insurer, which corporations are organized under the laws of the United States, Canada, any state, the District of Columbia, any territory or possession of the United States, or any province of Canada.(7) Certificates of deposit.(c) To be eligible for deposit under subsection (b), any bond or note must have the following characteristics:(1) The bond or note must be interest-bearing or     interest-accruing, and the insurer must be the exclusive owner of the interest accruing thereon and entitled to receive the interest for its account.(2) The issuer must be in a solvent financial     condition and the bond or note must not be in default.(3) The bond, note, or debt of the issuing country     must be rated in one of the 4 highest classifications by an established, nationally recognized investment rating service or must have been given a rating of 1 by the Securities Valuation Office of the National Association of Insurance Commissioners.(4) The market value of the bond or note must be     readily ascertainable or the value of the bond or note must be obtainable by the insurer or its custodian from the issuer's fiscal agent.(5) The bond or note must be the direct obligation of     the issuer.(6) The bond or note must be stated in United States     dollar denominations.(7) The bond or note must be eligible for book-entry     form on the books of the Federal Reserve's book-entry system or in a depository trust clearing system or on the books of the issuer's transfer agent or evidenced by a certificate delivered to the insurer or its custodian.(d) To be eligible for deposit under item (7) of subsection (b), a certificate of deposit must have the following characteristics:(1) The certificate of deposit must be issued by a     bank, savings bank, or savings association that is organized under the laws of the United States, of this State, or of any other state and that has a principal office or branch office in this State that is authorized to receive deposits in this State.(2) The certificate of deposit must be     interest-bearing and may not be issued in discounted form.(3) The certificate of deposit must be issued for a     period of not less than one year.(4) The issuing bank, savings bank, or savings     association must agree to the terms and conditions of the Director regarding the rights to the certificate of deposit and must have executed a written certificate of deposit agreement with the Director. The terms and conditions of the agreement shall include, but need not be limited to:(A) Exclusive authorized signature authority for         the chief financial officer.(B) An agreement to pay, without protest, the         proceeds of its certificate of deposit to the Director within 30 business days after presentation.(C) A prohibition against levies, setoffs,         survivorship, or other conditions that might hinder the Director's ability to recover the full face value of a certificate of deposit.(D) Instructions regarding interest payments,         renewals, taxpayer identification, and early withdrawal penalties.(E) An agreement to be subject to the         jurisdiction of the courts of this State, or those of the United States that are located in this State, for the purposes of any litigation arising out of this Section.(F) Such other conditions as the Director         requires.(e) The Director may refuse to accept certain securities or refuse to accept the reported market value of certain securities offered pursuant to this Section in order to ensure that sufficient cash and securities are on hand to meet the purposes of the deposit. In making a refusal under this subsection (e), the guidelines for use of the Director may include, but need not be limited to, whether the market value of the securities cannot be readily ascertained and the lack of liquidity of the securities. Securities refused under this subsection (e) are not acceptable as deposits.(f) All deposits required of a domestic insurer pursuant to the laws of another state, province, or country must be comprised of securities of the kinds required under subsection (b), having the characteristics required under subsections (c) and (d), and permitted by the laws of the other state, province, or country, except common stocks, mortgages or loans of any kind, real estate investment trust funds or programs, commercial paper, and letters of credit.(Source: P.A. 98-110, eff. 1-1-14; 98-969, eff. 1-1-15.) (215 ILCS 5/27) (from Ch. 73, par. 639)(Section scheduled to be repealed on January 1, 2027)Sec. 27. 
		Dividends and other distributions.(1) The board of directors of any company subject to this Article may
declare and the company may pay dividends and other distributions
(i) on its outstanding shares in cash, property, or its own shares
and (ii) on its treasury shares in its own shares,
subject to the following provisions:(a) No dividend or other distribution may be declared     or paid at any time except out of earned, as distinguished from contributed, surplus, nor when the surplus of the company is less than the surplus required by Section 13 for the kind or kinds of business authorized to be transacted by such company, nor when the payment of a dividend or other distribution would reduce its surplus to less than such amount.(b) Except in the case of share dividends, surplus     for determining whether dividends or other distributions may be declared shall not include surplus arising from unrealized appreciation in value, or revaluation of assets, or from unrealized profits upon investments.(c) No dividend or other distribution may be declared     or paid contrary to any restriction contained in the articles of incorporation.(d) No dividend or other distribution may be declared     or paid contrary to Section 131.20 or 131.20a.(2) No payments may be made to policyholders by way of dividends unless
the company possesses admitted assets in the amount of such payments in
excess of its capital, minimum required surplus and all liabilities.
		(Source: P.A. 88-364.) (215 ILCS 5/27.1) (from Ch. 73, par. 639.1)(Section scheduled to be repealed on January 1, 2027)Sec. 27.1. Treasury shares.  "Treasury shares" means (a) shares
of a company which have been issued, have been subsequently acquired
by and belong to the company, and have not, either by reason of
the acquisition or thereafter, been cancelled or restored to the
status of authorized but unissued shares and (b) shares declared
and paid as a share dividend on the shares referred to in clause (a)
or this clause (b) of this Section. Treasury shares shall be
deemed to be "issued" shares but not outstanding shares and shall not be
voted. Shares converted into or exchanged for other shares of the company
shall not be deemed to be treasury shares.
(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 5/28) (from Ch. 73, par. 640)(Section scheduled to be repealed on January 1, 2027)Sec. 28. 
		Dealing in
shares of company.(1) A company subject to the provisions of this Article shall have
the power to purchase, take, receive, or otherwise acquire, hold, own,
pledge, transfer, or otherwise dispose of its own shares, provided that it
shall not purchase, either directly or indirectly, its own shares when its
net assets are less than the sum of its paid-up capital, and its required
surplus, any surplus arising from unrealized appreciation in value or
revaluation of its assets and any surplus arising from surrender to the
corporation of any of its shares, or when by so doing its net assets would
be reduced below the minimum capital and surplus requirements of Section 13
hereof, and as set forth in the articles of incorporation.
Notwithstanding the foregoing limitations, a company may purchase its own
shares for any of the following purposes:(a) eliminating fractional shares;(b) collecting or compromising claims of the company     or securing any indebtedness to the company previously incurred;(c) paying dissenting shareholders entitled to     payment for their shares in the event of a merger or consolidation;(d) effecting a plan for the mutualization of the     company; or(e) furthering a general savings and investment plan     for employees of the company.(2) No shares which are or have been reacquired, purchased, pledged or
held pursuant to paragraph (1) of this Section shall be considered an
admitted asset as defined in this Code, or considered in determining the
solvency of such company.
		(Source: Laws 1959, p. 631.) (215 ILCS 5/28.1) (from Ch. 73, par. 640.1)(Section scheduled to be repealed on January 1, 2027)Sec. 28.1. 
		Dealing in shares of company by officers, directors and
principal stockholders.(a) Any person who is directly or indirectly the beneficial owner of
more than 10% of any class of any equity security of a domestic stock
insurance company, or who is a director or an officer of such company,
shall file in the office of the Director by January 31, 1966 or within
10 days after he becomes such beneficial owner, director or officer, a
statement, in such form as the Director may prescribe, of the amount of
all equity securities of such company of which he is the beneficial
owner; and, within 10 days after the close of each calendar month
thereafter, if there has been a change in such ownership during such
month, shall file in the office of the Director a statement, in such
form as the Director may prescribe, indicating his ownership at the
close of the calendar month and such changes in his ownership as have
occurred during such calendar month.(b) For the purpose of preventing the unfair use of information
which may have been obtained by such beneficial owner, director or
officer by reason of his relationship to such company, any profit
realized by such beneficial owner, officer or director from any purchase
and sale, or any sale and purchase, of any equity security of such
company within any period of less than 6 months, unless such security
was acquired in good faith in connection with a debt previously
contracted, shall inure to and be recoverable by the company,
irrespective of any intention on the part of such beneficial owner,
director or officer in entering into such transaction of holding the
security purchased or of not repurchasing the security sold for a period
exceeding 6 months. Suit to recover such profit may be instituted at law
or in equity by the company, or if the company shall fail or refuse to
bring such suit within 60 days after request or shall fail diligently to
prosecute such a suit, a suit may be instituted by the owner of any
security of the company in the name and in behalf of the company, but no
such suit shall be brought more than 2 years after the date such profit
was realized. This subsection shall not be construed to cover any
transaction where such beneficial owner was not such both at the time of
the purchase and sale, or the sale and purchase, of the security
involved, or any transaction or transactions which the Director by rules
and regulations may exempt as not comprehended within the purpose of
this subsection.(c) It is unlawful for any such beneficial owner, director or
officer, directly or indirectly, to sell any equity security of such
company if the person selling the security or his principal (i) does not
own the security sold, or (ii) if owning the security, does not deliver
it against such sale within 20 days thereafter, or does not within 5
days after such sale deposit it in the mails or other usual channels of
transportation; provided, however, that this provision does not apply if
such person proves that notwithstanding the exercise of good faith he
was unable to make such delivery or deposit within such time, or that to
do so would cause undue inconvenience or expense.(d) The provisions of paragraph b of this Section do not apply to
any purchase and sale, or sale and purchase, and the provisions of
paragraph c of this Section do not apply to any sale, of an equity
security of a domestic stock insurance company not then or theretofore
held by such beneficial owner, director or officer in an investment
account, by a dealer in the ordinary course of his business and incident
to the establishment or maintenance by him of a primary or secondary
market (otherwise than on an exchange as defined in the Securities
Exchange Act of 1934) for such security. The Director may, by such rules
and regulations as he finds to be necessary or appropriate in the public
interest, define and prescribe terms and conditions with respect to
securities held in an investment account and transactions made in the
ordinary course of business and incident to the establishment or
maintenance of a primary or secondary market.(e) The provisions of paragraphs a, b and c of this Section do not
apply to foreign or domestic arbitrage transactions unless made in
contravention of such rules and regulations as the Director may adopt in
order to carry out the purposes of this Act.(f) The term "equity security" when used in this Act means any stock
or similar security; or any security convertible, with or without
consideration, into such a security, or carrying any warrant or right to
subscribe to or purchase such a security; or any such warrant or right;
or any other security which the Director finds to be of similar nature
and considers necessary or appropriate, by such rules and regulations as
he may prescribe in the public interest or for the protection of
investors, to treat as an equity security.(g) The provisions of paragraphs a, b and c of this Section do not
apply to equity securities of a domestic stock insurance company if (i)
such securities are registered, or are required to be registered,
pursuant to Section 12 of the Securities Exchange Act of 1934, as
amended, or if (ii) such domestic stock insurance company does not have
any class of its equity securities held of record by 100 or more persons
on the last business day of the year next preceding the year in which
equity securities of the company would be subject to the provisions of
paragraphs a, b and c of this Section except for the provisions of this
subsection (ii).(h) The Director may make such rules and regulations as may be
necessary for the execution of the functions vested in him by this
Section, and may for such purpose classify domestic stock insurance
companies, securities, and other persons or matters within his
jurisdiction. No provision of this Section imposing any liability shall
apply to any act done or omitted in good faith in conformity with any
rule or regulation of the Director, notwithstanding that such rule or
regulation may, after such act or omission, be amended or rescinded or
determined by judicial or other authority to be invalid for any reason.(i) The provisions of this Section do not apply to any sale made
prior to its effective date.
		(Source: Laws 1965, p. 2257.) (215 ILCS 5/28.2) (from Ch. 73, par. 640.2)(Section scheduled to be repealed on January 1, 2027)Sec. 28.2. 
		Proxies, consents and authorizations of domestic stock
companies.(a) The Director is authorized to regulate proxies, consents, and
authorizations in respect of securities issued by any company subject to
the provisions of this Article to the extent as may be necessary or
appropriate in the public interest or for the protection of investors,
and such regulation may include but shall not be limited to rules and
regulations under which any such company, director, or employee of the
company or any other person may solicit or permit the use of his  name to
solicit any proxy, consent or authorization in respect of securities
issued by any such company.(b) Unless proxies, consents or authorizations in respect of a
security of a company subject to the provisions of this Article are
solicited by or on behalf of the management of such company from the
holders of record of such security in accordance with the provisions of
any rules and regulations prescribed under subsection (a) of this
Section, prior to any annual or other meeting of the holders of such
security, such company shall, if required by such rules and regulations
prescribed by the Director as may be necessary or appropriate in the
public interest or for the protection of investors, file with the
Director and transmit to all holders of record of such security
information substantially equivalent to the information which would be
required to be transmitted if a solicitation were made.(c) The authority granted under subsections (a) and (b) hereof
includes the power on the part of the Director to require such companies
to file with the Director and transmit to shareholders prior to the
annual meeting of shareholders an annual report containing such
financial statements for the last fiscal year as are referred to in the
Stockholder Information Supplement filed with the annual statement of
any such company under the provisions of Section 136 of this Code.(d) If the Director finds, after notice and hearing, that such
company or any director, officer or employee of such company or any
other person has willfully violated the provisions of this Section or of
any rule or regulation prescribed by the Director hereunder, he  may
order such company or any director, officer or employee of such company,
or any other person, as the case may be, to pay to the State of Illinois
a penalty in a sum not exceeding $5,000 for each such offense. The
findings, determinations and orders of the Director made pursuant to
this Section shall be subject to judicial review under the Administrative
Review Law, as now or hereafter amended.
		(Source: P.A. 82-783.) (215 ILCS 5/28.2a) (from Ch. 73, par. 640.2a)(Section scheduled to be repealed on January 1, 2027)Sec. 28.2a. Proxies.(1) A shareholder may appoint a proxy to vote or
otherwise act for him or her by signing an appointment form and delivering
it to the person so appointed.(2) No proxy shall be valid after the expiration of 11 months from the
date thereof unless otherwise provided in the proxy. Every proxy continues
in full force and effect until revoked by the person executing it prior to the
vote pursuant thereto, except as otherwise provided in this Section.  Such
revocation may be effected by a writing delivered to the corporation
stating that the proxy is revoked or by a subsequent proxy executed by, or
by attendance at the meeting and voting in person by, the person executing
the proxy.  The dates contained on the forms of proxy presumptively
determine the order of execution, regardless of the postmark dates on the
envelopes in which they are mailed.(3) An appointment of a proxy is revocable by the shareholder unless the
appointment form conspicuously states that it is irrevocable and the
appointment is coupled with an interest in the shares or in the corporation
generally. By way of example and without limiting the generality of the
foregoing, a proxy is coupled with an interest when the proxy appointed is
one of the following:(a) a pledgee;(b) a person who has purchased or had agreed to     purchase the shares;(c) a creditor of the corporation who has extended it     credit under terms requiring the appointment, if the appointment states the purpose for which it was given, the name of the creditor, and the amount of credit extended; or(d) an employee of the corporation whose employment     contract requires the appointment, if the appointment states the purpose for which it was given, the name of the employee, and the period of employment.(4) The death or incapacity of the shareholder appointing a proxy does
not revoke the proxy's authority unless notice of the death or incapacity
is received by the officer or agent who maintains the corporation's share
transfer book before the proxy exercises his or her authority under the appointment.(5) An appointment made irrevocable under subsection (3) becomes
revocable when the interest in the proxy terminates such as when the pledge
is redeemed, the shares are registered in the purchaser's name, the
creditor's debt is paid, the employment contract ends, or the voting agreement expires.(6) A transferee for value of shares subject to an irrevocable
appointment may revoke the appointment if the transferee was ignorant of
its existence when the shares were acquired and both the existence of the
appointment and its revocability were not noted conspicuously on the
certificate (or information statement for shares without certificates)
representing the shares.(7) Unless the appointment of a proxy contains an express limitation on
the proxy's authority, a corporation may accept one proxy's vote or other
action as that of the shareholder making the appointment.  If the proxy
appointed fails to vote or otherwise act in accordance with the
appointment, the shareholder is entitled to such legal or equitable relief
as is appropriate in the circumstances.
(Source: P.A. 102-558, eff. 8-20-21.) (215 ILCS 5/29) (from Ch. 73, par. 641)(Section scheduled to be repealed on January 1, 2027)Sec. 29. 
		Amendment of articles of incorporation.(1) A company subject to the provisions of this article may amend its
articles of incorporation in any respect not in violation of law but may
not amend its articles to insert any provision prohibited, or to delete any
provision required, in original articles of incorporation for a similar
domestic company organized under this Code, except as provided by Section
35.(2) Amendments to the articles of incorporation, after a certificate of
authority has been issued to the company, shall be made in the following
manner:(a) The board of directors shall adopt a resolution     setting forth the proposed amendment and directing that it be submitted to a vote of shareholders at either an annual or special meeting.(b) Written or printed notice setting forth the     proposed amendment or a summary of the changes to be effected thereby and stating the time and place of the meeting at which the same will be considered, shall be mailed, postage prepaid and properly addressed, to each shareholder at least ten days before the time fixed for such meeting. A written waiver of notice signed by the shareholders, whether before or after the date of the meeting mentioned therein, shall be deemed equivalent to the notice in this Section provided.(c) At such meeting a vote of the shareholders shall     be taken on the proposed amendment. The proposed amendment shall be adopted upon receiving the affirmative vote of the holders of at least two-thirds of the outstanding shares.(3) Amendments to the articles of incorporation, prior to the issuance
of a certificate of authority to the company, shall be made by the
submission of the proposed amendment by the incorporators to a vote of the
subscribers in the same manner as provided in subsection (2) for submission
to shareholders. The proposed amendment in such cases shall be adopted upon
receiving the affirmative vote of all subscribers. If such company has no
subscribers the proposed amendment shall be adopted by the written consent
of all the incorporators.(4) Upon the adoption of the amendment to the articles of incorporation,
the restated articles of incorporation shall be executed in duplicate
by the company by its president or
vice-president and its secretary or assistant secretary, or officers
corresponding thereto, and the corporate seal shall be thereunto affixed.(5) There shall be delivered to the Director duplicate originals of the
restated articles of incorporation and an
affidavit of the secretary or assistant
secretary of the company, setting forth the facts showing that the
requirements of this Section have been complied with.
		(Source: P.A. 84-502.) (215 ILCS 5/30) (from Ch. 73, par. 642)(Section scheduled to be repealed on January 1, 2027)Sec. 30. 
		Approval of amendment. 
		The restated articles of incorporation and
the other documents so delivered to the Director may be approved or
disapproved by the Director in the same manner as original articles of
incorporation. If said restated articles of incorporation be approved by
the Director, he shall place on file in his office all the documents so
delivered to him, except one of the duplicate originals of the restated
articles of incorporation, and shall
endorse upon such duplicate original his approval thereof and the month,
day and year of such approval and deliver it to the company. The restated
articles shall be effective as of the date of the approval thereof by the Director.
		(Source: P.A. 84-1431.) (215 ILCS 5/31) (from Ch. 73, par. 643)(Section scheduled to be repealed on January 1, 2027)Sec. 31. 
		Recording restated articles of incorporation. 
		The duplicate
original of the
restated articles of incorporation returned by the Director shall be filed
for record, within 15 days after it is delivered to the company, in the
office of the recorder of the county where the principal office of the company
is located.
		(Source: P.A. 84-1431.) (215 ILCS 5/32) (from Ch. 73, par. 644)(Section scheduled to be repealed on January 1, 2027)Sec. 32. 
		Increase in capital.(1) Any company subject to this Article may increase its paid-up
capital either by issuing additional shares not to exceed the number of
authorized shares as set forth in its Articles or by increasing the par
value of its shares. No company shall issue additional shares nor increase
the par value of its shares without first procuring from the Director a
permit so to do, which permit shall expire one year from its date.
If the proposed increase in capital is part of a series of transactions that
includes subsequent transactions that will be subject to Article VIII 1/2, the
company shall provide the Director all of the information called for in Article
VIII 1/2 prior to the Director's issuance of a permit.  The Director may
decline to issue a permit if the Director is not satisfied that the proposed
series of transactions satisfies the standards established in Article VIII
1/2.The Director, upon compliance by the company with the applicable
provisions of this Code, and such reasonable regulations relating to the
offering, issuance, subscription or sale of or for shares as may be
promulgated by the Director to the end that no inequity, fraud or deceit
may be worked or tend to be worked upon prospective subscribers to,
recipients or purchasers of shares or present holders thereof, shall issue
a permit to the company to issue additional shares upon receipt of a copy
of a resolution by the Board of Directors authorizing the issuance of such
shares.If preferred shares having a right of conversion to common shares are to be
issued, the terms and conditions on which the shares may be converted shall be
provided to the Director before a permit may be issued pursuant to this
Section.In the case of shares to be issued for sale, the permit shall authorize
the company to solicit subscriptions to such shares on a form of
subscription agreement which shall have been submitted to and approved by
the Director.All of the provisions of this Code relative to the filing, terms and
effect of subscription agreements, payment for shares, the limitations of
expenses, filing of bonds except that no bonds shall be required when a
company issues stock to its sole shareholder, deposit of proceeds of
shares, return of funds
in the event the payment for all of the additional shares is not completed,
and qualification or registration shall apply to the same extent and effect
as if the additional shares were shares representing the original capital
of a company being organized under this Article, except that no
organization bond with regard to costs incurred in connection with
liquidation or dissolution shall be required, and if the subscription
agreement provides for payment in installments, such installments shall not
extend beyond one year from date of the permit of the Director.If shares are to be issued as a stock dividend, or if the par value of
shares is to be increased, the permit shall authorize the company to pay
for such additional shares or increase in par value by transferring the
requisite amount of surplus to paid-up capital provided, however, no
transfer of such surplus shall be made which will reduce the remaining
surplus to less than the surplus required by Section 13. In the case of
an increase in par value, the
company may require each shareholder to surrender his or her certificate
and to
accept in lieu thereof a new certificate conforming to such increase in par
value.No more than one permit of the types under this Section may be
outstanding in the name of any company at any time.(2) When the Director is notified that the additional shares proposed to
be issued have, or that the increase in par value has, been fully paid, and
that all of the requirements of the permit have been satisfied, he or she
shall
make an examination of the company and if he or she finds that the
provisions of
this Section have been complied with, he or she shall issue a certificate
of
paid-up capital to that effect which shall be filed with the recorder of
the county in which the principal office of the company is located
within 15 days from the date of said certificate. Upon the issuance of such
certificate, the company may withdraw the proceeds of the sale, if any, of
its shares and the bond, conditioned upon the full and complete accounting
by the company for the proceeds of any such sale of shares, shall terminate
or the cash deposited with the Director in lieu of such bond shall be
returned.(3) If the Director finds that any company has failed to comply with, or
has violated any provision of the Code or any regulation promulgated under
subsection (1), he or she may, in addition to and notwithstanding any other
procedure, remedy or penalty provided under the laws of this State, after
notice and hearing, revoke the permit issued to it under subsection (1).
		(Source: P.A. 90-381, eff. 8-14-97.) (215 ILCS 5/32.1) (from Ch. 73, par. 644.1)(Section scheduled to be repealed on January 1, 2027)Sec. 32.1. 
		Stock option plans. 
		A company subject to this Article which has done business in Illinois
for 3 or more years and which has adopted a stock option plan shall
submit that plan to the Director. Unless the Director finds that such
stock option plan creates an inequity, fraud, or deception upon
shareholders of the company, the Director shall approve such plan and
issue a permit to the company authorizing the issuance of such shares of
stock as optionees under the plan are entitled from time to time to
acquire by the exercise of their options, including an adjustment in the
number of shares to be issued as may at any time be appropriate due to
the increase or decrease in the number of shares resulting from any
share dividend, and subdivision or combination of shares, or any
reorganization, merger, consolidation, or other recapitalization or
change in the corporate structure or shares of the company. A stock
option plan is deemed prima facie as not creating any inequity, fraud,
or deception upon shareholders if it complies with applicable provisions
of the Internal Revenue Code in effect at the time of the adoption of
the plan and continues in compliance with those provisions or other new
provisions of the Internal Revenue Code as it hereafter may be amended;
provided, however, that the number of shares in respect to such plan
together with the number of shares in respect of which unexpired options
are outstanding or may be granted under any and all option plans of the
company shall in no event exceed 10% of the total shares outstanding.
The permit is effective with respect to all shares issued at any time to
optionees under the plan. After receipt of the permit and upon receipt
by the company of the full purchase price for any shares to be issued to
any optionee, the company may issue such shares to any such optionee
without further authorization from the Director. If a plan approved by
the Director is amended, no shares may be issued under the plan as
amended until the amendment, or the plan as amended, has been approved
by the Director. Upon such approval, the permit previously issued shall
be deemed to authorize the issuance of shares under the plan as amended.
A permit or permits to issue shares under this Section may be
outstanding in addition to any outstanding permit to issue shares for
any other purpose.On or before the 25th day of each month a company which issued shares
during the preceding month under this Section shall provide the Director
with the following information and affidavit:(1) a list of the names of the individuals to whom     were issued shares during the preceding month under the stock option plan;(2) the number of shares and a description of the     shares issued to each individual;(3) the date of each issue;(4) the price per share and total price paid by each     said individual; and(5) an affidavit signed by either the president, a     vice president, the secretary, or the treasurer of the company under oath averring that the dollar consideration due from each such individual was actually received by the company before the issuance of those shares. Such information and affidavit shall be accompanied by the company's request for a certificate of paid-up capital.After receiving the information and affidavit and satisfying himself
as to the accuracy thereof, the Director shall issue a certificate of
paid-up capital which shall be recorded by the company with the recorder
of the county in which the principal office of the company is
located, within 15 days from the date of the issuance of the
certificate. No bond or cash deposit with the Director is required with
respect to shares issued under this Section.
		(Source: P.A. 83-358.) (215 ILCS 5/33) (from Ch. 73, par. 645)(Section scheduled to be repealed on January 1, 2027)Sec. 33. 
		Decrease of
capital.(1) When articles of amendment providing for a decrease of capital or a
decrease in the par value of shares, or both, become effective, each issued
share of the company shall thereupon be changed into and be a fractional
part of a share, or a share having a reduced par value, or both, as
provided by such amendment, and the holders of shares issued before the
amendment shall thereupon cease to be holders of such shares and shall be
and become holders of the shares authorized by the amendment upon the basis
specified in the amendment, whether or not certificates representing the
shares authorized by the amendment are then issued and delivered. The
company may require each shareholder to surrender his or her certificate
and
accept in lieu thereof a new certificate conforming to such decrease.(2) No distribution of the assets of the company shall be made to the
shareholders upon any decrease of capital which shall reduce its surplus to
less than the surplus required by this Code for the kind
or kinds of business authorized to be transacted by the company.(3) If the proposed articles of amendment providing for a decrease of
capital or a decrease in the par value of shares, or both, is part of a series
of transactions that includes subsequent transactions that will be subject to
Article VIII 1/2, the company shall provide the Director all of the information
called for in Article VIII 1/2 prior to the Director's approval.  The Director
may decline to approve if the Director is not satisfied that the proposed
series of transactions satisfies the standards established in Article VIII
1/2.
		(Source: P.A. 90-381, eff. 8-14-97.) (215 ILCS 5/34) (from Ch. 73, par. 646)(Section scheduled to be repealed on January 1, 2027)Sec. 34. 
		Procedure
when insufficient assets possessed by company.(1) Whenever the Director finds that the admitted assets of any company
subject to the provisions of this Article are less than its capital,
minimum required surplus and all liabilities, he or she must give written
notice
to the company of the amount of the impairment and require that the
impairment be removed within such period, which must be not less than 30
nor more than 90 days from the date of the notice, as he or she may
designate.
Unless otherwise allowed by the Director, the
company must discontinue the issuance of new and renewal policies while the
impairment exists.(2) Upon the receipt of the notice from the Director, the board of
directors of the company must cause the impairment to be removed and call
upon its shareholders ratably for the necessary amount to remove the
impairment, or, by proper action, reduce its capital to meet the impairment
providing the reduced capital is not less than the minimum requirements
fixed by this Code or by other means remove the impairment. If the
impairment is not removed within the period of time designated, the
Director may order the board of directors to call upon its shareholders
ratably. If a shareholder of the company refuses or
neglects to
pay the amount so called for after notice, given personally or by
mail, by
a date stated in the notice not less than 15 days from the date of such
notice, the Director may order the board of directors to declare, by
resolution, the shares of
such person cancelled, and in lieu thereof may issue new certificates for
shares and dispose of the same at the best price obtainable not less than
par. If the amount received for such new certificates for shares exceeds
the amount required to be paid by such shareholder, the excess must be paid
to the shareholder so refusing to pay his or her ratable share of the
impairment.
Nothing contained in this subsection may be construed to impose any
liability on any shareholder as a result of any call, enforceable in any
manner other than through a sale of his or her shares as provided in this
subsection.(3) If the impairment is not removed within the period specified in the
Director's notice, the company shall be deemed insolvent and the Director
shall proceed against the company in accordance with Article XIII.(4) If while the impairment exists any officer or director of the
company knowingly renews, issues or delivers or causes to be renewed,
issued or delivered any policy, contract or certificate of insurance unless
allowed by the Director, and the fact of such impairment is known to the
officer or director of the company, such
officer or director shall be guilty of a business offense and may be fined
not less than $200 and not more than $5,000 for each offense.(5) Nothing in this Section prohibits, while such impairment exists, any
such officer, director, trustee, agent or employee from issuing or renewing
a policy of insurance when an insured or owner exercises an option granted
to him or her under an existing policy to obtain new, renewed or converted
insurance coverage.
		(Source: P.A. 90-381, eff. 8-14-97.) (215 ILCS 5/34.1) (from Ch. 73, par. 646.1)(Section scheduled to be repealed on January 1, 2027)Sec. 34.1. 
		Subordinated indebtedness. 
		
		A company organized under this Article may borrow or assume a liability
for the repayment of a sum of money under a written agreement. The loan
or advance shall bear interest either (1) at a fixed rate not exceeding
the corporate base rate as reported by the largest bank (measured by assets)
with its head office located in Chicago, Illinois, in effect on the first
business day of the month in which the loan document is executed, plus 3% per
annum or (2) at a variable rate equal to the corporate base rate determined on
the first business day of each month during the term of the loan plus 2% per
annum.  In no event shall the variable interest rate for any month exceed the
initial rate for the loan or advance by more than 10% per annum.  The insurer
shall elect at the time of execution of the loan or advance agreement whether
the interest rate is to be fixed or floating for the term of the agreement.
The loan and interest shall be repaid only out of surplus of the company in
excess of the minimum surplus as is stipulated in and by the agreement. The
agreement shall first be submitted to and approved by not less than a majority
of the voting shares of the company and the Director. Repayment of principal or
payment of interest may be made only with the approval of the Director when he
is satisfied that the financial condition of the company warrants that action,
but approval may not be withheld if the company shall have and submit
satisfactory evidence of surplus of not less than the amount stipulated in the
repayment of principal or interest payment clause of the agreement. No loan or
advance made under this Section or interest accruing thereon shall form a part
of the legal liabilities of the company until authorized for payment by the
Director but until that authorization all statements published by the company
or filed with the Director shall show the amount thereof then remaining unpaid
as a special surplus account.  Subject to approval of the Director, the
interest rate on all subordinated surplus debentures existing on the effective
date of this amendatory Act of 1991 can be amended to the rate as permitted in
this Section with the mutual agreement of the company and the subordinated
surplus debenture holder. Nothing in this Section shall be construed to mean
that a company may not otherwise borrow money, but the amount so borrowed with
accrued interest thereon shall be carried by the company as a liability.
		(Source: P.A. 87-777; 87-1090.) (215 ILCS 5/35) (from Ch. 73, par. 647)(Section scheduled to be repealed on January 1, 2027)Sec. 35. 
		Stock companies may become mutuals.(1) Any domestic stock company may become a mutual company by
complying with the provisions of this Section.(2) The board of directors shall adopt a mutualization plan and
amended articles of incorporation, which articles shall conform to the
articles required by this Code of a mutual company authorized to
transact the kind or kinds of insurance stated in the articles. The
mutualization plan and amended articles of incorporation shall be
executed in duplicate by the company by its president or vice-president
and its secretary or assistant secretary, or officers corresponding
thereto, and shall be delivered to the Director. The plan and amended
articles of incorporation delivered to the Director may be approved or
disapproved by him in the same manner as original articles of
incorporation. If the Director does not approve the plan and amended
articles, he or she shall notify the company in writing of the reasons for such
disapproval and if requested so to do, shall grant the company a
hearing.(3) If the plan and amended articles of incorporation be approved
by the Director he or she shall place on file in his or her office one of the
duplicate copies of each of the documents, shall endorse upon the other
duplicate copies his approval thereof, and the month, day and year of
such approval, and deliver the same to the company.(4) The plan and amended articles of incorporation shall thereupon
be submitted to and be approved by the shareholders in the same manner
as is required for the submission and approval of amendments to articles
of incorporation.(5) After approval by the shareholders, a written or printed notice
setting forth a copy of the plan and amended articles of
incorporation, or a summary of the same, and stating the time and place
of the special meeting at which they will be considered, and the manner
of voting, shall be mailed to each policyholder of the company at least
thirty days before the date set for such meeting. In a life insurance
company each policyholder shall have one vote for each $1,000 of insurance
which on the day of the meeting has been in force
for one year or longer. In a company other than life, each policyholder
shall be entitled to one vote for each policy in force on the day of the
meeting, and upon which the premium has been paid at the time of the
meeting. A policyholder may vote in person, by proxy or by mail. The
election shall be under the supervision of not less than 3 nor more
than 5 inspectors who shall be appointed by the Director. Such
inspectors shall pass upon the qualifications of the voters, the
validity of the ballots, shall canvass the vote and certify the result
of such vote to the Director and to the company. If 2/3 of the
votes cast at the meeting are in favor of the adoption of the plan, the
said plan shall become effective. All necessary expenses incurred by the
Director or by the inspectors in connection with the vote shall be
certified to by the Director and paid by the company.(6) The plan may provide for the acquisition by the company of
its own shares, by purchase, by gift or otherwise in the manner provided
therein. Any shares so acquired shall be held in trust for the company
and shall be assigned and transferred on the books of the company to
three individual trustees or to any trust company authorized under the
laws of this State to do a trust business, to be chosen or approved by a
majority vote of those policyholders who vote at the meeting referred to
in subsection (5) of this Section, and such trustee or trustees shall
vote the shares held by them or by it at any company meeting. Each such
trustee shall file with the company a verified acceptance of his, hers or its
appointment and a declaration that he or it will faithfully discharge
his, hers or its duties as such trustee. Any dividends or other sums acquired
or accruing to the trustees upon shares coming within their trusteeship
shall upon the termination of the trust be delivered to the company.(7) If a shareholder of the company shall file with such company,
prior to or at the meeting of shareholders at which the plan of
mutualization is submitted to a vote, a written objection to such plan
and shall not vote in favor thereof, and such shareholder within 20
days after the plan is approved by such meeting shall make written
demand on the company for payment of the fair value of his shares as of
the day prior to the date on which such plan is approved by the
shareholders, such shareholder shall be entitled to receive prior to the
completion of the plan, upon surrender of his certificate or
certificates representing said shares, such fair value thereof. Any
shareholder who fails to make such objection or having objected fails to
make demand within the 20 day period shall be conclusively presumed
to have consented to the said plan and shall be bound by the terms
thereof.(8) If within 30 days after the date of the written demand
mentioned in subsection (7), the value of such shares is agreed upon
between the dissenting shareholder, the company and the Director,
payment therefor shall be made within 90 days after the date of such
agreement upon the surrender of his or her certificate or certificates
representing the shares. Upon payment of the agreed value the
dissenting shareholder shall cease to have any interest in such shares
and cease to be a shareholder in the company.(9) If, within such period of 30 days, the shareholder and the
company do not so agree, then the dissenting shareholder may within 60
days after the expiration of the 30 day period, petition the
Circuit Court of the county in which the principal office of
the company is located, to appraise the value of such shares as of the
date of the day prior to the date on which such vote was taken approving
such plan. A copy of the petition shall be delivered or mailed by
registered mail to the Director within 5 days after the filing
thereof and proof of such delivery or mailing shall be filed with the
court. The Director shall have the right to appear through the Attorney
General and be heard upon all questions and issues in the proceeding.
The practice, procedure, and judgment shall be, so far as practicable,
the same as that under the eminent domain laws of this State.(10) The judgment shall be payable only upon and simultaneously with
the surrender to the company of the certificate or certificates
representing the shares. Upon the payment of the judgment the
dissenting shareholder shall cease to have any interest in such shares,
and cease to be a shareholder in the company. Unless the dissenting
shareholder shall file such petition within the time herein limited,
such shareholder and all persons claiming under him or her shall be
conclusively presumed to have approved and ratified the mutualization
plan, and shall be bound by the terms thereof. The right of a dissenting
shareholder to be paid the fair value of his shares as herein provided
shall cease if and when the company shall abandon the mutualization
plan.(11) When all the shares of the Company have been acquired and
cancelled in conformity with the plan and this Section, the Director
shall issue a certificate to that effect, and the amended articles of
incorporation shall thereupon become effective and the company shall
thenceforth be a mutual company.(12) The certificate mentioned in subsection (11) together with the
duplicate original of the amended articles of incorporation theretofore
approved by the Director shall be filed for record in the office of the
recorder where the principal office of the company is located,
within 15 days from the date of such certificate.
		(Source: P.A. 83-358.) (215 ILCS 5/35.1) (from Ch. 73, par. 647.1)(Section scheduled to be repealed on January 1, 2027)Sec. 35.1. 
		Par
value of stock. 
		No company organized after August 10, 1961 under this Article shall
issue any shares of stock having a par value of less than $1.00 per share.
No company organized under this article whose stock has a par value of
$1.00 or more per share, or after August 10, 1961, whose stock shall be
increased to $1.00 or more per share, shall decrease the par value of its
stock to less than $1.00 per share; and after October 1, 1963, no such
company whose stock has a par value of less than $1.00 per share shall
decrease the par value below the value fixed for it on October 1, 1963. The
restrictions of this Section shall not apply to a decrease in par value
because of any reduction of capital under subsection (2) of Section 34.
		(Source: Laws 1963, p. 2765.)
(215 ILCS 5/Art. IIA heading) ARTICLE IIA.  
		RISK-BASED CAPITAL. (215 ILCS 5/35A-1)Sec. 35A-1. 
		Short title. 
		This Article may be cited as the Risk-Based
Capital Law.
		(Source: P.A. 88-364.) (215 ILCS 5/35A-5)Sec. 35A-5. Definitions. As used in this Article, the terms listed in
this Section have the meaning given herein."Adjusted RBC Report" means an RBC Report that has been adjusted by the
Director in accordance with subsection (f) of Section 35A-10."Authorized control level RBC" means the number determined under the
risk-based capital formula in accordance with the RBC Instructions."Company action level RBC" means the product of 2.0 and the insurer's
authorized control level RBC."Corrective Order" means an order issued by the Director in accordance with
Article XII 1/2 specifying
corrective actions that the Director determines are required."Domestic insurer" means any insurance company domiciled in this State
under Article II, Article III, Article III 1/2, or Article IV
or a health organization as defined by this Article, except this shall
include only those health maintenance organizations that are "domestic
companies" in accordance with Section 5-3 of the Health Maintenance
Organization Act and only those limited health service organizations that are
"domestic companies" in accordance with Section 4003 of the Limited Health
Service Organization Act."Fraternal benefit society" means any insurance company licensed under Article XVII of this Code."Foreign insurer" means any foreign or alien insurance  company licensed
under Article VI
that is not domiciled in this State
and any health maintenance organization that is not a "domestic company" in
accordance with Section 5-3 of the Health Maintenance Organization Act and any
limited health service organization that is not a "domestic company" in
accordance with Section 4003 of the Limited Health Service Organization Act."Health organization" means an entity operating under a certificate of
authority issued pursuant to the
Health Maintenance Organization Act, the Dental Service Plan Act, the Limited
Health Service Organization Act, or the Voluntary Health Services Plans Act,
unless the entity is otherwise defined as a "life, health, or life and health
insurer" pursuant to this Act."Life, health, or life and health insurer" means an insurance company
that has authority to transact the kinds of
insurance described in either or both clause (a) or clause (b) of Class 1 of
Section 4 or a licensed property and casualty insurer writing only accident and
health insurance."Mandatory control level RBC" means the product of 0.70 and the insurer's
authorized control level RBC."NAIC" means the National Association of Insurance Commissioners."Negative trend" means, with respect to a life, health, or life and
health
insurer or a fraternal benefit society, a negative trend over a period of time, as determined
in accordance with the trend test calculation included in the Life or Fraternal RBC Instructions."Property and casualty insurer" means an insurance company
that has authority to transact the kinds of insurance in
either or both Class 2 or Class 3 of Section 4 or a licensed insurer writing
only insurance authorized under clause (c) of
Class 1, but does not include monoline
mortgage guaranty insurers, financial guaranty insurers, and title insurers."RBC" means risk-based capital."RBC Instructions" means the RBC Report including risk-based capital
instructions adopted by the NAIC as those instructions may be amended by the
NAIC from time to time in accordance with the procedures adopted by the NAIC."RBC level" means an insurer's company action level RBC, regulatory action
level RBC, authorized control level RBC, or mandatory control level RBC."RBC Plan" means a comprehensive financial plan containing the elements
specified in subsection (b) of Section 35A-15."RBC Report" means the risk-based capital report required under Section
35A-10."Receivership" means conservation, rehabilitation, or liquidation under
Article XIII."Regulatory action level RBC" means the product of 1.5 and the insurer's
authorized control level RBC."Revised RBC Plan" means an RBC Plan rejected by the Director and revised by
the insurer with or without the Director's recommendations."Total adjusted capital" means the sum of (1) an insurer's statutory capital
and surplus and (2) any other items that the RBC Instructions may provide.
(Source: P.A. 98-157, eff. 8-2-13.) (215 ILCS 5/35A-10)Sec. 35A-10. RBC Reports.(a) On or before each March 1 (the "filing date"), every domestic
insurer
shall prepare and submit to the Director a report of its RBC levels as of the
end of the previous calendar year in the form and containing the information
required by the RBC Instructions.  Every domestic insurer shall also file its
RBC Report with the NAIC in accordance with the RBC Instructions.  In addition,
if requested in writing by the chief insurance regulatory official of any state
in which it
is authorized to do business, every domestic insurer shall file its RBC Report
with that official no later than the later of 15 days after the insurer
receives the written request
or the filing date.(b) A life, health, or life and health insurer's or fraternal benefit society's RBC shall be
determined under the formula set
forth in the RBC Instructions.  The formula shall take into account (and may
adjust for the covariance between):(1) the risk with respect to the insurer's assets;(2) the risk of adverse insurance experience with     respect to the insurer's liabilities and obligations;(3) the interest rate risk with respect to the     insurer's business; and(4) all other business risks and other relevant risks     set forth in the RBC Instructions.
These risks shall be determined in each case by applying
the factors in the
manner set forth in the RBC Instructions. Notwithstanding the foregoing, and notwithstanding the RBC Instructions, health maintenance organizations operating as Medicaid managed care plans under contract with the Department of Healthcare and Family Services shall not be required to include in its RBC calculations any capitation revenue identified by Medicaid managed care plans as authorized under Section 5A-12.6(r) of the Illinois Public Aid Code.(c) A property and casualty insurer's RBC shall be determined in
accordance
with the formula set forth in the RBC Instructions.  The formula shall take
into account (and may adjust for the covariance between):(1) asset risk;(2) credit risk;(3) underwriting risk; and(4) all other business risks and other relevant risks     set forth in the RBC Instructions.
These risks shall be determined in each case by applying the factors in the
manner
set forth in the RBC Instructions.(d) A health organization's RBC shall be determined in accordance with the
formula set forth in the RBC Instructions.  The formula shall take the
following into account (and may adjust for the covariance between):(1) asset risk;(2) credit risk;(3) underwriting risk; and(4) all other business risks and other relevant risks     set forth in the RBC Instructions.
These risks shall be determined in each case by applying the factors in the
manner set forth in the RBC Instructions.(e) An excess of capital over the amount produced by the
risk-based
capital requirements contained in this Code and the formulas, schedules, and
instructions referenced in this Code is desirable in the business of insurance.
Accordingly, insurers should seek to maintain capital above the RBC levels
required by this Code.  Additional capital is used and useful in the insurance
business and helps to secure an insurer against various risks inherent in, or
affecting, the business of insurance and not accounted for or only partially
measured by the risk-based capital requirements contained in this Code.(f) If a domestic insurer files an RBC Report that, in the
judgment of the
Director, is inaccurate, the Director shall adjust the RBC Report to correct
the inaccuracy and shall notify the insurer of the adjustment.  The notice
shall contain a statement of the reason for the adjustment.
(Source: P.A. 100-580, eff. 3-12-18.) (215 ILCS 5/35A-15)Sec. 35A-15. Company action level event.(a) A company action level event means any of the following events:(1) The filing of an RBC Report by an insurer that     indicates that:(A) the insurer's total adjusted capital is         greater than or equal to its regulatory action level RBC, but less than its company action level RBC;(B) the insurer, if a life, health, or life and         health insurer or a fraternal benefit society, has total adjusted capital that is greater than or equal to its company action level RBC, but less than the product of its authorized control level RBC and 3.0 and has a negative trend;(C) the insurer, if a property and casualty         insurer, has total adjusted capital that is greater than or equal to its company action level RBC, but less than the product of its authorized control level RBC and 3.0 and triggers the trend test determined in accordance with the trend test calculation included in the property and casualty RBC Instructions; or(D) the insurer, if a health organization, has         total adjusted capital that is greater than or equal to its company action level RBC but less than the product of its authorized control level RBC and 3.0 and triggers the trend test determined in accordance with the trend test calculation included in the Health RBC Instructions.(2) The notification by the Director to the insurer     of an Adjusted RBC Report that indicates an event described in paragraph (1), provided the insurer does not challenge the Adjusted RBC Report under Section 35A-35.(3) The notification by the Director to the insurer     that the Director has, after a hearing, rejected the insurer's challenge under Section 35A-35 to an Adjusted RBC Report that indicates the event described in paragraph (1).(b) In the event of a company action level event, the insurer shall prepare
and submit to the Director an RBC Plan that does
all of the following:(1) Identifies the conditions that contribute to the     company action level event.(2) Contains proposed corrective actions that the     insurer intends to take and that are expected to result in the elimination of the company action level event. A health organization is not prohibited from proposing recognition of a parental guarantee or a letter of credit to eliminate the company action level event; however the Director shall, at his discretion, determine whether or the extent to which the proposed parental guarantee or letter of credit is an acceptable part of a satisfactory RBC Plan or Revised RBC Plan.(3) Provides projections of the insurer's financial     results in the current year and at least the 4 succeeding years, both in the absence of proposed corrective actions and giving effect to the proposed corrective actions, including projections of statutory operating income, net income, capital, and surplus.  The projections for both new and renewal business may include separate projections for each major line of business and separately identify each significant income, expense, and benefit component.(4) Identifies the key assumptions affecting the     insurer's projections and the sensitivity of the projections to the assumptions.(5) Identifies the quality of, and problems     associated with, the insurer's business including, but not limited to, its assets, anticipated business growth and associated surplus strain, extraordinary exposure to risk, mix of business, and use of reinsurance, if any, in each case.(c) The insurer shall submit the RBC Plan to the Director  within 45 days
after the company action
level event occurs or within 45 days after the Director notifies the insurer
that the Director has, after a hearing, rejected its
 challenge under Section 35A-35 to an
Adjusted RBC Report.(d) Within 60 days after an insurer submits an RBC Plan to the
Director, the Director shall notify the insurer whether the RBC Plan shall be
implemented or is, in the judgment of the Director, unsatisfactory.  If the
Director determines the RBC Plan is unsatisfactory,
the notification to the insurer shall set forth the reasons for the
determination
and may set forth proposed revisions that will render the RBC Plan satisfactory
in the judgment of the Director.  Upon notification from the Director, the
insurer shall prepare a Revised RBC Plan, which may incorporate by reference
any revisions proposed by the Director.  The insurer shall submit the Revised
RBC Plan to the Director within 45 days after the Director notifies the insurer
that the RBC Plan is unsatisfactory or within 45 days after the Director
notifies the insurer that the Director has, after a hearing, rejected its
challenge under Section 35A-35 to the determination that the RBC Plan is
unsatisfactory.(e) In the event the Director notifies an insurer that its
RBC Plan or Revised RBC Plan is unsatisfactory, the Director may, at
the Director's discretion and subject to the insurer's right to a hearing under
Section 35A-35, specify in the notification that the notification constitutes a
regulatory action level event.(f) Every domestic insurer that files an RBC Plan or Revised RBC Plan with
the Director shall file a copy of the RBC Plan or Revised RBC Plan with the
chief insurance regulatory official in any state in which the insurer is
authorized to do business if that state has a law substantially similar to the
confidentiality provisions in subsection (a) of Section 35A-50 and if that
official requests in writing a copy of the plan.  The insurer shall file a copy
of the
RBC Plan or Revised RBC Plan in that state no later than the later of
15 days after receiving the written request for the copy or
the date on which the RBC Plan or Revised RBC Plan is filed under
subsection (c) or (d) of this Section.
(Source: P.A. 99-542, eff. 7-8-16; 100-201, eff. 8-18-17.) (215 ILCS 5/35A-20)Sec. 35A-20. 
		Regulatory action level event.(a) A regulatory action level event means any of the following events:(1) The filing of an RBC Report by the insurer that     indicates that the insurer's total adjusted capital is greater than or equal to its authorized control level RBC, but less than its regulatory action level RBC.(2) The notification by the Director to an insurer of     an Adjusted RBC Report that indicates the event described in paragraph (1), provided the insurer does not challenge the Adjusted RBC Report under Section 35A-35.(3) The notification by the Director to the insurer     that the Director has, after a hearing, rejected the insurer's challenge under Section 35A-35 to an Adjusted RBC Report that indicates the event described in paragraph (1).(4) The failure of the insurer to file an RBC Report     by the filing date, unless the insurer has provided an explanation for the failure that is satisfactory to the Director and has cured the failure within 10 days after the filing date.(5) The failure of the insurer to submit an RBC Plan     to the Director within the time period set forth in subsection (c) of Section 35A-15.(6) The notification by the Director to the insurer     that the insurer's RBC Plan or revised RBC Plan is, in the judgment of the Director, unsatisfactory and that the notification constitutes a regulatory action level event with respect to the insurer, provided the insurer does not challenge the determination under Section 35A-35.(7) The notification by the Director to the insurer     that the Director has, after a hearing, rejected the insurer's challenge under Section 35A-35 to the determination made by the Director under paragraph (6).(8) The notification by the Director to the insurer     that the insurer has failed to adhere to its RBC Plan or Revised RBC Plan, but only if that failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event in accordance with its RBC Plan or Revised RBC Plan and the Director has so stated in the notification, provided the insurer does not challenge the determination under Section 35A-35.(9) The notification by the Director to the insurer     that the Director has, after a hearing, rejected the insurer's challenge under Section 35A-35 to the determination made by the Director under paragraph (8).(b) In the event of a regulatory action level event, the Director shall do
all of the following:(1) Require the insurer to prepare and submit an RBC     Plan or, if applicable, a Revised RBC Plan to the Director within 45 days after the regulatory action level event occurs or within 45 days after the Director notifies the insurer that the Director has, after a hearing, rejected its challenge under Section 35A-35 to either an Adjusted RBC Report or a Revised RBC Plan.  However, if the insurer previously prepared and submitted an RBC Plan or a Revised RBC Plan in accordance with any provision of this Article, the Director may determine that the previously prepared RBC Plan or Revised RBC Plan satisfies the requirement of this subsection (b)(1).(2) Perform any examination or analysis of the     assets, liabilities, and operations of the insurer, including a review of its RBC Plan or Revised RBC Plan, that the Director deems necessary.(3) After the examination or analysis, issue a     Corrective Order specifying the corrective actions the Director determines are required.(c) In determining corrective actions, the Director may take into account
any factors the Director deems relevant based upon the examination or analysis
of the assets, liabilities, and operations of the insurer including, but not
limited to, the results of any sensitivity tests undertaken under the RBC
Instructions.
The regulatory action level event shall be deemed sufficient grounds for the
Director to issue a Corrective Order in accordance with Article XII 1/2.  The
Director shall have rights, powers, and duties with respect to the insurer that
are set forth in Article XII 1/2 and the insurer shall be entitled to the
protections afforded insurers under Article XII 1/2.(d) The Director may retain actuaries, investment experts, and other
consultants necessary to review an insurer's RBC Plan or Revised RBC Plan,
examine or analyze the assets, liabilities, and operations of the insurer, and
formulate the Corrective Order with respect to the insurer.  The fees, costs,
and expenses related to the actuaries, investment experts, and other
consultants shall be reasonable and customary for the nature of the services
provided and shall be borne by the affected insurer or the party designated
by
the Director.
		(Source: P.A. 90-794, eff. 8-14-98; 91-549, eff. 8-14-99.) (215 ILCS 5/35A-25)Sec. 35A-25. 
		Authorized control event.(a) An authorized control event means any of the following events:(1) The filing of an RBC Report by the insurer that     indicates that the insurer's total adjusted capital is greater than or equal to its mandatory control level RBC, but less than its authorized control level RBC.(2) The notification by the Director to the insurer     of an Adjusted RBC Report that indicates the event described in paragraph (1), provided the insurer does not challenge the Adjusted RBC Report under Section 35A-35.(3) The notification by the Director to the insurer     that the Director has, after a hearing, rejected the insurer's challenge under Section 35A-35 to an Adjusted RBC Report that indicates the event described in paragraph (1).(4) The insurer's failure to respond to a Corrective     Order in a manner satisfactory to the Director, provided the insurer does not challenge the Corrective Order under Section 35A-35.(5) The insurer's failure to respond to a challenged     or modified Corrective Order in a manner satisfactory to the Director after the Director has, after a hearing, rejected the insurer's challenge under Section 35A-35 or modified the Corrective Order.(b) In the event of an authorized control level event, the Director shall
take
the actions required under Section 35A-20 regarding an insurer with respect to
which a regulatory action level event has occurred or, if the Director deems it
to be in the best interests of the insurer's policyholders and creditors and of
the public, take the actions necessary to cause the insurer to be placed in
receivership under Article XIII.  In the event the Director determines
that receivership is necessary, the authorized control level event shall be
deemed sufficient grounds for the Director to take action under Article XIII,
and the Director shall have the rights, powers, and duties with respect to the
insurer that are set forth in Article XIII.  In the event the Director takes
action under this subsection regarding an Adjusted RBC Report, the insurer
shall be entitled to the protections afforded insurers under Article
XIII.
		(Source: P.A. 88-364.) (215 ILCS 5/35A-30)Sec. 35A-30. Mandatory control level event.(a) A mandatory control level event means any of the following events:(1) The filing of an RBC Report that indicates that     the insurer's total adjusted capital is less than its mandatory control level RBC.(2) The notification by the Director to the insurer     of an Adjusted RBC Report that indicates the event described in paragraph (1), provided the insurer does not challenge the Adjusted RBC Report under Section 35A-35.(3) The notification by the Director to the insurer     that the Director has, after a hearing, rejected the insurer's challenge under Section 35A-35 to the Adjusted RBC Report that indicates the event described in paragraph (1).(b) In the
event of a mandatory control level event with respect to a life, health, or
life and health insurer or a fraternal benefit society, the Director shall take
actions necessary to place the insurer in
receivership under
Article XIII.  In that event, the mandatory control level event shall be deemed
sufficient grounds for the Director to take action under Article XIII, and the
Director shall have the rights, powers, and duties with respect to the insurer
that
are set forth in Article XIII.  If the Director takes
action
under this subsection regarding an Adjusted RBC Report, the insurer shall be
entitled to the protections
of Article XIII.
If the Director finds that there is a
reasonable expectation that the mandatory control level event may be eliminated
within 90 days after it occurs, the Director may delay action for not more
than 90 days after the mandatory control level event.(c) In the case of a mandatory control level event with respect to a
property and casualty insurer, the Director shall
take the actions necessary to place the insurer in receivership under Article
XIII or, in the case of an insurer that is writing no business and that is
running-off its existing business, may allow the insurer to continue its
run-off under the supervision of the Director.  In either case, the mandatory
control level event is deemed sufficient grounds for the Director to take
action under Article XIII, and the Director has the rights, powers, and
duties with respect to the insurer that are set forth in Article XIII.  If the
Director takes action regarding an Adjusted RBC Report, the insurer shall be
entitled to the protections of Article XIII. If the Director finds that there
is a reasonable expectation that
the mandatory control level event may be eliminated within 90 days after it
occurs, the Director may delay action for not more than 90 days after the
mandatory control level event.(d) In the case of a mandatory control level event with respect to a
health organization, the Director shall take the actions necessary to place the
insurer in receivership under Article XIII or, in the case of an insurer that
is writing no business and that is running-off its existing business, may allow
the insurer to
continue its run-off under the supervision of the Director.  In either case,
the mandatory control level event is deemed sufficient grounds for the Director
to take action under Article XIII, and the Director has the rights, powers, and
duties with respect to the insurer that are set forth in Article XIII.  If the
Director takes action regarding an Adjusted RBC Report, the insurer shall be
entitled to the protections of Article XIII.  If the Director finds that there
is a reasonable expectation that the mandatory control level event may be
eliminated within 90 days after it occurs, the Director may delay action for
not more than 90 days after the mandatory control level event.
(Source: P.A. 98-157, eff. 8-2-13.) (215 ILCS 5/35A-35)Sec. 35A-35. 
		Hearings.(a) An insurer has the right to an administrative hearing with respect to
any of the following:(1) The notification by the Director to the insurer     of an Adjusted RBC Report.(2) The notification by the Director to the insurer     that the insurer's RBC Plan or Revised RBC Plan is unsatisfactory and that the notification constitutes a regulatory action level event.(3) The notification by the Director to the insurer     that the insurer has failed to adhere to its RBC Plan or Revised RBC Plan and that the failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event in accordance with its RBC Plan or Revised RBC Plan.(b) At the administrative hearing, the insurer may challenge any
determination or action by the Director.  The insurer shall notify the
Director of its request for a hearing
within 5 days after notification by the Director made under
subsection (a).  Upon receipt of the insurer's request for a hearing, the
Director shall set a date for the hearing.  The hearing shall be held no fewer
than 10 days and no more than 30 days after the date of the insurer's request
for the hearing.
		(Source: P.A. 90-794, eff. 8-14-98.) (215 ILCS 5/35A-40)Sec. 35A-40. 
		Foreign insurers.(a) Upon the written request of the Director, a foreign insurer shall submit
to the Director an RBC Report as of the end of the previous calendar year no
later than the later of the date an RBC Report would be required to be filed by
a domestic insurer under this Article or 15 days after the foreign insurer
receives the Director's request.  Upon the written request of the Director, a
foreign insurer shall promptly submit to the Director a copy of any RBC Plan
that is filed with
the chief insurance regulatory official or any other state.(b) In the event of a company action level event, regulatory
action level
event, or authorized control level event with respect to any foreign
insurer as determined under the RBC statute
applicable in the state of domicile of the insurer or, if no RBC statute is
in force in that state, under the provisions of this Article, if the chief
insurance regulatory official of the state of domicile of the foreign insurer
fails to require the foreign insurer to file an RBC Plan in the manner
specified under that state's RBC statute or, if no RBC statute is in force in that
state, under Section 35A-15, the Director may require the foreign insurer to
file an RBC Plan with the Director.  In that event,
the failure of the foreign insurer to file an RBC Plan with the Director is
grounds to order the insurer to cease and desist from writing new insurance
business in this State.(c) In the event of a mandatory control level event with respect to any
foreign insurer, if no domiciliary receiver has been appointed with respect to
the foreign insurer under the rehabilitation and liquidation statute applicable
in the state of domicile of the foreign insurer, the Director may make
application to the Circuit Court of Sangamon County or Cook County as permitted
under
Article XIII with respect to the liquidation of property of foreign insurers
found in this State, and the occurrence of the mandatory control level event
shall be considered adequate grounds for the application.
		(Source: P.A. 88-364; 89-97, eff. 7-7-95.) (215 ILCS 5/35A-45)Sec. 35A-45. 
		Notices. 
		All notices by the Director to an insurer that may
result in regulatory action under this Article are effective upon dispatch if
transmitted by registered or certified mail, and are effective upon the
insurer's receipt thereof in the case of any other means of transmission.
		(Source: P.A. 88-364.) (215 ILCS 5/35A-50)Sec. 35A-50. 
		Confidentiality and prohibition on announcements.(a) All RBC Reports, to the extent the information therein is not required
to
be set forth in a publicly available annual statement schedule, and RBC
Plans, including the results or report of any examination or analysis of an
insurer performed under this Article and any Corrective Order issued by the
Director
pursuant to the examination or analysis, with respect to any domestic insurer
or foreign
insurer that are filed with the Director constitute information that might be
damaging to the insurer if made available to its competitors and
shall be kept confidential by the Director. This information shall not be made
public or be subject to subpoena, other than by the Director and then only for
the purpose of enforcement actions taken by the Director under this Code or
other provisions of the insurance laws of this State.(b) It is the judgment of the legislature that the comparison of an
insurer's total adjusted capital to any of its RBC levels is a regulatory tool
that may indicate the need for possible corrective action with respect to the
insurer and not a means to rank insurers generally. Therefore, except as
otherwise required under the provisions of this Code, the disclosure, in any
manner or form, directly or indirectly, of information containing an assertion,
representation, or
statement regarding the RBC levels of any insurer or any component derived
in the calculation of RBC levels by any insurer, insurance producer, limited
insurance producer, broker, or other person engaged in any manner in the
insurance business would be misleading and is prohibited.  In the event that a
materially false statement with respect to the comparison regarding an
insurer's total
adjusted capital to any of its RBC levels or an inappropriate comparison of any
other amount to the insurer's RBC levels is published in any written
publication
and the insurer is able to demonstrate to the Director with substantial proof
the falsity of the statement or the inappropriateness thereof, the insurer may
publish an announcement in a written publication if the sole purpose of the
announcement is to rebut the materially false statement.(c) It is the further judgment of the legislature that the RBC
Instructions,
RBC Reports, Adjusted RBC Reports, RBC Plans, and Revised RBC Plans are
intended
solely for use by the Director in monitoring the solvency of insurers and the
need for possible corrective action with respect to insurers and shall not be
used by the Director for ratemaking or considered or introduced as evidence in
any rate proceeding or used by the Director to calculate or derive any
elements of an appropriate premium level or rate of return for any line of
insurance that an insurer or an affiliate is authorized to write.
		(Source: P.A. 88-364; 89-97, eff. 7-7-95.) (215 ILCS 5/35A-55)Sec. 35A-55. 
		Provisions of Article supplemental; exemptions.(a) The provisions of this Article are supplemental to the provisions of
any other laws of this State and do not preclude or limit other powers or
duties of the Director under any other laws.(b) The Director may exempt from the application of this Article any
domestic property and casualty insurer that:(1) writes direct business only in this State;(2) writes direct annual premiums of $2,000,000 or     less; and(3) assumes no reinsurance in excess of 5% of direct     premium written.(c) The Director may exempt from the application of this Article any
company that is organized under Article IV of this Code, that writes direct
business only in this State, and that assumes no reinsurance in excess of 5% of
direct written premiums.(d) The Director may exempt from the application of this Article any
domestic health organization upon a showing by the health organization of the
reasons for requesting the exemption and a determination by the Director of
good cause for an exemption.(e) The Director may by rule impose upon any insurer exempted from the
application of this Article under subsection (b), (c), or (d) of this Section
conditions to the
exemption that require maintenance of adequate capital.  These conditions shall
not exceed the requirements of this Article.
		(Source: P.A. 91-549, eff. 8-14-99.) (215 ILCS 5/35A-60)Sec. 35A-60. Phase-in of Article.(a) For RBC Reports filed
with
respect to
the December 31, 1993 annual statement, instead of the provisions of Sections
35A-15, 35A-20, 35A-25, and 35A-30,
the following provisions apply:(1) In the event of a company action level event, the     Director shall take no action under this Article.(2) In the event of a regulatory action level event     under paragraph (1), (2), or (3) of subsection (a) of Section 35A-20, the Director shall take the actions required under Section 35A-15.(3) In the event of a regulatory action level event     under paragraph (4), (5), (6), (7), (8), or (9) of subsection (a) of Section 35A-20 or an authorized control level event, the Director shall take the actions required under Section 35A-20.(4) In the event of a mandatory control level event,     the Director shall take the actions required under Section 35A-25.(b) For RBC Reports required to be filed by property and casualty
insurers with respect to the December 31, 1995 annual statement, instead of the
provisions of Sections 35A-15, 35A-20, 35A-25, and 35A-30,
the following provisions apply:(1) In the event of a company action level event with     respect to a domestic insurer, the Director shall take no regulatory action under this Article.(2) In the event of a regulatory action level event     under paragraph (1), (2), or (3) of subsection (a) of Section 35A-20, the Director shall take the actions required under Section 35A-15.(3) In the event of a regulatory action level event     under paragraph (4), (5), (6), (7), (8), or (9) of subsection (a) of Section 35A-20 or an authorized control level event, the Director shall take the actions required under Section 35A-20.(4) In the event of a mandatory control level event,     the Director shall take the actions required under Section 35A-25.(c) For RBC Reports required to be filed by health organizations with
respect to the December 31, 1999 annual statement and the December 31, 2000
annual statement, instead of the provisions of
Sections 35A-15, 35A-20, 35A-25, and 35A-30, the following provisions apply:(1) In the event of a company action level event with     respect to a domestic insurer, the Director shall take no regulatory action under this Article.(2) In the event of a regulatory action level event     under paragraph (1), (2), or (3) of subsection (a) of Section 35A-20, the Director shall take the actions required under Section 35A-15.(3) In the event of a regulatory action level event     under paragraph (4), (5), (6), (7), (8), or (9) of subsection (a) of Section 35A-20 or an authorized control level event, the Director shall take the actions required under Section 35A-20.(4) In the event of a mandatory control level event,     the Director shall take the actions required under Section 35A-25.This subsection does not apply to a health organization that provides or
arranges for a health care plan under which enrollees may access health care
services from contracted providers without a referral from their primary care
physician.Nothing in this subsection shall preclude or limit other powers or duties of
the Director under any other laws.(d) For RBC Reports required to be filed by fraternal benefit societies with respect to the December 31, 2013 annual
statement and the December 31, 2014 annual statement, instead
of the provisions of Sections 35A-15, 35A-20, 35A-25, and
35A-30, the following provisions apply:(1) In the event of a company action level event with     respect to a domestic insurer, the Director shall take no regulatory action under this Article.(2) In the event of a regulatory action level event     under paragraph (1), (2), or (3) of subsection (a) of Section 35A-20, the Director shall take the actions required under Section 35A-15.(3) In the event of a regulatory action level event     under paragraph (4), (5), (6), (7), (8), or (9) of subsection (a) of Section 35A-20 or an authorized control level event, the Director shall take the actions required under Section 35A-20.(4) In the event of a mandatory control level event,     the Director shall take the actions required under Section 35A-25.Nothing in this subsection shall preclude or limit other powers or duties of
the Director under any other laws. (Source: P.A. 100-201, eff. 8-18-17.) (215 ILCS 5/35A-65)Sec. 35A-65. 
		Liability of Director. 
		There shall be no liability on the
part of, and no cause of
action shall arise against, the Director or the Department or its employees or
agents for any action taken by them in the performance of their powers and
duties under this Article.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/35A-70)Sec. 35A-70. 
		Severability. 
		The provisions of this Article are severable
under
Section 1.31 of the Statute on Statutes.
		(Source: P.A. 89-97, eff. 7-7-95.)
(215 ILCS 5/Art. IIB heading) ARTICLE IIB.  DOMESTIC STOCK COMPANY DIVISION
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/35B-1)Sec. 35B-1. Short title. This Article may be cited as the Domestic Stock Company Division Law.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/35B-5)Sec. 35B-5. Purpose. The purpose of this Article is to stimulate economic development in the State of Illinois by creating and sustaining employment opportunities and increasing and sustaining taxable revenue, through improving the competitive position of domestic stock companies, maintaining the competitiveness of this State as a state of domicile for domestic stock companies, and enhancing the desirability of this State as a jurisdiction of domicile for newly incorporating and existing foreign stock companies.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/35B-10)Sec. 35B-10. Definitions. As used in this Article:"Assets" means all assets or property, whether real, personal or mixed, tangible or intangible, and any right or interest therein, including all rights under contracts and other agreements."Capital" means the capital stock component of statutory surplus, as defined in the National Association of Insurance Commissioners Accounting Practices and Procedures Manual, version effective January 1, 2001, and subsequent revisions."Divide" or "division" means the act by operation of law by which a domestic stock company divides into 2 or more resulting companies in accordance with a plan of division and this Article;"Dividing company" means a domestic stock company that approves a plan of division pursuant to Section 35B-20;"Domestic stock company" means a domestic stock company transacting or being organized to transact any of the kinds of insurance business enumerated in Section 4."Liability" means a liability or obligation of any kind, character, or description, whether known or unknown, absolute or contingent, accrued or unaccrued, disputed or undisputed, liquidated or unliquidated, secured or unsecured, joint or several, due or to become due, determined, determinable, or otherwise."New company" means a domestic stock company that is created by a division occurring on or after the effective date of this amendatory Act of the 100th General Assembly."Plan of division" means a plan of division approved by a dividing company in accordance Section 35B-20."Policy liability" means a liability as defined in this Section arising out of or related to an insurance policy, contract of insurance, or reinsurance agreement."Recorder" means the office of the recorder of the county where the principal office of a domestic stock company is located."Resulting company" means a domestic stock company created by a division or a dividing company that survives a division."Shareholder" means the person in whose name shares are registered in the records of a corporation or the beneficial owner of shares to the extent of the rights granted by a nominee certificate on file with a corporation."Sign" or "signature" includes a manual, facsimile, or conformed or electronic signature."Surplus" means total statutory surplus less capital, calculated in accordance with the National Association of Insurance Commissioners Accounting Practices and Procedures Manual, version effective January 1, 2001, and subsequent revisions."Transfer" includes an assignment, assumption, conveyance, sale, lease, encumbrance, including a mortgage or security interest, gift, or transfer by operation of law.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/35B-15)Sec. 35B-15. Plan of division.(a) A domestic stock company may, in accordance with the requirements of this Article, divide into 2 or more resulting companies pursuant to a plan of division.(b) Each plan of division shall include:(1) the name of the domestic stock company seeking to     divide;(2) the name of each resulting company that will be     created by the proposed division;(3) for each new company that will be created by the     proposed division, a copy of its:(A) proposed articles of incorporation;(B) proposed bylaws; and(C) the kinds of insurance business enumerated in         Section 4 that the new company would be authorized to conduct;(4) the manner of allocating between or among the     resulting companies:(A) the assets of the domestic stock company that         will not be owned by all of the resulting companies as tenants in common pursuant to Section 35B-35; and(B) the liabilities of the domestic stock         company, including policy liabilities, to which not all of the resulting companies will become jointly and severally liable pursuant to paragraph (3) of subsection (a) of Section 35B-40;(5) the manner of distributing shares in the new     companies to the dividing company or its shareholders;(6) a reasonable description of the liabilities,     including policy liabilities, and items of capital, surplus, or other assets, in each case, that the domestic stock company proposes to allocate to each resulting company, including specifying the reinsurance contract, reinsurance coverage obligations, and related claims that are applicable to those policies;(7) all terms and conditions required by the laws of     this State or the articles of incorporation and bylaws of the domestic stock company;(8) evidence demonstrating that the interest of all     classes of policyholders of the dividing company will be properly protected; and(9) all other terms and conditions of the division.Nothing in this subsection (b) shall expand or reduce the allocation and assignment of reinsurance as stated in the reinsurance contract.(c) If the domestic stock company survives the division, the plan of division shall include, in addition to the information required by subsection (b):(1) all proposed amendments to the dividing company's     articles of incorporation and bylaws, if any;(2) if the dividing company desires to cancel some,     but less than all, shares in the dividing company, the manner in which it will cancel such shares; and(3) if the dividing company desires to convert some,     but less than all, shares in the dividing company into shares, securities, obligations, money, other property, rights to acquire shares or securities, or any combination thereof, a statement disclosing the manner in which it will convert the shares.(d) If the domestic stock company does not survive the proposed division, the plan of division shall contain, in addition to the information required by subsection (b), the manner in which the dividing company will cancel or convert shares in the dividing company into shares, securities, obligations, money, other property, rights to acquire shares or securities, or any combination thereof.(e) Terms of a plan of division may be made dependent on facts objectively ascertainable outside of the plan of division.(f) A dividing company may amend a plan of division in accordance with any procedures set forth in the plan of division or, if no such procedures are set forth in the plan of division, in any manner determined by the board of directors of the dividing company, except that a shareholder that was entitled to vote on or consent to approval of the plan of division is entitled to vote on or consent to any amendment of the plan of division that will change:(1) the amount or kind of shares, securities,     obligations, money, other property, rights to acquire shares or securities, or any combination thereof, to be received by any of the shareholders of the dividing company under the plan of division;(2) the articles of incorporation or bylaws of any     resulting company that will be in effect when the division becomes effective, except for changes that do not require approval of the shareholders of the resulting company under its articles of incorporation or bylaws; or(3) any other terms or conditions of the plan of     division, if the change would adversely affect the shareholders in any material respect.(g) A dividing company may abandon a plan of division after it has approved the plan of division without any action by the shareholders and in accordance with any procedures set forth in the plan of division or, if no such procedures are set forth in the plan of division, in a manner determined by the board of directors of the dividing company.(h) A dividing company may abandon a plan of division after it has filed a certificate of division with the recorder by filing with the recorder, with concurrent copy to the director, a certificate of abandonment signed by the dividing company. The certificate of abandonment shall be effective on the date it is filed with the recorder and the dividing company shall be deemed to have abandoned its plan of division on such date.(i) A dividing company may not abandon or amend its plan of division once the division becomes effective.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/35B-20)Sec. 35B-20. Requirements of a plan of division.(a) A domestic stock company shall not file a plan of division with the Director unless the plan of division has been approved in accordance with:(1) any applicable provisions of its articles of     incorporation and bylaws; and(2) all laws of this State governing the internal     affairs of a domestic stock company that provide for approval of a merger.(b) If any provision of the articles of incorporation or bylaws of a domestic stock company requires that a specific number or percentage of board of directors or shareholders approve the proposal or adoption of a plan of merger, or imposes other special procedures for the proposal or adoption of a plan of merger, such domestic stock company shall adhere to such provision in proposing or adopting a plan of division. If any provision of the articles of incorporation or bylaws of a domestic stock company is amended, such amendment shall thereafter apply to a division only in accordance with its express terms.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/35B-25)Sec. 35B-25. Plan of division approval.(a) A division shall not become effective until it is approved by the Director after reasonable notice and a public hearing, if the notice and hearing are deemed by the Director to be in the public interest.  The Director shall hold a public hearing if one is requested by the dividing company. A hearing conducted under this Section shall be conducted in accordance with Article 10 of the Illinois Administrative Procedure Act.(b) The Director shall approve a plan of division unless the Director finds that:(1) the interest of any class of policyholder or     shareholder of the dividing company will not be properly protected;(2) each new company created by the proposed     division, except a new company that is a nonsurviving party to a merger pursuant to subsection (b) of Section 156, would be ineligible to receive a license to do insurance business in this State pursuant to Section 5;(2.5) each new company created by the proposed     division, except a new company that is a nonsurviving party to a merger pursuant to subsection (b) of Section 156, that will be a member insurer of the Illinois Life and Health Insurance Guaranty Association and that will have policy liabilities allocated to it will not be licensed to do insurance business in each state where such policies were written by the dividing company;(3) the proposed division violates a provision of the     Uniform Fraudulent Transfer Act;(4) the division is being made for purposes of     hindering, delaying, or defrauding any policyholders or other creditors of the dividing company;(5) one or more resulting companies will not be     solvent upon the consummation of the division; or(6) the remaining assets of one or more resulting     companies will be, upon consummation of a division, unreasonably small in relation to the business and transactions in which the resulting company was engaged or is about to engage.(c) In determining whether the standards set forth in paragraph (3) of subsection (b) have been satisfied, the Director shall only apply the Uniform Fraudulent Transfer Act to a dividing company in its capacity as a resulting company and shall not apply the Uniform Fraudulent Transfer Act to any dividing company that is not proposed to survive the division.(d) In determining whether the standards set forth in paragraphs (3), (4), (5), and (6) of subsection (b) have been satisfied, the Director may consider all proposed assets of the resulting company, including, without limitation, reinsurance agreements, parental guarantees, support or keep well agreements, or capital maintenance or contingent capital agreements, in each case, regardless of whether the same would qualify as an admitted asset as defined in Section 3.1.(e) In determining whether the standards set forth in paragraph (3) of subsection (b) have been satisfied, with respect to each resulting company, the Director shall, in applying the Uniform Fraudulent Transfer Act, treat:(1) the resulting company as a debtor;(2) liabilities allocated to the resulting company as     obligations incurred by a debtor;(3) the resulting company as not having received     reasonably equivalent value in exchange for incurring the obligations; and(4) assets allocated to the resulting company as     remaining property.(f) All information, documents, materials, and copies thereof submitted to, obtained by, or disclosed to the Director in connection with a plan of division or in contemplation thereof, including any information, documents, materials, or copies provided by or on behalf of a domestic stock company in advance of its adoption or submission of a plan of division, shall be confidential and shall be subject to the same protection and treatment in accordance with Section 131.22 as documents and reports disclosed to or filed with the Director pursuant to subsection (a) of Section 131.14b until such time, if any, as a notice of the hearing contemplated by subsection (a) is issued.(g) From and after the issuance of a notice of the hearing contemplated by subsection (a), all business, financial, and actuarial information that the domestic stock company requests confidential treatment, other than the plan of division, shall continue to be confidential and shall not be available for public inspection and shall be subject to the same protection and treatment in accordance with Section 131.22 as documents and reports disclosed to or filed with the Director pursuant to subsection (a) of Section 131.14b.(h) All expenses incurred by the Director in connection with proceedings under this Section, including expenses for the services of any attorneys, actuaries, accountants, and other experts as may be reasonably necessary to assist the Director in reviewing the proposed division, shall be paid by the dividing company filing the plan of division. A dividing company may allocate expenses described in this subsection in a plan of division in the same manner as any other liability.(i) If the Director approves a plan of division, the Director shall issue an order that shall be accompanied by findings of fact and conclusions of law.(j) The conditions in this Section for freeing one or more of the resulting companies from the liabilities of the dividing company and for allocating some or all of the liabilities of the dividing company shall be conclusively deemed to have been satisfied if the plan of division has been approved by the Director in a final order that is not subject to further appeal.
(Source: P.A. 101-549, eff. 1-1-20; 102-394, eff. 8-16-21; 102-578, eff. 7-1-22 (See Section 5 of P.A. 102-672 for effective date of P.A. 102-578).) (215 ILCS 5/35B-30)Sec. 35B-30. Certificate of division.(a) After a plan of division has been adopted and approved, an officer or duly authorized representative of the dividing company shall sign a certificate of division.(b) The certificate of division shall set forth:(1) the name of the dividing company;(2) a statement disclosing whether the dividing     company will survive the division;(3) the name of each new company that will be created     by the division;(4) the kinds of insurance business enumerated in     Section 4 that the new company will be authorized to conduct;(5) the date that the division is to be effective,     which shall not be more than 90 days after the dividing company has filed the certificate of division with the recorder, with a concurrent copy to the Director;(6) a statement that the division was approved by the     Director in accordance with Section 35B-25;(7) a statement that the dividing company provided,     no later than 10 business days after the dividing company filed the plan of division with the Director, reasonable notice to each reinsurer that is party to a reinsurance contract that is applicable to the policies included in the plan of division;(8) if the dividing company will survive the     division, an amendment to its articles of incorporation or bylaws approved as part of the plan of division;(9) for each new company created by the division, its     articles of incorporation and bylaws, provided that the articles of incorporation and bylaws need not state the name or address of an incorporator; and(10) a reasonable description of the capital,     surplus, other assets and liabilities, including policy liabilities, of the dividing company that are to be allocated to each resulting company.(c) The articles of incorporation and bylaws of each new company must satisfy the requirements of the laws of this State, provided that the documents need not be signed or include a provision that need not be included in a restatement of the document.(d) A certificate of division is effective when filed with the recorder, with a concurrent copy to the Director, as provided in this Section or on another date specified in the plan of division, whichever is later, provided that a certificate of division shall become effective not more than 90 days after it is filed with the recorder. A division is effective when the relevant certificate of division is effective.
(Source: P.A. 102-775, eff. 5-13-22.) (215 ILCS 5/35B-35)Sec. 35B-35. Effects of division.(a) When a division becomes effective pursuant to Section 35B-30:(1) if the dividing company has survived the division:(A) it continues to exist;(B) its articles of incorporation shall be         amended, if necessary, as provided in the plan of division; and(C) its bylaws shall be amended, if necessary,          as provided in the plan of division;(2) if the dividing company has not survived the     division, its separate existence ceases to exist;(3) each new company:(A) comes into existence;(B) shall hold any capital, surplus, and other         assets allocated to such new company by the plan of division as a successor to the dividing company, automatically, by operation of law and not by transfer, whether directly or indirectly; and(C) its articles of incorporation, if any, and         bylaws, if any, shall be effective;(4) capital, surplus, and other assets of the     dividing company:(A) that is allocated by the plan of division         either:(i) vests in the applicable new company as             provided in the plan of division; or(ii) remains vested in the dividing company             as provided in the plan of division;(B) that is not allocated by the plan of division         either:(i) remains vested in the dividing company,             if the dividing company survives the division; or(ii) is allocated to and vests equally in the             resulting companies as tenants in common, if the dividing company does not survive the division; or(C) otherwise vests as provided in this         subsection without transfer, reversion, or impairment;(5) a resulting company to which a cause of action is     allocated as provided in paragraph (4) of this subsection (a) may be substituted or added in any pending action or proceeding to which the dividing company is a party when the division becomes effective;(6) the liabilities, including policy liabilities, of     the dividing company are allocated between or among the resulting companies as provided in Section 35B-40 and each resulting company to which liabilities are allocated is liable only for those liabilities, including policy liabilities, so allocated as successors to the dividing company, automatically, by operation of law, and not by transfer (or, for the avoidance of doubt, assumption), whether directly or indirectly; and(7) the shares in the dividing company that are to be     converted or canceled in the division are converted or canceled, and the shareholders of those shares are entitled only to the rights provided to them under the plan of division and any appraisal rights that they may have pursuant to Section 35B-45.(b) Except as provided in the articles of incorporation or bylaws of the dividing company, the division does not give rise to any rights that a shareholder, director of a domestic stock company, or third party would have upon a dissolution, liquidation, or winding up of the dividing company.(c) The allocation to a new company of capital, surplus, or other assets that is collateral covered by an effective financing statement shall not be effective until a new financing statement naming the new company as a debtor is effective under the Uniform Commercial Code.(d) Unless otherwise provided in the plan of division, the shares in and any securities of each new company shall be distributed to:(1) the dividing company, if it survives the     division; or(2) shareholders of the dividing company that do not     assert any appraisal rights that they may have pursuant to Section 35B-45, pro rata.(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/35B-40)Sec. 35B-40. Resulting company liabilities.(a) Except as otherwise expressly provided in this Section, when a division becomes effective, each resulting company is responsible, automatically, by operation of law, for:(1) individually, the liabilities, including policy     liabilities, that the resulting company issues, undertakes, or incurs in its own name after the division;(2) individually, the liabilities, including policy     liabilities, of the dividing company that are allocated to or remain the liability of the resulting company to the extent specified in the plan of division; and(3) jointly and severally with the other resulting     companies, the liabilities, including policy liabilities, of the dividing company that are not allocated by the plan of division.(b) Except as otherwise expressly provided in this Section, when a division becomes effective, no resulting company is responsible for or shall have any liability or obligation in respect of:(1) any liabilities, including policy liabilities,     that another resulting company issues, undertakes, or incurs in its own name after the division; or(2) any liabilities, including policy liabilities, of     the dividing company that are allocated to or remain the liability of another resulting company in accordance with the plan of division.(c) If a provision of a debt security, note, or similar evidence of indebtedness for money borrowed, whether secured or unsecured, indenture or other contract relating to indebtedness, or a provision of any other type of contract other than an insurance policy, annuity, or reinsurance agreement, that was issued, incurred, or executed by the domestic stock company before requires the consent of the obligee to a merger of the dividing company or treats the  merger as a default, that provision applies to a division of the dividing company as if the division was a merger.(d) If a division breaches a contractual obligation of the dividing company at the time the division becomes effective, all of the resulting companies are liable, jointly and severally, for the contractual breach, but the validity and effectiveness of the division, including, without limitation, the allocation of liabilities in accordance with the plan of division, shall not be affected by the contractual breach.(e) A direct or indirect allocation of capital, surplus, assets, or liabilities, including policy liabilities, in a division shall occur automatically, by operation of law, and shall not be treated as a distribution or transfer for any purpose with respect to either the dividing company or any of the resulting companies.(f) Liens, security interests, and other charges on the capital, surplus, or other assets of the dividing company are not impaired by the division, notwithstanding any otherwise enforceable allocation of liabilities, including policy liabilities, of the dividing company.(g) If the dividing company is bound by a security agreement governed by Article 9 of the Uniform Commercial Code as enacted in this State or in any other jurisdiction, and the security agreement provides that the security interest attaches to after-acquired collateral, each resulting company is bound by the security agreement.(h) An allocation of a policy or other liability does not:(1) except as provided in the plan of division and     specifically approved by the Director, affect the rights that a policyholder or creditor has under other law in respect of the policy or other liability, except that those rights are available only against a resulting company responsible for the policy or liability under this Section; or(2) release or reduce the obligation of a reinsurer,     surety, or guarantor of the policy or liability.(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/35B-45)Sec. 35B-45. Shareholder rights. If the dividing company does not survive the division, an objecting shareholder of a dividing company is entitled to appraisal rights and to obtain payment of the fair value of that shareholder's shares, in the same manner and to the extent provided for pursuant to Section 167.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/35B-50)Sec. 35B-50. Rules. The Director may adopt such rules as are necessary or appropriate to carry out this Article.
(Source: P.A. 100-1118, eff. 11-27-18.)
(215 ILCS 5/Art. III.5 heading) ARTICLE III 1/2.  
		ALIEN COMPANIES (215 ILCS 5/60a) (from Ch. 73, par. 672a)Sec. 60a. 
		Alien companies; Illinois State of entry.(1)  An alien
company may use Illinois as a state of entry to transact insurance in the
United States by obtaining a certificate of authority pursuant to Section
111 and maintaining in this State a deposit of assets in trust in
accordance with the provisions of Section 60b.(2) A United States branch of an alien company that uses Illinois as a
state of entry to transact insurance in the United States shall be
considered a domestic company, and as such shall be subject to all
applicable provisions of this Code.
Transactions between the United States branch and the home office of an
alien company shall not be subject to the provisions of Section 131.20 and
subsection (1) of Section 131.20a, but remittances of profits of the United
States branch to the home office of an alien company shall be considered
dividends subject to the requirements of subsection
(2) of Section 131.20a.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/60b) (from Ch. 73, par. 672b)Sec. 60b. 
		Alien companies; Illinois trusteed assets.(1) An alien company may not use Illinois as a state of entry to transact
insurance in the United States unless it maintains in this State a deposit of
assets in trust for the benefit of policyholders in the United States, which
assets shall be its "Trusteed Assets".  The United States branch of an alien
company shall maintain Trusteed Assets at least equal to (a) the sum of (i) its
minimum capital and surplus, and (ii) the amount of its liabilities to
policyholders, net of reinsurance for which credit is allowed pursuant to
Article XI, as reflected in its most recent financial statement on file with
the Director, minus (b) the sum of (i) the amount of all of its general state
deposits (including all interest accrued and due and payable
to the holder of the deposit), (ii) the amount of its special state
deposits (including all interest accrued and due and payable to the holder
of the deposit), (iii) the amount of its reinsurance recoverable on paid
losses (where such reinsurance is the type for which credit would be
allowed pursuant to Article XI), (iv) the amounts of its notes and bills
receivable, taken for premiums; (v) with respect to a company authorized to
write the kinds of insurance specified in Classes 2 and 3 of Section 4 of
this Code, the amount of its agents' balances and uncollected premiums; and
(vi) the amount of its funds held by or deposited with reinsureds.(2) Only those assets that qualify as authorized investments as provided
in Article VIII (and in Sections 131.2 and 131.3) shall be included in an alien
company's Trusteed Assets. 
		(Source: P.A. 88-45; 89-97, eff. 7-7-95.) (215 ILCS 5/60c) (from Ch. 73, par. 672c)Sec. 60c. 
		Requirements and contents of trust agreement. 
		Trust
agreements governing Trusteed Assets required by Section 60b shall satisfy
the following conditions:(1) Legal title to the Trusteed Assets shall be vested in the trustee or
trustees, and their successors lawfully appointed, in trust for the benefit
and security of policyholders of the alien company in the United States.(2) The agreement shall provide for substitution of a new trustee or
trustees, subject to the Director's approval.(3) All Trusteed Assets shall at all times be maintained as a trust fund
separate and distinct from all other assets.(4) The trustee or trustees shall maintain a record at all times
sufficient to identify the assets of the trust.(5) Withdrawal of or from the Trusteed Assets shall be made only as
provided in Section 60d.
		(Source: P.A. 85-1373.) (215 ILCS 5/60d) (from Ch. 73, par. 672d)Sec. 60d. 
		Withdrawal of Trusteed Assets. 
		(1) The trust agreement
shall provide that no withdrawals of Trusteed Assets shall be made by the
alien company or permitted by the trustee or trustees without the prior
approval of the Director, except as follows:(a) Any or all income, earnings, dividends, or interest accumulations of
the Trusteed Assets may be paid over to the United States branch of the
alien company upon request of the company or its manager, provided that no
withdrawal shall be made that reduces the Trusteed Assets below the amount
required by Section 60b.(b) For the purpose of substituting other assets authorized for
investment by Article VIII and at least equal in value (as reflected in
the most recent financial statement on file with the Director) to those
being withdrawn, if such withdrawal is requested in writing by the alien
company's (i) United States manager or (ii) other United States
representative pursuant to general or specific written authority previously
given or delegated by the alien company's board of directors or other
similar governing body, and a copy of such authority has been filed with
the trustee or trustees.(c) For the purpose of making deposits required by law in any state for
the protection of the alien company's policyholders in the United States.
The trustee or trustees shall transfer any assets so withdrawn, and in the
amount so required to be deposited in the other state, directly to the
depository required to receive such deposit in such other state.(d) For the payment of obligations due from the United States branch of
the alien company to policyholders in the United States, provided that no
withdrawal shall be made that reduces the Trusteed Assets below the amount
required by Section 60b.(e) For the purpose of withdrawing any amount of the Trusteed Assets in
excess of the amount required by Section 60b, as determined by the alien
company's then most current annual statement on file with the Director.(f) For the purpose of transferring the Trusteed Assets to an appointed
liquidator, conservator, or rehabilitator pursuant to the order of a court
of competent jurisdiction.(2) If at any time the alien company becomes insolvent, or if its
Trusteed Assets are less than required under Section 60b, the Director
shall in writing order the trustee to suspend the right of the alien
company or any other person to withdraw assets as otherwise authorized
under paragraphs (a), (b), (c), (d) and (e) of subsection (1); and the
trustee shall comply with such order until otherwise ordered by the Director.
		(Source: P.A. 85-1373.) (215 ILCS 5/60e) (from Ch. 73, par. 672e)Sec. 60e. 
		Domestication of Alien Company; definitions. 
		As used in
Sections 60e through 60i:(1) "Domestication" means the reorganization of the United States branch
of an alien company as the result of which a domestic company shall succeed
to all the business and assets and assume all the liabilities of the United
States branch of the alien company.(2) "United States branch" means the business unit through which
business is transacted within the United States by an alien company and the
assets and liabilities of such insurer within the United States pertaining
to such business.(3) "Domestic Company" means a stock or mutual insurer incorporated
under the laws of this State.
		(Source: P.A. 85-1373.) (215 ILCS 5/60f) (from Ch. 73, par. 672f)Sec. 60f. 
		Domestication procedure. 
		(1) Upon compliance with Sections 60e
through 60i, any alien company authorized to do business in this State may,
with the prior written approval of the Director, domesticate its United
States branch by entering into an agreement in writing with a domestic
company providing for the acquisition by the domestic company of all of the
assets and the assumption of all of the liabilities of the United States branch.(2) The acquisition of assets and assumption of liabilities of the
United States branch by the domestic company shall be effected by filing
with the Director an instrument of transfer and assumption in form
satisfactory to the Director and executed by the alien company and the domestic company.
		(Source: P.A. 85-1373.) (215 ILCS 5/60g) (from Ch. 73, par. 672g)Sec. 60g. 
		Domestication agreement; authorization; execution. 
		(1) The
domestication agreement referred to in Section 60f shall be authorized,
adopted, approved, signed, and acknowledged by the alien company in
accordance with the laws of the country under which it is organized.(2) In the case of a domestic company, the domestication agreement shall
be approved, adopted, and authorized by its board of directors and executed
by its president or any vice president and attested by its secretary or
assistant secretary under its corporate seal.
		(Source: P.A. 85-1373.) (215 ILCS 5/60h) (from Ch. 73, par. 672h)Sec. 60h. 
		Director's approval of domestication agreement. 
		An executed
counterpart of the
domestication agreement, together with certified copies of the corporate
proceedings of the domestic company and the alien company, approving,
adopting and authorizing the execution of the domestication agreement,
shall be submitted to the Director for approval.  The Director shall
thereupon consider the agreement, and, if the Director finds that the same
is in accordance with the provisions hereof and that the interests of
policyholders of the United States branch of the alien insurer and of the
domestic company are not materially adversely affected, the Director shall
approve the domestication agreement and authorize the consummation thereof
in compliance with the provisions of Section 60i.  The Director shall
approve or disapprove the domestication agreement within 60 days
after it is submitted to the Director.
		(Source: P.A. 85-1373.) (215 ILCS 5/60i) (from Ch. 73, par. 672i)Sec. 60i. 
		
		Consummation of domestication; transfer of assets and
deposits.  (1) Upon the filing with the Director of a certified copy of
the instrument of transfer and assumption pursuant to which a domestic
company succeeds to the business and assets of the United States branch of
an alien company and assumes all its liabilities, the domestication of the
United States branch shall be deemed to be effective; and thereupon all the
rights, franchises, and interests of the United States branch in and to
every species of property, real, personal, and mixed, and things in actions
thereunder belonging shall be deemed as transferred to and vested in the
domestic company, and simultaneously therewith the domestic company shall
be deemed to have assumed all of the liabilities of the United States
branch.  The domestic company shall be considered as having the age as the
oldest of the 2 parties to the domestication agreement for purposes of
complying with the requirements of laws relating to age of company.(2) All deposits of the United States branch held by the Director, or by
state officers or other state regulatory agencies pursuant to requirements
of state laws, shall be deemed to be held as security for the satisfaction
by the domestic company of all liabilities to policyholders within the
United States assumed from the United States branch; and such deposits
shall be deemed to be assets of the domestic company and shall be reported
as such in the annual financial statements and other reports which the
domestic company may be required to file.  Upon the ultimate release by any
such state officer or agency of any such deposits, the securities and cash
constituting such released deposit shall be delivered and paid over to the
domestic company as the lawful successor in interest to the United States branch.(3) Contemporaneously with the consummation of the domestication of the
United States branch, the Director shall direct the trustee, if any, of the
U. S. branch's Trusteed Assets to transfer and deliver to the domestic
company all assets, if any, held by such trustee.
		(Source: P.A. 85-1373.) (215 ILCS 5/60j) (from Ch. 73, par. 672j)Sec. 60j. 
		Trustees of alien companies. 
		(1) The directors of an alien
company may appoint citizens or
corporations of the United States as its trustees to hold funds and assets
in trust for the benefit of the policyholders and creditors of the company
in the United States. A certified copy of the record of such appointment
and of the deed of trust, approved by the Director, shall be filed with
him.(2) The Director may examine such trustee and any officers and agents,
books and papers thereof, with respect to the affairs of such alien company
in the same manner as he may examine officers, agents, books, papers and
affairs of companies.(3) The funds and assets so held by such trustees shall, with the
deposits otherwise made by the United States branch of the alien company in the
United States together with
loans in connection with its policies to policyholders,
and all other funds and assets held by the United States branch of the
alien company in the United States,
constitute
the assets of the company for the purpose of making its financial
statements required by this Code.  For purposes of making financial
statements required by this Code, the liabilities of an alien company shall
be limited to only those liabilities incurred in connection with its United
States business.(4) In applying the risk limitations as provided in Section 144 or any
limit on premium volume, the Director shall calculate such limitations
based solely on the alien company's assets in the United States that,
pursuant to subsection (3) of this Section, constitute the assets of the
company for purposes of making its financial statements required by this
Code and its surplus as regards policyholders as reflected in the most
recent financial statement on file with the Director.
		(Source: P.A. 85-1373.)
(215 ILCS 5/Art. III heading) ARTICLE III.  
		DOMESTIC MUTUAL COMPANIES
(Article scheduled to be repealed on January 1, 2027) (215 ILCS 5/36) (from Ch. 73, par. 648)(Section scheduled to be repealed on January 1, 2027)Sec. 36. 
		Scope of
Article. 
		This Article shall apply to all domestic mutual companies transacting or
being organized to transact any of the kinds of business enumerated in
Section 4.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/37) (from Ch. 73, par. 649)(Section scheduled to be repealed on January 1, 2027)Sec. 37. 
		Name. 
		
		The corporate name of any company organized under this Article shall
contain the word "Mutual" and shall not be the same as, or deceptively
similar to, the name of any domestic company, or of any foreign or alien
company authorized to transact business in this State.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/38) (from Ch. 73, par. 650)(Section scheduled to be repealed on January 1, 2027)Sec. 38. 
		Principal
office and place of business. 
The principal office of any company
organized under this Article shall be located in this State. Unless the
Director has approved otherwise, the principal place of business of any
company organized under this Article shall be located in this State.
		(Source: P.A. 82-498.) (215 ILCS 5/39) (from Ch. 73, par. 651)(Section scheduled to be repealed on January 1, 2027)Sec. 39. 
		Authorized
kinds of business.(1) Companies may be organized under this Article either for the purpose
of transacting any of the kind or kinds of business enumerated in Class 1
of Section 4, or for the purpose of transacting any of the kind or kinds of
business enumerated in Classes 2 and 3 of that Section.(2) A domestic company may, notwithstanding limitations otherwise
applicable, and provided it maintains books and records which account for
such business, engage directly in any of the following businesses: (a)
rendering investment advice; (b) rendering services related to the
functions involved in the operation of its insurance business including,
but not limited to, actuarial, loss prevention, safety engineering, data
processing, accounting, claims, appraisal and collection services; (c)
acting as administrative agent for a health or welfare program; (d) any
other business activity reasonably complementary or supplementary to its
insurance business; either to the extent necessarily or properly incidental
to the insurance business the company is authorized to do in this State or
to the extent approved by the Director and subject to any limitations he
may prescribe for the protection of the interests of the policyholders of
the company taking into account the effect of such business on the
company's existing insurance business and its surplus, the proposed
allocation of the estimated cost of such business and the risks inherent in
such business as well as relative advantages to the company and its
policyholders of conducting such business directly instead of through a
subsidiary.
		(Source: P.A. 77-673.) (215 ILCS 5/40) (from Ch. 73, par. 652)(Section scheduled to be repealed on January 1, 2027)Sec. 40. 
		Directors or trustees.(1) After the date of incorporation, as
determined by Section 48, and until the first meeting of the members, the
incorporators shall have the powers and perform the duties ordinarily
possessed and exercised by a board of directors.(2) Upon the issuance of a certificate of authority to a company
organized under this Article, the corporate powers shall be exercised by,
and its business and affairs shall be under the control of, a board of
directors or trustees composed of not less than 3 nor more than
21 natural persons who are members and who are at least 18
years of age and at least 3 of whom are residents and citizens of this
State.
After June 30, 2002, at least 20%, but not less than one,
of the directors of a company that is not subject to Section 131.20b
shall be persons who are not officers or employees of the company.  A person
convicted of a felony may not be a director, and all directors shall be of
good character and known professional, administrative, or business ability,
such
business ability to include a practical knowledge of insurance, finance, or
investment.
The first board of directors or trustees shall be elected at the
first meeting of the members, and all directors or trustees shall be
elected annually thereafter, except only as provided in subsection (3).(3) The articles of incorporation may provide for the division of the
board into classes, as nearly equal in number as possible, and fix the term
of office for each class, but no term shall be for more than 3 years.(4) Meetings of the board of directors or trustees, regular or special,
may be held either within or without the State. Meetings of the board of
directors or trustees shall be upon such notice as the by-laws may
prescribe. Attendance of a director or trustee at any meeting shall
constitute a waiver of notice of such meeting except where a director or
trustee attends the meeting for the express purpose of objecting to the
transaction of any business because the meeting is not lawfully called or
convened. Neither the business to be transacted at, nor the purpose of, any
regular or special meeting of the board of directors or trustees need be
specified in the notice or waiver of notice of such meeting, unless
expressly otherwise provided by this Code.  Unless specifically
prohibited by the articles of incorporation or by-laws, members of the
board of directors or of any committee of the board of directors may
participate in and act at any meeting of such board or committee through
the use of a conference telephone or other communications equipment by
means of which all persons participating in the meeting can hear each other.
Participation in such meeting shall constitute attendance and presence in
person at the meeting of the person or persons so participating.
Unless specifically prohibited by the articles of
incorporation or by-laws, members of the board of directors or of any
committee of the board of directors may take action without a meeting, if a
consent in writing setting forth the action so taken shall be signed by all
of the directors entitled to vote with respect to the subject matter
thereof, or by all of the members of such committee, as the case may be.
The consent shall be evidenced by one or more written approvals, each of
which sets forth the action taken and bears the signature of one or more
directors or committee members.  All approvals evidencing the consent shall
be filed in the company's corporate records.  The action taken shall be
effective when all of the directors, or members of the committee, have
approved the consent unless the consent specifies a different effective date.(5) A company may indemnify any person in conformance with subsection
(7) of Section 10.
		(Source: P.A. 92-140, eff. 7-24-01.) (215 ILCS 5/41) (from Ch. 73, par. 653)(Section scheduled to be repealed on January 1, 2027)Sec. 41. 
		Executive
committee. 
		If the by-laws so provide, the board of directors or trustees, by a
resolution adopted by a majority of the whole board, may designate three or
more of their number to constitute an executive committee, which committee
shall, to the extent provided in the resolution or in the by-laws, have and
exercise, during the interim between the meetings of the board, all of the
authority of the board in the management of the company, but the
designation of such committee shall not relieve the board or any member
thereof of any responsibility imposed by law.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/42) (from Ch. 73, par. 654)(Section scheduled to be repealed on January 1, 2027)Sec. 42. 
		By-laws.(1) The incorporators shall adopt by-laws for the company which shall
not be altered, amended, or repealed prior to the issuance of a certificate
of authority to the company without the approval of the Director. The
by-laws shall provide that each policyholder of the company shall be a
member of the company and shall be entitled to one or more votes in person
or by proxy, based upon the amount of insurance in force, the number of
policies held or the amount of premium paid, as shall be stated in such
by-laws.(2) After a certificate of authority is issued to the company, the power
to make, alter, amend or repeal by-laws shall be vested in the board of
directors or trustees unless reserved to the members by the articles of
incorporation.(3) The by-laws of a mutual legal reserve life company shall provide for
a specific premium and that there shall be no assessment or contingent
liability on the part of the member.(4) The by-laws of a mutual company other than life shall provide(a) for a specific premium or premium deposit; and(b) except as provided in section 55, for a     contingent liability of each member in an amount not less than one nor more than ten times the specific premium or premium deposit stated in the policy.		(Source: Laws 1937, p. 696.) (215 ILCS 5/43) (from Ch. 73, par. 655)(Section scheduled to be repealed on January 1, 2027)Sec. 43. 
		Minimum surplus requirements.(1) No company organized after
December 31, 1985 under this Article
may receive a certificate of authority from the Director to issue
policies or contracts of insurance until it has complied with the
requirements in respect of original surplus applicable to the class or
classes and clause or clauses of section 4 describing the kind or kinds
of insurance it is organized to write, as set forth in the following
table:
		Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), a surplus of at     least $2,000,000; more than one clause, a surplus of at least $2,000,000.
		Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), a surplus of at least $2,000,000; more than one clause, a surplus of at least $2,000,000.
		Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $1,000,000.
		Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, a surplus of at least $2,000,000.
		Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $250,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(2) Every company subject to this Article and organized on or after
June 28, 1965 must have and at all times maintain a minimum surplus
equal to 2/3 of the original surplus required for that particular
company at the time it was organized.  Any such company
organized prior to June 28, 1965 must have and at all times maintain a
minimum surplus equal to that which would have been required for that
particular company at the time it was issued a Certificate of Authority.
Any company which has added any clause or clauses must have and at all
times maintain minimum surplus not less than the minimum surplus requirement
applicable to the class or classes and clause or clauses of Section 4 at
the time that the additional clause or clauses are authorized. Any company
organized prior to October 1, 1972 must have and at all times maintain, in
addition to the minimum surplus required to be maintained by that
particular company, additional minimum surplus of not less than $300,000.(3) Any company organized prior to January 1, 1986 and regulated under
this Article, in addition to the minimum surplus which is required by
paragraph (2) of this Section must have by December 31, 1986 and at all
times maintain until December 31, 1990 additional minimum surplus of $200,000.(4) Provided, however, mutual companies organized prior to October 1, 1972
and authorized to engage only in insurance business as specified in Class
2(f) of Section 4 on an assessable basis shall not be required to establish
an additional minimum surplus as provided herein.(5) Subsections (2) and (3) shall be applicable until December 31, 1990 for all
companies organized prior to January 1, 1986; thereafter, such
companies must have and maintain surplus as required by subsections (7) and (8).(6) Every company subject to this Article and organized after December
31, 1985 under this Article must maintain minimum surplus applicable to the
class or classes and clause or clauses of Section 4 describing the kind or
kinds of insurance which it is authorized to write, as follows:
		Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), a surplus of at     least $1,500,000; more than one clause, a surplus of at least $1,500,000.
		Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), a surplus of at least $1,500,000; more than one clause, a surplus of at least $1,500,000.
		Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $700,000.
		Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, a surplus of at least $1,500,000.
		Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $150,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(7) Any company organized  prior to January 1, 1986, regulated
under this Article must have by December 31, 1990, and thereafter maintain
until December 31, 1995, surplus not less than the minimum applicable to the class or
classes and clause or clauses of Section 4 describing the kind or kinds of
insurance which it is authorized to write, as follows:
		Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), a surplus of at     least $1,200,000; more than one clause, a surplus of at least $1,200,000.
		Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), a surplus of at least $1,200,000; more than one clause, a surplus of at least $1,200,000.
		Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $600,000.
		Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, a surplus of at least $1,200,000.
		Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $100,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(8) Any company organized  prior to January 1, 1986, regulated
under this Article must have by December 31, 1995, and thereafter maintain
at all times, surplus not less than the minimum applicable to the class or
classes and clause or clauses of Section 4 describing the kind or kinds of
insurance which it is authorized to write, as follows:
		Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), a surplus of at     least $1,500,000; more than one clause, a surplus of at least $1,500,000.
		Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), a surplus of at least $1,500,000; more than one clause, a surplus of at least $1,500,000.
		Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $700,000.
		Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, a surplus of at least $1,500,000.
		Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $150,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(9) The Director shall take action under Section 60 of this Code
against any company which fails to maintain the minimum
surplus required by this section. The words "minimum surplus" mean the
"surplus as regards policyholders", as it appears on the annual
statement of a mutual company on the usual and proper annual statement
form prescribed by the National Association of Insurance Commissioners.
		(Source: P.A. 84-934.) (215 ILCS 5/44) (from Ch. 73, par. 656)(Section scheduled to be repealed on January 1, 2027)Sec. 44. 
		Articles of incorporation. 
		Any one or more natural persons, at least one of whom is a resident of
Illinois, who desire to form a company under this Article, shall sign and
acknowledge before an officer authorized to take acknowledgments articles
of incorporation in duplicate. The articles shall set forth(a) the corporate name;(b) the location of its principal office;(c) the period of duration, which may be perpetual;(d) the class or classes of insurance business, as     provided in Section 4, in which it proposes to engage, and the kinds of insurance in each class it proposes to write;(e) the name of the governing body of the company,     whether board of trustees or board of directors, and the number, the terms of office of and the manner of electing the members of the board; and(f) such other provisions not inconsistent with law     as may be deemed by the incorporators to be necessary or advisable.		(Source: P.A. 84-502.) (215 ILCS 5/45) (from Ch. 73, par. 657)(Section scheduled to be repealed on January 1, 2027)Sec. 45. 
		Documents to be delivered to Director by incorporators. 
		Upon the execution of the articles of incorporation, there shall be
delivered to the Director(a) duplicate originals of the articles of     incorporation;(b) a copy of the by-laws adopted by the     incorporators;(c) 2 organization bonds, or the cash or securities,     provided for in Section 46;(d) the form of guaranty fund agreements and of     guaranty capital shares, if any, as provided in Section 56 to be issued in connection with solicitation of surplus; and(e) the form of escrow agreement for the deposit of     cash or securities.		(Source: P.A. 84-502.) (215 ILCS 5/45.1) (from Ch. 73, par. 657.1)(Section scheduled to be repealed on January 1, 2027)Sec. 45.1. 
		Escrow agreements. 
		The company shall designate a bank or
trust company with whom it will enter into an escrow agreement, which
agreement shall state that the organization surplus shall be placed in
escrow and remain so, until an organization examination has been completed.
When the examination has been completed the escrow agent is authorized to
purchase securities for deposit as required by Section 53 and forward them
to the Director. The escrow agent is authorized to release the balance of
the escrowed funds to the company only upon notification that a Certificate
of Authority or similar documentation has been issued by the Director.
		(Source: P.A. 84-502.) (215 ILCS 5/46) (from Ch. 73, par. 658)(Section scheduled to be repealed on January 1, 2027)Sec. 46. 
		Organization bonds. 
		
		The incorporators shall deliver to the Director two bonds in the same
penalties and containing the same provisions, so far as applicable, as the
bonds required for the organization of a stock company by Section 16, for
the use and benefit of the State of Illinois and subscribers, members and
creditors, or in lieu of delivering such bonds, the incorporators may
deposit cash or securities of the same kind and amount on the same terms
and conditions, so far as applicable, as provided by said Section.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/47) (from Ch. 73, par. 659)(Section scheduled to be repealed on January 1, 2027)Sec. 47. 
		Publication
of intention.(1) Upon compliance with the provisions of Section 45, the
incorporators shall cause to be published in a newspaper of general
circulation in this State, in the county where the principal office of the
company is to be located, once each week for three consecutive weeks, a
notice setting forth(a) their intent to form the company and the proposed     name thereof;(b) the class or classes of insurance business in     which the company proposes to engage; and(c) the address where its principal office shall be     located.(2) Proof of such publication made by a certificate of the publisher or
his agent shall be delivered to the Director.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/48) (from Ch. 73, par. 660)(Section scheduled to be repealed on January 1, 2027)Sec. 48. 
		Approval of
documents. 
The documents and papers so delivered to the Director may be approved or
disapproved by the Director and the incorporators are entitled to a hearing
in the same manner as provided in Section 18 in the case of documents
delivered for approval in connection with the organization of stock
companies. If the documents and papers so delivered are approved by the
Director, the Director must file in his office the bylaws, bond or securities
and one of the duplicate
originals of the articles of incorporation, and endorse upon the other
duplicate original his approval and the month, day and year of approval and
deliver it to the incorporators. The company is deemed to be fully
organized on the date of the approval of the articles of incorporation by
the Director, and that date is the date of incorporation of the company.
		(Source: P.A. 82-498.) (215 ILCS 5/49) (from Ch. 73, par. 661)(Section scheduled to be repealed on January 1, 2027)Sec. 49. 
		Recording
of articles of incorporation. 
The duplicate original of the articles of incorporation returned by the
Director shall be filed for record, within 15 days after it is
delivered to the company, in the office of the recorder of the
county where the principal office of the company is to be located.
		(Source: P.A. 83-358.) (215 ILCS 5/50) (from Ch. 73, par. 662)(Section scheduled to be repealed on January 1, 2027)Sec. 50. 
		Authority
to solicit subscriptions to surplus.(1) Upon the approval of the articles of incorporation by the Director
he shall issue to the company a permit which shall expire at the end of two
years from its date, authorizing it to solicit subscriptions to surplus in
accordance with this Code and to do such other acts as may be necessary and
proper in order to complete its organization and to entitle it to receive a
certificate of authority to transact an insurance business.(2) If the Director finds that any company in process of organization
has failed to comply with, or has violated any provision of the Code, he
may proceed against the company under Article XIII, and may after notice
and hearing revoke the permit issued to it under subsection (1) of this
Section.
		(Source: Laws 1951, p. 1565.) (215 ILCS 5/51) (from Ch. 73, par. 663)(Section scheduled to be repealed on January 1, 2027)Sec. 51. 
		Issuance of
certificate of authority. 
		When the Director has been notified that the company has the required
surplus as set forth in Section 43 of this Article as now and hereafter
amended, he shall conduct an examination of the company. If he finds that
the organization is complete and that all of the requirements of this Code
have been met he shall issue to such company a certificate of authority to
transact the kind or kinds of business specified therein. No company shall
transact any business of insurance in this State until it shall have
received such certificate of authority as herein prescribed nor any
business of insurance not specified in such certificate of authority.
		(Source: Laws 1967, p. 1808.) (215 ILCS 5/52) (from Ch. 73, par. 664)(Section scheduled to be repealed on January 1, 2027)Sec. 52. 
		Voluntary
surrender of articles of incorporation. 
		At any time prior to the issuance of the certificate of authority to the
company the articles of incorporation may be voluntarily surrendered and
the company dissolved by written agreement filed with the Director, signed
by a majority of the incorporators. Such surrender and dissolution shall
become effective only upon the approval thereof by the Director. The
Director shall approve the surrender of such articles of incorporation if
upon investigation he shall find that(a) no insurance business has been transacted by the     company;(b) all sums of money or securities, if any,     collected upon applications or subscriptions, have been returned to the applicants or subscribers; and(c) all obligations of the company have been paid or     discharged.		(Source: Laws 1937, p. 696.) (215 ILCS 5/53) (from Ch. 73, par. 665)(Section scheduled to be repealed on January 1, 2027)Sec. 53. Deposit.(a) A company subject to the provisions of this Article shall make and
maintain with the Director for the protection of all creditors,
policyholders and policy obligations of the company, a deposit of
securities having a
fair market value equal to the minimum surplus required to be maintained
under Section 43.
The Director may release the required deposit of securities
upon receipt of
an order of a court having proper jurisdiction or
upon: (i)
certification by the company that it has no outstanding creditors,
policyholders, or policy obligations in effect and no plans to engage in the
business of insurance; (ii) receipt of a lawful resolution of the company's
board of directors effecting the surrender of its articles of incorporation for
administrative dissolution by the Director; and (iii) receipt of the name and
forwarding address for each of the final officers and directors of the company,
together with a plan of dissolution approved by the Director.(b) All deposits by insurers subject to this Article must be limited to the following types:(1) United States government bonds, notes, and bills     for which the full faith and credit of the government of the United States is pledged for the payment of principal and interest.(2) United States public bonds and notes of any state     or of the District of Columbia, or Canadian public bonds and notes of any province thereof, for which the full faith and credit of the issuer has been pledged for the payment of principal and interest.(3) United States and Canadian county, provincial,     municipal, and district bonds and notes for which the issuer has lawful authority to levy taxes or make assessments for the payment of principal and interest.(4) Bonds and notes of any federal agency that are     guaranteed as to payment of principal and interest by the United States.(5) International development bank bonds, bonds     issued by the State of Israel and sold through the Development Corporation for Israel or its successor entities, and notes issued, assumed, and guaranteed by the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, or the International Finance Corporation.(6) Corporate bonds and notes of any private     corporations that are not affiliates or subsidiaries of the insurer, which corporations are organized under the laws of the United States, Canada, any state, the District of Columbia, any territory or possession of the United States, or any province of Canada.(7) Certificates of deposit.(c) To be eligible for deposit under subsection (b), any bond or note must have the following characteristics:(1) The bond or note must be interest-bearing or     interest-accruing, and the insurer must be the exclusive owner of the interest accruing thereon and entitled to receive the interest for its account.(2) The issuer must be in a solvent financial     condition and the bond or note must not be in default.(3) The bond, note, or debt of the issuing country     must be rated in one of the 4 highest classifications by an established, nationally recognized investment rating service or must have been given a rating of 1 by the Securities Valuation Office of the National Association of Insurance Commissioners.(4) The market value of the bond or note must be     readily ascertainable or the value of the bond or note must be obtainable by the insurer or its custodian from the issuer's fiscal agent.(5) The bond or note must be the direct obligation of     the issuer.(6) The bond or note must be stated in United States     dollar denominations.(7) The bond or note must be eligible for book-entry     form on the books of the Federal Reserve's book-entry system or in a depository trust clearing system or on the books of the issuer's transfer agent or evidenced by a certificate delivered to the insurer or its custodian.(d) To be eligible for deposit under item (7) of subsection (b), a certificate of deposit must have the following characteristics:(1) The certificate of deposit must be issued by a     bank, savings bank, or savings association that is organized under the laws of the United States, of this State, or of any other state and that has a principal office or branch office in this State that is authorized to receive deposits in this State.(2) The certificate of deposit must be     interest-bearing and may not be issued in discounted form.(3) The certificate of deposit must be issued for a     period of not less than one year.(4) The issuing bank, savings bank, or savings     association must agree to the terms and conditions of the Director regarding the rights to the certificate of deposit and must have executed a written certificate of deposit agreement with the Director. The terms and conditions of the agreement shall include, but need not be limited to:(A) Exclusive authorized signature authority for         the chief financial officer.(B) An agreement to pay, without protest, the         proceeds of its certificate of deposit to the Director within 30 business days after presentation.(C) A prohibition against levies, setoffs,         survivorship, or other conditions that might hinder the Director's ability to recover the full face value of a certificate of deposit.(D) Instructions regarding interest payments,         renewals, taxpayer identification, and early withdrawal penalties.(E) An agreement to be subject to the         jurisdiction of the courts of this State, or those of the United States that are located in this State, for the purposes of any litigation arising out of this Section.(F) Such other conditions as the Director         requires.(e) The Director may refuse to accept certain securities or refuse to accept the reported market value of certain securities offered pursuant to this Section in order to ensure that sufficient cash and securities are on hand to meet the purposes of the deposit. In making a refusal under this subsection (e), the guidelines for use of the Director may include, but need not be limited to, whether the market value of the securities cannot be readily ascertained and the lack of liquidity of the securities. Securities refused under this subsection (e) are not acceptable as deposits.(f) All deposits required of a domestic insurer pursuant to the laws of another state, province, or country must be comprised of securities of the kinds required under subsection (b), having the characteristics required under subsections (c) and (d), and permitted by the laws of the other state, province, or country, except common stocks, mortgages or loans of any kind, real estate investment trust funds or programs, commercial paper, and letters of credit.(Source: P.A. 98-110, eff. 1-1-14; 98-969, eff. 1-1-15.) (215 ILCS 5/54) (from Ch. 73, par. 666)(Section scheduled to be repealed on January 1, 2027)Sec. 54. 
		Dividends.(1) The board of directors or trustees of any company subject to the
provisions of this Article doing the kind or kinds of insurance business
described in Class 1 of Section 4 may declare dividends to its members.(2) The board of directors or trustees of any company subject to the
provisions of this article doing any of the kind or kinds of business
described in Classes 2 and 3 of Section 4 may from time to time fix and
determine the amount of dividends or of unabsorbed or unused premiums or
premium deposits to be returned to each policyholder, and may for such
purpose establish reasonable classifications or groupings of policyholders
and plans for the distribution of such refunds upon each general kind of
insurance or groups or classes thereof and may establish reasonable
territorial divisions upon policies expiring during a fixed period, after
retaining sufficient funds for the payment by the company of all
outstanding policy and other obligations.(3) The declaration and payment of dividends by any company subject to
the provisions of this Article shall be subject to the following
conditions:(a) No dividend shall be declared or paid at any time     except out of earned, as distinguished from contributed, surplus, nor when the surplus of the company is less than the surplus required in section 43 for the kind or kinds of insurance the company is authorized to write, nor when the payment of such dividend will reduce its surplus to less than such amount.(b) No dividend shall be declared or paid contrary to     any restriction contained in the articles of incorporation.		(Source: P.A. 86-753.) (215 ILCS 5/55) (from Ch. 73, par. 667)(Section scheduled to be repealed on January 1, 2027)Sec. 55. 
		Contingent
liability policy provisions. 
In cases where contingent liability of members is provided for, the
provision therefor shall be plainly stated in each policy with prominence
equal to the indemnifying clause. In addition, each such assessable policy,
other than an accident or health policy, issued or delivered in this State
insuring against the hazards included in Class 2, subparagraph (b) of
Section 4 after September 1, 1967 must have the following statement printed
in bold face on the face of the policy: "This is an assessable policy". If
a mutual company other than life has a surplus equal to the capital
and surplus required in Section 13, for a stock company transacting the
same kind or kinds of business, such company may issue policies without
contingent liability. Any such mutual company which shall have issued
policies without contingent liability after the acquisition of such surplus
may continue to do so as long as it maintains a surplus equal to the
capital and surplus of a stock company doing the same kind or kinds
of business, but no company may issue such policies except during such time
as it shall continue to have such a surplus, but any company which is,
immediately prior to July 1, 1965, issuing policies without contingent
liability, may continue to do so as long as it maintains a surplus equal in
amount to that which would have been required immediately prior to July 1,
1965. After July 18, 1967, no company subject to this Article may make,
levy or impose upon its members any assessment based on their contingent
liability unless ordered to do so by the Director under Section 60 of this Code.
		(Source: P.A. 86-753.) (215 ILCS 5/56) (from Ch. 73, par. 668)(Section scheduled to be repealed on January 1, 2027)Sec. 56. 
		Accumulation of guaranty fund or guaranty capital. 
		Any company
subject to the provisions of this Article, may provide for a surplus either
by accumulating a guaranty fund or a guaranty capital as follows:(a) Guaranty fund.  It may accumulate a guaranty fund     by borrowing money at an interest rate either (1) at a fixed rate not exceeding the corporate base rate as reported by the largest bank (measured by assets) with its head office located in Chicago, Illinois, in effect on the first business day of the month in which the loan document is executed, plus 3% per annum or (2) at a variable rate equal to the corporate base rate determined on the first business day of each month during the term of the loan plus 2% per annum.  In no event shall the variable interest rate for any month exceed the initial rate for the loan or advance by more than 10% per annum.  The insurer shall elect at the time of execution of the loan or advance agreement whether the interest rate is to be fixed or floating for the term of the agreement.  An agreement issued after the insurer has received its Certificate of Authority shall first be approved by resolution of the Board of Directors and the Director.  The agreement shall provide that such loan and the interest thereon shall be repaid only out of the surplus of such company in excess of the greater of the original or minimum surplus required of such company by Section 43.  Such excess of surplus shall be calculated upon the fair market value of the assets of the company, and such guaranty loan fund shall constitute and be enforceable as a liability of the company only as against such excess of surplus. Any unpaid balance of such guaranty fund loan shall be reported in the annual statement to be filed with the Director.  Repayment of principal or payment of interest may be made only with the approval of the Director when he or she is satisfied that the financial condition of the company warrants that action, but approval may not be withheld if the company shall have and submit satisfactory evidence of surplus of not less than the amount stipulated in the repayment of principal or interest payment clause of the agreement.(b) Guaranty capital.  It may in addition to any     advances provided for herein, establish and maintain a guaranty capital divided into shares having a par value of not more than $100 nor less than $5 each.  The guaranty capital shall be applied to the payment of losses only when the company has exhausted its assets in excess of unearned premium reserve and other liabilities; and when thus impaired the directors may make good the whole or any part of it by assessment on its policyholders as provided for in Section 60.  Said guaranty capital may, by vote of the board of directors of the company and the written consent of the Director be reduced or retired by any amount, provided that the net surplus of the company together with the remaining guaranty capital shall equal or exceed the amount of surplus required by Section 43, and due notice of such proposed action on the part of the company shall be published in a newspaper of general circulation, approved by the Director, not less than once each week for at least 4 consecutive weeks before such action is taken.  No company with a guaranty capital, which has ceased to do business, shall divide any part of its assets or guaranty capital among its shareholders unless it has paid or it has otherwise been released from its policy obligations.  The holders of the shares of such guaranty capital shall be entitled to interest either (1) at a fixed rate not exceeding the corporate base rate as reported by the largest bank (measured by assets) with its head office located in Chicago, Illinois, in effect on the first business day of the month in which the loan document is executed, plus 3% per annum or (2) at a variable rate equal to the corporate base rate determined on the first business day of each month during the term of the loan plus 2% per annum.  In no event shall the variable interest rate for any month exceed the initial rate for the loan or advance by more than 10% per annum.  The insurer shall elect at the time of issuance of the shares whether the interest rate is to be fixed or floating for the term of the agreement.  Such interest shall be payable from the surplus in excess of the surplus required of the company by Section 43.  In the event of dissolution and liquidation of such a company after the retirement of all outstanding obligations of the company, the holders of such shares of guaranty capital shall be entitled to a preferential right in the assets of such company equal to the par value of their share of such guaranty capital before any distribution to members.		(Source: P.A. 90-381, eff. 8-14-97; 91-357, eff. 7-29-99.) (215 ILCS 5/57) (from Ch. 73, par. 669)(Section scheduled to be repealed on January 1, 2027)Sec. 57. 
		Amendment of articles of incorporation.(1) A company subject to the provisions of this Article may amend its
articles of incorporation in any respect not in violation of law, but may
not amend such articles to insert any provision prohibited, or to delete
any provision required, in original articles of incorporation for a similar
domestic company organized under this Code except as otherwise provided in
Section 59.1 or 59.2 of this Code.(2) Amendments to the articles of incorporation for the various classes
of companies shall be made in the following manner:(a) Class 1. The board of directors or trustees shall     adopt a resolution setting forth the proposed amendment and directing that it be submitted to a vote of the policyholders at either an annual or special meeting. Written or printed notice shall be given to policyholders in the same manner as is required in the case of notices to shareholders of stock companies by Section 29. The proposed amendment shall be adopted upon receiving the affirmative vote of 2/3 of the policyholders present in person or by proxy at such meeting. Restated articles of incorporation setting forth the articles of incorporation as amended shall thereupon be executed in duplicate by the company or its president or vice president, and its secretary or assistant secretary, and duplicate originals of such restated articles of incorporation and an affidavit of the secretary of the company setting forth the facts to show that this section has been fully complied with shall be delivered to the Director.(b) Classes 2 and 3. The board of directors or     trustees shall adopt the amendment and deliver to the Director duplicate original restated articles of incorporation setting forth the articles of incorporation as amended and a copy of the resolution of the board of directors or trustees adopting such an amendment certified to by the secretary of the company.(3) The restated articles of incorporation of any company subject to the
provisions of this article so delivered to the Director may be approved or
disapproved by the Director in the same manner as the original articles of
incorporation. If approved, the Director shall place on file in his office all
of the documents so delivered to him except one of the duplicate originals of
the restated articles of incorporation, and shall endorse upon such duplicate
original his approval thereof and the month, day and year of such approval, and
deliver it to the company. The amendment shall be effective as of the date of
the approval thereof by the Director. Such duplicate original shall be filed
for record, within 15 days after it has been delivered to the company, in the
office of the recorder of the county where the principal office of the company
is located.
		(Source: P.A. 90-810, eff. 1-6-99.) (215 ILCS 5/58) (from Ch. 73, par. 670)(Section scheduled to be repealed on January 1, 2027)Sec. 58. 
		Governmental agencies and corporations may be members. 
		
		Any government or governmental agency, state or political subdivision
thereof, public or private corporation, board, association, estate, trustee
or fiduciary in this State or elsewhere, may make application, enter into
agreements for and hold policies or contracts in or with, and be a member
of, any domestic, foreign or alien mutual company subject to the provisions
of this Code. Any officer, representative, trustee, receiver or legal
representative of any such member or policyholder, shall be recognized as
acting for or on its behalf for the purpose of such contract or membership,
but shall not be personally liable upon such contract by reason of acting
in such representative capacity.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/59) (from Ch. 73, par. 671)(Section scheduled to be repealed on January 1, 2027)Sec. 59. 
		Reinsurance
agreements. 
		Unless the contract provides otherwise any reinsurance agreement
effected by any company subject to the provisions of this Article upon the
whole or any part of any risk shall be without contingent liability or
participation or membership.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/59.1)(Section scheduled to be repealed on January 1, 2027)Sec. 59.1. Conversion to stock company.(1) Definitions. For the purposes of this Section, the following terms shall
have the meanings indicated:(a) "Eligible member" is a member as of the date the     mutual company's board of directors adopts a plan of conversion.  A person insured under a group policy is not an eligible member, unless:(i) the person is insured or covered under a         group life policy or group annuity contract under which funds are accumulated and allocated to the respective covered persons;(ii) the person has the right to direct the         application of the funds so allocated;(iii) the group policyholder makes no         contribution to the premiums or deposits for the policy or contract; and(iv) the mutual company has the names and         addresses of the persons covered under the group life policy or group annuity contract.A person whose policy is issued after the board of     directors adopts the plan but before the plan's effective date is not an eligible member but shall have those rights set forth in subsection (10) of this Section.(b) "Converted stock company" is an Illinois     domiciled stock company that converted from an Illinois domiciled mutual company under this Section.(c) "Plan of conversion" or "plan" is a plan adopted     by an Illinois domestic mutual company's board of directors under this Section to convert the mutual company into an Illinois domiciled stock company.(d) "Policy" includes an annuity contract.(e) "Member" means a person who, on the records of     the mutual company and pursuant to its articles of incorporation or bylaws, is deemed to be a holder of a membership interest in the mutual company.(2) Adoption of the plan of conversion by the board of directors.(a) A mutual company seeking to convert to a stock     company shall, by the affirmative vote of two-thirds of its board of directors, adopt a plan of conversion consistent with the requirements of subsection (6) of this Section.(b) At any time before approval of a plan by the     Director, the mutual company by the affirmative vote of two-thirds of its board of directors, may amend or withdraw the plan.(3) Approval of the plan of conversion by the Director of Insurance.(a) Required findings. After adoption by the mutual     company's board of directors, the plan shall be submitted to the Director for review and approval.  The Director shall approve the plan upon finding that:(i) the provisions of this Section have been         complied with;(ii) the plan will not prejudice the interests of         the members; and(iii) the plan's method of allocating         subscription rights is fair and equitable.(b) Documents to be filed.(i) Prior to the members' approval of the plan, a         mutual company seeking the Director's approval of a plan shall file the following documents with the Director for review and approval:(A) the plan of conversion, including the             independent evaluation of pro forma market value required by item (f) of subsection (6) of this Section;(B) the form of notice required by item (b)             of subsection (4) of this Section for eligible members of the meeting to vote on the plan;(C) any proxies to be solicited from eligible             members pursuant to subitem (ii) of item (c) of subsection (4) of this Section;(D) the form of notice required by item (a)             of subsection (10) of this Section for persons whose policies are issued after adoption of the plan but before its effective date; and(E) the proposed articles of incorporation             and bylaws of the converted stock company.Once filed, these documents shall be approved or         disapproved by the Director within a reasonable time.(ii) After the members have approved the plan,         the converted stock company shall file the following documents with the Director:(A) the minutes of the meeting of the members             at which the plan was voted upon; and(B) the revised articles of incorporation and             bylaws of the converted stock company.(c) Consultant. The Director may retain, at the     mutual company's expense, any qualified expert not otherwise a part of the Director's staff to assist in reviewing the plan and the independent evaluation of the pro forma market value which is required by item (f) of subsection (6) of this Section.(4) Approval of the plan by the members.(a) Members entitled to notice of and to vote on the     plan. All eligible members shall be given notice of and an opportunity to vote upon the plan.(b) Notice required. All eligible members shall be     given notice of the members' meeting to vote upon the plan.  A copy of the plan or a summary of the plan shall accompany the notice.  The notice shall be mailed to each member's last known address, as shown on the mutual company's records, within 45 days of the Director's approval of the plan.  The meeting to vote upon the plan shall not be set for a date less than 30 days after the date when the notice of the meeting is mailed by the mutual company.  If the meeting to vote upon the plan is held coincident with the mutual company's annual meeting of policyholders, only one combined notice of meeting is required.(c) Vote required for approval.(i) After approval by the Director, the plan         shall be adopted upon receiving the affirmative vote of at least two-thirds of the votes cast by eligible members.(ii) Members entitled to vote upon the proposed         plan may vote in person or by proxy.  Any proxies to be solicited from eligible members shall be filed with and approved by the Director.(iii) The number of votes each eligible member         may cast shall be determined by the mutual company's bylaws.  If the bylaws are silent, each eligible member may cast one vote.(5) Adoption of revised articles of incorporation. Adoption of the revised
articles of incorporation of the converted stock company is necessary to
implement the plan and shall be governed by the applicable provisions of
Section 57 of this Code.  For a Class 1 mutual company, the members may adopt
the revised articles of incorporation at the same meeting at which the members
approve the plan.  For a Class 2 or 3 mutual company, the revised articles of
incorporation may be adopted solely by the board of directors or trustees, as
provided in Section 57 of this Code.(5.5) Prior to the completion of a plan of conversion filed by a mutual
company with the Director, no person shall knowingly acquire, make any offer,
or make any announcement of an offer for any security issued or to be issued by
the converting mutual company in connection with its plan of conversion or for
any security issued or to be issued by any other company authorized in
item(c)(i) of subsection (6) of this Section and organized for purposes of
effecting the conversion, except in compliance with the maximum purchase
limitations imposed by item (i) of subsection (6) of this Section or the terms
of the plan of conversion as approved by the Director.(6) Required provisions in a plan of conversion. The following provisions
shall be included in the plan:(a) Reasons for conversion. The plan shall set forth     the reasons for the proposed conversion.(b) Effect of conversion on existing policies.(i) The plan shall provide that all policies in         force on the effective date of conversion shall continue to remain in force under the terms of those policies, except that any voting rights of the policyholders provided for under the policies or under this Code and any contingent liability policy provisions of the type described in Section 55 of this Code shall be extinguished on the effective date of the conversion.(ii) The plan shall further provide that holders         of participating policies in effect on the date of conversion shall continue to have the right to receive dividends as provided in the participating policies, if any.(iii) Except for a mutual company's participating         life policies, guaranteed renewable accident and health policies, and non-cancelable accident and health policies, the converted stock company may issue the insured a nonparticipating policy as a substitute for the participating policy upon the renewal date of a participating policy.(c) Subscription rights to eligible members.(i) The plan shall provide that each eligible         member is to receive, without payment, nontransferable subscription rights to purchase a portion of the capital stock of the converted stock company.  As an alternative to subscription rights in the converted stock company, the plan may provide that each eligible member is to receive, without payment, nontransferable subscription rights to purchase a portion of the capital stock of: (A) a corporation organized and owned by the mutual company for the purpose of acquiring or holding all the stock of the converted stock company; or (B) a stock insurance company owned by the mutual company into which the mutual company will be merged.(ii) The subscription rights shall be allocated         in whole shares among the eligible members using a fair and equitable formula.  This formula may but need not take into account how the different classes of policies of the eligible members contributed to the surplus of the mutual company.(d) Oversubscription. The plan shall provide a fair     and equitable means for the allocation of shares of capital stock in the event of an oversubscription to shares by eligible members exercising subscription rights received pursuant to item (c) of subsection (6) of this Section.(e) Undersubscription. The plan shall provide that     any shares of capital stock not subscribed to by eligible members exercising subscription rights received under item (c) of subsection (6) of this Section shall be sold in a public offering through an underwriter.  If the number of shares of capital stock not subscribed by eligible members is so small or the additional time or expense required for a public offering of those shares would be otherwise unwarranted under the circumstances, the plan of conversion may provide for the purchase of the unsubscribed shares by a private placement or other alternative method approved by the Director that is fair and equitable to the eligible members.(f) Total price of stock. The plan shall set the     total price of the capital stock equal to the estimated pro forma market value of the converted stock company based upon an independent evaluation by a qualified person.  The pro forma market value may be the value that is estimated to be necessary to attract full subscription for the shares as indicated by the independent evaluation.(g) Purchase price of each share. The plan shall set     the purchase price of each share of capital stock equal to any reasonable amount that will not inhibit the purchase of shares by members.  The purchase price of each share shall be uniform for all purchasers except the price may be modified by the Director by reason of his consideration of a plan for the purchase of unsubscribed stock pursuant to item (e) of subsection (6) of this Section.(h) Closed block of business for participating  life     policies of a Class 1 mutual company.(i) The plan shall provide that a Class 1 mutual         company's participating life policies in force on the effective date of the conversion shall be operated by the converted stock company for dividend purposes as a closed block of participating business except that any or all classes of group participating policies may be excluded from the closed block.(ii) The plan shall establish one or more         segregated accounts for the benefit of the closed block of business and shall allocate to those segregated accounts enough assets of the mutual company so that the assets together with the revenue from the closed block of business are sufficient to support the closed block including, but not limited to, the payment of claims, expenses, taxes, and any dividends that are provided for under the terms of the participating policies with appropriate adjustments in the dividends for experience changes.  The plan shall be accompanied by an opinion of a qualified actuary or an appointed actuary who meets the standards set forth in the insurance laws or regulations for the submission of actuarial opinions as to the adequacy of reserves or assets.  The opinion shall relate to the adequacy of the assets allocated to the segregated accounts in support of the closed block of business.  The actuarial opinion shall be based on methods of analysis deemed appropriate for those purposes by the Actuarial Standards Board.(iii) The amount of assets allocated to the         segregated accounts of the closed block shall be based upon the mutual company's last annual statement that is updated to the effective date of the conversion.(iv) The converted stock company shall keep a         separate accounting for the closed block and shall make and include in the annual statement to be filed with the Director each year a separate statement showing the gains, losses, and expenses properly attributable to the closed block.(v) Periodically, upon the Director's approval,         those assets allocated to the closed block as provided in subitem (ii) of item (h) of subsection (6) of this Section that are in excess of the amount of assets necessary to support the remaining policies in the closed block shall revert to the benefit of the converted stock company.(vi) The Director may waive the requirement for         the establishment of a closed block of business if the Director deems it to be in the best interests of the participating policyholders of the mutual insurer to do so.(i) Limitations on acquisition of control. The plan     shall provide that any one person or group of persons acting in concert may not acquire, through public offering or subscription rights, more than 5% of the capital stock of the converted stock company for a period of 5 years from the effective date of the plan except with the approval of the Director.  This limitation does not apply to any entity that is to purchase 100% of the capital stock of the converted company as part of the plan of conversion approved by the Director or to a purchase of stock by a tax-qualified employee benefit plan pursuant to subscription grants granted to that plan as authorized under item (b) of subsection (7) of this Section and to a purchase of unsubscribed stock pursuant to item (e) of subsection (6) of this Section.(7) Optional provisions in a plan of conversion. The following provisions
may be included in the plan:(a) Directors and officers subscription rights.(i) The plan may provide that the directors and         officers of the mutual company shall receive, without payment, nontransferable subscription rights to purchase capital stock of the converted stock company or the stock of another corporation that is participating in the conversion plan as provided in subitem (i) of item (c) of subsection (6) of this Section. Those subscription rights shall be allocated among the directors and officers by a fair and equitable formula.(ii) The total number of shares that may be         purchased under subitem (i) of item (a) of subsection (7) of this Section may not exceed 35% of the total number of shares to be issued in the case of a mutual company with total assets of less than $50 million or 25% of the total shares to be issued in the case of a mutual company with total assets of more than $500 million.  For mutual companies with total assets between $50 million and $500 million, the total number of shares that may be purchased shall be interpolated.(iii) Stock purchased by a director or officer         under subitem (i) of item (a) of subsection (7) of this Section may not be sold within one year following the effective date of the conversion.(iv) The plan may also provide that a director or         officer or person acting in concert with a director or officer of the mutual company may not acquire any capital stock of the converted stock company for 3 years after the effective date of the plan, except through a broker or dealer, without the permission of the Director.  That provision may not apply to prohibit the directors and officers from purchasing stock through subscription rights received in the plan under subitem (i) of item (a) of subsection (7) of this Section.(b) Tax-qualified employee stock benefit plan. The     plan may allocate to a tax-qualified employee benefit plan nontransferable subscription rights to purchase up to 10% of the capital stock of the converted stock company or the stock of another corporation that is participating in the conversion plan as provided in subitem (i) of item (c) of subsection (6) of this Section.  That employee benefit plan shall be entitled to exercise its subscription rights regardless of the amount of shares purchased by other persons.(8) Alternative plan of conversion. The board of directors may adopt a plan
of conversion that does not rely in whole or in part upon the issuance to
members of non-transferable subscription rights to purchase stock of the
converted stock company if the Director finds that the plan does not prejudice
the interests of the members, is fair and equitable, and is based upon an
independent appraisal of the market value of the mutual company by a qualified
person and a fair and equitable allocation of any consideration to be given
eligible members.  The Director may retain, at the mutual company's expense,
any qualified expert not otherwise a part of the Director's staff to assist in
reviewing whether the plan may be approved by the Director.(9) Effective date of the plan. A plan shall become effective when the
Director has approved the plan, the members have approved the plan, and the
revised articles of incorporation have been adopted.(10) Rights of members whose policies are issued after adoption of the plan
and before its effective date.(a) Notice. All members whose policies are issued     after the proposed plan has been adopted by the board of directors and before the effective date of the plan shall be given written notice of the plan of conversion. The notice shall specify the member's right to rescind that policy as provided in item (b) of subsection (10) of this Section within 45 days after the effective date of the plan. A copy of the plan or a summary of the plan shall accompany the notice. The form of the notice shall be filed with and approved by the Director.(b) Option to rescind. Any member entitled to receive     the notice described in item (a) of subsection (10) of this Section shall be entitled to rescind his or her policy and receive a full refund of any amounts paid for the policy or contract within 10 days after the receipt of the notice.(11) Corporate existence.(a) Upon the conversion of a mutual company to a     converted stock company according to the provisions of this Section, the corporate existence of the mutual company shall be continued in the converted stock company.  All the rights, franchises, and interests of the mutual company in and to every type of property, real, personal, and mixed, and things in action thereunto belonging, is deemed transferred to and vested in the converted stock company without any deed or transfer.  Simultaneously, the converted stock company is deemed to have assumed all the obligations and liabilities of the mutual company.(b) The directors and officers of the mutual company,     unless otherwise specified in the plan of conversion, shall serve as directors and officers of the converted stock company until new directors and officers of the converted stock company are duly elected pursuant to the articles of incorporation and bylaws of the converted stock company.(12) Conflict of interest. No director, officer, agent, or employee of the
mutual company or any other person shall receive any fee, commission, or other
valuable consideration, other than his or her usual regular salary and
compensation, for in any manner aiding, promoting, or assisting in the
conversion except as set forth in the plan approved by the Director. This
provision does not prohibit the payment of reasonable fees and compensation to
attorneys, accountants, and actuaries for services performed in the independent
practice of their professions, even if the attorney, accountant, or actuary is
also a Director of the mutual company.(13) Costs and expenses. All the costs and expenses connected with a plan of
conversion shall be paid for or reimbursed by the mutual company or the
converted stock company except where the plan provides either for a holding
company to acquire the stock of the converted stock company or for the merger
of the mutual company into a stock insurance company as provided in subitem (i)
of item (c) of subsection (6) of this Section. In those cases, the acquiring
holding company or the stock insurance company shall pay for or reimburse all
the costs and expenses connected with the plan.(14) Failure to give notice. If the mutual company complies substantially
and in good faith with the notice requirements of this Section, the mutual
company's failure to give any member or members any required notice does not
impair the validity of any action taken under this Section.(15) Limitation of actions. Any action challenging the validity of or
arising out of acts taken or proposed to be taken under this Section
shall be commenced within 30 days after the effective date of the plan.
(Source: P.A. 98-755, eff. 7-16-14.) (215 ILCS 5/59.2)(Section scheduled to be repealed on January 1, 2027)Sec. 59.2. 
		Formation of mutual insurance holding company
and conversion of mutual company to stock
company.(1) Definitions.  For the purposes of this Section, the following terms
shall
have the meanings indicated:(a) "Converted company" means an Illinois domiciled     stock insurance company subject to the provisions of Article II, except as otherwise provided in this Section, that continues in existence after a reorganization under this Section in connection with the formation of a mutual holding company.(b) "Converted mutual holding company" means the     stock corporation into which a mutual holding company has been converted in accordance with Section 59.1 and subsection (13) of this Section.(c) "Eligible member" means a member as of the date     the board of directors adopts a plan of MHC conversion under this Section.  For the conversion of a mutual holding company, "eligible member" means a member of the mutual holding company who is of record as of the date the mutual holding company board of directors adopts a plan of conversion under Section 59.1.(d) "Intermediate holding company" means a     corporation authorized to issue one or more classes of capital stock, the corporate purposes of which include holding directly or indirectly the voting stock of a converted company.(e) "Member" means a person who, on the records of     the mutual company and pursuant to its articles of incorporation or bylaws, is deemed to be a holder of a membership interest in the mutual company and shall also include a person or persons insured under a group policy, subject to the following conditions:(i) the person is insured or covered under a         group life policy or group annuity contract under which funds are accumulated and allocated to the respective covered persons;(ii) the person has the right to direct the         application of the funds so allocated;(iii) the group policyholder makes no         contribution to the premiums or deposits for the policy or contract; and(iv) the mutual company has the names and         addresses of the persons covered under the group life policy or group annuity contract.On and after the effective date of a plan of MHC     conversion under this Section, the term "member" shall mean a member of the mutual holding company created thereby.(f) "Mutual holding company" or "MHC" means a     corporation resulting from a reorganization of a mutual company under this Section.  A mutual holding company shall be subject to the provisions of this Article and to any other provisions of this Code applicable to mutual companies, except as otherwise provided in this Section.  The articles of incorporation of a mutual holding company shall include provisions setting forth the following:(i) that it is a mutual holding company organized         under this Article;(ii) that the mutual holding company may hold not         less than a majority of the shares of voting stock of a converted company or an intermediate holding company, which in turn holds directly or indirectly all of the voting stock of a converted company;(iii) that it is not authorized to issue any         capital stock except pursuant to a conversion in accordance with the provisions of Section 59.1 and subsection (13) of this Section;(iv) that its members shall have the rights         specified in this Section and in its articles of incorporation and bylaws; and(v) that its assets shall be subject to inclusion         in the estate of the converted company in any proceedings initiated by the Director against the converted company under Article XIII.(g) "Mutual company" means for purposes of this     Section a mutual life insurer or mutual property-casualty insurer that may convert pursuant to a plan of MHC conversion under this Section.(h) "Plan of MHC conversion," or "plan" when used in     this Section means a plan adopted pursuant to this Section by the board of directors of an Illinois domestic mutual company for the conversion of the mutual company into a direct or indirect stock subsidiary of a mutual holding company.(i) "Policy" includes any group or individual     insurance policy or contract issued by a mutual company, including an annuity contract. The term policy does not include a certificate of insurance issued in connection with a group policy or contract.(j) "Policyholder" means the holder of a policy other     than a reinsurance contract.(2) Formation of mutual holding company and conversion of mutual company.  A
mutual company, upon approval of the Director, may reorganize by forming a
mutual holding company and continue the corporate existence of the reorganizing
mutual company as a stock insurance company in accordance with this Section.
Upon effectiveness of a plan of MHC conversion, and without any further action:(a) The mutual company shall become a stock     corporation, the membership interests of the policyholders in the mutual company shall be deemed extinguished and all eligible members of the mutual company shall be and become members of the mutual holding company, in accordance with the articles of incorporation and bylaws of the mutual holding company and the applicable provisions of this Section and Article III; and(b) all of the shares of the capital stock of the     converted company shall be issued to the mutual holding company, which at all times shall own a majority of the shares of the voting stock of the converted company, except that either at the time of conversion, or at a later time with the approval of the Director, an intermediate holding company or companies may be created, so long as the mutual holding company at all times owns directly or indirectly a majority of the shares of the voting stock of the converted company.(3) MHC membership interests.(a) No member of a mutual holding company may     transfer membership in the mutual holding company or any right arising from the membership.(b) A member of a mutual holding company shall not,     as a member, be personally liable for the acts, debts, liabilities, or obligations of the company.(c) No assessments of any kind may be imposed upon     the members of a mutual holding company by the directors or members, or because of any liability of any company owned or controlled by the mutual holding company or because of any act, debt, liability, or obligation of the mutual holding company itself.(d) A membership interest in a domestic mutual     holding company shall not constitute a security under any law of this State.(4) Adoption of the plan of MHC conversion by the board of directors.(a) A mutual company seeking to convert to a mutual     holding company structure shall, by the affirmative vote of two-thirds of its board of directors, adopt a plan of MHC conversion consistent with the requirements of subsection (8) of this Section.(b) At any time before approval of a plan by eligible     members, the mutual company, by the affirmative vote of two-thirds of its board of directors, may amend or withdraw the plan of MHC conversion.(5) Approval of the plan of MHC conversion by the Director.(a) Required findings.  After adoption or amendment     of the plan by the mutual company's board of directors, the plan of MHC conversion shall be submitted to the Director for review and approval. The Director shall hold a public hearing on the plan. The Director shall approve the plan upon finding that:(i) the provisions of this Section have been         complied with; and(ii) the plan is fair and equitable as it relates         to the interests of the members.(b) Documents to be filed.(i) Prior to the members' approval of the plan of         MHC conversion, a mutual company seeking the Director's approval of a plan shall file the following documents with the Director for review and approval:(A) the plan of MHC conversion;(B) the form of notice required by item (b)             of subsection (6) of this Section for eligible members to vote on the plan;(C) any proxies to be solicited from eligible             members and any other soliciting materials;(D) the proposed articles of incorporation             and bylaws of the mutual holding company, each intermediate holding company, if any, and the revised articles of incorporation and bylaws of the converted company.Once filed, these documents shall be approved or         disapproved by the Director within a reasonable time.(ii) After the members have approved the plan,         the converted company shall file the following documents with the Director:(A) the minutes of the meeting of the members             at which the plan of MHC conversion was voted upon; and(B) the articles and bylaws of the mutual             holding company and each intermediate holding company, if any, and the revised articles of incorporation and bylaws of the converted company.(c) The Director's approval of a plan pursuant to     this subsection (5) may be made conditional at the sole discretion of the Director whenever he determines that such conditions are reasonably necessary to protect policyholder interests.  Such conditions may include, but shall not be limited to, limitations, requirements, or prohibitions as follows:(i) prior approval of any acquisition or         formation of affiliate entities of the MHC;(ii) prior approval of the capital structure of         any intermediate holding company or any changes thereto;(iii) prior approval of any initial public         offering or other issuance of equity or debt securities of an intermediate holding company or the converted company in a private sale or public offering;(iv) prior approval of the expansion of the         mutual holding company system into lines of business, industries, or operations not presented at the time of the conversion;(v) limitations on dividends and distributions if         the effect would be to reduce capital and surplus of the converted company, in addition to any limitations which may otherwise be authorized by law; and(vi) limitations on the pledge, incumbrance, or         transfer of the stock of the converted company.(d) Consultant.  The Director may retain, at the     mutual company's expense, any qualified expert not otherwise a part of the Director's staff to assist in reviewing the plan of MHC conversion.(6) Approval of the plan by the members.(a) Members entitled to notice of and to vote on the     plan.  All eligible members shall be given notice of and an opportunity to vote upon the plan of MHC conversion.(b) Notice required.  All eligible members shall be     given notice of the members' meeting to vote upon the plan of MHC conversion. The notice shall identify in reasonable detail the benefits and risks of the MHC conversion. A copy of the plan of MHC conversion or a summary of the plan, if so authorized by the Director, shall accompany the notice. If a summary of the plan accompanies the notice, a copy of the plan shall be made available without charge to any eligible member upon request.  The notice shall state that approval by the Director does not constitute a recommendation that eligible members approve the plan. The notice shall be mailed to each member's last known address, as shown on the mutual company's records, within 45 days of the Director's approval of the plan. The meeting to vote upon the plan shall not be set for a date less than 60 days after the date when the notice of the meeting is mailed by the mutual company.  If the meeting to vote upon the plan is held coincident with the mutual company's annual meeting of policyholders, only one combined notice of meeting is required.(c) Vote required for approval.(i) After approval by the Director, the plan of         MHC conversion shall be adopted, at an annual or special meeting of policyholders at which a quorum is present, upon receiving the affirmative vote of at least two-thirds of the votes cast by eligible members.(ii) Members entitled to vote upon the proposed         plan may vote in person or by proxy.  Any proxies to be solicited from eligible members, together with the related proxy statement and any other soliciting materials, shall be filed with and approved by the Director.(iii) The number of votes each eligible member         may cast shall be determined by the mutual company's bylaws.  If the bylaws are silent, each eligible member may cast one vote.(7) Adoption of articles of incorporation.  Adoption of articles of
incorporation for the mutual holding company, each intermediate holding
company, if any, and revised articles of incorporation for the converted
company is necessary to implement the plan of MHC conversion.  Procedures for
adoption or revision of such articles shall be governed by the applicable
provisions of this Code or, in the case of an intermediate holding company, the
business corporation law of the state in which the intermediate
holding company is incorporated.  For a Class I mutual
company, the members may
adopt revised articles of incorporation at the same meeting at which the
members approve the plan.  For a Class 2 or 3 mutual company, the articles of
incorporation may be adopted solely by the board of directors or trustees, as
provided in Section 57 of this Code.(8) Required provisions in a plan of MHC conversion.  The following
provisions shall be included in the plan of MHC conversion:(a) The plan shall set forth the reasons for the     proposed conversion.(b) Effect of MHC conversion on existing policies.(i) The plan shall provide that all policies of         the converted company in force on the effective date of conversion shall continue to remain in force under the terms of those policies, except that any voting or other membership rights of the policyholders provided for under the policies or under this Code and any contingent liability policy provisions of the type described in Section 55 of this Code shall be extinguished on the effective date of the conversion.(ii) The plan shall further provide that holders         of participating policies in effect on the date of conversion shall continue to have the right to receive dividends as provided in the participating policies, if any.(iii) Except for a mutual company's life         policies, guaranteed renewable accident and health policies, and non-cancelable accident and health policies, the converted stock company may issue the insured a nonparticipating policy as a substitute for the participating policy upon the renewal date of a participating policy.(iv) The plan shall provide that a Class I mutual         company's participating life policies in force on the effective date of the conversion shall be operated by the converted company for dividend purposes as a closed block of participating business except that any or all classes of group participating policies may be excluded from the closed block.  The plan shall establish one or more segregated accounts for the benefit of the closed block of business and shall allocate to those segregated accounts enough assets of the mutual company so that the assets together with the revenue from the closed block of business are sufficient to support the closed block including, but not limited to, the payment of claims, expenses, taxes, and any dividends that are provided for under the terms of the participating policies with appropriate adjustments in the dividends for experience changes. The plan shall be accompanied by an opinion of a qualified actuary or an appointed actuary who meets the standards set forth in the insurance laws or regulations for the submission of actuarial opinions as to the adequacy of reserves or assets.  The opinion shall relate to the adequacy of the assets allocated to the segregated accounts in support of the closed block of business.  The actuarial opinion shall be based on methods of analysis deemed appropriate for those purposes by the Actuarial Standards Board.  The amount of assets allocated to the segregated accounts of the closed block shall be based upon the mutual company's last annual statement that is updated to the effective date of the conversion.  The converted stock company shall keep a separate accounting for the closed block and shall make and include in the annual statement to be filed with the Director each year a separate statement showing the gains, losses, and expenses properly attributable to the closed block.  Periodically, upon the Director's approval, those assets allocated to the closed block as provided herein that are in excess of the amount of assets necessary to support the remaining policies in the closed block shall revert to the benefit of the converted company.  The Director may waive the requirement for the establishment of a closed block of business if the Director deems it to be in the best interests of the participating policyholders of the mutual company to do so.(c) The plan shall set forth the requirements for     granting membership interests to future policyholders of the converted company.(d) The plan shall include information sufficient to     demonstrate that the financial condition of the converted company will not be diminished by the plan of MHC conversion.(e) The plan shall include a description of any     current proposal to issue shares of an intermediate holding company or the converted company to the public or to other persons who are not direct or indirect subsidiaries of the mutual holding company.(f) The plan shall include the identity of the     proposed officers and directors of the mutual holding company and each intermediate holding company, if any, together with such other biographical information as the Director may request.(g) The plan shall include such other information as     the Director may request or may prescribe by rule.(9) Effective date of the plan of MHC conversion.  A plan shall become
effective when the Director has approved the plan, the members have approved
the plan and the articles of incorporation of the mutual holding company, each
intermediate holding company, if any, and the revised articles of incorporation
of the converted company have been adopted and filed with the Director.(10) Corporate existence.(a) Upon the conversion of a mutual company to a     converted company according to the provisions of this Section, the corporate existence of the mutual company shall be continued in the converted company with the original date of incorporation of the mutual company.  All the rights, franchises, and interests of the mutual company in and to every type of property, real, personal, and mixed, and things in action thereunto belonging, is deemed transferred to and vested in the converted company without any deed or transfer.  Simultaneously, the converted company is deemed to have assumed all the obligations and liabilities of the mutual company.(b) The directors and officers of the mutual company,     unless otherwise specified in the plan of conversion shall serve as directors and officers of the converted company until new directors and officers of the converted company are duly elected pursuant to the articles of incorporation and bylaws of the converted company.(11) Regulation and authority of mutual holding company.(a) A mutual holding company shall have the same     powers granted to domestic mutual companies and be subject to the same requirements and provisions of Article III and any other provisions of this Code applicable to mutual companies that are not inconsistent with the provisions of this Section, provided however that a mutual holding company shall not have the authority to transact insurance pursuant to Section 39(1).(b) Neither the mutual holding company nor any     intermediate holding company shall issue or reinsure policies of insurance.(c) A mutual holding company may enter into an     affiliation agreement or a merger agreement either at the time of conversion, or at some later time with the approval of the Director, with any mutual insurance company authorized to do business in this State or another mutual holding company.  Any such merger agreement may authorize members of the mutual insurance company or other mutual holding company to become members of the mutual holding company.  Any such affiliation agreement or merger agreement shall be subject to the  insurance laws of this State relating to such transactions entered into by a domestic mutual company.(d) The assets of the MHC shall be held in trust,     under such arrangements and on such terms as the Director may approve, for the benefit of the policyholders of the converted company.  Any residual rights of the MHC in such assets or any assets of the MHC determined not to be held in trust shall be subject to a lien in favor of the policyholders of the converted company under such terms as the Director may approve.  Upon conversion of the mutual holding company as provided for in subsection (13) of this Section, such assets shall be released from trust in accordance with the plan of conversion approved by the Director.(12) Diversion of business to affiliates.  Without prior approval of the
Director, neither the converted company nor any other person affiliated with or
controlling the converted company shall divert business from the converted
company to any insurance company affiliate if the purpose or effect would be to
significantly reduce the number of members of the mutual holding company.(13) Conversion of mutual holding company.  A mutual holding company created
pursuant to this Section may reorganize by complying with the applicable
provisions of Section 59.  For purposes of effecting a conversion under that
Section, the mutual holding company shall be deemed a "mutual company" and
the converted mutual holding company shall be deemed a "converted stock
company," as such terms are defined in Section 59.1.(14) Conflict of interest.  No director, officer, agent, or employee of the
mutual company or any other person shall receive any fee, commission, or other
valuable consideration, other than his or her usual regular salary and
compensation, for in any manner aiding, promoting, or assisting in the
conversion except as set forth in the plan of MHC conversion approved by the
Director.  This provision does not prohibit the payment of reasonable fees and
compensation to attorneys, accountants, and actuaries for services performed in
the independent practice of their professions, even if the attorney,
accountant, or actuary is also a director of the mutual company.(15) Costs and expenses.  All the costs and expenses connected with a plan
of MHC conversion shall be paid for or reimbursed by the mutual company or the
converted company.(16) Failure to give notice.  If the mutual company complies substantially
and in good faith with the notice requirements of this Section, the mutual
company's failure to give any member or members any required notice does not
impair the validity of any action taken under this Section.(17) Limitation of actions.  Any action challenging the validity of or
arising out of acts taken or proposed to be taken under this Section shall be
commenced within 30 days after the effective date of the plan of MHC
conversion.
		(Source: P.A. 90-810, eff. 1-6-99.) (215 ILCS 5/60) (from Ch. 73, par. 672)(Section scheduled to be repealed on January 1, 2027)Sec. 60. 
		Procedure
when insufficient assets are possessed by company.(1) Whenever the Director finds that the admitted assets of a company
subject to the provisions of this Article are less than the aggregate of
(a) its liabilities and (b) the minimum surplus required to be maintained
by Section 43, he must notify the company in writing of the amount of such
impairment and require that such impairment must be removed within such
period, which shall not be less than 30 nor more than 90 days, as he may
designate. Unless otherwise allowed by the Director, the company must
discontinue the issuance of new or renewal
policies while such impairment exists. If the contracts issued by the
company contain a provision for a contingent liability, the Director may
order the board of directors or trustees of the company to levy an
assessment for the purpose of removing such impairment against each member
in accordance with the terms of his policy. If the Director finds that the
company will remove the impairment or a part thereof from sources other
than an assessment, he may permit a reduction in the amount of the
assessment to the extent of the sum so to be obtained. No member is liable
for an assessment unless notified of the company's claim therefor within
one year after the termination of the policy whether by expiration,
cancellation or otherwise. Nothing contained in this paragraph may be
construed to limit or restrict the authority of any liquidator, conservator
or rehabilitator acting under Article XIII or XIII 1/2 of this Act.(2) If policies containing provisions for a contingent liability are
outstanding, and the company fails to levy an assessment within 20 days
from the date of an order, or if the impairment is not removed within the
period specified in the Director's notice, the company shall be deemed
insolvent and the Director may cancel the company's certificate of
authority and shall proceed against it in accordance with Article XIII.(3) If, while the impairment exists, any officer, director, or trustee
of the company renews, issues or delivers or causes to be renewed, issued
or delivered any policy, contract or certificate of insurance unless otherwise
allowed by the Director, and the fact
of such impairment is known to the officer, director, or trustee of the
company, such officer, director, or trustee shall be guilty of a business
offense and may be fined not less than $200 and not more than $5,000 for
each offense.(4) Nothing in this Section prohibits, while such impairment exists, any
such officer, director, trustee, agent or employee from issuing or renewing
a policy of insurance when an insured or owner exercises an option granted
to him under an existing policy to obtain new, renewed or converted
insurance coverage.
		(Source: P.A. 82-498.)
(215 ILCS 5/Art. IV heading) ARTICLE IV.  
		RECIPROCALS
(Article scheduled to be repealed on January 1, 2027) (215 ILCS 5/61) (from Ch. 73, par. 673)(Section scheduled to be repealed on January 1, 2027)Sec. 61. 
		Scope of Article.(1) This Article shall apply to all reciprocals transacting or being
organized to transact any of the kinds of business specified in this
Article.(2) As used in this Article the word "subscriber" shall mean the
participant or policyholder. The word "attorney-in-fact" shall mean
the
representative of the subscribers. The word "reciprocal" shall mean
the
organization or group of all the subscribers.  The word "governmental
reciprocal" shall mean a reciprocal in which all subscribers are governmental
entities, including, but not limited to, federal, State, territorial,
commonwealth, and local governments and agencies, subdivisions, departments,
joint ventures, partnerships, and consortia of these governments.
		(Source: P.A. 88-364.) (215 ILCS 5/62) (from Ch. 73, par. 674)(Section scheduled to be repealed on January 1, 2027)Sec. 62. 
		Authority
to exchange contracts. 
		Individuals, partnerships and corporations of this State are hereby
authorized to exchange reciprocal or inter-insurance contracts with each
other or with individuals, partnerships and corporations of other states
and countries, in accordance with the provisions of this Code and not
otherwise. All insurance contracts so exchanged shall be executed by an
attorney-in-fact duly authorized and acting for the subscribers.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/63) (from Ch. 73, par. 675)(Section scheduled to be repealed on January 1, 2027)Sec. 63. 
		Name. 
		
		The name or designation under which contracts are to be exchanged shall
include the words "Reciprocal" or "Inter-Insurance Exchange" or be
supplemented by the following words immediately below the name or
designation under which such contracts are exchanged: "A Reciprocal" or "An
Inter-Insurance Exchange." Such name or designation shall not be the same
as or deceptively similar to the name or designation adopted by any other
domestic company or any foreign or alien company authorized to transact
business in this State.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/64) (from Ch. 73, par. 676)(Section scheduled to be repealed on January 1, 2027)Sec. 64. 
		Principal
office. 
		The principal office of the attorney-in-fact of a domestic reciprocal
shall be maintained in this State, at such place as may be designated by
the subscribers in the power of attorney or other authority under which
insurance is to be effected or exchanged.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/65) (from Ch. 73, par. 677)(Section scheduled to be repealed on January 1, 2027)Sec. 65. 
		Authorized
kinds of business. 
		A reciprocal may be authorized to exchange contracts covering any or all
of the kinds of insurance enumerated in Classes 2 and 3 of Section 4.
		(Source: Laws 1951, p. 605.) (215 ILCS 5/66) (from Ch. 73, par. 678)(Section scheduled to be repealed on January 1, 2027)Sec. 66. 
		Minimum surplus requirements.(1) No reciprocal may after
December 31, 1985 receive a certificate of
authority from the Director to exchange contracts under this Article in the
name of the subscribers until it has complied with the requirements in
respect of original surplus applicable to the class or classes and clause
or clauses of section 4 describing the kind or kinds of insurance it seeks
to exchange, as set forth in the following table:
		Casualty, Fidelity and Surety(a) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i)  or (j), a surplus of at least $2,000,000; more than one clause, a surplus of at least $2,000,000.
		Fire and Marine(b) Class 2, Clauses (e), (f), (k) or (l) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $1,000,000.
		Multiple Line(c) Class 2, any or all clauses other than those     specified in (b) above, and Class 3, any or all clauses, a surplus of at least $2,000,000.
		Glass and Livestock and Domestic Animals(d) Class 2, Clause (f) only or (k) only $250,000;     provided any reciprocal to which this subparagraph is applicable shall not expose itself to any loss on any one risk in any amount exceeding $5,000.(2) Every reciprocal subject to this Article issued a certificate of
authority on or after June 28, 1965 must have and at all times maintain a
minimum surplus in an amount equal to 2/3 of the original surplus required
for that particular company at the time it was organized. Any such
reciprocal organized prior to June 28, 1965 must have and at all times
maintain admitted assets in excess of all liabilities in an amount not less
than the minimum amount of advance cash deposits or surplus which was
required for that particular reciprocal at the time it was issued a
certificate of authority. Any reciprocal which has added any clause or
clauses must have and at all times maintain minimum surplus not less than
the minimum surplus requirement applicable to the class or classes and clause
or clauses of section 4 at the time that the additional clause or clauses
are authorized. Any reciprocal organized prior to October 1, 1972 must
have and at all times maintain, in addition to the minimum surplus required
to be maintained by that particular reciprocal, additional minimum surplus
of not less than $300,000.(3) Any company organized prior to January 1, 1986 and regulated under
this Article, in addition to the minimum surplus which is required by
paragraph (2) of this Section must have by December 31, 1986 and at all
times maintain until December 31, 1990 additional minimum surplus of $200,000.(4) Subsections (2) and (3) shall be applicable until
December 31, 1990 for all reciprocals organized prior to January 1, 1986,
thereafter, such reciprocals must have and maintain surplus as
required by subsections (6) and (7).(5) Every reciprocal subject to this Article and organized after
December 31, 1985 must have and maintain at all times minimum surplus
applicable to the class or classes and clause or clauses of Section 4
describing the kind or kinds of insurance which it is authorized to
write, as follows:
		Casualty, Fidelity and Surety(a) Class 2, Clauses (a), (b), (c), (d), (g), (h) or     (i), a surplus of at least $1,500,000; more than one clause, a surplus of at least $1,500,000.
		Fire, Marine and Legal Expense(b) Class 2, Clauses (e), (f), (k), (l) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $700,000.
		Multiple Line(c) Class 2, any or all clauses other than those     specified in (b) above, and Class 3, any or all clauses, a surplus of at least $1,500,000.
		Glass and Livestock and Domestic Animals(d) Class 2, Clause (f) only or (k) only, $150,000;     provided no reciprocal to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(6) Any reciprocal subject to this Article and organized prior to
January 1, 1986 must have by December 31, 1990, and thereafter maintain
until December 31, 1995, minimum surplus
applicable to the class or classes and clause or clauses of Section 4
describing the kind or kinds of insurance which it is authorized to write, as follows:
		Casualty, Fidelity and Surety(a) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), a surplus of at least $1,200,000; more than one clause, a surplus of at least $1,200,000.
		Fire, Marine and Legal Expense(b) Class 2, Clauses (e), (f), (k), (1) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $600,000.
		Multiple Line(c) Class 2, any or all clauses other than those     specified in (b) above, and Class 3, any or all clauses, a surplus of at least $1,200,000.
		Glass and Livestock and Domestic Animals(d) Class 2, Clause (f) only or (k) only, $100,000;     provided no reciprocal to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(7) Any reciprocal subject to this Article and organized prior
to January 1, 1986 must have by December 31, 1995 and thereafter maintain at
all times minimum surplus applicable to the class or classes and clause or
clauses of Section 4
describing the kind or kinds of insurance which it is authorized to write, as follows:
		Casualty, Fidelity and Surety(a) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), a surplus of at least $1,500,000; more than one clause, a surplus of at least $1,500,000.
		Fire, Marine and Legal Expense(b) Class 2, Clauses (e), (f), (k), (l) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $700,000.
		Multiple Line(c) Class 2, any or all clauses other than those     specified in (b) above, and Class 3, any or all clauses, a surplus of at least $1,500,000.
		Glass and Livestock and Domestic Animals(d) Class 2, Clause (f) only or (k) only, $150,000;     provided no reciprocal to which this subparagraph is applicable shall not expose itself to any loss on any one risk in the amount exceeding $5,000.(8) The Director shall take action under
Section 83 of this Code against
any reciprocal which fails to maintain the minimum surplus required
by this section. The words "minimum surplus" mean the "surplus as regards
policyholders" as it appears on the annual statement of a reciprocal
company on the usual and proper annual statement form prescribed by the
National Association of Insurance Commissioners.
		(Source: P.A. 85-293.) (215 ILCS 5/67) (from Ch. 73, par. 679)(Section scheduled to be repealed on January 1, 2027)Sec. 67. 
		Power of
attorney. 
		The power of attorney or other authority of the attorney-in-fact under
which contracts of insurance are to be exchanged pursuant to this Article
shall set forth(a) the address of the principal office of the     attorney-in-fact;(b) that the attorney-in-fact is authorized to accept     service of process on behalf of the reciprocal and to appoint the Director and his successor or successors in office the true and lawful attorney of such reciprocal for the service of process in actions upon contracts exchanged;(c) the amount to be deducted from advance deposits     to be paid to the attorney-in-fact and the items of expense, in addition to losses, to be paid by the reciprocal;(d) a provision for a cash deposit;(e) except as provided in Section 75, a provision for     a contingent several liability of each subscriber in an amount of not less than one nor more than ten times the cash deposit stated in the contract; and(f) such other provisions not inconsistent with law     as may be deemed necessary or advisable.		(Source: Laws 1937, p. 696.) (215 ILCS 5/68) (from Ch. 73, par. 680)(Section scheduled to be repealed on January 1, 2027)Sec. 68. 
		Declaration
of organization. 
		The attorney-in-fact of subscribers who desire to form a reciprocal
under this Article shall sign and acknowledge, before an officer authorized
to take acknowledgments, a declaration of organization in duplicate. When
the attorney-in-fact is a corporation, the declaration shall be
acknowledged by an officer thereof. The declaration shall set forth(a) the name of the attorney-in-fact and the name or     designation under which contracts are to be exchanged;(b) the location of the principal office of the     attorney-in-fact;(c) the class or classes of insurance, as provided in     Section 65, which it proposes to effect or exchange and the kinds of insurance in each class to be effected or exchanged;(d) such other provisions not inconsistent with law     which may be deemed by the attorney-in-fact or subscribers to be necessary or advisable.		(Source: Laws 1937, p. 696.) (215 ILCS 5/69) (from Ch. 73, par. 681)(Section scheduled to be repealed on January 1, 2027)Sec. 69. 
		Documents to be delivered to Director. 
		Upon the execution of a declaration of organization, there shall be
delivered to the Director(a) duplicate originals of the declaration of     organization;(b) a copy of the power of attorney of the     attorney-in-fact under or by virtue of which such insurance is to be effected or exchanged;(c) an instrument authorizing service of process on     the Director provided for in Section 77;(d) 2 organization bonds, or the cash or securities,     provided for in Section 70;(e) the form of guaranty fund agreements and of     guaranty capital shares, if any, as provided in Section 76 to be issued in connection with solicitation of surplus; and(f) the form of escrow agreement for the deposit of     cash or securities.		(Source: P.A. 84-502.) (215 ILCS 5/69.1) (from Ch. 73, par. 681.1)(Section scheduled to be repealed on January 1, 2027)Sec. 69.1. 
		Escrow agreements. 
		The company shall designate a bank or
trust company with whom it will enter into an escrow agreement, which agreement
shall state that the organization surplus shall be placed in escrow and
remain so, until an organization examination has been completed. When the
exam has been completed the escrow agent is authorized to purchase securities
for deposit as required by Section 74 and forward them to the Director.
The escrow agent is authorized to release the balance of the escrow funds
to the company only upon notification that a Certificate of Authority or
similar documentation has been issued by the Director.
		(Source: P.A. 84-502.) (215 ILCS 5/70) (from Ch. 73, par. 682)(Section scheduled to be repealed on January 1, 2027)Sec. 70. 
		Organization bonds. 
		
		The attorney-in-fact shall deliver to the Director two bonds in the same
penalties and containing the same provisions, so far as applicable, as the
bonds required for the organization of a stock company by Section 16 for
the use and benefit of the State of Illinois, subscribers and creditors, or
in lieu of delivering such bonds, the attorney-in-fact may deposit cash or
securities of the same kind and amount and on the same terms and
conditions, so far as applicable, as provided by said Section.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/71) (from Ch. 73, par. 683)(Section scheduled to be repealed on January 1, 2027)Sec. 71. 
		Approval of
documents. 
		The documents and papers so delivered to the Director may be approved or
disapproved by the Director, and the attorney-in-fact is entitled to a
hearing, in the same manner as provided in Section 18 in the case of
documents delivered for approval in connection with the organization of
stock companies. If the documents and papers so delivered are approved by
the Director he must file in his office the power of attorney, forms of
policies and applications, bonds or securities and one of the duplicate
originals of the declaration of organization, and endorse upon the other
duplicate original his approval and the month, day and year of approval and
deliver it to the attorney-in-fact. Upon the date of approval of the
declaration of organization by the Director, the reciprocal is deemed to be
organized.
		(Source: P.A. 77-747.) (215 ILCS 5/72) (from Ch. 73, par. 684)(Section scheduled to be repealed on January 1, 2027)Sec. 72. 
		Authority
to solicit subscriptions to surplus. 
		Upon the approval of the declaration of organization by the Director, he
shall issue to the attorney-in-fact a permit, which shall expire at the end
of two years from its date, authorizing him to solicit subscriptions to
surplus in accordance with this Code and to do such other acts as may be
necessary and proper in order to complete its organization and to entitle
it to receive a certificate of authority to transact an insurance business.
		(Source: Laws 1951, p. 1565.) (215 ILCS 5/73) (from Ch. 73, par. 685)(Section scheduled to be repealed on January 1, 2027)Sec. 73. 
		Issuance of
certificate of authority. 
		When the Director has been notified that the required surplus has been
fully collected, he shall conduct an examination of the reciprocal. If he
finds that the organization is complete, that all of the requirements of
this Code have been met, that the required surplus has been fully
collected, and that the deposits provided for by Section 74 have been
met, he shall issue to the attorney-in-fact a certificate of authority to
transact the kind or kinds of business specified therein. No
attorney-in-fact shall transact any business of insurance until he or it
has received a certificate of authority as herein prescribed nor any
business of insurance not specified in such certificate of authority.
		(Source: Laws 1951, p. 1565.) (215 ILCS 5/74) (from Ch. 73, par. 686)(Section scheduled to be repealed on January 1, 2027)Sec. 74. 
		Deposit. 
		A domestic reciprocal subject to the
provisions of this Article shall make and maintain with the Director, for
the protection of all creditors, policyholders and policy obligations of
the reciprocal, a deposit of securities that are
authorized investments under Section 126.11A(1), 126.11A(2), 126.24A(1), or
126.24A(2), having a fair market value equal to the surplus required to be
maintained under Section 66.
The Director may release the required deposit of securities
upon receipt of
an order of a court having proper jurisdiction or
upon: (i)
certification by the reciprocal company that it has no outstanding creditors,
policyholders, or policy obligations in effect and no plans to engage in the
business of insurance; (ii) receipt of a lawful resolution of the
governing body of the reciprocal's attorney-in-fact effecting the surrender of
its certificate of authority and declaration of organization for
administrative dissolution by the Director; and (iii) receipt of the name and
forwarding address for each of the final officers and directors of the
reciprocal's attorney-in-fact,
together with a plan of dissolution approved by the Director.
		(Source: P.A. 92-75, eff. 7-12-01.) (215 ILCS 5/75) (from Ch. 73, par. 687)(Section scheduled to be repealed on January 1, 2027)Sec. 75. 
		Contingent
liability policy provisions.(1) Except as provided in subsection (2) any contract of insurance
exchanged under this Article shall provide for a cash deposit and a
contingent several liability of the subscriber in an amount not less than
one nor more than 10 times the amount of the cash deposit stated in the
contract.(2) In cases where contingent liability of subscribers is provided for,
the provision therefor must be plainly stated in each policy with
prominence equal to the indemnifying clause. In addition, each assessable
policy, other than an accident and health policy, issued or delivered in
this State after September 1, 1967 must have the following statement
printed in bold face type on the face of the policy: "This is an assessable
policy". If a reciprocal has a surplus equal to the minimum capital and
surplus required in Section 13 for a stock company transacting the same
kind or kinds of business, such reciprocal may issue policies without
contingent liability. Any such reciprocal which has issued policies without
contingent liability after the acquisition of such surplus may continue to
do so as long as it maintains a surplus equal to the capital and minimum
surplus of a stock company doing the same kind or kinds of business, but no
reciprocal may issue such policies except during such time as it continues
to have such a surplus, provided, however, that any reciprocal which is,
immediately prior to July 1, 1965, issuing policies without contingent
liability, may continue to do so as long as it maintains a surplus equal in
amount to that which would have been required immediately prior to July 1,
1965. Any reciprocal with a surplus equal to the minimum capital and
surplus required in Section 13 for a stock company transacting the same
kind or kinds of business may issue policies without the limitations
contained in subsection (1). After July 18, 1967, no company subject to
this Article may make, levy or impose upon its subscribers any assessment
based on their contingent liability unless ordered by the Director pursuant
to Section 83 of this Code.
		(Source: P.A. 83-333.) (215 ILCS 5/76) (from Ch. 73, par. 688)(Section scheduled to be repealed on January 1, 2027)Sec. 76. 
		Guaranty
fund or guaranty capital. 
		Any domestic reciprocal may provide for a surplus by accumulating a
guaranty fund or guaranty capital in the same manner and upon the same
terms and conditions as is provided in Section 56 for mutual companies.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/77) (from Ch. 73, par. 689)(Section scheduled to be repealed on January 1, 2027)Sec. 77. 
		Director as attorney - Service of process.(1) The attorney-in-fact of every reciprocal transacting business in
this State shall file with the Director a duly executed instrument whereby
the attorney-in-fact shall appoint and constitute the Director and his
successor or successors in office, the true and lawful attorney of such
reciprocal upon whom all lawful process in any action or legal proceeding
against such reciprocal may be served and shall agree that any lawful
process against such reciprocal which may be served upon said attorney
shall be of the same force and validity as if served upon the
attorney-in-fact and that the authority thereof shall continue in force
irrevocably so long as any liability of the reciprocal in the State shall
remain outstanding.(2) Any reciprocal transacting business in this State may sue or be sued
in the name or designation under which its contracts are authorized to be
exchanged. Any such suit may be brought in the county in which the cause of
action arises or in which the claimant resides, or in the county in which
the attorney-in-fact has his principal office. Service may be had upon such
reciprocal by service upon the last appointed attorney-in-fact or by
service upon the Director. Service of process on an individual subscriber
shall not constitute service upon the reciprocal. When such process is
served upon the Director, duplicate copies of such process shall be
delivered to him and he shall immediately forward one copy of such process
to the last appointed attorney-in-fact, by certified or registered mail, postage
prepaid, giving the date and hour of such service.
		(Source: P.A. 83-598.) (215 ILCS 5/78) (from Ch. 73, par. 690)(Section scheduled to be repealed on January 1, 2027)Sec. 78. 
		Governmental subscribers
accounts; dividends; other returns.(a) The attorney-in-fact of a governmental reciprocal, in addition to
the books of account of the
reciprocal, shall keep and maintain from and after the effective date of
this amendatory Act of 1993, a separate account for each
individual subscriber, setting forth
therein the date or periods of the subscriber's participation in the
reciprocal, the subscriber's deposits, the
savings returned to
the subscriber and such other information as
may be necessary for the
determination of the subscriber's proportionate share, if any, of the
surplus funds of the reciprocal in case of liquidation. The
attorney-in-fact shall not be required to file a list of the subscribers
with the Department.(b) The board of directors of the attorney-in-fact of any governmental
reciprocal may in its discretion and subject to the prior approval of the
advisory
committee of the governmental reciprocal and the Director of Insurance:(1) declare dividends to its subscribers in the same     manner and upon and subject to the same terms and conditions as are provided in Section 54 for mutual companies, except that the reference to "articles of incorporation" in Section 54 shall mean the declaration of organization or the power of attorney or other authority of the attorney-in-fact under which contracts of insurance are to be exchanged pursuant to this article as applied to governmental reciprocals; and(2) return guaranty fund or guaranty capital     contributions in the same manner and upon and subject to the same terms and conditions as are provided in Section 56 for mutual companies and upon compliance with the provisions of the agreement to subscribe (the agreement to make the contributions), if any.No payment or return of surplus (other than return of guaranty fund or
of guaranty capital) shall be made except in accordance with this Section and
sound business judgment.
		(Source: P.A. 90-817, eff. 3-23-99.) (215 ILCS 5/79) (from Ch. 73, par. 691)(Section scheduled to be repealed on January 1, 2027)Sec. 79. 
		Reserves. 
		
		All reciprocals subject to this Article shall maintain reserves
calculated in the same manner and upon the same basis as stock and mutual
companies doing the same kind or kinds of business are required to
maintain.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/80) (from Ch. 73, par. 692)(Section scheduled to be repealed on January 1, 2027)Sec. 80. Amendments
to power of attorney and other documents.(1) The attorney-in-fact of any reciprocal subject to the provisions of
this article may amend the declaration of organization or power of attorney
in any respect not in violation of law, but may not amend such documents to
insert any provision prohibited, or to delete any provision required, in
original declarations of organization or powers of attorney of a similar
domestic reciprocal organized under this Code.(2) Amendments of the declarations of organization or powers of
attorney, shall be made in the following manner:(a) Amendment of declaration of organization. The     attorney-in-fact shall sign and acknowledge, before an officer authorized to take acknowledgments, an amendment to the declaration of organization, in duplicate. When the attorney-in-fact is a corporation, such amendment shall be acknowledged by an officer thereof. The attorney-in-fact shall deliver such duplicate originals of the amendment to the Director. Such amendment may be approved or disapproved by the Director in the same manner as the original declaration of organization. If approved, the Director shall place on file in his office one of the duplicate originals of the amendment and shall endorse upon the other duplicate original his approval thereof and the month, day and year of such approval, and deliver it to the attorney-in-fact. The amendment shall be effective as of the date of the approval thereof by the Director.(b) Amendment of power of attorney. The     attorney-in-fact shall deliver to the Director a copy of any form of power of attorney under or by virtue of which it is proposed that insurance is to be effected or exchanged, which varies from the form of any power of attorney previously filed with the Director by such attorney-in-fact, before the same shall be used by any reciprocal. Such power of attorney may be approved or disapproved by the Director in the same manner as the original power of attorney. If approved, the Director shall place on file in his office a duplicate original of the power of attorney and shall endorse upon the other duplicate original his approval thereof and the month, day and year of such approval, and deliver it to the attorney-in-fact. The amendment shall be effective as of the date of approval thereof by the Director.(Source: P.A. 96-328, eff. 8-11-09.) (215 ILCS 5/81) (from Ch. 73, par. 693)(Section scheduled to be repealed on January 1, 2027)Sec. 81. 
		Governmental agencies and corporations may be subscribers. 
		
		Any government or governmental agency, state or political subdivision
thereof, public or private corporation, board, association, estate, trustee
or fiduciary in this State, or elsewhere, may make application, enter into
agreements for, and hold policies or contracts in or with, and be a
subscriber of any reciprocal subject to the provisions of this Article. Any
officer, representative, trustee, receiver, or legal representative of any
such subscriber shall be recognized as acting for or on its behalf for the
purpose of such contract but shall not be personally liable upon such
contract by reason of acting in such representative capacity.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/82) (from Ch. 73, par. 694)(Section scheduled to be repealed on January 1, 2027)Sec. 82. 
		Reinsurance. 
		
		Any domestic reciprocal may enter into reinsurance contracts subject to
the provisions of Article XI.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/83) (from Ch. 73, par. 695)(Section scheduled to be repealed on January 1, 2027)Sec. 83. 
		Procedure
when insufficient assets are possessed by reciprocal.(1) Whenever the Director finds that the admitted assets in excess of
all liabilities of a reciprocal are less than the amount required by
subsection (2) of Section 66, the Director shall proceed in the manner
set forth as provided in Section 60 applicable to mutual companies and
the reciprocal, its attorney-in-fact or any officers thereof, shall be
subject to the same requirements and penalties in such Section provided.
Nothing contained in this paragraph shall be construed to limit or restrict
the authority of any liquidator, conservator or rehabilitator acting under
the provisions of Article XIII or XIII 1/2 of this Act.(2) The attorney-in-fact of any such reciprocal may repair such
deficiency within the period designated by the Director, by advancing the
amount or any part thereof, at an interest rate not exceeding 7% per annum.
The funds so advanced shall not be treated as a liability of such
reciprocal and such advance including interest thereon shall be repaid only
out of the surplus funds of the reciprocal in excess of the amount required
by Section 66.
		(Source: Laws 1965, p. 2630.) (215 ILCS 5/84) (from Ch. 73, par. 696)(Section scheduled to be repealed on January 1, 2027)Sec. 84. 
		Penalties. 
		
		No person shall act as attorney-in-fact for a reciprocal except in
accordance with the provisions of this Article and any person, who violates
any of the provisions of this Section or who knowingly participates in or
abets such violation shall be guilty of a business offense and shall be
required to pay a penalty of not more than one thousand dollars, for each
offense, to be recovered in the name of the People of the State of Illinois
by the State's Attorney of the county in which the violation occurs, and
the penalty so recovered shall be paid into the county treasury.
		(Source: P.A. 77-2699.) (215 ILCS 5/85) (from Ch. 73, par. 697)(Section scheduled to be repealed on January 1, 2027)Sec. 85. 
		Application
of other Code provisions. 
		Unless otherwise provided in this Article every reciprocal shall be
subject to other applicable provisions of this Code.
		(Source: Laws 1937, p. 696.)
(215 ILCS 5/Art. IX.5 heading) ARTICLE IX 1/2.  
		CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE (215 ILCS 5/155.51) (from Ch. 73, par. 767.51)Sec. 155.51. 
		
		Purpose and scope.)
(a) The purpose of this Article is to promote the public welfare by
regulating credit life insurance and credit accident and health insurance.
Nothing in this Article is intended to prohibit or discourage reasonable
competition.  The provisions of this Article are to be liberally construed.(b) All life insurance and all accident and health insurance sold, or
otherwise made effective, in connection with loans or other credit transactions
of less than 10 years
duration is subject to this Article.  Such insurance sold in connection with
a loan or other credit transaction of 10 years duration or more is not
subject to this Article.  
		(Source: P.A. 79-930.) (215 ILCS 5/155.52) (from Ch. 73, par. 767.52)Sec. 155.52. Definitions.For the purpose of this Article:(a) "Credit life insurance" means insurance on the life of a debtor
pursuant to or in connection with a specific loan or other credit
transaction;(b) "Credit Accident and health insurance" means insurance on a debtor
to provide indemnity for payments becoming due on a specific loan or other
credit transaction while the debtor is a person with a disability as defined in the policy;(c) "Creditor" means the lender of money or vendor or lessor of goods,
services, property, rights or privileges, for which payment is arranged
through a credit transaction or any successor to the right, title or
interest of any such lender, vendor or lessor, and an affiliate, associate
or subsidiary of any of them or any director, officer or employee of any of
them or any other person in any way associated with any of them;(d) "Debtor" means a borrower of money or a purchaser or lessee of
goods, services, property, rights or privileges for which payment is
arranged through a credit transaction;(e) "Indebtedness" means the total amount payable by a debtor to a
creditor in connection with a loan or other credit transaction;(f) "Director" means the Director of Insurance of the State of Illinois.
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 5/155.53) (from Ch. 73, par. 767.53)Sec. 155.53. 
		
		Forms of credit life insurance and credit accident and health
insurance.)
Credit life insurance and credit accident and health insurance shall be
issued only in the following forms:(a) Individual policies of life insurance issued to debtors on the term
plan;(b) Individual policies of accident and health insurance issued to
debtors on a term plan or disability benefit provisions in individual
policies of credit life insurance;(c) Group policies of life insurance issued to creditors providing
insurance upon the lives of debtors on the term plan;(d) Group policies of accident and health insurance issued to creditors
on a term plan insuring debtors or disability benefit provisions in group
credit life insurance policies to provide such coverage.  
		(Source: Laws 1959, p. 1140.) (215 ILCS 5/155.54) (from Ch. 73, par. 767.54)Sec. 155.54. 
		
		Amount of credit life insurance and credit accident and health
insurance.)  (a) Credit Life InsuranceThe amount of credit life insurance shall not exceed the initial indebtedness.Where an indebtedness is repayable in substantially equal installments,
the amount of insurance shall at no time exceed the scheduled or actual
amount of unpaid indebtedness, whichever is greater.(b) Credit Accident and Health InsuranceThe total amount of indemnity payable by credit accident and health insurance
in the event of disability, as defined in the policy, shall not exceed the
aggregate of the periodic scheduled unpaid installments of the indebtedness
and the amount of each periodic indemnity payment shall not exceed the original
indebtedness divided by the number of periodic installments.   
		(Source: P.A. 79-930.) (215 ILCS 5/155.55) (from Ch. 73, par. 767.55)Sec. 155.55. 
		Term  of credit life insurance and credit accident and health insurance.The term of any credit life insurance or credit accident and health
insurance shall, subject to acceptance by the insurer, commence on the date
when the debtor becomes obligated to the creditor, or the date from which
interest or finance charges accrue, if later, except that, where a group
policy provides coverage with respect to existing obligations, the
insurance on a debtor with respect to such indebtedness shall commence on
the effective date of the policy. Where evidence of insurability is
required and such evidence is furnished more than 30 days after the date
when the debtor becomes obligated to the creditor, the term of the
insurance may commence on the date on which the insurer determines the
evidence to be satisfactory, and in such event there shall be an
appropriate refund or adjustment of any charge to the debtor for insurance.
The term of such insurance shall not extend more than 15 days beyond the
scheduled maturity date of the indebtedness except when extended without
additional cost to the debtor. If the indebtedness is discharged due to
renewal or refinancing prior to the scheduled maturity date, the insurance
in force shall be terminated before any new insurance may be issued in
connection with the renewed or refinanced indebtedness. In all cases of
termination prior to scheduled maturity, a refund shall be paid or credited
as provided in Section 155.58.
		(Source: Laws 1959, p. 1140.) (215 ILCS 5/155.56) (from Ch. 73, par. 767.56)Sec. 155.56. 
		Provisions of policies and certificates of insurance; disclosure to debtors. 
		(a) All credit life insurance and credit accident and health insurance
sold shall be evidenced by an individual policy, or in the case of group
insurance by a certificate of insurance, which individual policy or group
certificate of insurance shall be delivered to the debtor.(b) Each individual policy or group certificate of credit life
insurance, and/or credit accident and health insurance shall, in addition
to other requirements of law, set forth, the name and home office address
of the insurer, and the identity by name or otherwise of the person or
persons insured, the rate or amount of payment, if any, by the debtor
separately for credit life insurance and credit accident and health
insurance, a description of the amount, term and coverage including any
exceptions, limitations or restrictions, and shall state that the benefits
shall be paid to the creditor to reduce or extinguish the unpaid
indebtedness and, wherever the amount of insurance may exceed the unpaid
indebtedness, that any such excess shall be payable to a beneficiary, other
than the creditor, named by the debtor or to his estate.(c) Said individual policy or group certificate of insurance shall be
delivered to the insured debtor at the time the indebtedness is incurred
except as hereinafter provided.(d) If said individual policy or group certificate of insurance is not
delivered to the debtor at the time the indebtedness is incurred, a copy of
the application for such policy or a notice of proposed insurance, signed
by the debtor and setting forth the name and home office address of the
insurer, the identity by name or otherwise of the person or persons
insured, the rate or amount of payment by the debtor, if any, separately
for credit life insurance and credit accident and health insurance, a
description of the amount, term and coverage provided, shall be delivered
to the debtor at the time such indebtedness is incurred. The copy of the
application for, or notice of proposed insurance shall refer exclusively to
insurance coverage, and shall be separate and apart from the loan, sale or
other credit statement of account, instrument or agreement, unless the
information required by this subsection is prominently set forth therein.
Upon acceptance of the insurance by the insurer and within 30 days of the
date upon which the indebtedness is incurred, the insurer shall cause the
individual policy or group certificate of insurance to be delivered to the
debtor. Said application or notice of proposed insurance shall state that
upon acceptance by the insurer, the insurance shall become effective as
provided in Section 155.55.
		(Source: Laws 1959, p. 1140.) (215 ILCS 5/155.57) (from Ch. 73, par. 767.57)Sec. 155.57. Filing, approval, and withdrawal of forms.(a) All policies,
certificates of insurance, notices of proposed insurance, applications for
insurance, endorsements, and riders delivered or issued for delivery in this
State and the schedules of premium rates pertaining thereto shall be filed
with the Director.(b) The Director shall within a reasonable time after the filing of any
such policies, certificates of insurance, notices of proposed insurance,
applications for insurance, endorsements, and riders, disapprove any such
form if the benefits provided therein are not reasonable in relation to
the premium charge, or if it contains provisions which are unjust, unfair,
inequitable, misleading, deceptive, or encourage misrepresentation of the
coverage, or are contrary to any provision of this Code or of any
rule or regulation promulgated thereunder.(c) If the Director notifies the insurer that the form is disapproved,
it is unlawful thereafter for such insurer to issue or use such form.  In
such notice, the Director shall specify the reason for his disapproval and
state that a hearing will be granted within 20 days after request in writing
by the insurer.  No such policy, certificate of insurance, notice of proposed
insurance, nor any application, endorsement of rider, shall be issued or
used until after it has been so filed and the Director has given his prior
written approval thereto.(d) The Director may at any time, after giving not less than 20 days prior
written notice to the insurer, withdraw his approval of any such form on
any ground set forth in subsection (b) above.  The written notice of withdrawal
shall state the reason for the action.  The insurer may request a hearing
within 10 days after receipt of the notice of withdrawal by giving the Director
written notice of such request, together with a statement of its objections.
The Director must then conduct a hearing in accordance
with Sections 402 and 403.  The withdrawal shall be stayed pending the issuance
of the Director's orders following the hearing.However, if it appears to the Director that the continued use of any such
policy, certificate of insurance, notice of proposed insurance, application
for insurance, endorsement, or rider by an insurer is hazardous to its policyholders
or the public, the Director may take such action as is prescribed by Section 401.1.(e) It is not lawful for the insurer to issue such forms or use them after
the effective date of such withdrawal.(f) If a group policy of credit life insurance or credit accident and
health insurance has been or is delivered in another state before or after October 1, 1975 (the effective date of Public Act 79-930), the insurer shall be
required to file only the group certificate and notice of proposed insurance
delivered or issued for delivery in this State as specified in subsections
(b) and (d) of Section 155.57 of this Article and such forms shall be approved
by the Director if they conform with the requirements so specified in said
subsections and if the schedules of premium rates applicable to the insurance
evidenced by such certificate or notice are not in excess of the insurer's
schedules of premium rates filed with the Director; provided, however, the
premium rate in effect on existing group policies may be continued until
the first policy anniversary date following October 1, 1975 (the effective date of Public Act 79-930).(g) Any order or final determination of the Director under the provisions
of this Section shall be subject to judicial review.   
(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 5/155.58) (from Ch. 73, par. 767.58)Sec. 155.58. 
		Premiums and refunds.(a) Each insurer issuing credit life insurance or credit accident and
health insurance shall file with the Director its schedules of premium
rates for use in connection with such insurance. Any insurer may revise
such schedules from time to time, and shall file such revised schedules
with the Director. No insurer shall issue any credit life insurance policy
or credit accident and health insurance policy for which the premium rate
exceeds that determined by the schedules of such insurer as then on file
with the Director. The Director may require the filing of the schedule of
premium rates for use in connection with and as a part of the specific
policy filings as provided by Section 155.57.(b) Each individual policy, group certificate or notice of proposed
insurance shall provide that in the event of termination of the insurance
prior to the scheduled maturity date of the indebtedness, any refund of an
amount paid by the debtor for insurance shall be paid or credited promptly
to the person entitled thereto; provided, however, that the Director shall
prescribe a minimum refund and no refund which would be less than such
minimum need be made. The formula to be used in computing such refund shall
be filed with and approved by the Director.(c) If a creditor requires a debtor to make any payment for credit life
insurance or credit accident and health insurance and an individual policy
or group certificate of insurance is not issued, the creditor shall
immediately give written notice to such debtor and shall promptly make an
appropriate credit to the account.(d) The amount charged to a debtor for credit life or credit health and
accident insurance shall not exceed the premium charged by the insurer, as
computed at the time the charge to the debtor is determined.(e) Nothing in this Article shall be construed to authorize any payments
for insurance now prohibited under any statute, or rule thereunder,
governing credit transactions.
		(Source: Laws 1959, p. 1140.) (215 ILCS 5/155.59) (from Ch. 73, par. 767.59)Sec. 155.59. 
		Issuance of policies.All policies of credit life insurance and credit accident and health
insurance shall be delivered or issued for delivery in this state only by
an insurer authorized to do an insurance business herein, and shall be
issued only through licensed agents or brokers.
		(Source: Laws 1959, p. 1140.) (215 ILCS 5/155.60) (from Ch. 73, par. 767.60)Sec. 155.60. 
		Claims.(a) All claims shall be promptly reported to the insurer or its
designated claim representative, and the insurer shall maintain adequate
claim files. All claims shall be settled as soon as possible and in
accordance with the terms of the insurance contract.(b) All claims shall be paid either by draft drawn upon the insurer or
by check of the insurer to the order of the claimant to whom payment of the
claim is due pursuant to the policy provisions, or upon direction of such
claimant to one specified.(c) No plan or arrangement shall be used whereby any person, firm or
corporation other than the insurer or its designated claim representative
shall be authorized to settle or adjust claims. The creditor shall not be
designated as claim representative for the insurer in adjusting claims;
provided, that a group policyholder may, by arrangement with the group
insurer, draw drafts or checks in payment of claims due to the group
policyholder subjects to audit and review by the insurer.
		(Source: Laws 1959, p. 1140.) (215 ILCS 5/155.61) (from Ch. 73, par. 767.61)Sec. 155.61. 
		Existing insurance-Choice of insurer.When credit life insurance or credit accident and health insurance is
required as additional security for any indebtedness, the debtor shall,
upon request to the creditor, have the option of furnishing the required
amount of insurance through existing policies of insurance owned or
controlled by him or of procuring and furnishing the required coverage
through any insurer authorized to transact an insurance business within
this state.
		(Source: Laws 1959, p. 1140.) (215 ILCS 5/155.62) (from Ch. 73, par. 767.62)Sec. 155.62. 
		Enforcement.The Director may, issue such rules and regulations as he deems
appropriate for the administration of this Article. Whenever the Director
finds that there has been a violation of this Article or any rules or
regulations issued pursuant thereto, and after written notice thereof and
hearing given to the insurer or other person authorized or licensed by the
Director, he shall set forth the details of his findings together with an
order for compliance by a specified date. Such order shall be binding on
the insurer and other person authorized or licensed by the Director on the
date specified unless sooner withdrawn by the Director or a stay thereof
has been ordered by a court of competent jurisdiction.
		(Source: Laws 1959, p. 1140.) (215 ILCS 5/155.63) (from Ch. 73, par. 767.63)Sec. 155.63. 
		Judicial review.Any party to the proceeding affected by an order of the Director shall
be entitled to judicial review by following the procedure set forth in
Section 407 of the Illinois Insurance Code.
		(Source: Laws 1959, p. 1140.) (215 ILCS 5/155.64) (from Ch. 73, par. 767.64)Sec. 155.64. 
		Penalties.In addition to any other penalty provided by law, any person who
violates an order of the Director after it has become final, and while such
order is in effect, shall, upon proof thereof to the satisfaction of the
court, forfeit and pay to the State of Illinois a sum not to exceed $250.00
which may be recovered in a civil action, except that if such violation is
found to be willful, the amount of such penalty shall be a sum not to
exceed $1,000.00. The Director in his discretion, may revoke or suspend the
license or certificate of authority of a person guilty of such violation.
Such order for suspension or revocation shall be upon notice and hearing,
and shall be subject to judicial review as provided in Section 155.63 of
this Article.
		(Source: Laws 1959, p. 1140.) (215 ILCS 5/155.65) (from Ch. 73, par. 767.65)Sec. 155.65. 
		Separability provision.If any provision of this Article, or the application of such provision
to any person or circumstances, shall be held invalid, the remainder of the
Article, and the application of such provision to any person or
circumstances other than those as to which it is held invalid, shall not be
affected thereby.
		(Source: Laws 1959, p. 1140.)
(215 ILCS 5/Art. IX heading) ARTICLE IX.  
		PROVISIONS APPLICABLE TO ALL COMPANIES (215 ILCS 5/132) (from Ch. 73, par. 744)Sec. 132. 
		Market conduct and non-financial  examinations.(1) The Director, for the purposes of ascertaining the
non-financial business practices, performance, and operations of any
company, may make
examinations of:(a) any company transacting or being organized to     transact business in this State;(b) any person engaged in or proposing to be engaged     in the organization, promotion, or solicitation of shares or capital contributions to or aiding in the formation of a company;(c) any person having a contract, written or oral,     pertaining to the management or control of a company as general agent, managing agent, or attorney-in-fact;(d) any licensed or registered producer, firm, or     administrator, or any person, organization, or corporation making application for any licenses or registration;(e) any person engaged in the business of adjusting     losses or financing premiums; or(f) any person, organization, trust, or corporation     having custody or control of information reasonably related to the operation, performance, or conduct of a company or person subject to the jurisdiction of the Director.(2) Every company or person being examined and its officers, directors,
and agents must provide to the Director convenient and free access at
all reasonable hours at its office or location to all books, records,
documents, and any or all papers relating to the
business, performance, operations, and affairs of the company. The
officers, directors, and
agents of the company or person must facilitate the examination and aid
in the examination so far as it is in their power to do so.The Director and any authorized examiner have the power to administer
oaths and examine under oath
any person relative to the business of the company being examined.(3) The examiners designated by the Director under Section 402 must
make a full and true report of every examination made by them, which
contains only facts ascertained from the books, papers, records, or documents,
and other evidence obtained by investigation
and examined by them or ascertained from the testimony of officers or
agents or other persons examined under oath concerning the business,
affairs, conduct, and performance of the
company or person. The report of
examination must be verified by the oath of the examiner in charge
thereof, and when so verified is prima facie evidence in any action or
proceeding in the
name of the State against the company, its officers, or agents upon the
facts stated therein.(4) The Director must notify the company or person made the subject of
any examination hereunder of the
contents of the verified examination report before filing it and making the
report public of any matters relating thereto, and must afford the
company or person an opportunity to demand a hearing with reference to
the facts and other evidence therein contained.The company or person may request a hearing within 10 days after
receipt of the examination report by giving the Director written notice
of that request, together with a statement of its objections. The
Director must then conduct a hearing in accordance with Sections 402 and
403. He must issue a written order based upon the examination report and
upon the hearing within 90 days after the report is filed or within 90
days after the hearing.If the examination reveals that the company is operating in violation
of any law, regulation, or prior order, the Director in the written
order may require the company or person to take any action he considers
necessary or appropriate in accordance with the report of examination
or any hearing thereon. The order is subject to judicial review under
the Administrative Review Law.
The Director may withhold any report from public
inspection for such time as he may deem proper and may, after filing the
same, publish any part or all of the report as he considers to be in the
interest of the public, in one or more newspapers in this State, without
expense to the company.(5) Any company which or person who violates or aids and abets any
violation of a written order issued under this Section shall be guilty
of a business offense and may be fined not more than $5,000. The penalty
shall be paid into the General Revenue fund of the State of Illinois.
		(Source: P.A. 87-108.) (215 ILCS 5/132.1) (from Ch. 73, par. 744.1)Sec. 132.1. 
		Purpose. 
		The purpose of Sections 132.1 through 132.7 of
this Code is to provide an effective system for the financial examination
of the activities,
operations, financial condition, and affairs of all persons transacting the
business of insurance in this State and all persons otherwise subject to
the jurisdiction of the Director.  The provisions are intended to enable the
Director to adopt a flexible system of examinations that directs resources
as may be deemed appropriate and necessary for the administration of the
insurance and insurance related laws of this State.
		(Source: P.A. 87-108.) (215 ILCS 5/132.2) (from Ch. 73, par. 744.2)Sec. 132.2. 
		Definitions. 
		As used in Sections 132.1 through 132.7, the
terms set forth in this Section have the following meanings:"Company" means any person engaging in or proposing or attempting
to engage in any transaction or kind of insurance or surety business and
any person or group of persons who may otherwise be subject to the
administrative, regulatory, or taxing authority of the Director."Examiner" means any individual or firm having been authorized by the
Director to conduct an examination under this Code."Insurer" means any company licensed or authorized by the Director to
provide any insurance contracts, whether by indemnity, guaranty,
suretyship, or otherwise; including, but not limited to, those companies
licensed or authorized by the Director under the following Acts:(1) The Voluntary Health Services Plans Act.(2) (Blank).(3) The Dental Service Plan Act.(4) (Blank).(5) The Farm Mutual Insurance Company Act of 1986.(6) The Limited Health Service Organization Act.(7) The Health Maintenance Organization Act."Person" means any individual, aggregation of individuals, trust,
association, partnership, or corporation, or any affiliate thereof.
		(Source: P.A. 90-372, eff. 7-1-98; 90-655, eff. 7-30-98.) (215 ILCS 5/132.3) (from Ch. 73, par. 744.3)Sec. 132.3. 
		Authority, scope, and scheduling of examinations.(a) The Director or any of his examiners may conduct an examination of
any company as often as the Director, in his sole discretion, deems
appropriate, but shall, at a minimum, conduct an examination of every
insurer authorized or licensed in this State not less frequently than once
every 5 years.  In scheduling and determining the nature, scope, and
frequency of the examinations, the Director shall consider the results of
financial statement analyses and ratios, changes in management or
ownership, actuarial opinions, reports of independent certified public
accountants and other criteria set forth in the Examiners' Handbook adopted
by the National Association of Insurance Commissioners and in effect when
the Director exercises discretion under this subsection.(b) For purposes of completing an examination of any company, the
Director may examine or investigate any person, or the business of any
person, insofar as the examination or investigation is, in the sole
discretion of the Director, necessary or material to the examination of the
company.(c) In lieu of an examination of any foreign or alien insurer authorized
or licensed in this
State, the Director may accept an examination report on the company as
prepared by the insurance department for the company's state of domicile or
port-of-entry state until January 1, 1994.  Thereafter, those reports may
only be accepted if (1) the insurance department was at the time of the
examination accredited under the National Association of Insurance
Commissioners' Financial Regulation Standards and Accreditation Program,
(2) the examination is performed under the supervision of an accredited
insurance department or with the participation of one or more examiners
who are employed by an accredited state insurance department, and who,
after a review of the examination work papers and report, state under oath
that the examination was performed in a manner consistent with the
standards and procedures required by their insurance department, or (3) the
Director otherwise determines that the examination was performed in a manner
substantially similar to the standards and procedures required by Sections
132.1 through 132.6 of this Code.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/132.4) (from Ch. 73, par. 744.4)Sec. 132.4. 
		Conduct of examinations.(a) Upon determining that an examination should be conducted, the
Director or his designee shall issue an examination warrant appointing one
or more examiners to perform the examination and instructing them as to the
scope of the examination.  In conducting the examination, the examiner
shall observe those guidelines and
procedures set forth in the Examiners' Handbook adopted by the National
Association of Insurance Commissioners.  The Director may also employ other
guidelines or procedures as the Director may deem appropriate.(b) Every company or person from whom information is sought and its
officers, directors, and agents must provide to the examiners appointed
under subsection (a) timely, convenient, and free access, at all reasonable
hours at its offices, to all books, records, accounts, papers, documents,
and any or all computer or other recordings relating to the property,
assets, business, and affairs of the company being examined.  The officers,
directors, employees, and agents of the company or person must facilitate
the examination and aid in the examination so far as it is in their power
to do so.  The refusal of any company or its officers, directors,
employees, and agents to submit to examination or to comply with any
reasonable written request of the examiners shall be grounds for
suspension, refusal, or nonrenewal of any license or authority held by
the company to engage in an insurance or other business subject to the
Director's jurisdiction.  Any proceedings for suspension, revocation, or
refusal of any license or authority shall be conducted under the procedures
set forth in Section 401.1 of this Code.  Evidence of refusal to submit to
examination or to comply with reasonable written requests of examiners
shall establish a rebuttable presumption that the conduct of the company's
business and affairs is hazardous to its policyholders and the public
and may cause irreparable loss and injury to others so long as the refusal
to submit or to comply with the examination continues.(c) The Director or any of his examiners shall have the power to issue
subpoenas, to administer oaths, and to examine under oath any person as to
any matter pertinent to the examination.  Subpoenas may be enforced under
the provisions of Section 403 of this Code.(d) When making an examination, the Director may retain, in consultation
with the company being examined, attorneys,
appraisers, independent actuaries, independent certified public
accountants, or other professionals and specialists as examiners, the cost
of which shall be borne by the company that is the subject of the examination.(e) Nothing contained in this Act shall be construed to limit the
Director's authority to terminate or suspend any examination in order to
pursue other legal or regulatory action under the insurance laws of this
State.  Findings of fact and conclusions made in the course of any
examination shall be prima facie evidence in any legal or regulatory action.(f) Nothing contained in this Code shall be construed to limit the
Director's authority to use and, if appropriate, to make public any final
or preliminary examination report, any examiner or company work papers or
other documents, or any other information discovered or developed during
the course of any examination in the furtherance of any legal or regulatory
action that the Director may, in his sole discretion, deem appropriate.
		(Source: P.A. 87-108.) (215 ILCS 5/132.5) (from Ch. 73, par. 744.5)Sec. 132.5. Examination reports.(a) General description. All examination reports shall be comprised of
only facts appearing upon the books, records, or other documents of the
company, its agents, or other persons examined or as ascertained from the
testimony of its officers, agents, or other persons examined concerning its
affairs and the conclusions and recommendations as the examiners find
reasonably warranted from those facts.(b) Filing of examination report. No later than 60 days following
completion of the examination, the examiner in charge shall file with the
Department a verified written report of examination under oath. Upon
receipt of the verified report, the Department shall transmit the report to
the company examined, together with a notice that affords the company examined
a reasonable opportunity of not more than 30 days to make a written
submission or rebuttal with respect to any matters contained in the examination report.(c) Adoption of the report on examination.  Within 30 days of the end of the
period allowed for the receipt of written submissions or rebuttals, the
Director shall fully consider and review the report, together with any
written submissions or rebuttals and any relevant portions of the examiners
work papers and enter an order:(1) Adopting the examination report as filed or with     modification or corrections. If the examination report reveals that the company is operating in violation of any law, regulation, or prior order of the Director, the Director may order the company to take any action the Director considers necessary and appropriate to cure the violation.(2) Rejecting the examination report with directions     to the examiners to reopen the examination for purposes of obtaining additional data, documentation, or information and refiling under subsection (b).(3) Calling for an investigatory hearing with no less     than 20 days notice to the company for purposes of obtaining additional documentation, data, information, and testimony.(d) Order and procedures. All orders entered under paragraph (1) of
subsection (c) shall be accompanied by findings and conclusions resulting
from the Director's consideration and review of the examination report,
relevant examiner work papers, and any written submissions or rebuttals.
The order shall be considered a final administrative decision and may be
appealed in accordance with the Administrative Review Law. The order shall
be served upon the company by certified mail, together with a copy of the
adopted examination report. Within 30 days of the issuance of the adopted
report, the company shall file affidavits executed by each of its directors
stating under oath that they have received a copy of the adopted report and
related orders.Any hearing conducted under paragraph (3) of subsection (c) by the
Director or an authorized representative shall be conducted as a
nonadversarial confidential investigatory proceeding as necessary for the
resolution of any inconsistencies, discrepancies, or disputed issues
apparent upon the face of the filed examination report or raised by or as a
result of the Director's review of relevant work papers or by the written
submission or rebuttal of the company.
Within 20 days of the conclusion of any hearing, the Director shall enter
an order under paragraph (1) of subsection (c).The Director shall not appoint an examiner as an authorized
representative to conduct the hearing. The hearing shall proceed
expeditiously with discovery by the company limited to the examiner's work
papers that tend to substantiate any assertions set forth in any written
submission or rebuttal. The Director or his representative may issue
subpoenas for the attendance of any witnesses or the production of any
documents deemed relevant to the investigation, whether under the control
of the Department, the company, or other persons. The documents produced
shall be included in the record, and testimony taken by the Director or his
representative shall be under oath and preserved for the record. Nothing
contained in this Section shall require the Department to disclose any
information or records that would indicate or show the existence or content
of any investigation or activity of a criminal justice agency.The hearing shall proceed with the Director or his representative
posing questions to the persons subpoenaed. Thereafter the company and the
Department may present testimony relevant to the investigation.
Cross-examination shall be conducted only by the Director or his representative.
The company and the Department shall be permitted to make closing
statements and may be represented by counsel of their choice.(e) Publication and use.  Upon the adoption of the examination report
under paragraph (1) of subsection (c), the Director shall continue to hold
the content of the examination report as private and confidential
information for a period of 35 days, except to the extent provided in
subsection (b). Thereafter, the Director may open the report for public
inspection so long as no court of competent jurisdiction has stayed its publication.Nothing contained in this Code shall prevent or be construed as
prohibiting the Director from disclosing the content of an examination
report, preliminary examination report or results, or any matter relating
thereto, to the insurance department of any other state or country or to law
enforcement officials of this or any other state or agency of the federal
government at any time, so long as the agency or office receiving the
report or matters relating thereto agrees in writing to hold it
confidential and in a manner consistent with this Code.In the event the Director determines that regulatory action is
appropriate as a result of any examination, he may initiate any
proceedings or actions as provided by law.(f) Confidentiality of ancillary information.  All working papers,
recorded information, documents, and copies
thereof produced by, obtained by, or disclosed to the Director or any other
person in the course of any examination must be given confidential
treatment, are not subject to subpoena, and may not be made public by the
Director or any other persons, except to the extent provided in subsection
(e). Access may also be granted to the National Association of Insurance Commissioners.
Those parties must agree in writing before receiving the information to
provide to it the same confidential treatment as required by this Section,
unless the prior written consent of the company to which it pertains has been obtained.This subsection (f) applies to market conduct examinations described in Section 132 of this Code.(g) Disclosure. Nothing contained in this Code shall prevent or be construed as prohibiting the Director from disclosing the information described in subsections (e) and (f) to the Illinois Insurance Guaranty Fund regarding any member company defined in Section 534.5 if the member company has an authorized control level event as defined in Section 35A-25. The Director may disclose the information described in this subsection so long as the Fund agrees in writing to hold that information confidential, in a manner consistent with this Code, and uses that information to prepare for the possible liquidation of the member company. Access to the information disclosed by the Director to the Fund shall be limited to the Fund's staff and its counsel. The Board of Directors of the Fund may have access to the information disclosed by the Director to the Fund once the member company is subject to a delinquency proceeding under Article XIII subject to any terms and conditions established by the Director. (Source: P.A. 102-929, eff. 5-27-22.) (215 ILCS 5/132.6) (from Ch. 73, par. 744.6)Sec. 132.6. 
		Conflict of interest.(a) No examiner may be appointed by the Director if that examiner,
either directly or indirectly, has a conflict of interest, is affiliated with the
management of, or owns a pecuniary interest in any person subject to
examination.  This Section shall not be construed to automatically preclude
an examiner from being:(1) A policyholder or claimant under an insurance     policy.(2) A grantor of a mortgage or similar instrument on     the examiner's residence to a regulated entity if done under customary terms and in the ordinary course of business.(3) An investment owner in shares of regulated     diversified investment companies.(4) A settlor or beneficiary of a "blind trust" into     which any otherwise impermissible holdings have been placed.(b) Notwithstanding the provisions of this Section, the Director may
retain from time to time, on an individual basis, qualified actuaries,
certified public accountants, or other similar individuals who are
independently practicing their professions, even though those persons may
from time to time be similarly
employed or retained by persons subject to examination under this Code.
		(Source: P.A. 87-108.) (215 ILCS 5/132.7) (from Ch. 73, par. 744.7)Sec. 132.7. 
		Immunity from liability.(a) No cause of action shall arise nor shall any liability be imposed
against the Director, the Director's authorized representatives, or any
examiner appointed by the Director for any statements made or conduct
performed in good faith while carrying out the provisions of this Code.(b) No cause of action shall arise, nor shall any liability be imposed
against any person for the act of communicating or delivering information
or data to the Director or the Director's authorized representative or
examiner in the course of an examination if the act of communication or
delivery was performed in good faith and without fraudulent intent or the
intent to deceive.(c) This Section does not abrogate or modify in any way any common law
or statutory privilege or immunity heretofore enjoyed by any person
identified in subsection (a).(d) Persons identified in subsection (a) shall be entitled to an award
of attorney's fees and costs if they are a prevailing party in a civil
action for libel, slander, or any other relevant tort arising out
of their activities in carrying out the provisions of this Code and the
party bringing the action was not substantially justified in doing so.  For
purposes of this Section a proceeding is "substantially justified" if it
has a reasonable basis in law or fact at the time that it was initiated.
		(Source: P.A. 87-108.) (215 ILCS 5/133) (from Ch. 73, par. 745)Sec. 133. 
		Books, records, accounts and vouchers.(1) Every domestic company shall keep its books, records, documents,
accounts and vouchers in such manner that its financial condition,
affairs and operations can be
ascertained and so that its financial statements filed with the Director
can be readily verified and its compliance with the law determined and may
cause any or all such books, records, documents, accounts and vouchers to
be photographed or reproduced on film. Any such photographs,
microphotographs, optical imaging, or film reproductions of any original
books, records,
documents, accounts and vouchers shall for all purposes be considered the
same as the originals thereof and a transcript, exemplification or
certified copy of any such photograph, microphotograph, optical imaging, or
film reproduction
shall for all purposes be deemed to be a transcript, exemplification or
certified copy of the original. Any original so reproduced may thereafter
be disposed of or destroyed if provision is made for preserving and
examining such reproductions.(2) All such original books, records, documents, accounts and vouchers,
or such reproductions thereof, of the home office of any domestic company
or of any principal United States office of a foreign or alien company
located in this State shall be preserved and kept available in this State
for the purpose of examination and until authority to destroy or otherwise
dispose of such records is secured from the Director. Such original records
may, however, be kept and maintained outside this State if, according to a
plan adopted by the company's board of directors and approved by the
Director, it maintains suitable records in lieu thereof. Every domestic
company shall keep its securities within the State of Illinois except where:(a) on deposit with other states of the United States     of America, or political subdivision thereof; or(b) on deposit with foreign countries where the     company is licensed to transact an insurance business; or(c) where requisite for the normal transaction of the     company's business and approved by the Director.(3) Any domestic company may maintain with a corporation, qualified to
administer trusts in this State under the Corporate Fiduciary Act and that
has an
office in this State at which the account is maintained,
for its securities, a limited
agency, custodial or depository account, or other type of account for the
safekeeping of those securities, collecting the income from those securities
and providing supportive accounting services relating to such safekeeping
and collection, provided, the domestic company maintains full investment
discretion over those securities.  Such a corporation in safekeeping such
securities shall have all the powers, rights, duties and responsibilities
as it has for holding securities in its fiduciary accounts under the
Securities in Fiduciary Accounts Act.(4) Any director, officer, agent or employee of any company who destroys
any such books, records or documents without the authority of the Director
in violation of this section or who fails to keep the books, records,
documents, accounts and vouchers required by this section shall be guilty
of a business offense and shall be fined not more than $5000.00.
		(Source: P.A. 88-364; 89-437, eff. 12-15-95.) (215 ILCS 5/134) (from Ch. 73, par. 746)Sec. 134. 
		Falsification of Records-Sentence.Any officer, director, agent or employee of any company who makes or
causes to be made any false entry in any book, report or statement of such
company with intent to injure or defraud such company, or any other company
or person, or to deceive any officer of such company, or the Director or
any agent or examiner appointed to examine the affairs of such company and
any person who with like intent aids or abets any officer, director, agent
or employee in any violation of this Section shall be guilty of a Class 4
felony.
		(Source: P.A. 77-2830.) (215 ILCS 5/136) (from Ch. 73, par. 748)Sec. 136. Annual statement.(1) Every company authorized to do business in this State or accredited by
this State shall submit to the Director by March 1st in each year 
its financial statement for the year ending December 31st immediately preceding in such manner and in such form as
 prescribed by the Director, which shall conform substantially to the
form of statement adopted by the National Association of Insurance
Commissioners.  Unless the Director provides otherwise, the annual statement is
to be prepared in accordance with the annual statement instructions and the
Accounting Practices and Procedures Manual adopted by the National Association
of Insurance Commissioners.  The Director shall have power to make such
modifications and additions in this form as he may deem desirable
or necessary to ascertain the condition and affairs of the company.  The
Director shall have authority to extend the time for filing any statement by
any company for reasons which he considers good and sufficient. In every
statement the admitted assets shall be shown at the actual values as of the
last day of the preceding year, in accordance with Section 126.7.
The statement
shall be verified by oaths of the president and secretary of the company or, in
their absence, by 2 other principal officers. In addition, any company may be
required by the Director, when he considers that action to be necessary and
appropriate for the protection of policyholders, creditors, shareholders, or
claimants, to file, within 60 days after mailing to the company a notice that
such is required, a supplemental summary statement as of the last day of any
calendar month occurring during the 100 days next preceding the mailing of such
notice designated by him on forms prescribed and furnished by the Director. The
Director may require supplemental summary statements to be certified by an
independent actuary deemed competent by the Director or by an independent
certified public accountant.(2) The statement of an alien company shall embrace only its
condition and transactions in the United States and shall be verified by
the oaths of its resident manager or principal representative in the
United States, except that in the case of any life company organized
under the laws of Canada or any province thereof, the statement may be
verified by the oaths of any of its principal officers designated for
that purpose by its board of directors.(3) For the information of the public generally the Director shall
cause an abstract of the information contained in the annual statement
to be made available to the public as soon as practicable after filing
with the Department, by printing those abstracts in pamphlet tabular form
for free general distribution by the Department, or by such other
publication in the city of Springfield or in the city of Chicago as may
be reasonably necessary more fully to inform the public of the financial
condition of companies transacting business in this State.(4) Each domestic, foreign, and alien insurer authorized to
do business in this State or accredited by this State shall participate
in the National Association of Insurance Commissioners' Insurance Regulatory
Information System, including the payment of all fees and charges of the
system.  Each company shall, on or before March 1 of each year, file with the
National Association of Insurance Commissioners a copy of its annual financial
statement along with any additional filings prescribed by the Director for the
preceding year.  The statement filed with the National Association of Insurance
Commissioners shall be in the same format and scope as that required by this
Code and shall include a signed jurat page and actuarial certification.  Any
amendments and addendums to the annual statement shall also be filed with the
National Association of Insurance Commissioners. Each company shall also file
with the National Association of Insurance Commissioners annual and quarterly
financial statement information in computer readable format as required by the
Insurance Regulatory Information System.
Failure of a company to file financial statement information in computer
readable format shall subject the company to the provisions of Section 139.(5) All financial analysis ratios and examination synopsis concerning
insurance companies that are submitted to the Director by the National
Association of Insurance Commissioners' Insurance Regulatory Information
System are confidential and may not be disclosed by the Director.(6) Every property and casualty insurance company doing business in this State, unless otherwise exempted by the Director, shall annually submit the opinion of an appointed actuary entitled "Statement of Actuarial Opinion". This opinion shall be filed in accordance with the appropriate National Association of Insurance Commissioners Property and Casualty Annual Statement Instructions.(a) Every property and casualty insurance company     domiciled in this State that is required to submit a Statement of Actuarial Opinion shall annually submit an Actuarial Opinion Summary, written by the company's appointed actuary.  This Actuarial Opinion Summary shall be filed in accordance with the appropriate National Association of Insurance Commissioners Property and Casualty Annual Statement Instructions and shall be considered as a document supporting the Actuarial Opinion required in this subsection (6). Each foreign and alien property and casualty company authorized to do business in this State shall provide the Actuarial Opinion Summary upon request.(b) An Actuarial Report and underlying workpapers as     required by the appropriate National Association of Insurance Commissioners Property and Casualty Annual Statement Instructions shall be prepared to support each Actuarial Opinion. If the insurance company fails to provide a supporting Actuarial Report or workpapers at the request of the Director or the Director determines that the supporting Actuarial Report or workpapers provided by the insurance company is otherwise unacceptable to the Director, the Director may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting Actuarial Report or workpapers.(c) The appointed actuary shall not be liable for     damages to any person (other than the insurance company and the Director) for any act, error, omission, decision, or conduct with respect to the actuary's opinion, except in cases of fraud or willful misconduct on the part of the appointed actuary.(d) The Statement of Actuarial Opinion shall be     provided with the Annual Statement in accordance with the appropriate National Association of Insurance Commissioners Property and Casualty Annual Statement Instructions and shall be treated as a public document. Documents, materials, or other information in the possession or control of the Director that are considered an Actuarial Report, workpapers, or Actuarial Opinion Summary provided in support of the opinion, and any other material provided by the company to the Director in connection with the Actuarial Report, workpapers or Actuarial Opinion Summary, must be given confidential treatment, are not subject to subpoena, and may not be made public by the Director or any other persons. This paragraph (d) shall not be construed to limit the Director's authority to release the documents to the Actuarial Board for Counseling and Discipline (ABCD), so long as the material is required for the purpose of professional disciplinary proceedings and that the ABCD establishes procedures satisfactory to the Director for preserving the confidentiality of the documents, nor shall this paragraph (d) be construed to limit the Director's authority to use the documents, materials or other information in furtherance of any regulatory or legal action brought as part of the Director's official duties. Neither the Director nor any person who received documents, materials, or other information while acting under the authority of the Director shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to this subsection (6). Except where another provision of this Code expressly prohibits a disclosure of confidential information to the specific officials or organizations described in this subsection, the Director may:(i) share documents, materials, or other         information, including the confidential and privileged documents, materials or information subject to this paragraph (d) with the insurance department of any other state or country or with law enforcement officials of this or any other state or agency of the federal government at any time, as long as the agency or office receiving the document, material, or other information agrees in writing to hold it confidential and in a manner consistent with this Code;(ii) receive documents, materials, or         information, including otherwise confidential and privileged documents, materials, or information, from the National Association of Insurance Commissioners and its affiliates and subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and(iii) enter into agreements governing sharing and         use of information consistent with paragraph (d).(e) No waiver of any applicable privilege or claim of     confidentiality in the documents, materials or information shall occur as a result of disclosure to the Director under this Section or as a result of sharing as authorized in subparagraphs (i), (ii), and (iii) of paragraph (d) of subsection (6) of this Section. All 2008 Annual Statements, which are filed in 2009, and all subsequent Annual Statement filings shall be done in accordance with subsection (6) of this Section. (Source: P.A. 96-145, eff. 8-7-09; 97-486, eff. 1-1-12.) (215 ILCS 5/137) (from Ch. 73, par. 749)Sec. 137. 
		
		Every Insurance Company doing business in this state which is
required to file a statement or report with the Securities and Exchange
Commission, shall at the request of the Director, file a copy of such statement
or report with the Department.
		(Source: P.A. 80-514.) (215 ILCS 5/139) (from Ch. 73, par. 751)Sec. 139. Penalties for late or false annual statement.(1) Any company failing, without just cause, to file its financial
statements as required in this Code shall be required, after notice and
hearing, to pay a penalty of up to $1,000 for each day's delay, to
be recovered by
the Director of Insurance of the State of Illinois using the notice and hearing procedure in subsection (2) of Section 403A of this Code, and the penalty so
recovered shall be paid into the General Revenue fund of the State of
Illinois. The Director may reduce the penalty if the company demonstrates
to the Director that the imposition of the penalty would constitute a financial
hardship to the company.Any statement which is not materially complete when filed
shall
not be considered to have been properly filed until those deficiencies
which make the filing incomplete have been corrected and filed.(2) Any director, officer, agent or employee of any company, who
subscribes to, makes or concurs in making or publishing any annual or other
statement required by law, knowing the same to contain any material
statement which is false shall, after notice and hearing, be guilty of a
business offense and shall be fined not more than $50,000.The penalty shall be paid into the General Revenue fund of the State of
Illinois.
(Source: P.A. 98-910, eff. 7-1-15.) (215 ILCS 5/140) (from Ch. 73, par. 752)Sec. 140. 
		
		Vouchers
for disbursements.No domestic company shall make any disbursement of one hundred dollars
or more unless the same be evidenced by a voucher or receipt signed or
check endorsed by or on behalf of the person receiving the money and
describing the consideration for the payment, and if the expenditure be in
connection with any matter pending before any legislative or public body or
before any department or officer of any state or government the voucher
shall describe the nature of the matter and the interest of the company
therein, or if such voucher cannot be obtained, the expenditure shall be
evidenced by affidavit describing its character and object and stating the
reasons for not obtaining such voucher, receipt or check.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/141) (from Ch. 73, par. 753)Sec. 141. 
		Agency contracts. 
		(1) Any domestic company which
contracts with any person (different legal entities,
directly or indirectly owned or controlled by the same person shall be
considered as a person within the meaning of this Section) whereby such
person is granted the right or privilege to solicit, procure, write or
produce a major part of the insurance business for such company and collect
premiums therefor shall file such contract with the Director within 15
days from the execution of such contract or within 60 days following the
end of any calendar quarter in which such person produces a major portion
of the company's insurance business.  For purposes of this Section, any
person who produces in excess of five percent (5%) of a company's insurance
premium volume during any one calendar quarter shall be deemed as having been
granted the privilege of producing a major portion of such company's
business. Failure of the Director to disapprove any such contract within
thirty days after the same shall be filed with him, shall constitute his
approval thereof. A company may continue to accept business from such
person until such contract is disapproved by the Director. Such
disapproval shall be in writing, stating the reasons
therefor and a copy thereof delivered to the company.(2) The Director shall not approve any such contract which(a) subjects the company to excessive charges for expenses or
commissions;(b) vests in the agent or agency company any control over the management
of the affairs of the insurance company to the exclusion of the board of
directors of the insurance company;(c) gives to such person, the right to solicit, procure, write or produce
a major part of the insurance business for such insurance company and collect
and hold the premiums for such unreasonable period as may jeopardize the
security of policyholders; or(d) fails to require such person to  make available to the Director or
his designees all books, records and documents pertaining to such person's
insurance business.(3) The Director shall not approve any contract with any person if such
person or its officers and directors are of known bad character or have
been affiliated directly or indirectly through ownership, control,
management, reinsurance transactions or other insurance or business
relationships with any person or persons known to have been involved in the
improper manipulation of assets, accounts or reinsurance.(4) The Director, for the purpose of ascertaining the assets, conditions
and affairs of any person having a contract as provided in subsection (1),
may examine the books, records, documents and assets of such person.(5) The Director may, after a hearing held pursuant to Section 401,
withdraw his approval of any agency contract theretofore approved by him,
if he finds that the basis of his original approval no longer exist, or
that the contract has, in actual operation, shown itself to be subject to
disapproval on any of the grounds referred to in subsections (2) and (3) above.
		(Source: P.A. 84-714.) (215 ILCS 5/141a) (from Ch. 73, par. 753a)Sec. 141a. 
		Managing general agents and retrospective compensation
agreements.(a) As used in this Section, the following terms have the following
meanings:"Actuary" means a person who is a member in good standing of the American
Academy of Actuaries."Gross direct written premium" means direct premium including policy and
membership fees, net of returns and cancellations, and prior to any cessions."Insurer" means any person duly licensed in this State as an insurance
company pursuant to Articles II, III, III 1/2, IV, V, VI, and
XVII of this Code."Managing general agent" means any person, firm, association, or
corporation, either separately or together with affiliates, that:(1) manages all or part of the insurance business of     an insurer (including the management of a separate division, department, or underwriting office), and(2) acts as an agent for the insurer whether known as     a managing general agent, manager, or other similar term, and(3) with or without the authority produces, directly     or indirectly, and underwrites:(A) within any one calendar quarter, an amount of         gross direct written premium equal to or more than 5% of the policyholders' surplus as reported in the insurer's last annual statement, or(B) within any one calendar year, an amount of         gross direct written premium equal to or more than 8% of the policyholders' surplus as reported in the insurer's last annual statement, and either(4) has the authority to bind the company in     settlement of individual claims in amounts in excess of $500, or(5) has the authority to negotiate reinsurance on     behalf of the insurer.Notwithstanding the provisions of items (1) through (5), the following
persons shall not be considered to be managing general agents for the
purposes of this Code:(1) An employee of the insurer;(2) A U.S. manager of the United States branch of an     alien insurer;(3) An underwriting manager who, pursuant to a     contract meeting the standards of Section 141.1 manages all or part of the insurance operations of the insurer, is affiliated with the insurer, subject to Article VIII 1/2, and whose compensation is not based on the volume of premiums written;(4) The attorney or the attorney in fact authorized     and acting for or on behalf of the subscriber policyholders of a reciprocal or inter-insurance exchange, under the terms of the subscription agreement, power of attorney, or policy of insurance or the attorney in fact for any Lloyds organization licensed in this State."Retrospective compensation
agreement" means any arrangement, agreement, or contract having as its
purpose the actual or constructive retention by the insurer of a fixed
proportion of the gross premiums, with the balance of the premiums,
retained actually or constructively by the agent or the producer of the
business, who assumes to pay therefrom all losses, all subordinate
commission, loss adjustment expenses, and his profit, if any, with other
provisions of the arrangement, agreement, or contract being auxiliary or
incidental to that purpose."Underwrite" means to accept or reject risk on behalf of the insurer.(b) Licensure of managing general agents.(1) No person, firm, association, or corporation     shall act in the capacity of a managing general agent with respect to risks located in this State for an insurer licensed in this State unless the person is a licensed producer or a registered firm in this State under Article XXXI of this Code or a licensed third party administrator in this State under Article XXXI 1/4 of this Code.(2) No person, firm, association, or corporation     shall act in the capacity of a managing general agent with respect to risks located outside this State for an insurer domiciled in this State unless the person is a licensed producer or a registered firm in this State under Article XXXI of this Code or a licensed third party administrator in this State under Article XXXI 1/4 of this Code.(3) The managing general agent must provide a surety     bond for the benefit of the insurer in an amount equal to the greater of $100,000 or 5% of the gross direct written premium underwritten by the managing general agent on behalf of the insurer.  The bond shall provide for a discovery period and prior notification of cancellation in accordance with the rules of the Department unless otherwise approved in writing by the Director.(4) The managing general agent must maintain an     errors and omissions policy for the benefit of the insurer with coverage in an amount equal to the greater of $1,000,000 or 5% of the gross direct written premium underwritten by the managing general agent on behalf of the insurer.(5) Evidence of the existence of the bond and the     errors and omissions policy must be made available to the Director upon his request.(c) No person, firm, association, or corporation acting in the capacity
of a managing general agent shall place business with an insurer unless
there is in force a written contract between the parties that sets forth
the responsibilities of each party, that, if both parties share
responsibility for a particular function, specifies the division of
responsibility, and that contains the following minimum provisions:(1) The insurer may terminate the contract for cause     upon written notice to the managing general agent.  The insurer may suspend the underwriting authority of the managing general agent during the pendency of any dispute regarding the cause for termination.(2) The managing general agent shall render accounts     to the insurer detailing all transactions and remit all funds due under the contract to the insurer on not less than a monthly basis.(3) All funds collected for the account of an insurer     shall be held by the managing general agent in a fiduciary capacity in a bank that is a federally or State chartered bank and that is a member of the Federal Deposit Insurance Corporation.  This account shall be used for all payments on behalf of the insurer; however, the managing general agent shall not have authority to draw on any other accounts of the insurer.  The managing general agent may retain no more than 3 months estimated claims payments and allocated loss adjustment expenses.(4) Separate records of business written by the     managing general agent will be maintained.  The insurer shall have access to and the right to copy all accounts and records related to its business in a form usable by the insurer, and the Director shall have access to all books, bank accounts, and records of the managing general agent in a form usable to the Director.(5) The contract may not be assigned in whole or part     by the managing general agent.(6) The managing general agent shall provide to the     company audited financial statements required under paragraph (1) of subsection (d).(7) That appropriate underwriting guidelines be     followed, which guidelines shall stipulate the following:(A) the maximum annual premium volume;(B) the basis of the rates to be charged;(C) the types of risks that may be written;(D) maximum limits of liability;(E) applicable exclusions;(F) territorial limitations;(G) policy cancellation provisions; and(H) the maximum policy period.(8) The insurer shall have the right to: (i) cancel     or nonrenew any policy of insurance subject to applicable laws and regulations concerning those actions; and (ii) require cancellation of any subproducer's contract after appropriate notice.(9) If the contract permits the managing general     agent to settle claims on behalf of the insurer:(A) all claims must be reported to the company in         a timely manner.(B) a copy of the claim file must be sent to the         insurer at its request or as soon as it becomes known that the claim:(i) has the potential to exceed an amount             determined by the company;(ii) involves a coverage dispute;(iii) may exceed the managing general agent's             claims settlement authority;(iv) is open for more than 6 months; or(v) is closed by payment of an amount set by             the company.(C) all claim files will be the joint property of         the insurer and the managing general agent.  However, upon an order of liquidation of the insurer, the files shall become the sole property of the insurer or its estate; the managing general agent shall have reasonable access to and the right to copy the files on a timely basis.(D) any settlement authority granted to the         managing general agent may be terminated for cause upon the insurer's written notice to the managing general agent or upon the termination of the contract.  The insurer may suspend the settlement authority during the pendency of any dispute regarding the cause for termination.(10) Where electronic claims files are in existence,     the contract must address the timely transmission of the data.(11) If the contract provides for a sharing of     interim profits by the managing general agent and the managing general agent has the authority to determine the amount of the interim profits by establishing loss reserves, controlling claim payments, or by any other manner, interim profits will not be paid to the managing general agent until one year after they are earned for property insurance business and until 5 years after they are earned on casualty business and in either case, not until the profits have been verified.(12) The managing general agent shall not:(A) Bind reinsurance or retrocessions on behalf         of the insurer, except that the managing general agent may bind facultative reinsurance contracts under obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines including, for both reinsurance assumed and ceded, a list of reinsurers with which automatic agreements are in effect, the coverages and amounts or percentages that may be reinsured, and commission schedules.(B) Appoint any producer without assuring that         the producer is lawfully licensed to transact the type of insurance for which he is appointed.(C) Without prior approval of the insurer, pay or         commit the insurer to pay a claim over a specified amount, net of reinsurance, that shall not exceed 1% of the insurer's policyholders' surplus as of December 31 of the last completed calendar year.(D) Collect any payment from a reinsurer or         commit the insurer to any claim settlement with a reinsurer without prior approval of the insurer.  If prior approval is given, a report must be promptly forwarded to the insurer.(E) Permit its subproducer to serve on its board         of directors.(F) Employ an individual who is also employed by         the insurer.(13) The contract may not be written for a term of     greater than 5 years.(d) Insurers shall have the following duties:(1) The insurer shall have on file the managing     general agent's audited financial statements as of the end of the most recent fiscal year prepared in accordance with Generally Accepted Accounting Principles.  The insurer shall notify the Director if the auditor's opinion on those statements is other than an unqualified opinion.  That notice shall be given to the Director within 10 days of receiving the audited financial statements or becoming aware that such opinion has been given.(2) If a managing general agent establishes loss     reserves, the insurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent, in addition to any other required loss reserve certification.(3) The insurer shall periodically (at least     semiannually) conduct an on-site review of the underwriting and claims processing operations of the managing general agent.(4) Binding authority for all reinsurance contracts     or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer, who shall not be affiliated with the managing general agent.(5) Within 30 days of entering into or terminating a     contract with a managing general agent, the insurer shall provide written notification of the appointment or termination to the Director.  Notices of appointment of a managing general agent shall include a statement of duties that the applicant is expected to perform on behalf of the insurer, the lines of insurance for which the applicant is to be authorized to act, and any other information the Director may request.(6) An insurer shall review its books and records     each quarter to determine if any producer has become a managing general agent.  If the insurer determines that a producer has become a managing general agent, the insurer shall promptly notify the producer and the Director of that determination, and the insurer and producer must fully comply with the provisions of this Section within 30 days of the notification.(7) The insurer shall file any managing general agent     contract for the Director's approval within 45 days after the contract becomes subject to this Section.  Failure of the Director to disapprove the contract within 45 days shall constitute approval thereof.  Upon expiration of the contract, the insurer shall submit the replacement contract for approval.  Contracts filed under this Section shall be exempt from filing under Sections 141, 141.1 and 131.20a.(8) An insurer shall not appoint to its board of     directors an officer, director, employee, or controlling shareholder of its managing general agents.  This provision shall not apply to relationships governed by Article VIII 1/2 of this Code.(e) The acts of a managing general agent are considered to be the acts
of the insurer on whose behalf it is acting.  A managing general agent may
be examined in the same manner as an insurer.(f) Retrospective compensation agreements for business written under
Section 4 of this Code in Illinois and outside of Illinois by an insurer
domiciled in this State must be filed for approval.
 The standards for approval shall be as set forth under Section 141
of this Code.(g) Unless specifically required by the Director, the provisions of this
Section shall not apply to arrangements between a managing general agent not
underwriting any risks located in Illinois and a foreign insurer domiciled in
an NAIC accredited state that has adopted legislation substantially similar to
the NAIC Managing General Agents Model Act.  "NAIC accredited state" means a
state or territory of the United States having an insurance regulatory agency
that maintains an accredited status granted by the National Association of
Insurance Commissioners.(h) If the Director determines that a managing general agent
has not materially complied with this Section or any regulation or
order promulgated hereunder, after notice and opportunity to be heard, the
Director may order a penalty in an amount not exceeding $100,000 for each
separate violation and may order the revocation or suspension of the producer's
license.  If it is found that because of the material noncompliance the
insurer
has suffered any loss or damage, the Director may maintain a civil action
brought by or on behalf of the insurer and its policyholders and creditors for
recovery of compensatory damages for the benefit of the insurer and its
policyholders
and creditors or other appropriate relief.  This subsection (h) shall not be
construed to prevent any other person from taking civil action against a
managing general agent.(i) If an Order of Rehabilitation or Liquidation is entered
under Article XIII and
the receiver appointed under that Order determines that the managing general
agent or any other person has not materially complied with this Section or any
regulation or Order promulgated hereunder and the insurer suffered any loss
or damage therefrom, the receiver may maintain a civil action for recovery of
damages or other appropriate sanctions for the benefit of the insurer.Any decision, determination, or order of the Director under this
subsection shall be subject to judicial review under the Administrative
Review Law.Nothing contained in this subsection shall affect the right of the
Director to impose any other penalties provided for in this Code.Nothing contained in this subsection is intended to or shall in any
manner limit or restrict the rights of policyholders, claimants, and auditors.(j) A domestic company shall not during any calendar year write,
through  a managing general agent or managing general agents, premiums in an
amount equal to or greater than its capital and surplus as of the preceding
December 31st unless the domestic company requests in writing the Director's
permission to do so and the Director has either approved the request or has
not disapproved the request within 45 days after the Director received the
request.No domestic company with less than $5,000,000 of capital and surplus may
write any business through a managing general agent unless the domestic company
requests in writing the Director's permission to do so and the Director has
either approved the request or has not disapproved the request within 45 days
after the Director received the request.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/141b)Sec. 141b. Third party access to files. Any contract with a third party ("administrator") to provide claim services for a property and casualty company must contain the following provisions:(1) Upon liquidation or rehabilitation of the     insurer, the files and any data related thereto become the sole property of the estate. The administrator shall have reasonable access and right to copy files at the administrator's expense.(2) In the event electronic files are used, the     administrator must keep all data in such a format that it is easily separated from other data maintained by the administrator and timely transferred to the liquidator upon the entry of an order or liquidation. "Timely transferred", in this context, means the claim file data must be transferred to the liquidator within 10 days after the entry of an order of liquidation.The provisions of this Section shall apply to all contracts entered into  after the effective date of this amendatory Act of the 100th General Assembly, and any existing contracts shall have one year to come into compliance with this Section.
(Source: P.A. 100-410, eff. 8-25-17.) (215 ILCS 5/141.01) (from Ch. 73, par. 753.01)Sec. 141.01. 
		
		No company authorized to do business in Illinois shall cancel,
terminate or refuse to renew any policy on the ground that the company's
contract with the agent through whom such policy was obtained has been terminated.
 This provision shall not alter any contract between the agent and the company
regarding ownership of expirations where the agent is able to place the
policy with another insurer with similar coverage to the satisfaction of the insured.
		(Source: P.A. 80-1374.) (215 ILCS 5/141.02) (from Ch. 73, par. 753.02)Sec. 141.02. 
		(1) Definitions. 
		For purposes of this Section an independent
insurance agent is any licensed agent representing an insurance company
on an independent contractor basis and not as an employee.  This term shall
include only those agents not obligated by contract to place insurance accounts
with any insurance company or group of companies.  This Section shall only
apply to contracts which have been effective for more than one year between
an independent insurance agent and any company authorized in this State
for the purpose of transacting the kind or kinds
of business enumerated in Class 2 or Class 3 of Section 4 of this Code,
except accident and health insurance.(2) Rehabilitation.  In an effort to avoid termination, the company and
agent may endeavor to reach mutual agreement on a written plan for rehabilitation
for a period of time agreed by them.  Any written plan agreed upon shall
identify the problem areas and specify what the agent must do in an effort
to avoid termination.(3) Notice of Termination.  Contracts between the independent insurance
agent and any company shall not be terminated by the company
except by signed mutual agreement at the time of written termination
notice or unless the company provides 180 days written notice to the
independent insurance agent prior to the effective date
of termination.  The effective date of termination shall be 180 days from
the date of mailing of the termination notice.  The company must maintain
proof of mailing of the termination  notice on a recognized U.S. Post Office form.(4) Renewals following termination. A.  During the 180 days notice or
other mutually agreed time period
the independent insurance agent shall not write or bind any new business
on behalf of the terminating company without specific written approval.B. The terminating company shall, following the date of
termination, renew all policies
written by the independent insurance agent for one policy term or for a period
of one year if the policy period is longer than one year unless:(a) the policies do not meet the insurer's underwriting standards; or(b) the independent insurance agent notifies the insurer in writing that
the policy has been placed with another insurer.C. If a renewal policy does not meet the underwriting requirements, the terminating
insurer must give the independent insurance agent 60 days notice of its
intention not to renew.D. The rate of commission and renewal terms shall
be in accordance with those in effect immediately prior to termination.
 The commission must be paid only through the first renewal subsequent to
the effective date of the termination.(5) Paragraphs (1) through (4) of this Section shall not apply to
terminations for abandonment, insolvency
of the terminating company, gross and willful misconduct, refusal, suspension,
revocation or termination of the agent's license by the Director of Insurance,
sale or material change of ownership of agency, fraud, material misrepresentation
or failure to pay such independent insurance agent's account less the
independent insurance agent's commission and any disputed items within 30 days after
written demand by the company.
		(Source: P.A. 85-334.) (215 ILCS 5/141.03) (from Ch. 73, par. 753.03)Sec. 141.03. 
		
		Insurance companies authorized to do business in this
State shall not refuse to do business with an independent insurance agent
representing an insurance company as an independent contractor and not as
an employee solely on account of the volume of insurance written by that
agent prior to affiliation with such company.
		(Source: P.A. 84-742.) (215 ILCS 5/141.1) (from Ch. 73, par. 753.1)Sec. 141.1. 
		Management contracts and service agreements. 
		All agreements
or contracts under which any person, organization or corporation is delegated
management duties or control of any domestic company, or which transfer a
substantial part of any major function of a domestic company such as adjustment
of losses, production of business, investment of assets or general servicing
of the company's business must be filed with the Department on or before the
effective date of such contract or agreement.  The Director may upon notice
review these arrangements entered by foreign companies.There shall be exempted from the filing requirement of this Section contracts
by groups of affiliated companies on a "pooled" funds basis or service company
management basis, where costs to the individual member companies are charged on
an actually incurred or closely estimated basis.  However, these contracts must
be reduced to written form.Sections 141.1, 141.2, and 141.3 shall not apply to any power of attorney
or other authority authorized by Section 67 of this Code.
		(Source: P.A. 91-357, eff. 7-29-99.) (215 ILCS 5/141.2) (from Ch. 73, par. 753.2)Sec. 141.2. 
		
		Grounds
for disapproval.The Director must disapprove any such management contract or service
agreement if, at any time, he finds:(1) that the service or management charges are based upon criteria
unrelated either to the managed company's profits or to the reasonable
customary and usual charges for such services or are based on factors
unrelated to the value of such services to the company; or(2) that management personnel or other employees of the insurance
company are to be performing management functions and receiving any
remuneration therefor through the management or service contract in
addition to the compensation by way of salary received directly from the
insurance company for their services; or(3) that the contract would transfer substantial control of the company
or any of the powers vested in the board of directors, by statute, articles
of incorporation or by-laws, or substantially all of the basic functions of
the insurance company management; or(4) that the contract contains provisions which would be clearly
detrimental to the best interests of policyholders, stockholders or members
of the company; or(5) that the officers and directors of the management firm are of known
bad character or have been affiliated, directly or indirectly, through
ownership, control, management, reinsurance transactions or other insurance
or business relations with any person or persons known to have been
involved in the improper manipulation of assets, accounts or reinsurance.If the Director disapproves of any management contract or service
agreement, notice of such action shall be given to the company assigning
the reasons therefor in writing. The Director shall grant any party to the
contract a hearing upon request according to Article XXIV of this Code.
		(Source: P.A. 77-1040.) (215 ILCS 5/141.3) (from Ch. 73, par. 753.3)Sec. 141.3. 
		Supplement to annual statement.Any company which has a management contract shall file with its annual
statement a supplement on forms prescribed by the Director which discloses
the following: Salaries, commissions, or any valuable consideration paid to
each officer and director of the management company or to any shareholder
who owns, directly or indirectly, 10% of the shares of either the managed
insurance company or the management company.Any changes in the officers or directors of the managing company are to
be reported to the Director in accordance with Section 155.04.
		(Source: Laws 1967, p. 1818.) (215 ILCS 5/141.4)Sec. 141.4. 
		Disclosure of material transactions.(a) An insurer domiciled in this State shall file a report with the Director
disclosing material acquisitions and dispositions of assets or material
nonrenewals, cancellations, or revisions of ceded reinsurance agreements unless
the acquisitions and dispositions of assets or the material nonrenewals,
cancellations, or revisions of ceded reinsurance agreements have been otherwise
submitted to the Director for review, approval, or information purposes.  The
report must be filed no later than 15 days after the end of the calendar month
in which a reportable transaction occurs.  A copy of the report, including any
exhibits or other attachments filed as a part of the report, shall be filed
with the National Association of Insurance Commissioners.  All reports
obtained by or disclosed to the Director under this Section shall be given
confidential treatment and shall not be subject to subpoena and shall not be
made public by the Director, the National Association of Insurance
Commissioners, or any other person, except to insurance departments of other
states, without the prior written consent of the insurer to which it pertains
unless the Director, after giving the insurer who would be affected notice and
an opportunity to be heard,
determines that the interests of policyholders, shareholders, or the public
will be served by publication, in which event the Director may publish all or
any part in the manner the Director may deem appropriate.(b) Asset acquisitions or dispositions that are not material do not have to
be reported under this Section.  For purposes of this Section, a material
acquisition (or the aggregate of any series of related acquisitions during any
30 day
period) or disposition (or the aggregate of any series
of related dispositions during any 30 day period) is one that is nonrecurring
and not in the ordinary course of business and involves
more than 5% of
the reporting insurer's total admitted assets as reported in its most recent
statutory financial statement filed with the Director.  Asset acquisitions
subject to this Section include, but are not limited to,
every purchase, lease, exchange, merger,
consolidation, succession, or other acquisition other than the construction or
development of real property by or for the reporting insurer or the acquisition
of materials for that purpose.  Asset dispositions subject to this Section
include, but are not limited to,
every sale, lease, exchange, merger, consolidation, mortgage,
hypothecation, assignment (whether for the benefit of creditors or otherwise),
abandonment, destruction, or other disposition.  All of the following
information shall be disclosed in the report of a material acquisition or
disposition of assets:(1) Date of the transaction.(2) Manner of acquisition or disposition.(3) Description of the assets involved.(4) Nature and amount of the consideration received     or given.(5) Purpose of, or reason for, the transaction.(6) Manner by which the amount of consideration was     determined.(7) Gain or loss recognized or realized as a result     of the transaction.(8) Name of the person from whom the assets were     acquired or to whom they were disposed.Insurers shall report acquisitions and dispositions on a nonconsolidated
basis
unless the insurer is part of a consolidated group of insurers that utilizes a
pooling arrangement or a 100% reinsurance
agreement that affects the solvency and integrity of the insurer's reserves
and the insurer ceded substantially all of its direct and assumed business to
the
pool.  An insurer is deemed to have
ceded substantially all of its direct and assumed business to a pool if the
insurer has less than $1,000,000 total direct plus assumed written premiums
during a calendar year that are not subject to a pooling
arrangement and the net income of the business not subject to the pooling
arrangement represents less than 5% of the insurer's capital and
surplus.(c) Ceded reinsurance agreement nonrenewals, cancellations, or revisions
that are not material do not have to be reported under this Section.  For
purposes of this Section, a material nonrenewal, cancellation, or revision is
one that affects:(1) For property and casualty business, including     accident and health business written by a property and casualty insurer:(A) more than 50% of the insurer's total ceded         written premium; or(B) more than 50% of the insurer's total ceded         indemnity and loss adjustment reserves.(2) For life, annuity, and accident and health     business: more than 50% of the total reserve credit taken for business ceded, on an annual basis, as indicated in the insurer's most recent annual statement.(3) Property and casualty or life, annuity, and     accident and health business:(A) an authorized reinsurer representing more         than 10% of total cession is replaced by one or more unauthorized reinsurers; or(B) previously established collateral         requirements have been reduced or waived as respects one or more unauthorized reinsurer representing collectively more than 10% of a total cession.With respect to property and casualty business, including accident and health
business written by a property and casualty insurer, no filing shall be
required if the insurer's total ceded written premium represents, on an
annualized basis, less than 10% of its total written premium for direct and
assumed business.  With respect to life, annuity, and accident and health
business, no filing shall be required if the total reserve credit taken for
business ceded represents, on an annualized basis, less than 10% of the
statutory reserve requirement prior to any cession.All of the following information shall be disclosed in the report of a
material nonrenewal, cancellation, or revision of ceded reinsurance agreements:(1) Effective date of the nonrenewal, cancellation or     revision.(2) The description of the transaction with an     identification of the initiator thereof.(3) Purpose of, or reason for, the transaction.(4) The identity of the replacement insurers, if     applicable.Insurers shall report all material nonrenewals, cancellations, or revisions
of ceded reinsurance agreements on a nonconsolidated basis unless the insurer
is
part of a
consolidated group of insurers that utilizes a pooling arrangement or 100%
reinsurance agreement that affects the solvency and integrity of the
insurer's reserves and the insurer ceded substantially all of its direct and
assumed business to the pool.  An insurer is deemed to have ceded substantially
all
of its direct and
assumed business to a pool if the insurer has less than $1,000,000 of total
direct plus assumed written premiums during a calendar year that are not
subject to the pooling arrangement and the net income of the
business not subject to the pooling arrangement represents less
than 5% of the insurer's capital and surplus.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/142) (from Ch. 73, par. 754)Sec. 142. 
		
		Notice of
amendment or change in by-laws.
Subject to the provisions of section 292.1 applicable to fraternal
benefit societies, notice of any amendment or change in a company's by-laws
setting forth such amendment or change, certified by its president,
secretary, or officer corresponding thereto, shall be delivered to the
Director within thirty days after such amendment or change.
		(Source: P.A. 86-753.) (215 ILCS 5/143) (from Ch. 73, par. 755)Sec. 143. Policy forms.(1) Life, accident and health. No company
transacting the kind or kinds of business enumerated in Classes 1 (a), 1
(b) and 2 (a) of Section 4 shall issue or deliver in this State a policy
or certificate of insurance or evidence of coverage, attach an
endorsement or rider thereto,
incorporate by reference bylaws or other matter therein or use an
application blank in this State until the form and content of such
policy, certificate, evidence of coverage, endorsement, rider, bylaw or
other matter
incorporated by reference or application blank has been filed electronically
with the Director, either through the System for Electronic Rate and Form Filing (SERFF) or as otherwise prescribed by the Director, and
approved by the Director. Any such endorsement or rider
that unilaterally reduces benefits and is to be attached to a
policy subsequent to the date the policy is
issued must be filed with, reviewed, and formally approved by the
Director prior to the date it is attached to a policy issued or
delivered in this State.  It shall be the duty of the Director to disapprove or withdraw
 any such policy, certificate, endorsement, rider,
bylaw or other matter incorporated by reference or application blank
filed if it contains deficiencies, provisions which encourage
misrepresentation or are unjust, unfair, inequitable, ambiguous,
misleading, inconsistent, deceptive, contrary to law or to the public
policy of this State, or contains exceptions and conditions that
unreasonably or deceptively affect the risk purported to be assumed in
the general coverage of the policy.  In all cases the Director shall
approve, withdraw, or disapprove any such form within 60 days after submission
unless the Director extends by not more than an additional 30 days the
period within which the form shall be approved, withdrawn, or disapproved by
giving written notice to the insurer of such extension before expiration
of the initial 60 days period. The Director shall withdraw approval
of a policy, certificate, evidence of coverage, endorsement, rider,
bylaw, or other matter incorporated
by reference or application blank if it is subsequently determined that such
policy, certificate, evidence of coverage, endorsement, rider, bylaw,
other matter, or application
blank is misrepresentative, unjust, unfair, inequitable, ambiguous, misleading,
inconsistent, deceptive, contrary to law or public policy of this State,
or contains exceptions or conditions which unreasonably or deceptively affect
the risk purported to be assumed in the general coverage of the policy or
evidence of coverage.If a previously approved policy, certificate, evidence of
coverage, endorsement, rider, bylaw
or other matter incorporated by reference or application blank is withdrawn
for use, the Director shall serve upon the company an order of withdrawal
of use, either personally or by mail, and if by mail, such service shall
be completed if such notice be deposited in the post office, postage prepaid,
addressed to the company's last known address specified in the records
of the Department of Insurance.  The order of withdrawal of use shall take
effect 30 days from the date of mailing but shall be stayed if within the
30-day period a written request for hearing is filed with the Director.
Such hearing shall be held at such time and place as designated in the order
given by the Director.  The hearing may be held either in the City of Springfield,
the City of Chicago or in the county where the principal business address
of the company is located.
The action of the Director in
disapproving or withdrawing such form shall be subject to judicial review under
the
Administrative Review Law.This subsection shall not apply to riders or endorsements issued or
made at the request of the individual policyholder relating to the
manner of distribution of benefits or to the reservation of rights and
benefits under his life insurance policy.(2) Casualty, fire, and marine.  The Director shall require the
filing of all policy forms issued or delivered by any company transacting
the kind or
kinds of business enumerated in Classes 2 (except Class 2 (a)) and 3 of
Section 4 in an electronic format either through the System for Electronic Rate and Form Filing (SERFF) or as otherwise prescribed and approved by the Director. In addition, he may require the filing of any
generally used riders, endorsements, certificates, application blanks, and
other matter
incorporated by reference in any such policy or contract of insurance.
Companies that are members of an organization, bureau, or association may
have the same filed for them by the organization, bureau, or association.  If
the Director shall find from an examination of any such policy form,
rider, endorsement, certificate, application blank, or other matter
incorporated by
reference in any such policy so filed that it (i) violates any provision of
this Code, (ii) contains inconsistent, ambiguous, or misleading clauses, or
(iii) contains exceptions and conditions that will unreasonably or deceptively
affect the risks that are purported to be assumed by the policy, he
shall order the company or companies issuing these forms to discontinue
their use.  Nothing in this subsection shall require a company
transacting the kind or kinds of business enumerated in Classes 2
(except Class 2 (a)) and 3 of Section 4 to obtain approval of these forms
before they are issued nor in any way affect the legality of any
policy that has been issued and found to be in conflict with this
subsection, but such policies shall be subject to the provisions of
Section 442.(3) This Section shall not apply (i) to surety contracts or fidelity
bonds, (ii) to policies issued to an industrial insured as defined in Section
121-2.08 except for workers' compensation policies, nor (iii) to riders
or
endorsements prepared to meet special, unusual,
peculiar, or extraordinary conditions applying to an individual risk.
(Source: P.A. 102-775, eff. 5-13-22.) (215 ILCS 5/143.01) (from Ch. 73, par. 755.01)(Text of Section before amendment by P.A. 102-982)Sec. 143.01. 
		
		(a) A provision in a policy of vehicle insurance described in Section 4
excluding coverage for bodily injury to members of the family of the
insured shall not be applicable when a third party acquires a right
of contribution against a member of the injured person's family.(b) A provision in a policy of vehicle insurance excluding coverage for
bodily injury to members of the family of the insured shall not be applicable
when any person not in the household of the insured was driving the vehicle
of the insured involved in the accident which is the subject of the claim or lawsuit.This subsection (b) applies to any action filed on or after its effective date.
		(Source: P.A. 83-1132.)(Text of Section after amendment by P.A. 102-982)Sec. 143.01. 
(a) A provision in a policy of vehicle insurance described in Section 4
excluding coverage for bodily injury to members of the family of the
insured shall not be applicable when a third party acquires a right
of contribution against a member of the injured person's family.(b) A provision in a policy of vehicle insurance excluding coverage for
bodily injury to members of the family of the insured shall not be applicable
when any person not in the household of the insured was driving the vehicle
of the insured involved in the crash which is the subject of the claim or lawsuit.This subsection (b) applies to any action filed on or after its effective date.
(Source: P.A. 102-982, eff. 7-1-23.) (215 ILCS 5/143.1) (from Ch. 73, par. 755.1)Sec. 143.1. 
		Periods of limitation tolled. 
		Whenever any policy or contract
for insurance, except life, accident and health, fidelity and surety, and
ocean marine policies, contains a provision limiting the period within which
the insured may bring suit, the running of such period is tolled from the
date proof of loss is filed, in whatever form is required by the policy,
until the date the claim is denied in whole or in part.
		(Source: P.A. 82-352.) (215 ILCS 5/143.10) (from Ch. 73, par. 755.10)Sec. 143.10. 
		
		No company shall cancel or refuse to issue or renew a policy
on the sole basis that the insured or applicant for such policy was previously
refused issuance or renewal of a policy by any insurer, or such insured's
policy was cancelled on a prior date by any insurer.
		(Source: P.A. 80-1374.) (215 ILCS 5/143.10a) (from Ch. 73, par. 755.10a)Sec. 143.10a. 
		Loss Information.(1) All companies issuing policies to
which Section 143.11 of this Code applies, except for those defined in
subsections (a), (b) and (c) of
Section 143.13 of this Code and to which subsection (o) of Section 19 of
the Workers' Compensation Act applies, shall on or after January 1, 1987,
provide the following loss information for the 3 previous policy years to
the first named insured within 30 days of the insured's request.  At the
written request of the insured, the company shall send the loss information
directly to the insured's producer.  In
addition, the company shall also send the loss information at the
same time as any notice of cancellation or nonrenewal, except where the
policy has been cancelled for nonpayment of premium, material
misrepresentations or fraud on the part of the insured:(a) On closed claims, date and description of     occurrence, and total amounts of payments;(b) On open claims, date and description of     occurrence, total amount of payments and total reserves, if any; and(c) For any occurrence not included in (a) or (b) of     this subsection (1), the date and description of occurrence and total reserves, if any.(2) Should a named insured be required by a prospective insurer to
provide detailed loss information in addition to that required under
subsection (1) of this Section, the named insured may mail
or deliver a written request to the insurer for such additional
information, including specific loss reserves. No prospective insurer shall
request, however, more detailed information than required by it to
underwrite the same line or class of insurance. The insurer shall provide
such information to the first named insured as soon as possible, but in no
event later than 20 days of receipt of such request.
Coverage under the existing policy
shall automatically be extended at the same terms and conditions by the
same number of days it takes the insurer to provide the insured with this
additional information.(3) The Director may promulgate regulations to exclude the automatic
providing of the loss information at the time of cancellation or renewal as
outlined in subsection (1) of this Section for any line or class of
insurance where it can be shown that the information is not needed for that
line or class of insurance.(4) If a company fails to provide the information as required by this
Section with such frequency so as to indicate a practice of refusing to
provide such information, such failure shall constitute an unfair trade
practice as defined in Section 424 and subject to those hearing and penalty
provisions as set forth in Sections 425 through 434.(5) Information provided under subsection (2) of this Section shall not
be subject to discovery by any party other than the insured, the insurer,
and the prospective insurer.
		(Source: P.A. 93-155, eff. 7-10-03.) (215 ILCS 5/143.10b) (from Ch. 73, par. 755.10b)Sec. 143.10b. 
		Loss information, private passenger automobile.(1) All companies issuing a "policy of automobile insurance" as defined
in paragraph (a) of Section 143.13 of this Code shall, on or after January 1,
1990, provide the following loss information for the 5 previous
policy years to the named insured within 30 days of the insured's written
request:(a) on closed claims, date and description of     occurrence, and total amount of payments;(b) on open claims, date and description of     occurrence and total amount of payments;(c) for any occurrence not included in (a) or (b) of     this subsection, the date and description of occurrence.(2) If a company fails to provide the information as required by this
Section with such frequency so as to indicate a practice of refusing to
provide such information, such failure shall constitute an unfair trade
practice as defined in Section 424 and subject to those hearing and penalty
provisions as set forth in Sections 425 through 434 of this Code.
		(Source: P.A. 90-196, eff. 1-1-98.) (215 ILCS 5/143.10c) (from Ch. 73, par. 755.10c)Sec. 143.10c. 
		
		No insurance company that is authorized to do business
in this State and which issues policies for personal multiperil property
coverage, commonly known as homeowners insurance, may refuse to issue or
renew a homeowners insurance policy to the owner or tenant of any single
family dwelling, or to any owner of or tenant residing in a multi-unit
residential dwelling which contains from 2 to 4 units in a single building,
solely on the grounds that a space heater is being used inside the dwelling.For purposes of this Section space heater means a heat radiating
device used to warm rooms of
a house or apartment and which is approved by Underwriters' Laboratories
and uses gas, electricity or oil as its primary source of energy.
		(Source: P.A. 86-174; 86-1028.) (215 ILCS 5/143.10d)Sec. 143.10d. Claim information for a dog-related incident.(a)     An insurance company offering homeowner's insurance coverage or renter's insurance coverage that issues a policy or contract insuring against liability for injury to a person or injury to or destruction of property arising out of the ownership, lease, or rental of residential property shall, to the best of their ability, for any claim involving a dog-related incident, record circumstances relating to the incident, including, but not limited to:(1)   the breed of dog, and, if the breed was made by     visual identification, who made the identification: the adjuster, the owner, or the insured;(2)   where the owner or insured obtained the dog     from: a pet store, a breeder, an animal shelter or rescue, a friend or acquaintance, or found the dog as a stray;(3)   the sex of the dog and whether the dog was     spayed or neutered;(4)   whether the person injured by the dog was     observed engaging in teasing, tormenting, battering, assaulting, injuring, or otherwise provoking the dog;(5)   the type of injury sustained by the victim,     such as a bite or fall;(6)   whether the incident occurred on the insured's     property or another location; and(7)   any obedience training or previous claims or     past complaints against the dog.(b)    This information shall be collected for a 2-year period beginning on January 1, 2022 and shall be reported annually to the Department. The Department shall make the information available on the Department's website by July 1, 2023 and shall update the information each July 1 through July 1, 2024. The information or data collected by the Department shall not be released or published in any way that violates the confidentiality or proprietary status or nature of the data.
(Source: P.A. 102-328, eff. 1-1-22.) (215 ILCS 5/143.11) (from Ch. 73, par. 755.11)Sec. 143.11. 
		Cancellation Provisions. 
		All companies authorized to
transact in this State the kinds of business enumerated in Section 4 of
the "Illinois Insurance Code" shall include in their policies, except
life, accident and health, fidelity and surety, and ocean marine policies,
a cancellation provision setting out the manner in which such policies may be
cancelled.  However, nothing contained in Section 143.12 through Section
143.24 shall apply to contracts of reinsurance or to contracts procured
by agents under the authority of Section 445.
		(Source: P.A. 80-1365.) (215 ILCS 5/143.11a) (from Ch. 73, par. 755.11a)Sec. 143.11a. 
		Termination of Lines of Business. 
		No company
authorized to transact, in this State, the kinds of business enumerated in
Section 4 of this Code, except life, accident and
health, fidelity and surety, and ocean marine policies, may terminate any
line of insurance without notifying the Director of the action as well as
reasons for the action, 90 days before termination of any policy is
effective.  The notice shall include all data relied upon by the company as
the basis for such action and shall disclose whether the company offers and
will continue to offer such kinds of insurance in any other State. For the
purposes of
this Section, termination of a line of
insurance shall mean cancellation or non-renewal of a substantial portion
of any type of business for the purpose of withdrawing from the market.
		(Source: P.A. 84-1431.) (215 ILCS 5/143.11b)Sec. 143.11b. Assignment or transfer of property and casualty policies. An assignment or transfer of a policy of insurance to which Section 143.11
applies among or between insurers within an insurance holding company system or
insurers under common management or control, or as a result of a merger,
acquisition,
or restructuring of an insurance company, is not a nonrenewal
for purposes of the notification requirements under Sections 143.12 through
143.24.  However,
in the event of an increase in the renewal premium of 30% or more, change in
deductibles or change in coverage that materially alters any policy to which
subsection b of Section 143.17a applies, the company shall adhere to the
provisions set forth in
subsection b of Section 143.17a.  A company making an assignment or transfer of
a policy among or between insurers within an insurance holding company system
or insurers under common management or control, or as a result of a merger,
acquisition, or restructuring of an insurance company, shall
have delivered to the named insured notice of such assignment or transfer at
least 60 days prior to the renewal date.  An exact and unaltered copy of the
notice shall also be sent to the insured's producer, if known, and agent of
record.  The assignment or transfer of a policy or policies of insurance among
or between
insurers shall not occur without the producer or agent of record, or both,
having a signed agency contract with the entity to
which the policy or policies are to be assigned or transferred.  If there is
not a signed agency contract, all of the notice requirements of Sections 143.17
and 143.17a shall apply.  Nothing in
this Section shall contravene any existing producer and company contract
rights. For purposes of this Section, the insured's producer, if known, and agent of record may opt to accept notification of assignment or transfer of policies electronically.
					(Source: P.A. 93-713, eff. 1-1-05.) (215 ILCS 5/143.12) (from Ch. 73, par. 755.12)Sec. 143.12. 
		"Short rate" cancellation. 
		Notice required.
No agent, broker or other representative or employee of any insurance
company shall recommend, advise, suggest or require the  cancellation of
any insurance policy of the insurer which he represents, or of any other
insurer at any time other than the policy anniversary or expiration
date, unless he informs the insured in writing of the additional cost of
such cancellation before the insured is requested or required to take
action to cancel or terminate the policy which is then in force.
		(Source: P.A. 79-686.) (215 ILCS 5/143.12a) (from Ch. 73, par. 755.12a)Sec. 143.12a. 
		Automobile insurance; pro rata refund of unearned premium.(a) In the event of the cancellation of a policy of automobile
insurance, as defined in Section 143.13, by either the company or the
policyholder, the company shall refund the unearned premium pro rated to
the date of cancellation.  In no event may the refund of unearned premium
be computed by use of a short rate table.  Refund of the premium shall be
without prejudice to any claim arising
prior to the cancellation.(b) The refund shall be made by the company within 30 days from the
following:(1) the date of the notice of cancellation by the     company; or(2) the date the company receives the request for     cancellation from the policyholder.		(Source: P.A. 86-1408.) (215 ILCS 5/143.13) (from Ch. 73, par. 755.13)Sec. 143.13. 
		Definition of terms used in Sections 143.11 through 143.24.(a) "Policy of automobile insurance" means a policy delivered or
issued for delivery in this State, insuring a natural person as named
insured or one or more related individuals resident of the same
household and under which the insured vehicles therein designated are
motor vehicles of the private passenger, station wagon, or any other
4-wheeled motor vehicle with a load capacity of
1500 pounds or less which is not used in  the occupation, profession or
business of the insured or not used as a public or livery conveyance for
passengers nor rented to others.  Policy of automobile insurance shall also
mean a named non-owner's automobile policy.Policy of automobile insurance does not apply to policies of
automobile insurance issued under the Illinois Automobile Insurance
Plan, to any policy covering garages, automobile sales agencies, repair
shops, service stations or public parking place operation hazards.  "Policy
of automobile insurance" does not include a policy, binder, or
application for
which the applicant gives or has given for the initial premium a check or
credit card charge that is subsequently dishonored for payment, unless the
check or credit card charge was dishonored through no fault of the payor.(b) "Policy of fire and extended coverage insurance" means a policy
delivered or issued for delivery in this State, that includes but is not
limited to, the perils of fire and extended coverage, and covers real
property used principally for residential purposes up to and including a 4
family dwelling or any household or personal property that is usual or
incidental to the occupancy to any premises used for residential purposes.(c) "All other policies of personal lines" means any other policy of
insurance issued to a natural person for personal or family protection.(d) "Renewal" or "to renew" means
(1) any change to an entire
line of business in accordance with subsection b-5 of Section 143.17 and
(2)
the issuance and delivery by an
insurer of a policy superseding at the end of the policy period a policy
previously issued and delivered by the same insurer or the issuance and
delivery of a certificate or notice extending the term of a policy
beyond its policy period or term; however, any successive policies
issued by the same insurer to the same insured, for the same or similar
coverage, shall be considered a renewal policy.Any policy with a policy period or term of less than 6 months or any
policy with no fixed expiration date shall be considered as if written
for successive policy periods or terms of 6 months for the purpose of
"renewal" or "to renew" as defined in this paragraph (d) and for the purpose
of any non-renewal notice required by Section 143.17 of this Code.(e) "Nonpayment of premium" means failure of the named insured to
discharge, when due, any of his obligations in connection with the
payment of premiums or any installment of such premium that is payable
directly to the insurer or to its agent. Premium shall mean the premium
that is due for an individual policy which shall not include any membership
dues or other consideration required to be a member of any organization in
order to be eligible for such
policy.  The term
"nonpayment of premium" does not include a check, credit card
charge, or money order that an applicant gives or has given to any person for
the
initial premium payment for a policy, binder, or application
and that is subsequently dishonored for payment, and any policy,
binder, or application in connection therewith is void and of no effect and not
subject to the cancellation provisions of this Code.(f) "A policy delivered or issued for delivery in this State" shall
include but not be limited to all binders of insurance, whether written
or oral, and all applications bound for future delivery by a duly
licensed resident agent.  A written binder of insurance issued for a term
of 60 days or less, which contains on its face a specific inception and
expiration date and which a copy has been furnished to the insured, shall
not be subject to the non-renewal requirements of Section 143.17 of this
Code.(g) "Cancellation" or "cancelled" means the termination
of a policy by an insurer prior to the expiration date of the policy.  A
policy of automobile or fire and extended coverage insurance which expires
by its own terms on the policy expiration date unless advance premiums are
received by the insurer for succeeding policy periods shall not be considered
"cancelled" or a "cancellation" effected by the insurer in the event such
premiums are not paid on or before the policy expiration date.(h) "Commercial excess and umbrella liability policy" means a policy
written over one or more underlying policies for an insured:(1) that has at least 25 full-time employees at the     time the commercial excess and umbrella liability policy is written and procures the insurance of any risk or risks, other than life, accident and health, and annuity contracts, as described in clauses (a) and (b) of Class 1 of Section 4 and clause (a) of Class 2 of Section 4, by use of the services of a full-time employee acting as an insurance manager or buyer; or(2) whose aggregate annual premiums for all property     and casualty insurance on all risks is at least $50,000.
		(Source: P.A. 91-552, eff. 8-14-99; 91-597, eff. 1-1-00; 92-16, eff.6-28-01.) (215 ILCS 5/143.13a)Sec. 143.13a. Coverage for permissive drivers. Any policy of private passenger automobile insurance must provide the same limits of bodily injury liability, property damage liability, uninsured and underinsured motorist bodily injury, and medical payments coverage to all persons insured under that policy, whether or not an insured person is a named insured or  permissive user under the policy.  If the policy insures more than one private passenger automobile, the limits available to the permissive user shall be the limits associated with the vehicle used by the permissive user when the loss occurs.
(Source: P.A. 95-395, eff. 1-1-08.) (215 ILCS 5/143.14) (from Ch. 73, par. 755.14)Sec. 143.14. Notice of cancellation.(a) No notice of cancellation of any
policy of insurance, to which
Section 143.11 applies, shall be effective unless mailed by the company
to the named insured at the last mailing
address known by the company.
The company shall maintain proof of mailing of such notice on a recognized
U.S. Post Office form or a form acceptable to the U.S. Post Office or
other commercial mail delivery service. Notification shall also be sent to the insured's broker if known, or the agent of
record, if known, and to the mortgagee or lien holder listed on the policy. For purposes of this Section, the mortgage or lien holder, insured's broker, if known, or the agent of record may opt to accept notification electronically.(b) Whenever a financed insurance contract is cancelled, the insurer
shall return
whatever gross unearned premiums are due
under the insurance contract or contracts not to exceed the unpaid balance
due the premium finance company directly to the premium finance
company effecting the cancellation for the account of the named insured.
The return premium must be mailed to the premium finance company within
60 days.
The request for the unearned premium by the premium finance company shall
be in the manner of a monthly account, current accounting by producer,
policy number, unpaid balance and name of insured for each cancelled amount.
In the event the insurance contract or contracts are subject to audit, the
insurer shall retain the right to withhold the return of the portion of
premium that can be identified to the contract or contracts until the audit
is completed.  Within 30 days of the completion of the audit, if a premium
retained by the insurer after crediting the earned premium would result in
a surplus, the insurer shall return the surplus directly to the premium
finance company.  If the audit should result in an additional premium due
the insurer, the obligation for the collection of this premium shall fall
upon the insurer and not affect any other contract or contracts currently
being financed by the premium finance company for the named insured.(c) Whenever a premium finance agreement contains a power of attorney
enabling the premium finance company to cancel any insurance contract or contracts
in the agreement, the insurer shall honor the date of cancellation as set
forth in the request from the premium finance company without requiring the
return of the insurance contract or contracts.  The insurer may mail to the
named insured an acknowledgment of the notice of cancellation from the
premium finance company but the named insured shall not incur any
additional premium charge for any extension of coverage.  The insurer need
not maintain proof of mailing of this notice.(d) All statutory regulatory and contractual restrictions providing that
the insurance contract may not be cancelled unless the required notice is
mailed to a governmental agency, mortgagee, lienholder, or other third
party shall apply where cancellation is effected under a power of
attorney under a premium finance agreement.  The insurer shall have the
right for a premium charge for this extension of coverage.
(Source: P.A. 100-475, eff. 1-1-18.) (215 ILCS 5/143.15) (from Ch. 73, par. 755.15)Sec. 143.15. Mailing of cancellation notice. All notices of
cancellation of insurance as
defined in subsections (a), (b) and (c) of Section 143.13 must
be mailed at least 30 days prior to the effective date of
cancellation to the named insured; however, if  cancellation is for nonpayment of premium, the notice of cancellation must be mailed at least 10 days before the effective date of the cancellation to the last mailing address known to the company.  All
notices of cancellation to the named insured shall include a specific explanation of
the reason or reasons for cancellation. For purposes of this Section, the mortgagee or lien holder, if known, may opt to accept notification electronically.

(Source: P.A. 100-475, eff. 1-1-18.) (215 ILCS 5/143.16) (from Ch. 73, par. 755.16)Sec. 143.16. Mailing of cancellation notice. All notices of
cancellation of insurance to which Section
143.11 applies, except for those defined in subsections (a), (b) and (c) of
Section 143.13 must be mailed at least 30 days prior to the effective date
of cancellation during the first 60 days of coverage.  After the coverage
has been effective for 61 days or more, all notices must be mailed at least
60 days prior to the effective date of cancellation. However, where cancellation is for nonpayment of premium, the notice of cancellation must be mailed at least 10 days before the effective date of the cancellation. All such notices shall
include a specific explanation of  the reason or reasons for cancellation
and shall be mailed to the named insured at the last mailing address known to the company. For purposes of this Section, the mortgagee or lien holder, if known, may opt to accept notification electronically.

(Source: P.A. 100-475, eff. 1-1-18.) (215 ILCS 5/143.16a) (from Ch. 73, par. 755.16a)Sec. 143.16a. 
		Cancellation of Casualty policies. 
		No policy
to which Section 143.11 applies, except for those defined in subsection (a)
or (b) of Section 143.13, that has been in
effect for 60 days may be cancelled except for one
of the following reasons:(a) Nonpayment of premium;(b) The policy was obtained through a material misrepresentation;(c) Any insured violated any of the terms and conditions of the policy;(d) The risk originally accepted has measurably increased;(e) Certification to the Director of the loss of reinsurance by the
insurer which provided coverage to the
insurer for all or a substantial part of the underlying risk insured; or(f) A determination by the Director that the continuation of the policy
could place the insurer in violation of the insurance laws of this State.
		(Source: P.A. 84-1005.) (215 ILCS 5/143.16b) (from Ch. 73, par. 755.16b)Sec. 143.16b. 
		Premium Refunds for Drought Insurance. 
		Whenever a person
has submitted payment of premium for the purchase of drought insurance
described in clause (b) of Class 3 of Section 4 of this Code to an insurer
or one of its subsidiaries, employees, agents, or producers, the insurer
shall have a duty, within 10 business days of receipt of such premium
payment, to either:(a) refund the premium payment in full; or(b) accept the premium payment, and provide to the person who has offered
such payment policy coverage in full conformity with representations of any
application, declaration, binder, or contract of policy coverage issued by
the insurer or one of its subsidiaries, employees, agents or producers.This Section shall not apply to insurance provided, guaranteed or
reinsured pursuant to the Federal Crop Insurance Program.
		(Source: P.A. 86-285.) (215 ILCS 5/143.17) (from Ch. 73, par. 755.17)Sec. 143.17. Notice of intention not to renew.a. No company shall fail
to renew any policy of insurance, as defined in subsections (a), (b),
(c), and (h) of Section 143.13, to which Section 143.11 applies, unless it
shall
send by mail to the named insured at least 30 days advance notice of its
intention not to renew.  The company shall maintain proof of mailing of
such notice on a recognized U.S. Post Office form or a form acceptable to
the U. S. Post Office or other commercial mail delivery service. The nonrenewal shall not become effective until at least 30 days from the proof of mailing date of the notice to the name insured. Notification shall also be sent to the insured's
broker, if known, or the agent of record, if known, and to the last known mortgagee or lien
holder. For purposes of this Section, the mortgagee or lien holder, insured's broker, or the agent of record may opt to accept notification electronically. However, where
cancellation is for nonpayment of premium, the notice
of
cancellation must be mailed at least 10 days before the
effective date of the cancellation.b. This Section does not apply if the company has manifested its
willingness to renew directly to the named insured.
Such written notice shall specify the premium amount payable, including
any premium payment plan available, and the name of any person or persons,
if any, authorized to receive payment on behalf of the company.  If no
person is so authorized, the premium notice shall so state.b-5. This Section does not apply if the company manifested its
willingness to renew directly to the named insured.  However, no company may
impose changes in deductibles or coverage for any policy forms applicable to an
entire line of business enumerated in subsections (a), (b), (c), and (h) of
Section 143.13 to which Section 143.11 applies unless the company mails to the
named insured written notice of the change in deductible or coverage at least
60 days prior to the renewal or anniversary date. Notice shall also be sent to the insured's broker, if known, or the
agent of record.c. Should a company fail to comply with (a) or (b) of this Section,
the policy shall terminate only on the effective date of any similar
insurance procured by the insured with respect to the same subject or
location designated in both policies.d. Renewal of a policy does not constitute a waiver or estoppel with
respect to grounds for cancellation which existed before the effective
date of such renewal.e. In all notices of intention not to renew any policy of insurance,
as defined in Section 143.11 the company shall provide the named insured a specific
explanation of the reasons for nonrenewal.f. For purposes of this Section, the insured's broker, if known, or the agent of record and the mortgagee or lien holder may opt to accept notification electronically.
(Source: P.A. 100-475, eff. 1-1-18.) (215 ILCS 5/143.17a) (from Ch. 73, par. 755.17a)Sec. 143.17a. Notice of intention not to renew.(a) A company intending to nonrenew any policy of insurance to which Section 143.11 applies, except for those defined in subsections (a), (b), (c), and (h) of Section 143.13, must mail written notice to the named insured at least 60 days prior to the expiration date of the current policy. The notice to the named insured shall provide a specific explanation of the reasons for nonrenewal.    A company may not extend the current policy period for purposes of providing notice of its intention not to renew required under this subsection (a).(b) A company intending to renew any policy of insurance to which Section 143.11 applies, except for those defined in subsections (a), (b), (c), and (h) of Section 143.13, with an increase in premium of 30% or more or with changes in deductibles or coverage that materially alter the policy must mail or deliver to the named insured written notice of such increase or change in deductible or coverage at least 60 days prior to the renewal or anniversary date.  If a company has failed to provide notice of intention to renew required under this subsection (b) at least 60 days prior to the renewal or anniversary date, but does so no less than 31 days prior to the renewal or anniversary date, the company may extend the current policy at the current terms and conditions for the period of time needed to equal the 60 day time period required to provide notice of intention to renew by this subsection (b).  The increase in premium shall be the renewal premium based on the known exposure as of the date of the quotation compared to the premium as of the last day of coverage for the current year's policy, annualized.  The premium on the renewal policy may be subsequently amended to reflect any change in exposure or reinsurance costs not considered in the quotation.(c) A company that has failed to provide notice of intention to nonrenew under subsection (a) of this Section and has failed to provide notice of intention to renew as prescribed under subsection (b) of this Section must renew the expiring policy under the same terms and conditions for an additional year or until the effective date of any similar insurance is procured by the insured, whichever is earlier.  The company may increase the renewal premium. However, such increase must be less than 30% of the expiring term's premium and notice of such increase must be delivered to the named insured on or before the date of expiration of the current policy period.(d) Under subsection (a), the company shall maintain proof of mailing of the notice of intention not to renew to the named insured on one of the following forms: a recognized U.S. Post Office form or a form acceptable to the U.S. Post Office or other commercial mail delivery service.  Under subsections (b) and (c), proof of mailing or proof of receipt of the notice of intention to renew to the named insured may be proven by a sworn affidavit by the company as to the usual and customary business practices of mailing notice pursuant to this Section or may be proven consistent with Illinois Supreme Court Rule 236.  For all notice requirements under this Section, notice shall also be sent to the named insured's producer, if known, or the producer of record. Notification shall also be sent to the mortgagee or lien holder listed on the policy.(e) Renewal of a policy does not constitute a waiver or estoppel with respect to grounds for cancellation that existed before the effective date of such renewal.(f) For purposes of this Section, the named insured's producer, if known, or the producer of record and the mortgagee or lien holder may opt to accept notification electronically.

(Source: P.A. 100-475, eff. 1-1-18.) (215 ILCS 5/143.18) (from Ch. 73, par. 755.18)Sec. 143.18. 
		
		Liability of Company or Agents Regarding Statements
Made In Notices Or Information.
There shall be no liability on the part of and no cause of action of
any nature shall arise against any company, its authorized
representative, its agents, its employees, or any firm, person or
corporation furnishing to the company information as to reasons for
cancellation, or nonrenewal, for any statement made by any of them in
any written notice of cancellation or nonrenewal, or any other
communications, oral or written, specifying the reasons for cancellation
or nonrenewal, or for the providing of information pertaining thereto.
		(Source: P.A. 79-686.) (215 ILCS 5/143.19) (from Ch. 73, par. 755.19)(Text of Section before amendment by P.A. 102-982)Sec. 143.19. Cancellation of automobile insurance policy; grounds. After a policy of automobile insurance as defined in Section
143.13(a) has been effective for 60 days, or if such policy is a renewal
policy, the insurer shall not exercise its option to cancel such policy
except for one or more of the following reasons:a. Nonpayment of premium;b. The policy was obtained through a material     misrepresentation;c. Any insured violated any of the terms and     conditions of the policy;d. The named insured failed to disclose fully his     motor vehicle accidents and moving traffic violations for the preceding 36 months if called for in the application;e. Any insured made a false or fraudulent claim or     knowingly aided or abetted another in the presentation of such a claim;f. The named insured or any other operator who either     resides in the same household or customarily operates an automobile insured under such policy:1. has, within the 12 months prior to the notice         of cancellation, had his driver's license under suspension or revocation;2. is or becomes subject to epilepsy or heart         attacks, and such individual does not produce a certificate from a physician testifying to his unqualified ability to operate a motor vehicle safely;3. has an accident record, conviction record         (criminal or traffic), physical, or mental condition which is such that his operation of an automobile might endanger the public safety;4. has, within the 36 months prior to the notice         of cancellation, been addicted to the use of narcotics or other drugs; or5. has been convicted, or had pretrial release         revoked, during the 36 months immediately preceding the notice of cancellation, for any felony, criminal negligence resulting in death, homicide or assault arising out of the operation of a motor vehicle, operating a motor vehicle while in an intoxicated condition or while under the influence of drugs, being intoxicated while in, or about, an automobile or while having custody of an automobile, leaving the scene of an accident without stopping to report, theft or unlawful taking of a motor vehicle, making false statements in an application for an operator's or chauffeur's license or has been convicted or pretrial release has been revoked for 3 or more violations within the 12 months immediately preceding the notice of cancellation, of any law, ordinance, or regulation limiting the speed of motor vehicles or any of the provisions of the motor vehicle laws of any state, violation of which constitutes a misdemeanor, whether or not the violations were repetitions of the same offense or different offenses;g. The insured automobile is:1. so mechanically defective that its operation         might endanger public safety;2. used in carrying passengers for hire or         compensation (the use of an automobile for a car pool shall not be considered use of an automobile for hire or compensation);3. used in the business of transportation of         flammables or explosives;4. an authorized emergency vehicle;5. changed in shape or condition during the         policy period so as to increase the risk substantially; or6. subject to an inspection law and has not been         inspected or, if inspected, has failed to qualify.Nothing in this Section shall apply to nonrenewal.
(Source: P.A. 100-201, eff. 8-18-17; 101-652, eff. 1-1-23; 102-1104, eff. 1-1-23.)(Text of Section after amendment by P.A. 102-982)Sec. 143.19. Cancellation of automobile insurance policy; grounds. After a policy of automobile insurance as defined in Section
143.13(a) has been effective for 60 days, or if such policy is a renewal
policy, the insurer shall not exercise its option to cancel such policy
except for one or more of the following reasons:a. Nonpayment of premium;b. The policy was obtained through a material     misrepresentation;c. Any insured violated any of the terms and     conditions of the policy;d. The named insured failed to disclose fully his     motor vehicle crashes and moving traffic violations for the preceding 36 months if called for in the application;e. Any insured made a false or fraudulent claim or     knowingly aided or abetted another in the presentation of such a claim;f. The named insured or any other operator who either     resides in the same household or customarily operates an automobile insured under such policy:1. has, within the 12 months prior to the notice         of cancellation, had his driver's license under suspension or revocation;2. is or becomes subject to epilepsy or heart         attacks, and such individual does not produce a certificate from a physician testifying to his unqualified ability to operate a motor vehicle safely;3. has a crash record, conviction record         (criminal or traffic), physical, or mental condition which is such that his operation of an automobile might endanger the public safety;4. has, within the 36 months prior to the notice         of cancellation, been addicted to the use of narcotics or other drugs; or5. has been convicted, or had pretrial release         revoked, during the 36 months immediately preceding the notice of cancellation, for any felony, criminal negligence resulting in death, homicide or assault arising out of the operation of a motor vehicle, operating a motor vehicle while in an intoxicated condition or while under the influence of drugs, being intoxicated while in, or about, an automobile or while having custody of an automobile, leaving the scene of a crash without stopping to report, theft or unlawful taking of a motor vehicle, making false statements in an application for an operator's or chauffeur's license or has been convicted or pretrial release has been revoked for 3 or more violations within the 12 months immediately preceding the notice of cancellation, of any law, ordinance, or regulation limiting the speed of motor vehicles or any of the provisions of the motor vehicle laws of any state, violation of which constitutes a misdemeanor, whether or not the violations were repetitions of the same offense or different offenses;g. The insured automobile is:1. so mechanically defective that its operation         might endanger public safety;2. used in carrying passengers for hire or         compensation (the use of an automobile for a car pool shall not be considered use of an automobile for hire or compensation);3. used in the business of transportation of         flammables or explosives;4. an authorized emergency vehicle;5. changed in shape or condition during the         policy period so as to increase the risk substantially; or6. subject to an inspection law and has not been         inspected or, if inspected, has failed to qualify.Nothing in this Section shall apply to nonrenewal.
(Source: P.A. 101-652, eff. 1-1-23; 102-982, eff. 7-1-23; 102-1104, eff. 1-1-23.) (215 ILCS 5/143.19.1) (from Ch. 73, par. 755.19.1)(Text of Section before amendment by P.A. 102-982)Sec. 143.19.1. Limits on exercise of right of nonrenewal. After a
policy of automobile insurance, as defined in
Section 143.13, has been effective or renewed for 5 or more years, the
company shall not exercise its right of non-renewal unless:a. The policy was obtained through a material     misrepresentation; orb. Any insured violated any of the terms and     conditions of the policy; orc. The named insured failed to disclose fully his     motor vehicle accidents and moving traffic violations for the preceding 36 months, if such information is called for in the application; ord. Any insured made a false or fraudulent claim or     knowingly aided or abetted another in the presentation of such a claim; ore. The named insured or any other operator who either     resides in the same household or customarily operates an automobile insured under such a policy:1. Has, within the 12 months prior to the notice         of non-renewal had his drivers license under suspension or revocation; or2. Is or becomes subject to epilepsy or heart         attacks, and such individual does not produce a certificate from a physician testifying to his unqualified ability to operate a motor vehicle safely; or3. Has an accident record, conviction record         (criminal or traffic), or a physical or mental condition which is such that his operation of an automobile might endanger the public safety; or4. Has, within the 36 months prior to the notice         of non-renewal, been addicted to the use of narcotics or other drugs; or5. Has been convicted or pretrial release has         been revoked, during the 36 months immediately preceding the notice of non-renewal, for any felony, criminal negligence resulting in death, homicide or assault arising out of the operation of a motor vehicle, operating a motor vehicle while in an intoxicated condition or while under the influence of drugs, being intoxicated while in or about an automobile or while having custody of an automobile, leaving the scene of an accident without stopping to report, theft or unlawful taking of a motor vehicle, making false statements in an application for an operators or chauffeurs license, or has been convicted or pretrial release has been revoked for 3 or more violations within the 12 months immediately preceding the notice of non-renewal, of any law, ordinance or regulation limiting the speed of motor vehicles or any of the provisions of the motor vehicle laws of any state, violation of which constitutes a misdemeanor, whether or not the violations were repetitions of the same offense or different offenses; orf. The insured automobile is:1. So mechanically defective that its operation         might endanger public safety; or2. Used in carrying passengers for hire or         compensation (the use of an automobile for a car pool shall not be considered use of an automobile for hire or compensation); or3. Used in the business of transportation of         flammables or explosives; or4. An authorized emergency vehicle; or5. Changed in shape or condition during the         policy period so as to increase the risk substantially; or6. Subject to an inspection law and it has not         been inspected or, if inspected, has failed to qualify; org. The notice of the intention not to renew is mailed     to the insured at least 60 days before the date of nonrenewal as provided in Section 143.17.
(Source: P.A. 101-652, eff. 1-1-23.)(Text of Section after amendment by P.A. 102-982)Sec. 143.19.1. Limits on exercise of right of nonrenewal. After a
policy of automobile insurance, as defined in
Section 143.13, has been effective or renewed for 5 or more years, the
company shall not exercise its right of non-renewal unless:a. The policy was obtained through a material     misrepresentation; orb. Any insured violated any of the terms and     conditions of the policy; orc. The named insured failed to disclose fully his     motor vehicle crashes  and moving traffic violations for the preceding 36 months, if such information is called for in the application; ord. Any insured made a false or fraudulent claim or     knowingly aided or abetted another in the presentation of such a claim; ore. The named insured or any other operator who either     resides in the same household or customarily operates an automobile insured under such a policy:1. Has, within the 12 months prior to the notice         of non-renewal had his drivers license under suspension or revocation; or2. Is or becomes subject to epilepsy or heart         attacks, and such individual does not produce a certificate from a physician testifying to his unqualified ability to operate a motor vehicle safely; or3. Has a crash record, conviction record         (criminal or traffic), or a physical or mental condition which is such that his operation of an automobile might endanger the public safety; or4. Has, within the 36 months prior to the notice         of non-renewal, been addicted to the use of narcotics or other drugs; or5. Has been convicted or pretrial release has         been revoked, during the 36 months immediately preceding the notice of non-renewal, for any felony, criminal negligence resulting in death, homicide or assault arising out of the operation of a motor vehicle, operating a motor vehicle while in an intoxicated condition or while under the influence of drugs, being intoxicated while in or about an automobile or while having custody of an automobile, leaving the scene of a crash without stopping to report, theft or unlawful taking of a motor vehicle, making false statements in an application for an operators or chauffeurs license, or has been convicted or pretrial release has been revoked for 3 or more violations within the 12 months immediately preceding the notice of non-renewal, of any law, ordinance or regulation limiting the speed of motor vehicles or any of the provisions of the motor vehicle laws of any state, violation of which constitutes a misdemeanor, whether or not the violations were repetitions of the same offense or different offenses; orf. The insured automobile is:1. So mechanically defective that its operation         might endanger public safety; or2. Used in carrying passengers for hire or         compensation (the use of an automobile for a car pool shall not be considered use of an automobile for hire or compensation); or3. Used in the business of transportation of         flammables or explosives; or4. An authorized emergency vehicle; or5. Changed in shape or condition during the         policy period so as to increase the risk substantially; or6. Subject to an inspection law and it has not         been inspected or, if inspected, has failed to qualify; org. The notice of the intention not to renew is mailed     to the insured at least 60 days before the date of nonrenewal as provided in Section 143.17.(Source: P.A. 101-652, eff. 1-1-23; 102-982, eff. 7-1-23.) (215 ILCS 5/143.19.2)Sec. 143.19.2. Volunteer driver protection.(a) For the purpose of this Section, "volunteer driver" means a person who transports by vehicle individuals or goods without compensation above reimbursement for expenses, where the driving services are performed for a nationally affiliated charitable nonprofit organization operating in Area Agencies on Aging areas number 3 or 12, as designated by the Department on Aging, that allows older individuals to transfer their automobiles to the organization in exchange for personal transportation services.(b) An insurer may not refuse to issue vehicle insurance to a person solely because the applicant is a volunteer driver.  An insurer may not impose a surcharge or otherwise increase the rate for a vehicle policy solely on the basis that the named insured or any member of the insured's household or a person who customarily operates the insured's vehicle is a volunteer driver.  This Section shall not prohibit an insurer from taking any actions upon factors other than the volunteer status of the insured driver. 
(Source: P.A. 97-285, eff. 8-9-11.) (215 ILCS 5/143.19.3)(Text of Section before amendment by P.A. 102-982)Sec. 143.19.3. Prohibition of rate increase for persons involved in emergency use of vehicles.(a) No insurer authorized to transact or transacting business in this State, or controlling or controlled by or under common control by or with an insurer authorized to transact or transacting business in this State, that sells a personal policy of automobile insurance in this State shall increase the policy premium, cancel the policy, or refuse to renew the policy solely because the insured or any other person who customarily operates an automobile covered by the policy has had an accident while operating an automobile in response to an emergency when the insured was responding to a call to duty as a volunteer EMS provider, as defined in Section 1-220 of the Illinois Vehicle Code.(b) The provisions of subsection (a) also apply to all personal umbrella policies. 
(Source: P.A. 100-657, eff. 8-1-18.)(Text of Section after amendment by P.A. 102-982)Sec. 143.19.3. Prohibition of rate increase for persons involved in emergency use of vehicles.(a) No insurer authorized to transact or transacting business in this State, or controlling or controlled by or under common control by or with an insurer authorized to transact or transacting business in this State, that sells a personal policy of automobile insurance in this State shall increase the policy premium, cancel the policy, or refuse to renew the policy solely because the insured or any other person who customarily operates an automobile covered by the policy has been involved in a crash while operating an automobile in response to an emergency when the insured was responding to a call to duty as a volunteer EMS provider, as defined in Section 1-220 of the Illinois Vehicle Code.(b) The provisions of subsection (a) also apply to all personal umbrella policies. 
(Source: P.A. 102-982, eff. 7-1-23.) (215 ILCS 5/143.19a) (from Ch. 73, par. 755.19a)Sec. 143.19a. 
		No policy of insurance as defined in subsection a. 
		of Section
143.13 of this Act may
be cancelled where the sole basis for such cancellation is the payment by
the insurance company of a claim or claims against such policy.
		(Source: P.A. 80-1127.) (215 ILCS 5/143.19b) (from Ch. 73, par. 755.19b)Sec. 143.19b. 
		
		No policy of insurance as defined in subsection (a) of
Section 143.13 of this Code may be nonrenewed where the sole basis for
nonrenewal was the reporting of a claim or claims against such policy and
such claim or claims were closed without payment.
		(Source: P.A. 86-437.) (215 ILCS 5/143.20) (from Ch. 73, par. 755.20)Sec. 143.20. 
		
		Notice to Insured as to Eligibility of Illinois Automobile
Insurance Plan.When a policy of automobile insurance is cancelled other than for
nonpayment of premium or in the event of the renewal of  a policy of
automobile insurance to which Section 143.17 applies, the company shall
notify the named insured of his possible eligibility for insurance
through the Illinois Automobile Insurance Plan.  Such notice shall
accompany or be included in the notice of cancellation or in the notice
of intent not to renew. 
		(Source: P.A. 80-1136.) (215 ILCS 5/143.20a) (from Ch. 73, par. 755.20a)Sec. 143.20a. 
		Cancellation of Fire and Marine Policies. 
		(1) Policies
covering property, except policies described in Section 143.13b, of this
Code, issued for the kinds of business enumerated in Class 3 of Section
4 of this Code may be cancelled 10 days following receipt of written notice
by the named insureds if the insured property is found to consist of one
or more of the following:(a) Buildings to which, following a fire loss, permanent repairs have
not commenced within 60 days after satisfactory adjustment of loss, unless
such delay is a direct result of a labor dispute or weather conditions.(b) Buildings  which have been unoccupied 60 consecutive days, except
buildings which have a seasonal occupancy and buildings which are undergoing
construction, repair or reconstruction and are properly secured against
unauthorized entry.(c) Buildings on which, because of their physical condition, there is
an outstanding order to vacate, an outstanding demolition order, or which
have been declared unsafe in accordance with applicable law.(d) Buildings on which heat, water, sewer service or public lighting have
not been connected for 30 consecutive days or more.(2) All notices of cancellation under this Section shall be sent by
certified mail and regular mail to the address of record of the named insureds.(3) All cancellations made pursuant to this Section shall be
on a pro rata basis.
		(Source: P.A. 86-437.) (215 ILCS 5/143.21) (from Ch. 73, par. 755.21)Sec. 143.21. 
		
		Cancellation of Fire and Extended Coverage Policy -
Grounds. After a policy of fire and extended coverage insurance, as defined
in paragraph (b) of Section 143.13, has been effective for 60 days, or if
such policy is a renewal policy, the company shall not exercise its right
to cancel except for one or more of the following reasons:a.  For nonpayment of premium;b.  When a policy was obtained by misrepresentation or fraud; orc.  For any act which measurably increases the risk originally
accepted.
		(Source: P.A. 86-437.) (215 ILCS 5/143.21.1) (from Ch. 73, par. 755.21.1)Sec. 143.21.1. 
		
		After a policy of fire and extended coverage, as defined
in Section 143.13, has been effective or renewed for 5 or more years, the
company shall not exercise its right of non-renewal unless:1. The policy was obtained by misrepresentation or fraud; or2. The risk originally accepted has measurably increased; or3. The insured has received 60 days notice of the intention of the company
not to renew as provided in Section 143.17.
		(Source: P.A. 80-1126.) (215 ILCS 5/143.21a) (from Ch. 73, par. 755.21a)Sec. 143.21a. 
		
		Nonrenewal of Fire and Extended Coverage
Policy - Grounds.  A policy of fire and extended coverage
insurance, as defined in subsection (b) of Section 143.13,
may not be nonrenewed for any of the following reasons:(a) age of property,(b) location of property,(c) age, sex, race, color, ancestry, marital status,     or occupation of occupants.		(Source: P.A. 91-357, eff. 7-29-99.) (215 ILCS 5/143.21b) (from Ch. 73, par. 755.21b)Sec. 143.21b. 
		No policy of insurance as defined in subsection b. 
		of
Section 143.13 of this Act may be cancelled where the sole basis for
such cancellation is the payment by the insurance company of a claim or
claims against such policy.
		(Source: P.A. 80-1364.) (215 ILCS 5/143.21c) (from Ch. 73, par. 755.21c)Sec. 143.21c. 
		Earthquake insurance; notice. 
		In response to
all applications for homeowners insurance, pursuant to subsection
(b) of Section 143.13 of this Act, received by the insurance
company for coverage on property located in the New Madrid
Seismic Zone, as defined by the United States Geological Survey
in Illinois, susceptible to Modified Mercalli intensity VII or
greater damage, information shall be provided by the insurance
company to the applicant regarding the availability of insurance
for loss caused by earthquake.
		(Source: P.A. 86-1197; 87-322.) (215 ILCS 5/143.22) (from Ch. 73, par. 755.22)Sec. 143.22. 
		
		Notice to Insured as to Eligibility of Illinois Fair Plan
Association. When a policy containing fire and extended coverage insurance is
cancelled or nonrenewed other than for nonpayment of premium or evidence
of incendiarism and if the location of the insured property is within the
State of Illinois the company shall notify the named insured of
his eligibility for the FAIR Plan and shall explain the procedure to
make application to the FAIR Plan.  Such notice shall accompany or be
included in the notice of cancellation or the notice of intent not to
renew.
		(Source: P.A. 86-437.) (215 ILCS 5/143.23) (from Ch. 73, par. 755.23)Sec. 143.23. 
		Cancellation and Nonrenewal Policies - Hearing. 
		A named insured who wishes to appeal the reasons for cancellation
or nonrenewal pursuant to Sections 143.16a and 143.19 through 143.24,
shall at least 20 days prior to the effective date of cancellation or
nonrenewal, mail or deliver to the Director of Insurance a written request
for a hearing which shall clearly state the basis for the appeal.  This
Section does not apply to cancellation in the case of nonpayment of
premium.  The notice of cancellation or nonrenewal to which this Section
applies shall advise the named insured of his right to appeal and the
procedure to follow for such appeal.Within 10 days after receipt of request for a hearing and upon 10 days
notice to the parties, the Director shall call a hearing.  Within 20
days of conclusion of the hearing, the Director shall issue his written
findings to the parties.  The policy will remain in force until such
time as the Director has given his findings.  If the Director finds for
the named insured, he shall order the insurer to rescind its notice of
cancellation, or in the case of a nonrenewal order the notice of
nonrenewal withdrawn.  If the Director finds for the Company he shall
order that the cancellation or nonrenewal be effective at least 30 days
from the date of his order.  The company is
entitled to a premium for any extension of coverage and such extension
may be contingent upon the payment of the premium.Costs of the hearing may be assessed against the losing party but
shall not exceed $100.
		(Source: P.A. 86-437; 87-757.) (215 ILCS 5/143.23a) (from Ch. 73, par. 755.23a)Sec. 143.23a. 
		
		When any person has filed a complaint with the Director
alleging cancellation, non-renewal or refusal to issue a fire and extended
coverage policy, as defined in Section 143.13 of this Code, by any insurer,
such person, upon written request to the insurer, to which the insurer shall
respond within 21 days, shall have access to the complete file of such insurer
pertaining to such person's application or policy.  There shall be no liability
on the part of, and no cause of action shall rise against, any insurer or
authorized representative, or its agents or employees, or the director or
his authorized representative for any statement made by them or any information
contained in the files revealed in compliance with the provisions of this Section.
		(Source: P.A. 80-1374.) (215 ILCS 5/143.24) (from Ch. 73, par. 755.24)Sec. 143.24. Limited Nonrenewal of Automobile Insurance Policy. A policy of automobile insurance, as defined in subsection (a) of Section
143.13, may not be nonrenewed for any of the following reasons:a.  Age;b.  Sex;c.  Race;d.  Color;e.  Creed;f.  Ancestry;g. Occupation;h. Marital Status;i. Employer of the insured;j. Physical disability as defined in Section 143.24a of this Act.
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 5/143.24a) (from Ch. 73, par. 755.24a)Sec. 143.24a. 
(a) No insurer, licensed to issue a policy of automobile
insurance, as defined in subsection (a) of Section 143.13, shall fail or
refuse to accept an application from a person with  a physical disability for such
insurance, refuse to issue such insurance to an applicant with a physical disability therefor
solely because of a physical disability, or issue or cancel such insurance under
conditions less favorable to persons with physical disabilities than
persons without physical disabilities; nor shall a physical disability itself constitute a condition or risk for
which a higher premium may be required of a person with a physical disability for such insurance.(b) As used in this Section, "physical disability" refers only to
 an impairment of physical ability because of amputation or loss of
function which impairment
has been compensated for, when necessary, by vehicle equipment adaptation
or modification; or an impairment of hearing which
impairment has been compensated for, when necessary, either by sensory
equipment adaptation or modification, or an impairment of
speech; provided, that the insurer may require an applicant with a physical disability for such insurance on the renewal of such insurance
to furnish proof that he or she has qualified for a new or renewed drivers
license since the occurrence of the disabling condition.
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 5/143.24b) (from Ch. 73, par. 755.24b)(Text of Section before amendment by P.A. 102-982)Sec. 143.24b. 
		
		Any insurer insuring any person or
entity against damages
arising out of a vehicular accident shall disclose the dollar amount of
liability coverage under the insured's personal private passenger
automobile liability insurance policy upon receipt of the
following: (a) a certified letter from a claimant or any attorney
purporting to represent any claimant which requests such disclosure and
(b) a brief description of the nature and extent of the injuries,
accompanied by a statement of the amount of medical bills incurred to date
and copies of medical records.  The disclosure shall be confidential and available
only to the claimant, his attorney and personnel
in the office of the attorney entitled to access to the claimant's files.
The insurer shall forward the information to the party requesting it by
certified mail, return receipt requested, within 30 days of receipt of the request.
		(Source: P.A. 85-1209.)(Text of Section after amendment by P.A. 102-982)Sec. 143.24b. 
Any insurer insuring any person or
entity against damages
arising out of a vehicular crash shall disclose the dollar amount of
liability coverage under the insured's personal private passenger
automobile liability insurance policy upon receipt of the
following: (a) a certified letter from a claimant or any attorney
purporting to represent any claimant which requests such disclosure and
(b) a brief description of the nature and extent of the injuries,
accompanied by a statement of the amount of medical bills incurred to date
and copies of medical records.  The disclosure shall be confidential and available
only to the claimant, his attorney and personnel
in the office of the attorney entitled to access to the claimant's files.
The insurer shall forward the information to the party requesting it by
certified mail, return receipt requested, within 30 days of receipt of the request.
(Source: P.A. 102-982, eff. 7-1-23.) (215 ILCS 5/143.24c)Sec. 143.24c. 
		Hate crimes; coverage refusal.(a) This Section applies to policies of insurance
if the insured or proposed insured is
(1) an individual, (2) a religious
organization described in clause (i) of subparagraph (A) of paragraph (1) of
subsection
(b) of Section 170 of Title 26 of the United States Code, (3) an educational
organization
described in clause (ii) of subparagraph (A) of paragraph (1) of subsection (b)
of Section
170 of Title 26 of the United States Code, or (4) any other nonprofit
organization
described in
clause (vi) of subparagraph (A) of paragraph (1) of subsection (b) of Section
170 of Title 26 of the
United States Code that is organized and operated for religious, charitable, or
educational
purposes.(b) An insurer issuing policies subject to this Section may not cancel,
refuse to issue, or refuse to
renew the policy solely on the basis that one or more claims have been made
against any
policy during the preceding 60 months for a loss that is the result of a hate
crime
committed against the person or property insured if the insured provides
evidence to the insurer that the act causing the loss is identified as a hate
crime on a police report.(c) As it relates to this Section, if determined by a law enforcement
agency, a
"hate crime" may include any of the following:(1) By force or threat of force, willfully injuring,     intimidating, interfering with, oppressing, or threatening any other person in the free exercise or enjoyment of any right or privilege secured to him or her by the Constitution or laws of this State or by the Constitution or laws of the United States because of the other person's race, color, religion, ancestry, national origin, disability, gender, or sexual orientation or because he or she perceives that the other person has one or more of those characteristics. This offense, however, does not include speech alone, except upon a showing that the speech itself threatened violence against a specific person or group of persons and that the defendant had the apparent ability to carry out the threat.(2) Knowingly defacing, damaging, or destroying the     real or personal property of any other person for the purpose of intimidating or interfering with the free exercise or enjoyment of any right or privilege secured to the other person by the Constitution or laws of this State or by the Constitution or laws of the United States because of the other person's race, color, religion, ancestry, national origin, disability, gender, or sexual orientation or because he or she perceives that the other person has one or more of those characteristics.(d) Nothing in this Section prevents an insurer subject to this Section from
taking
any of the actions specified in subsection (b) on the basis of criteria not
otherwise made
invalid by this Section or any other law or rule.
		(Source: P.A. 92-669, eff. 1-1-03.) (215 ILCS 5/143.24d)Sec. 143.24d. (Repealed).
	 
	 (Source: P.A. 98-864, eff. 1-1-15. Repealed by P.A. 100-439, eff. 8-25-17.) (215 ILCS 5/143.25) (from Ch. 73, par. 755.25)Sec. 143.25. 
		
		The Director of insurance may order any of the
following if it is determined to be in the public interest:(a) Some or all companies issuing policies of insurance as defined
in subsections (a) and (b) of Section 143.13 annually disclose by postal
zip code area the number of policies applied for, the number of policies
issued including renewals, the number of policies cancelled or nonrenewed for some
or all areas of the State, and loss data.(b) The Illinois FAIR Plan created by Article XXXIII of the Code
annually disclose by postal zip code area the number of policies it has
written including renewals and cancellations for some or all areas of
the State.(c) The Illinois FAIR Plan created by Article XXXIII annually
disclose by classification the earned premiums and losses of the Plan.
		(Source: P.A. 81-217.) (215 ILCS 5/143.25a) (from Ch. 73, par. 755.25a)Sec. 143.25a. 
		
		Prior to the first renewal of any policy of automobile
insurance as defined in subsection (a) of Section 143.13 of this Code, an
insurance company shall notify an individual planning to purchase such
renewal policy of the availability of higher deductibles for collision and
comprehensive coverage and that a premium savings could result if the
higher deductibles were purchased.
		(Source: P.A. 86-783.) (215 ILCS 5/143.26) (from Ch. 73, par. 755.26)Sec. 143.26. 
		
		No company issuing policies of automobile insurance, as defined
in Section 143.13 of this Code, in this State, and no officer, director,
agent, clerk, employee or broker of such company shall cancel or refuse
to issue or renew a policy of automobile insurance to any applicant for
such insurance solely on the grounds that an agent or broker for such company
is not located in geographical proximity to the residence of the applicant.
		(Source: P.A. 80-1369.) (215 ILCS 5/143.26a) (from Ch. 73, par. 755.26a)Sec. 143.26a. 
		Automobile insurance sales requirements.(a) Every company authorized to issue policies of automobile insurance
as defined in Section 143.13 must, upon request, provide the names
and addresses of its authorized producers reasonably determined to be
located nearest to the residence of the person making the request.(b) No company or authorized licensed producer may refuse to accept
an application for automobile insurance from any applicant solely on the
grounds that the applicant is eligible for placement only under the
Illinois Automobile Insurance Plan.
		(Source: P.A. 86-1408.) (215 ILCS 5/143.27) (from Ch. 73, par. 755.27)Sec. 143.27. 
		
		No insurance company may give to any named insured any notice
of cancellation or nonrenewal of a policy of fire and extended coverage
insurance, as defined in subsection (b) of Section 143.13, covering property
which is capable of being rehabilitated, without allowing the named insured
a reasonable period of time in which to repair defects in the insured property
or relevant portion thereof, to an extent reasonably sufficient to facilitate
continued coverage thereon.  The time reasonably allowable therefor (which
in no event shall exceed ninety days) and the degree of sufficiency of such
rehabilitative efforts which insurance companies shall accept, may be determined
by a certificate from a licensed contractor or architect and such rehabilitative
efforts shall be in compliance with local municipal building codes.  The
notice of need for repair shall be from the insurance company, which may
be sent to the insured at any time during the policy term, and which notice
shall commence the time period established under this Section.
		(Source: P.A. 81-857.) (215 ILCS 5/143.28) (from Ch. 73, par. 755.28)Sec. 143.28. 
		
		The rates and premium charges for all
policies of automobile insurance, as described in sub-section (a) of
Section 143.13 of this Code, shall include appropriate reductions for
insured automobiles which are equipped with anti-theft mechanisms or
devices approved by the Director.
To implement the provisions of this
Section, the Director shall promulgate rules and regulations. 
		(Source: P.A. 91-798, eff. 7-9-00; 92-125, eff. 7-20-01.) (215 ILCS 5/143.29) (from Ch. 73, par. 755.29)(Text of Section before amendment by P.A. 102-982)Sec. 143.29. 
(a) The rates and premium charges for every policy of automobile
liability insurance shall include appropriate reductions as determined
by the insurer for any insured
over age 55 upon successful completion of the National Safety Council's
Defensive Driving Course or a motor vehicle accident prevention course, including an eLearning course, that 
is found by the Secretary of State to meet or exceed the standards of the
National Safety Council's Defensive Driving Course's 8 hour classroom safety
instruction program.(b) The premium reduction shall remain in effect for the qualifying insured
for a period of 3 years from the date of successful completion of the accident
prevention course, except that the insurer may elect to apply the premium
reduction beginning either with the last effective date of the policy or
the next renewal date of the policy if the reduction will result in a savings
as though applied over a full 3 year period.  An insured who has completed
the course of instruction prior to July 1, 1982 shall receive the insurance
premium reduction
for only the period remaining within the 3 years from course completion.
The period of premium reduction for an insured who has repeated the accident
prevention course shall be based upon the last such course the insured has
successfully completed.(c) Any accident prevention course approved by the Secretary of State
under this Section shall be taught by an instructor approved by the Secretary
of State, shall consist of at least 8 hours of classroom or eLearning equivalent instruction and
shall provide for a certificate of completion.  Records of certification
of course completion shall be maintained in a manner acceptable to the Secretary
of State.(d) Any person claiming eligibility for a rate or premium reduction shall
be responsible for providing to his insurance company the information necessary
to determine eligibility.(e) This Section shall not apply to:(1) any motor vehicle which is a part of a fleet or     is used for commercial purposes unless there is a regularly assigned principal operator.(2) any motor vehicle subject to a higher premium     rate because of the insured's previous motor vehicle claim experience or to any motor vehicle whose principal operator has been convicted of violating any of the motor vehicle laws of this State, until that operator shall have maintained a driving record free of accidents and moving violations for a continuous one year period, in which case such driver shall be eligible for a reduction the remaining 2 years of the 3 year period.(3) any motor vehicle whose principal operator has     had his drivers license revoked or suspended for any reason by the Secretary of State within the previous 36 months.(4) any policy of group automobile insurance under     which premiums are broadly averaged for the group rather than determined individually.
(Source: P.A. 102-397, eff. 1-1-22.)(Text of Section after amendment by P.A. 102-982)Sec. 143.29. 
(a) The rates and premium charges for every policy of automobile
liability insurance shall include appropriate reductions as determined
by the insurer for any insured
over age 55 upon successful completion of the National Safety Council's
Defensive Driving Course or a motor vehicle crash prevention course, including an eLearning course, that
is found by the Secretary of State to meet or exceed the standards of the
National Safety Council's Defensive Driving Course's 8 hour classroom safety
instruction program.(b) The premium reduction shall remain in effect for the qualifying insured
for a period of 3 years from the date of successful completion of the crash 
prevention course, except that the insurer may elect to apply the premium
reduction beginning either with the last effective date of the policy or
the next renewal date of the policy if the reduction will result in a savings
as though applied over a full 3 year period.  An insured who has completed
the course of instruction prior to July 1, 1982 shall receive the insurance
premium reduction
for only the period remaining within the 3 years from course completion.
The period of premium reduction for an insured who has repeated the crash 
prevention course shall be based upon the last such course the insured has
successfully completed.(c) Any crash prevention course approved by the Secretary of State
under this Section shall be taught by an instructor approved by the Secretary
of State, shall consist of at least 8 hours of classroom or eLearning equivalent instruction and
shall provide for a certificate of completion.  Records of certification
of course completion shall be maintained in a manner acceptable to the Secretary
of State.(d) Any person claiming eligibility for a rate or premium reduction shall
be responsible for providing to his insurance company the information necessary
to determine eligibility.(e) This Section shall not apply to:(1) any motor vehicle which is a part of a fleet or     is used for commercial purposes unless there is a regularly assigned principal operator.(2) any motor vehicle subject to a higher premium     rate because of the insured's previous motor vehicle claim experience or to any motor vehicle whose principal operator has been convicted of violating any of the motor vehicle laws of this State, until that operator shall have maintained a driving record free of crashes  and moving violations for a continuous one year period, in which case such driver shall be eligible for a reduction the remaining 2 years of the 3 year period.(3) any motor vehicle whose principal operator has     had his drivers license revoked or suspended for any reason by the Secretary of State within the previous 36 months.(4) any policy of group automobile insurance under     which premiums are broadly averaged for the group rather than determined individually.(Source: P.A. 102-397, eff. 1-1-22; 102-982, eff. 7-1-23.) (215 ILCS 5/143.30) (from Ch. 73, par. 755.30)Sec. 143.30. 
		Selection of glass replacement or glass repair companies.With reference to every policy of automobile insurance as defined in
Section 143.13(a):(a) An automobile insurer authorized to do business in this State shall
not unreasonably restrict access to automobile glass repair or replacement
facilities by
its policyholders.(b) An automobile insurer may enter into an agreement or agreements with
automobile glass repair or replacement facilities for the purpose of
containing the cost of automobile glass repair or replacement claims.(c) An insurer, or a producer acting on its behalf, shall disclose to an
insured, either orally or in writing, that the insured may freely choose an
automobile glass repair or replacement facility.(d) No such insurance company, producer, or adjuster may engage in any
act or practice of intimidation, coercion, or threat against any insured
person to use a particular facility to provide such services.(e) If a policyholder selects an automobile glass repair or replacement
facility, the insurer shall provide payment to the facility based on a
competitive price, as established by that insurer through competitive bids
or market surveys to determine a fair and reasonable market price for
similar services.  Reasonable deviation from this market price is allowed
based on the facts in each case.
		(Source: P.A. 87-1110.) (215 ILCS 5/143.31)Sec. 143.31. 
		Uniform medical claim and billing forms.(a) The Director shall prescribe by rule, after consultation with providers
of health care or treatment, insurers, hospital, medical, and dental service
corporations, and other prepayment organizations, insurance claim and billing
forms that the Director determines will provide for uniformity and simplicity
in insurance claims handling.  The claim forms shall include, but need not be
limited to, information regarding the medical diagnosis, treatment, and
prognosis of the patient, together with the details of charges incident to the
providing of care, treatment, or services, sufficient for the purpose of
meeting the proof requirements of an insurance policy or a hospital, medical,
or dental service contract.(b) An insurer or a provider of health care treatment may not refuse to
accept a claim or bill submitted on duly promulgated uniform claim and billing
forms.  An insurer, however, may accept claims and bills submitted on any other
form.(c) Accident and health insurer explanation of benefits paid statements or
claims summary statements sent to an insured by the accident and health insurer
shall be in a format and written in a manner that promotes understanding by
the
insured by setting forth all of the following:(1) The total dollar amount submitted to the insurer     for payment.(2) Any reduction in the amount paid due to the     application of any co-payment or deductible, along with an explanation of the amount of the co-payment or deductible applied under the insured's policy.(3) Any reduction in the amount paid due to the     application of any other policy limitation or exclusion set forth in the insured's policy, along with an explanation thereof.(4) The total dollar amount paid.(5) The total dollar amount remaining unpaid.(d) The Director may issue an order directing an accident and health insurer
to comply with subsection (c).(e) An accident and health insurer does not violate subsection (c) by using
a document that the accident and health insurer is required to use by the
federal government or the State.(f) The adoption of uniform claim forms and uniform billing forms by the
Director under this Section does not preclude an insurer, hospital, medical, or
dental service corporation, or other prepayment organization from obtaining any
necessary additional information regarding a claim from the claimant, provider
of health care or treatment, or certifier of coverage, as may be required.(g) On and after January 1, 1996 when billing insurers or otherwise filing
insurance claims with insurers subject to this Section, providers of health
care or treatment, medical services, dental services, pharmaceutical services,
or medical equipment must use the uniform claim and billing forms adopted by
the Director under this Section.
		(Source: P.A. 91-357, eff. 7-29-99.) (215 ILCS 5/143.32)(Text of Section before amendment by P.A. 102-982)Sec. 143.32. 
		Replacement of child restraint systems. 
		A policy of
automobile
insurance, as defined in Section 143.13, that is amended, delivered, issued, or
renewed
after the effective date of this amendatory Act of the 91st General Assembly
must include
coverage for replacement of a child restraint system that was in use by a child
during an
accident to which coverage is applicable. As used in this Section, "child
restraint system"
has the meaning given that term in the Child Passenger Restraint Act.
		(Source: P.A. 91-749, eff. 6-2-00.)(Text of Section after amendment by P.A. 102-982)Sec. 143.32. Replacement of child restraint systems. A policy of
automobile
insurance, as defined in Section 143.13, that is amended, delivered, issued, or
renewed
after the effective date of this amendatory Act of the 91st General Assembly
must include
coverage for replacement of a child restraint system that was in use by a child
during a crash to which coverage is applicable. As used in this Section, "child
restraint system"
has the meaning given that term in the Child Passenger Restraint Act.
(Source: P.A. 102-982, eff. 7-1-23.) (215 ILCS 5/143.33)Sec. 143.33. Electronic posting of policies.(a) Policies and endorsements used by a company for transacting insurance as classified in Class 2 and Class 3 of Section 4 of this Code that do not contain personally identifiable information may be mailed, issued, delivered, or posted on the insurer's Internet website.  If the insurer elects to post the insurance policies and endorsements on its Internet website in lieu of mailing, issuing, or delivering them to the insured, then the insurer must comply with all of the following conditions:(1) The policy and endorsements must be easily     accessible to the insured and the producer of record and remain that way for as long as the policy is in force;(2) After the expiration of the policy, the insurer     must archive its expired policies and endorsements for the longer of  5 years or other period required by law, and make them available upon request;(3) The policies and endorsements must be posted in a     manner that enables the insured and the producer of record to print and save the policy and endorsements using programs or applications that are widely available on the Internet and free to use;(4) At the time of issuance of the original policy     and any renewals of that policy, the insurer provides to the insured in the manner it customarily provides declarations pages to the insured, and to the producer of record,  the following information clearly displayed in or simultaneously with a declarations page:(A) a description of the exact policy and         endorsement forms purchased by the insured;(B) a method by which the insured may obtain from         the insurer, upon request and without charge, a paper copy of their policy and endorsements; and(C) the Internet address where their policy and         endorsements are posted.(5) The insurer provides to the insured in the manner     it customarily provides declarations pages to the insured,  and to the producer of record, notice of any changes to the forms or endorsements; the insured's right to obtain from the insurer, upon request and without charge, a paper copy of these forms or endorsements; and the Internet address where these forms or endorsements are posted.(b) Nothing in this Section shall prevent an insurer that posts its policies and endorsements electronically in accordance with this Section from offering a discount to an insured who elects to receive notices and documents electronically in accordance with the provisions of the federal Electronic Signatures in Global and National Commerce Act.(c) Nothing in this Section affects the timing or content of any disclosure or other document required to be provided or made available to any insured under any statute, rule, regulation, or rule of law. 
(Source: P.A. 98-521, eff. 8-23-13.) (215 ILCS 5/143.34)Sec. 143.34. Electronic notices and documents.(a) As used in this Section:"Delivered by electronic means" includes:(1) delivery to an electronic mail address at which a     party has consented to receive notices or documents; or(2) posting on an electronic network or site     accessible via the Internet, mobile application, computer, mobile device, tablet, or any other electronic device, together with separate notice of the posting, which shall be provided by electronic mail to the address at which the party has consented to receive notice or by any other delivery method that has been consented to by the party."Party" means any recipient of any notice or document required as part of an insurance transaction, including, but not limited to, an applicant, an insured, a policyholder, or an annuity contract holder.(b) Subject to the requirements of this Section, any notice to a party or any other document required under applicable law in an insurance transaction or that is to serve as evidence of insurance coverage may be delivered, stored, and presented by electronic means so long as it meets the requirements of the Uniform Electronic Transactions Act.(c) Delivery of a notice or document in accordance with this Section shall be considered equivalent to any delivery method required under applicable law, including delivery by first class mail; first class mail, postage prepaid; certified mail; certificate of mail; or certificate of mailing.(d) A notice or document may be delivered by electronic means by an insurer to a party under this Section if:(1) the party has affirmatively consented to that     method of delivery and has not withdrawn the consent;(2) the party, before giving consent, is provided     with a clear and conspicuous statement informing the party of:(A) the right of the party to withdraw consent to         have a notice or document delivered by electronic means, at any time, and any conditions or consequences imposed in the event consent is withdrawn;(B) the types of notices and documents to which         the party's consent would apply;(C) the right of a party to have a notice or         document delivered in paper form; and(D) the procedures a party must follow to         withdraw consent to have a notice or document delivered by electronic means and to update the party's electronic mail address;(3) the party:(A) before giving consent, is provided with a         statement of the hardware and software requirements for access to, and retention of, a notice or document delivered by electronic means; and(B) consents electronically, or confirms consent         electronically, in a manner that reasonably demonstrates that the party can access information in the electronic form that will be used for notices or documents delivered by electronic means as to which the party has given consent; and(4) after consent of the party is given, the insurer,     in the event a change in the hardware or software requirements needed to access or retain a notice or document delivered by electronic means creates a material risk that the party will not be able to access or retain a subsequent notice or document to which the consent applies:(A) provides the party with a statement that         describes:(i) the revised hardware and software             requirements for access to and retention of a notice or document delivered by electronic means; and(ii) the right of the party to withdraw             consent without the imposition of any condition or consequence that was not disclosed at the time of initial consent; and(B) complies with paragraph (2) of this         subsection (d).(e) Delivery of a notice or document in accordance with this Section does not affect requirements related to content or timing of any notice or document required under applicable law.(f) If a provision of this Section or applicable law requiring a notice or document to be provided to a party expressly requires verification or acknowledgment of receipt of the notice or document, the notice or document may be delivered by electronic means only if the method used provides for verification or acknowledgment of receipt.(g) The legal effectiveness, validity, or enforceability of any contract or policy of insurance executed by a party may not be denied solely because of the failure to obtain electronic consent or confirmation of consent of the party in accordance with subparagraph (B) of paragraph (3) of subsection (d) of this Section.(h) A withdrawal of consent by a party does not affect the legal effectiveness, validity, or enforceability of a notice or document delivered by electronic means to the party before the withdrawal of consent is effective.A withdrawal of consent by a party is effective within a reasonable period of time after receipt of the withdrawal by the insurer.Failure by an insurer to comply with paragraph (4) of subsection (d) of this Section and subsection (j) of this Section may be treated, at the election of the party, as a withdrawal of consent for purposes of this Section.(i) This Section does not apply to a notice or document delivered by an insurer in an electronic form before the effective date of this amendatory Act of the 99th General Assembly to a party who, before that date, has consented to receive notice or document in an electronic form otherwise allowed by law.(j) If the consent of a party to receive certain notices or documents in an electronic form is on file with an insurer before the effective date of this amendatory Act of the 99th General Assembly and, pursuant to this Section, an insurer intends to deliver additional notices or documents to the party in an electronic form, then prior to delivering such additional notices or documents electronically, the insurer shall:(1) provide the party with a statement that         describes:(A) the notices or documents that shall be             delivered by electronic means under this Section that were not previously delivered electronically; and(B) the party's right to withdraw consent to             have notices or documents delivered by electronic means without the imposition of any condition or consequence that was not disclosed at the time of initial consent; and(2) comply with paragraph (2) of subsection (d)         of this Section.(k) An insurer shall deliver a notice or document by any other delivery method permitted by law other than electronic means if:(1) the insurer attempts to deliver the notice or     document by electronic means and has a reasonable basis for believing that the notice or document has not been received by the party; or(2) the insurer becomes aware that the electronic     mail address provided by the party is no longer valid.(l) A producer shall not be subject to civil liability for any harm or injury that occurs as a result of a party's election to receive any notice or document by electronic means or by an insurer's failure to deliver a notice or document by electronic means unless the harm or injury is caused by the willful and wanton misconduct of the producer.(m) This Section shall not be construed to modify, limit, or supersede the provisions of the federal Electronic Signatures in Global and National Commerce Act, as amended.(n) Nothing in this Section shall prevent an insurer from posting on the insurer's Internet site any standard policy and any endorsements to such a policy that does not contain personally identifiable information, in accordance with Section 143.33 of this Code, in lieu of delivery to a policyholder, insured, or applicant for insurance by any other method. 
(Source: P.A. 102-38, eff. 6-25-21.) (215 ILCS 5/143a) (from Ch. 73, par. 755a)(Text of Section from P.A. 102-775)Sec. 143a. Uninsured and hit and run motor vehicle coverage.(1) No policy insuring against
loss resulting from liability imposed by law for bodily injury or death
suffered by any person arising out of the ownership, maintenance or use
of a motor vehicle that is designed for use on public highways and that
is either required to be registered in this State or is principally garaged
in this State shall be renewed, delivered, or issued for delivery
in this State unless coverage is provided therein or
supplemental thereto, in limits for bodily injury or death set forth in
Section 7-203 of the Illinois Vehicle Code for the
protection of persons insured thereunder who are legally entitled to
recover damages from owners or operators of uninsured motor vehicles and
hit-and-run motor vehicles because of bodily injury, sickness or
disease, including death, resulting therefrom. Uninsured motor vehicle
coverage does not apply to bodily injury, sickness, disease, or death resulting
therefrom, of an insured while occupying a motor vehicle owned by, or furnished
or available for the regular use of the insured, a resident spouse or resident
relative, if that motor vehicle is not described in the policy under which a
claim is made or is not a newly acquired or replacement motor vehicle covered
under the terms of the policy.  The limits for any coverage for any vehicle
under the policy may not be aggregated with the limits for any similar
coverage, whether provided by the same insurer or another insurer, applying to
other motor vehicles, for purposes of determining the total limit of insurance
coverage available for bodily injury or death suffered by a person in any one
accident.  No
policy shall be renewed, delivered, or issued for delivery in this
State unless it is provided therein that any dispute
with respect to the coverage and the amount of damages shall be submitted
for arbitration to the
American Arbitration Association and be subject to its rules for the conduct
of arbitration hearings
as to all matters except medical opinions.  As to medical opinions, if the
amount of damages being sought is equal to or less than the amount provided for
in Section 7-203 of the Illinois Vehicle Code, then the current American
Arbitration Association Rules shall apply.  If the amount being sought in an
American Arbitration Association case exceeds that amount as set forth in
Section 7-203 of the Illinois Vehicle Code, then the Rules of Evidence that
apply in the circuit court for placing medical opinions into evidence shall
govern.  Alternatively, disputes with respect to damages and the coverage shall
be
determined in the
following
manner:  Upon the insured requesting arbitration, each party to the
dispute shall select an arbitrator and the 2 arbitrators so named
shall select a third arbitrator.  If such arbitrators are not selected
within 45 days from such request, either party may request that the
arbitration be submitted to the American Arbitration Association.
Any decision made by the arbitrators shall be binding for the amount of
damages not exceeding $75,000 for bodily injury to or
death of any one person, $150,000 for bodily injury to or death of 2 or more
persons in any one motor vehicle accident,
or the corresponding policy limits for bodily injury or death, whichever is
less.
All 3-person arbitration cases proceeding in accordance with any uninsured
motorist
coverage conducted in this State in
which the claimant is only seeking monetary damages up to the limits
set forth in Section 7-203 of the Illinois Vehicle Code
shall be subject to the following rules:(A) If at least 60 days' written notice of the     intention to offer the following documents in evidence is given to every other party, accompanied by a copy of the document, a party may offer in evidence, without foundation or other proof:(1) bills, records, and reports of hospitals,         doctors, dentists, registered nurses, licensed practical nurses, physical therapists, and other healthcare providers;(2) bills for drugs, medical appliances, and         prostheses;(3) property repair bills or estimates, when         identified and itemized setting forth the charges for labor and material used or proposed for use in the repair of the property;(4) a report of the rate of earnings and time         lost from work or lost compensation prepared by an employer;(5) the written opinion of an opinion witness,         the deposition of a witness, and the statement of a witness that the witness would be allowed to express if testifying in person, if the opinion or statement is made by affidavit or by certification as provided in Section 1-109 of the Code of Civil Procedure;(6) any other document not specifically covered         by any of the foregoing provisions that is otherwise admissible under the rules of evidence.Any party receiving a notice under this paragraph (A)     may apply to the arbitrator or panel of arbitrators, as the case may be, for the issuance of a subpoena directed to the author or maker or custodian of the document that is the subject of the notice, requiring the person subpoenaed to produce copies of any additional documents as may be related to the subject matter of the document that is the subject of the notice.  Any such subpoena shall be issued in substantially similar form and served by notice as provided by Illinois Supreme Court Rule 204(a)(4).  Any such subpoena shall be returnable not less than 5 days before the arbitration hearing.(B) Notwithstanding the provisions of Supreme Court     Rule 213(g), a party who proposes to use a written opinion of an expert or opinion witness or the testimony of an expert or opinion witness at the hearing may do so provided a written notice of that intention is given to every other party not less than 60 days prior to the date of hearing, accompanied by a statement containing the identity of the witness, his or her qualifications, the subject matter, the basis of the witness's conclusions, and his or her opinion.(C) Any other party may subpoena the author or maker     of a document admissible under this subsection, at that party's expense, and examine the author or maker as if under cross-examination.  The provisions of Section 2-1101 of the Code of Civil Procedure shall be applicable to arbitration hearings, and it shall be the duty of a party requesting the subpoena to modify the form to show that the appearance is set before an arbitration panel and to give the time and place set for the hearing.(D) The provisions of Section 2-1102 of the Code of     Civil Procedure shall be applicable to arbitration hearings under this subsection.(2) No policy insuring
against loss resulting from liability imposed by law for property damage
arising out of the ownership, maintenance, or use of a motor vehicle shall
be renewed, delivered, or issued for delivery in this State with respect
to any private passenger or recreational motor vehicle that is
designed for use on public highways and that is either required to be
registered in this State or is principally garaged in this State, unless coverage is made available in the amount of the actual
cash value of the motor vehicle described in the policy or the corresponding policy limit for uninsured motor vehicle property damage coverage, 
whichever is less, subject to a maximum $250 deductible, for the protection of
persons insured thereunder who are legally entitled to recover damages from
owners or operators of uninsured motor vehicles and hit-and-run motor
vehicles because of property damage to the motor vehicle described in the
policy.There shall be no liability imposed under the uninsured motorist
property damage coverage required by this subsection if the owner or
operator of the at-fault uninsured motor vehicle or hit-and-run motor
vehicle cannot be identified.  This subsection shall not apply to any
policy which does not provide primary motor vehicle liability insurance for
liabilities arising from the maintenance, operation, or use of a
specifically insured motor vehicle.Each insurance company providing motor vehicle property damage liability
insurance shall advise applicants of the availability of uninsured motor
vehicle property damage coverage, the premium therefor, and provide a brief
description of the coverage.  That information
need be given only once and shall not be required in any subsequent renewal,
reinstatement or reissuance, substitute, amended, replacement or
supplementary policy.  No written rejection shall be required, and
the absence of a premium payment for uninsured motor vehicle property damage
shall constitute conclusive proof that the applicant or policyholder has
elected not to accept uninsured motorist property damage coverage.An insurance company issuing uninsured motor vehicle
property damage coverage may provide that:(i) Property damage losses recoverable thereunder     shall be limited to damages caused by the actual physical contact of an uninsured motor vehicle with the insured motor vehicle.(ii) There shall be no coverage for loss of use of     the insured motor vehicle and no coverage for loss or damage to personal property located in the insured motor vehicle.(iii) Any claim submitted shall include the name and     address of the owner of the at-fault uninsured motor vehicle, or a registration number and description of the vehicle, or any other available information to establish that there is no applicable motor vehicle property damage liability insurance.Any dispute with respect to the coverage and the amount of
damages shall be submitted for
arbitration to the American Arbitration Association and be subject to its
rules for the conduct of arbitration hearings or for determination in
the following manner:  Upon the insured requesting arbitration, each party
to the dispute shall select an arbitrator and the 2 arbitrators so named
shall select a third arbitrator.  If such arbitrators are not selected
within 45 days from such request, either party may request that the
arbitration be submitted to the American Arbitration Association.
Any arbitration proceeding under this subsection seeking recovery for
property damages shall be
subject to the following rules:(A) If at least 60 days' written notice of the     intention to offer the following documents in evidence is given to every other party, accompanied by a copy of the document, a party may offer in evidence, without foundation or other proof:(1) property repair bills or estimates, when         identified and itemized setting forth the charges for labor and material used or proposed for use in the repair of the property;(2) the written opinion of an opinion witness,         the deposition of a witness, and the statement of a witness that the witness would be allowed to express if testifying in person, if the opinion or statement is made by affidavit or by certification as provided in Section 1-109 of the Code of Civil Procedure;(3) any other document not specifically covered         by any of the foregoing provisions that is otherwise admissible under the rules of evidence.Any party receiving a notice under this paragraph (A)     may apply to the arbitrator or panel of arbitrators, as the case may be, for the issuance of a subpoena directed to the author or maker or custodian of the document that is the subject of the notice, requiring the person subpoenaed to produce copies of any additional documents as may be related to the subject matter of the document that is the subject of the notice.  Any such subpoena shall be issued in substantially similar form and served by notice as provided by Illinois Supreme Court Rule 204(a)(4).  Any such subpoena shall be returnable not less than 5 days before the arbitration hearing.(B) Notwithstanding the provisions of Supreme Court     Rule 213(g), a party who proposes to use a written opinion of an expert or opinion witness or the testimony of an expert or opinion witness at the hearing may do so provided a written notice of that intention is given to every other party not less than 60 days prior to the date of hearing, accompanied by a statement containing the identity of the witness, his or her qualifications, the subject matter, the basis of the witness's conclusions, and his or her opinion.(C) Any other party may subpoena the author or maker     of a document admissible under this subsection, at that party's expense, and examine the author or maker as if under cross-examination.  The provisions of Section 2-1101 of the Code of Civil Procedure shall be applicable to arbitration hearings, and it shall be the duty of a party requesting the subpoena to modify the form to show that the appearance is set before an arbitration panel and to give the time and place set for the hearing.(D) The provisions of Section 2-1102 of the Code of     Civil Procedure shall be applicable to arbitration hearings under this subsection.(3) For the purpose of the coverage, the term "uninsured motor
vehicle" includes, subject to the terms and conditions of the coverage,
a motor vehicle where on, before or after the accident date the
liability insurer thereof is unable to make payment with respect to the
legal liability of its insured within the limits specified in the policy
because of the entry by a court of competent jurisdiction of an order of
rehabilitation or liquidation by reason of insolvency on or after the
accident date. An insurer's extension of coverage, as provided in this
subsection, shall be applicable to all accidents occurring after July
1, 1967 during a policy period in which its insured's uninsured motor
vehicle coverage is in effect. Nothing in this Section may be construed
to prevent any insurer from extending coverage under terms and
conditions more favorable to its insureds than is required by this Section.(4) In the event of payment to any person under the coverage
required by this Section and subject to the terms and conditions of the
coverage, the insurer making the payment shall, to the extent thereof,
be entitled to the proceeds of any settlement or judgment resulting from
the exercise of any rights of recovery of the person against any person
or organization legally responsible for the property damage, bodily
injury or death for which the payment is made, including the proceeds
recoverable from the assets of the insolvent insurer. With respect to
payments made by reason of the coverage described in subsection (3), the
insurer making such payment shall not be entitled to any right of recovery
against the tortfeasor in excess of the proceeds recovered from the assets
of the insolvent insurer of the tortfeasor.(5) This amendatory Act of 1967 (Laws of Illinois 1967, page 875) shall not be construed to terminate
or reduce any insurance coverage or any right of any party under this
Code in effect before July 1, 1967. Public Act 86-1155 shall not
be construed to terminate or reduce any insurance coverage or any right of
any party under this Code in effect before its effective date.(6) Failure of the motorist from whom the claimant is legally
entitled to recover damages to file the appropriate forms with the
Safety Responsibility Section of the Department of Transportation within
120 days of the accident date shall create a rebuttable presumption that
the motorist was uninsured at the time of the injurious occurrence.(7) An insurance carrier may upon good cause require the
insured to commence a legal action against the owner or operator of an
uninsured motor vehicle before good faith negotiation with the carrier.  If
the action is commenced at the request of the insurance carrier, the
carrier shall pay to the insured, before the action is commenced, all court
costs, jury fees and sheriff's fees arising from the action.The changes made by Public Act 90-451 apply to all policies of
insurance amended, delivered, issued, or renewed on and after January 1, 1998 (the effective
date of Public Act 90-451).(8) The changes made by Public Act 98-927 apply to all policies of
insurance amended, delivered, issued, or renewed on and after January 1, 2015 (the effective
date of Public Act 98-927). (Source: P.A. 102-775, eff. 5-13-22.)(Text of Section from P.A. 102-982)Sec. 143a. Uninsured and hit and run motor vehicle coverage.(1) No policy insuring against
loss resulting from liability imposed by law for bodily injury or death
suffered by any person arising out of the ownership, maintenance or use
of a motor vehicle that is designed for use on public highways and that
is either required to be registered in this State or is principally garaged
in this State shall be renewed, delivered, or issued for delivery
in this State unless coverage is provided therein or
supplemental thereto, in limits for bodily injury or death set forth in
Section 7-203 of the Illinois Vehicle Code for the
protection of persons insured thereunder who are legally entitled to
recover damages from owners or operators of uninsured motor vehicles and
hit-and-run motor vehicles because of bodily injury, sickness or
disease, including death, resulting therefrom. Uninsured motor vehicle
coverage does not apply to bodily injury, sickness, disease, or death resulting
therefrom, of an insured while occupying a motor vehicle owned by, or furnished
or available for the regular use of the insured, a resident spouse or resident
relative, if that motor vehicle is not described in the policy under which a
claim is made or is not a newly acquired or replacement motor vehicle covered
under the terms of the policy.  The limits for any coverage for any vehicle
under the policy may not be aggregated with the limits for any similar
coverage, whether provided by the same insurer or another insurer, applying to
other motor vehicles, for purposes of determining the total limit of insurance
coverage available for bodily injury or death suffered by a person in any one
crash.  No
policy shall be renewed, delivered, or issued for delivery in this
State unless it is provided therein that any dispute
with respect to the coverage and the amount of damages shall be submitted
for arbitration to the
American Arbitration Association and be subject to its rules for the conduct
of arbitration hearings
as to all matters except medical opinions.  As to medical opinions, if the
amount of damages being sought is equal to or less than the amount provided for
in Section 7-203 of the Illinois Vehicle Code, then the current American
Arbitration Association Rules shall apply.  If the amount being sought in an
American Arbitration Association case exceeds that amount as set forth in
Section 7-203 of the Illinois Vehicle Code, then the Rules of Evidence that
apply in the circuit court for placing medical opinions into evidence shall
govern.  Alternatively, disputes with respect to damages and the coverage shall
be
determined in the
following
manner:  Upon the insured requesting arbitration, each party to the
dispute shall select an arbitrator and the 2 arbitrators so named
shall select a third arbitrator.  If such arbitrators are not selected
within 45 days from such request, either party may request that the
arbitration be submitted to the American Arbitration Association.
Any decision made by the arbitrators shall be binding for the amount of
damages not exceeding $75,000 for bodily injury to or
death of any one person, $150,000 for bodily injury to or death of 2 or more
persons in any one motor vehicle crash,
or the corresponding policy limits for bodily injury or death, whichever is
less.
All 3-person arbitration cases proceeding in accordance with any uninsured
motorist
coverage conducted in this State in
which the claimant is only seeking monetary damages up to the limits
set forth in Section 7-203 of the Illinois Vehicle Code
shall be subject to the following rules:(A) If at least 60 days' written notice of the     intention to offer the following documents in evidence is given to every other party, accompanied by a copy of the document, a party may offer in evidence, without foundation or other proof:(1) bills, records, and reports of hospitals,         doctors, dentists, registered nurses, licensed practical nurses, physical therapists, and other healthcare providers;(2) bills for drugs, medical appliances, and         prostheses;(3) property repair bills or estimates, when         identified and itemized setting forth the charges for labor and material used or proposed for use in the repair of the property;(4) a report of the rate of earnings and time         lost from work or lost compensation prepared by an employer;(5) the written opinion of an opinion witness,         the deposition of a witness, and the statement of a witness that the witness would be allowed to express if testifying in person, if the opinion or statement is made by affidavit or by certification as provided in Section 1-109 of the Code of Civil Procedure;(6) any other document not specifically covered         by any of the foregoing provisions that is otherwise admissible under the rules of evidence.Any party receiving a notice under this paragraph (A)     may apply to the arbitrator or panel of arbitrators, as the case may be, for the issuance of a subpoena directed to the author or maker or custodian of the document that is the subject of the notice, requiring the person subpoenaed to produce copies of any additional documents as may be related to the subject matter of the document that is the subject of the notice.  Any such subpoena shall be issued in substantially similar form and served by notice as provided by Illinois Supreme Court Rule 204(a)(4).  Any such subpoena shall be returnable not less than 5 days before the arbitration hearing.(B) Notwithstanding the provisions of Supreme Court     Rule 213(g), a party who proposes to use a written opinion of an expert or opinion witness or the testimony of an expert or opinion witness at the hearing may do so provided a written notice of that intention is given to every other party not less than 60 days prior to the date of hearing, accompanied by a statement containing the identity of the witness, his or her qualifications, the subject matter, the basis of the witness's conclusions, and his or her opinion.(C) Any other party may subpoena the author or maker     of a document admissible under this subsection, at that party's expense, and examine the author or maker as if under cross-examination.  The provisions of Section 2-1101 of the Code of Civil Procedure shall be applicable to arbitration hearings, and it shall be the duty of a party requesting the subpoena to modify the form to show that the appearance is set before an arbitration panel and to give the time and place set for the hearing.(D) The provisions of Section 2-1102 of the Code of     Civil Procedure shall be applicable to arbitration hearings under this subsection.(2) No policy insuring
against loss resulting from liability imposed by law for property damage
arising out of the ownership, maintenance, or use of a motor vehicle shall
be renewed, delivered, or issued for delivery in this State with respect
to any private passenger or recreational motor vehicle that is
designed for use on public highways and that is either required to be
registered in this State or is principally garaged in this State and
is not covered by collision insurance under the provisions of such
policy, unless coverage is made available in the amount of the actual
cash value of the motor vehicle described in the policy or $15,000
whichever is less, subject to a $250 deductible, for the protection of
persons insured thereunder who are legally entitled to recover damages from
owners or operators of uninsured motor vehicles and hit-and-run motor
vehicles because of property damage to the motor vehicle described in the
policy.There shall be no liability imposed under the uninsured motorist
property damage coverage required by this subsection if the owner or
operator of the at-fault uninsured motor vehicle or hit-and-run motor
vehicle cannot be identified.  This subsection shall not apply to any
policy which does not provide primary motor vehicle liability insurance for
liabilities arising from the maintenance, operation, or use of a
specifically insured motor vehicle.Each insurance company providing motor vehicle property damage liability
insurance shall advise applicants of the availability of uninsured motor
vehicle property damage coverage, the premium therefor, and provide a brief
description of the coverage.  That information
need be given only once and shall not be required in any subsequent renewal,
reinstatement or reissuance, substitute, amended, replacement or
supplementary policy.  No written rejection shall be required, and
the absence of a premium payment for uninsured motor vehicle property damage
shall constitute conclusive proof that the applicant or policyholder has
elected not to accept uninsured motorist property damage coverage.An insurance company issuing uninsured motor vehicle
property damage coverage may provide that:(i) Property damage losses recoverable thereunder     shall be limited to damages caused by the actual physical contact of an uninsured motor vehicle with the insured motor vehicle.(ii) There shall be no coverage for loss of use of     the insured motor vehicle and no coverage for loss or damage to personal property located in the insured motor vehicle.(iii) Any claim submitted shall include the name and     address of the owner of the at-fault uninsured motor vehicle, or a registration number and description of the vehicle, or any other available information to establish that there is no applicable motor vehicle property damage liability insurance.Any dispute with respect to the coverage and the amount of
damages shall be submitted for
arbitration to the American Arbitration Association and be subject to its
rules for the conduct of arbitration hearings or for determination in
the following manner:  Upon the insured requesting arbitration, each party
to the dispute shall select an arbitrator and the 2 arbitrators so named
shall select a third arbitrator.  If such arbitrators are not selected
within 45 days from such request, either party may request that the
arbitration be submitted to the American Arbitration Association.
Any arbitration proceeding under this subsection seeking recovery for
property damages shall be
subject to the following rules:(A) If at least 60 days' written notice of the     intention to offer the following documents in evidence is given to every other party, accompanied by a copy of the document, a party may offer in evidence, without foundation or other proof:(1) property repair bills or estimates, when         identified and itemized setting forth the charges for labor and material used or proposed for use in the repair of the property;(2) the written opinion of an opinion witness,         the deposition of a witness, and the statement of a witness that the witness would be allowed to express if testifying in person, if the opinion or statement is made by affidavit or by certification as provided in Section 1-109 of the Code of Civil Procedure;(3) any other document not specifically covered         by any of the foregoing provisions that is otherwise admissible under the rules of evidence.Any party receiving a notice under this paragraph (A)     may apply to the arbitrator or panel of arbitrators, as the case may be, for the issuance of a subpoena directed to the author or maker or custodian of the document that is the subject of the notice, requiring the person subpoenaed to produce copies of any additional documents as may be related to the subject matter of the document that is the subject of the notice.  Any such subpoena shall be issued in substantially similar form and served by notice as provided by Illinois Supreme Court Rule 204(a)(4).  Any such subpoena shall be returnable not less than 5 days before the arbitration hearing.(B) Notwithstanding the provisions of Supreme Court     Rule 213(g), a party who proposes to use a written opinion of an expert or opinion witness or the testimony of an expert or opinion witness at the hearing may do so provided a written notice of that intention is given to every other party not less than 60 days prior to the date of hearing, accompanied by a statement containing the identity of the witness, his or her qualifications, the subject matter, the basis of the witness's conclusions, and his or her opinion.(C) Any other party may subpoena the author or maker     of a document admissible under this subsection, at that party's expense, and examine the author or maker as if under cross-examination.  The provisions of Section 2-1101 of the Code of Civil Procedure shall be applicable to arbitration hearings, and it shall be the duty of a party requesting the subpoena to modify the form to show that the appearance is set before an arbitration panel and to give the time and place set for the hearing.(D) The provisions of Section 2-1102 of the Code of     Civil Procedure shall be applicable to arbitration hearings under this subsection.(3) For the purpose of the coverage, the term "uninsured motor
vehicle" includes, subject to the terms and conditions of the coverage,
a motor vehicle where on, before, or after the date of the crash the
liability insurer thereof is unable to make payment with respect to the
legal liability of its insured within the limits specified in the policy
because of the entry by a court of competent jurisdiction of an order of
rehabilitation or liquidation by reason of insolvency on or after the
 date of the crash. An insurer's extension of coverage, as provided in this
subsection, shall be applicable to all crashes occurring after July
1, 1967 during a policy period in which its insured's uninsured motor
vehicle coverage is in effect. Nothing in this Section may be construed
to prevent any insurer from extending coverage under terms and
conditions more favorable to its insureds than is required by this Section.(4) In the event of payment to any person under the coverage
required by this Section and subject to the terms and conditions of the
coverage, the insurer making the payment shall, to the extent thereof,
be entitled to the proceeds of any settlement or judgment resulting from
the exercise of any rights of recovery of the person against any person
or organization legally responsible for the property damage, bodily
injury or death for which the payment is made, including the proceeds
recoverable from the assets of the insolvent insurer. With respect to
payments made by reason of the coverage described in subsection (3), the
insurer making such payment shall not be entitled to any right of recovery
against the tortfeasor in excess of the proceeds recovered from the assets
of the insolvent insurer of the tortfeasor.(5) This amendatory Act of 1967 (Laws of Illinois 1967, page 875) shall not be construed to terminate
or reduce any insurance coverage or any right of any party under this
Code in effect before July 1, 1967. Public Act 86-1155 shall not
be construed to terminate or reduce any insurance coverage or any right of
any party under this Code in effect before its effective date.(6) Failure of the motorist from whom the claimant is legally
entitled to recover damages to file the appropriate forms with the
Safety Responsibility Section of the Department of Transportation within
120 days of the date of the crash shall create a rebuttable presumption that
the motorist was uninsured at the time of the injurious occurrence.(7) An insurance carrier may upon good cause require the
insured to commence a legal action against the owner or operator of an
uninsured motor vehicle before good faith negotiation with the carrier.  If
the action is commenced at the request of the insurance carrier, the
carrier shall pay to the insured, before the action is commenced, all court
costs, jury fees and sheriff's fees arising from the action.The changes made by Public Act 90-451 apply to all policies of
insurance amended, delivered, issued, or renewed on and after January 1, 1998 (the effective
date of Public Act 90-451).(8) The changes made by Public Act 98-927 apply to all policies of
insurance amended, delivered, issued, or renewed on and after January 1, 2015 (the effective
date of Public Act 98-927). (Source: P.A. 102-982, eff. 7-1-23.) (215 ILCS 5/143a-2) (from Ch. 73, par. 755a-2)(Text of Section before amendment by P.A. 102-982)Sec. 143a-2. (1) Additional uninsured motor vehicle
coverage. No policy insuring against loss resulting from liability imposed
by law for bodily injury or death suffered by any person arising out of the
ownership, maintenance or use of a motor vehicle shall be renewed or
delivered or issued for delivery in this State with respect to any motor
vehicle designed for use on public highways and required to be registered
in this State unless uninsured motorist coverage as required in Section
143a of this Code is included in an amount equal to the insured's bodily
injury liability limits unless specifically rejected by the insured as provided in paragraph (2) of this Section.  Each
insurance company providing the coverage must provide applicants with a
brief description of the coverage and advise them of their right to reject
the coverage in excess of the limits set forth in Section 7-203 of the
Illinois Vehicle Code.  The provisions of this amendatory Act of 1990 apply
to policies of insurance applied for after June 30, 1991.(2) Right of rejection of additional uninsured motorist
coverage. Any named insured or applicant may reject additional uninsured
motorist coverage in excess of the limits set forth in Section 7-203
of the Illinois Vehicle Code by making a written request for limits of uninsured motorist coverage which are less than bodily injury liability limits or a written rejection of limits in excess of those required by law. This election or rejection shall be binding on all persons insured under the policy. In those cases where the insured has elected
to purchase limits of uninsured motorist coverage which are less than
bodily injury liability limits or to reject limits in excess of those
required by law, the insurer need not provide in any renewal,
reinstatement, reissuance, substitute, amended, replacement or
supplementary policy, coverage in excess of that elected by the insured in
connection with a policy previously issued to such insured by the same
insurer unless the insured subsequently makes a written request for
such coverage.(3) The original document indicating the applicant's selection of
uninsured motorist coverage limits shall constitute sufficient evidence of
the applicant's selection of uninsured motorist coverage limits.  For purposes of this
Section any reproduction of the document by means of photograph,
photostat, microfiche, computerized optical imaging process, or other
similar process or means of reproduction shall be deemed the equivalent of
the original document.(4) For the purpose of this Code the term "underinsured motor vehicle"
means a motor vehicle whose ownership, maintenance or use has resulted in
bodily injury or death of the insured, as defined in the policy, and for
which the sum of the limits of liability under all bodily injury liability
insurance policies or under bonds or other security required to be
maintained under Illinois law applicable to the driver or to the person or
organization legally responsible for such vehicle and applicable to the
vehicle, is less than the limits for underinsured coverage provided the
insured as defined in the policy at the time of the accident.  The limits
of liability for an insurer providing underinsured motorist coverage shall
be the limits of such coverage, less those amounts actually recovered under
the applicable bodily injury insurance policies, bonds or other security
maintained on the underinsured motor vehicle.On or after July 1, 1983, no policy insuring against loss resulting
from liability imposed by law for bodily injury or death suffered by any
person arising out of the ownership, maintenance or use of a motor vehicle
shall be renewed or delivered or issued for delivery in this State with respect
to any motor vehicle designed for use on public highways and required to be
registered in this State unless underinsured motorist coverage is included
in such policy in an amount equal to the total amount of uninsured motorist
coverage provided in that policy where such uninsured motorist coverage
exceeds the limits set forth in Section 7-203 of the Illinois Vehicle Code.The changes made to this subsection (4) by this amendatory Act of the 93rd General Assembly apply to policies issued or renewed on or after December 1, 2004.(5) Scope.  Nothing herein shall prohibit an insurer from setting forth
policy terms and conditions which provide that if the insured has coverage
available under this Section under more than one policy or provision of
coverage, any recovery or benefits may be equal to, but may not exceed,
the higher of the applicable limits of the respective coverage, and the
limits of liability under this Section shall not be increased because
of multiple motor vehicles covered under the same policy of insurance.
Insurers providing liability coverage on an excess or umbrella basis are
neither required to provide, nor are they prohibited from offering or
making available coverages conforming to this Section on a supplemental
basis.  Notwithstanding the provisions of this Section, an insurer shall
not be prohibited from solely providing a combination of uninsured and
underinsured motorist coverages where the limits of liability under each
coverage is in the same amount.(6) Subrogation against underinsured motorists.  No insurer shall exercise
any right of subrogation under a policy providing additional uninsured motorist
coverage against an underinsured motorist where the insurer has been provided
with written notice in advance of a settlement between its insured and the
underinsured motorist and the insurer fails to advance a payment to
the insured, in an amount equal to the tentative settlement, within 30 days
following receipt of such notice.(7) A policy which provides underinsured motor vehicle coverage may
include a clause which denies payment until the limits of liability or
portion thereof under
all bodily injury liability insurance policies applicable to the
underinsured motor vehicle and its operators have been partially or fully
exhausted
by payment
of judgment or settlement.  A judgment or settlement of the bodily injury
claim in an amount less than the limits of liability of the bodily injury
coverages applicable to the claim shall not preclude the claimant from making
an underinsured motorist claim against the underinsured motorist coverage.
Any such provision in a policy of insurance
shall be inapplicable if the insured, or the legal representative of the
insured, and the insurer providing underinsured motor vehicle coverage
agree that the insured has suffered bodily injury or death as the result of
the negligent operation, maintenance, or use of an underinsured motor
vehicle and, without arbitration, agree also on the amount of damages that
the insured is legally entitled to collect.  The maximum amount payable
pursuant to such an underinsured motor vehicle insurance settlement
agreement shall not exceed the amount by which the limits of the
underinsured motorist coverage exceed the limits of the bodily injury
liability insurance of the owner or operator of the underinsured motor
vehicle.  Any such agreement shall be final as to the amount due and shall
be binding upon both the insured and the underinsured motorist insurer
regardless of the amount of any judgment, or any settlement reached between
any insured and the person or persons responsible for the accident.  No
such settlement agreement shall be concluded unless:  (i) the insured has
complied with all other applicable policy terms and conditions; and (ii)
before the conclusion of the settlement agreement, the insured has filed
suit against the underinsured motor vehicle owner or operator and has not
abandoned the suit, or settled the suit without preserving the rights of
the insurer providing underinsured motor vehicle coverage in the manner
described in paragraph (6) of this Section.
					(Source: P.A. 93-762, eff. 7-16-04.)(Text of Section after amendment by P.A. 102-982)Sec. 143a-2. (1) Additional uninsured motor vehicle
coverage. No policy insuring against loss resulting from liability imposed
by law for bodily injury or death suffered by any person arising out of the
ownership, maintenance or use of a motor vehicle shall be renewed or
delivered or issued for delivery in this State with respect to any motor
vehicle designed for use on public highways and required to be registered
in this State unless uninsured motorist coverage as required in Section
143a of this Code is included in an amount equal to the insured's bodily
injury liability limits unless specifically rejected by the insured as provided in paragraph (2) of this Section.  Each
insurance company providing the coverage must provide applicants with a
brief description of the coverage and advise them of their right to reject
the coverage in excess of the limits set forth in Section 7-203 of the
Illinois Vehicle Code.  The provisions of this amendatory Act of 1990 apply
to policies of insurance applied for after June 30, 1991.(2) Right of rejection of additional uninsured motorist
coverage. Any named insured or applicant may reject additional uninsured
motorist coverage in excess of the limits set forth in Section 7-203
of the Illinois Vehicle Code by making a written request for limits of uninsured motorist coverage which are less than bodily injury liability limits or a written rejection of limits in excess of those required by law. This election or rejection shall be binding on all persons insured under the policy. In those cases where the insured has elected
to purchase limits of uninsured motorist coverage which are less than
bodily injury liability limits or to reject limits in excess of those
required by law, the insurer need not provide in any renewal,
reinstatement, reissuance, substitute, amended, replacement or
supplementary policy, coverage in excess of that elected by the insured in
connection with a policy previously issued to such insured by the same
insurer unless the insured subsequently makes a written request for
such coverage.(3) The original document indicating the applicant's selection of
uninsured motorist coverage limits shall constitute sufficient evidence of
the applicant's selection of uninsured motorist coverage limits.  For purposes of this
Section any reproduction of the document by means of photograph,
photostat, microfiche, computerized optical imaging process, or other
similar process or means of reproduction shall be deemed the equivalent of
the original document.(4) For the purpose of this Code the term "underinsured motor vehicle"
means a motor vehicle whose ownership, maintenance or use has resulted in
bodily injury or death of the insured, as defined in the policy, and for
which the sum of the limits of liability under all bodily injury liability
insurance policies or under bonds or other security required to be
maintained under Illinois law applicable to the driver or to the person or
organization legally responsible for such vehicle and applicable to the
vehicle, is less than the limits for underinsured coverage provided the
insured as defined in the policy at the time of the crash.  The limits
of liability for an insurer providing underinsured motorist coverage shall
be the limits of such coverage, less those amounts actually recovered under
the applicable bodily injury insurance policies, bonds or other security
maintained on the underinsured motor vehicle.On or after July 1, 1983, no policy insuring against loss resulting
from liability imposed by law for bodily injury or death suffered by any
person arising out of the ownership, maintenance or use of a motor vehicle
shall be renewed or delivered or issued for delivery in this State with respect
to any motor vehicle designed for use on public highways and required to be
registered in this State unless underinsured motorist coverage is included
in such policy in an amount equal to the total amount of uninsured motorist
coverage provided in that policy where such uninsured motorist coverage
exceeds the limits set forth in Section 7-203 of the Illinois Vehicle Code.The changes made to this subsection (4) by this amendatory Act of the 93rd General Assembly apply to policies issued or renewed on or after December 1, 2004.(5) Scope.  Nothing herein shall prohibit an insurer from setting forth
policy terms and conditions which provide that if the insured has coverage
available under this Section under more than one policy or provision of
coverage, any recovery or benefits may be equal to, but may not exceed,
the higher of the applicable limits of the respective coverage, and the
limits of liability under this Section shall not be increased because
of multiple motor vehicles covered under the same policy of insurance.
Insurers providing liability coverage on an excess or umbrella basis are
neither required to provide, nor are they prohibited from offering or
making available coverages conforming to this Section on a supplemental
basis.  Notwithstanding the provisions of this Section, an insurer shall
not be prohibited from solely providing a combination of uninsured and
underinsured motorist coverages where the limits of liability under each
coverage is in the same amount.(6) Subrogation against underinsured motorists.  No insurer shall exercise
any right of subrogation under a policy providing additional uninsured motorist
coverage against an underinsured motorist where the insurer has been provided
with written notice in advance of a settlement between its insured and the
underinsured motorist and the insurer fails to advance a payment to
the insured, in an amount equal to the tentative settlement, within 30 days
following receipt of such notice.(7) A policy which provides underinsured motor vehicle coverage may
include a clause which denies payment until the limits of liability or
portion thereof under
all bodily injury liability insurance policies applicable to the
underinsured motor vehicle and its operators have been partially or fully
exhausted
by payment
of judgment or settlement.  A judgment or settlement of the bodily injury
claim in an amount less than the limits of liability of the bodily injury
coverages applicable to the claim shall not preclude the claimant from making
an underinsured motorist claim against the underinsured motorist coverage.
Any such provision in a policy of insurance
shall be inapplicable if the insured, or the legal representative of the
insured, and the insurer providing underinsured motor vehicle coverage
agree that the insured has suffered bodily injury or death as the result of
the negligent operation, maintenance, or use of an underinsured motor
vehicle and, without arbitration, agree also on the amount of damages that
the insured is legally entitled to collect.  The maximum amount payable
pursuant to such an underinsured motor vehicle insurance settlement
agreement shall not exceed the amount by which the limits of the
underinsured motorist coverage exceed the limits of the bodily injury
liability insurance of the owner or operator of the underinsured motor
vehicle.  Any such agreement shall be final as to the amount due and shall
be binding upon both the insured and the underinsured motorist insurer
regardless of the amount of any judgment, or any settlement reached between
any insured and the person or persons responsible for the crash.  No
such settlement agreement shall be concluded unless:  (i) the insured has
complied with all other applicable policy terms and conditions; and (ii)
before the conclusion of the settlement agreement, the insured has filed
suit against the underinsured motor vehicle owner or operator and has not
abandoned the suit, or settled the suit without preserving the rights of
the insurer providing underinsured motor vehicle coverage in the manner
described in paragraph (6) of this Section.
(Source: P.A. 102-982, eff. 7-1-23.) (215 ILCS 5/143b) (from Ch. 73, par. 755b)Sec. 143b. 
		
		Any insurance carrier whose payment to its insured is reduced by a
deductible amount under a policy providing collision coverage is
subrogated to its insured's entire collision loss claim including the
deductible amount unless the deductible amount has been otherwise
recovered by the insured, but if the deductible amount has been
otherwise recovered by the insured it shall not be included in the
subrogated loss claim and shall be excluded from the amount of loss
pleaded. If the deductible amount is included
in the subrogated loss
claim the insurance carrier shall pay the full pro rata deductible share to its
insured out of the net
recovery on the subrogated claim. Administrative
expenses of the insurance carrier
cannot be deducted from the gross recovery, and only incurred expenses of
the carrier, such as attorney's fees, collection fees and adjuster's fees,
may be deducted therefrom to determine the net recovery.  When the insurance
carrier is recovering directly from a third party a claim by means of installments,
the insured shall receive his full
pro rata deductible share as soon as such amount is collected and before
any part of such recovery is applied to any other use. 
		(Source: P.A. 83-588.) (215 ILCS 5/143c) (from Ch. 73, par. 755c)Sec. 143c. 
		
		No insurance policy authorized under Class 1, 2 or 3 of Section
4 of this Code shall be delivered in this State unless the policyholder
or certificate holder is provided written notice of:(1) the address of the complaint department of the     insurance company; and(2) the address of the Public Service Division of the     Department of Insurance or its successor.The Director may, by rule, exempt certain types of insurance policies from
the provisions of this Section whenever the application of this Section
in such cases would be unwarranted or unduly burdensome in view of any benefit
to the public. 
		(Source: P.A. 80-823.) (215 ILCS 5/143d) (from Ch. 73, par. 755d)Sec. 143d. 
		Customer affairs and information department.(a) Every company licensed to issue policies of insurance as defined in
subsections (a) and (b) of Section 143.13 shall establish a customer
affairs and information department to respond to policyholder inquiries
and complaints.  The department shall be staffed by an employee or
employees generally knowledgeable in the affairs and operations of the
company.  The department shall be located in either the home, regional, or
branch office of the company and must, during regular business hours,
either maintain a toll free telephone number or permit policyholders to
call a designated telephone number at the company's expense.  The telephone
numbers shall be made available to policyholders in accordance with
Section 143(c).(b) The customer affairs and information department shall provide
information and services that may reasonably be requested by policyholders
who are residents of this State and must respond promptly to complaints
made by policyholder.  Companies must provide a written response to written
inquiries and complaints within 21 days of receipt.(c) Records of the customer affairs and information department shall be
maintained in compliance with Department of Insurance regulations.
		(Source: P.A. 86-1407.) (215 ILCS 5/144) (from Ch. 73, par. 756)Sec. 144. 
		
		Limitation
of risk.(1) No company authorized to transact any of the kind of business
enumerated in Classes 2 and 3 of Section 4 in this State may expose itself
to any loss on any one risk or hazard to an amount exceeding 10% of its
admitted assets in excess of its liabilities excluding, in the case of a
stock company, its capital stock liability. No portion of any such risk or
hazard which has been reinsured in a domestic or an approved foreign or
alien company, in accordance with this Code, shall be included in
determining the limitation of risk prescribed herein.(2) Any company transacting the kind of business enumerated in clause
(g) of Class 2 of Section 4 may expose itself to a risk or hazard in excess
of the amount prescribed in subsection (1) if it is protected in excess of
that amount by the following:(a) The co-suretyship of such a company similarly     authorized; or(b) By deposit with it in pledge or conveyance to it     in trust for its protection of property; or(c) By conveyance or mortgage for its protection; or(d) In case a suretyship obligation was made on     behalf or on account of a fiduciary holding property in a trust capacity, by deposit or other disposition of a portion of the property so held in trust that no future sale, mortgage, pledge or other disposition can be made thereof without the consent of such company except by a judgment or order of a court of competent jurisdiction.(3) A company designated in subsection (2) may also execute
transportation or warehouse bonds for United States Internal Revenue taxes
to an amount equal to 50% of its capital and surplus. When the penalty of
the suretyship obligation exceeds the amount of a judgment described
therein as appealed from and thereby secured, or exceeds the amount of the
subject matter in controversy or of the estate in the custody of the
fiduciary for the performance of whose duties it is conditioned, the bond
may be executed if the actual amount of the judgment or the subject matter
in controversy or estate not subject to supervision or control of the
surety is not in excess of such limitation. When the penalty of the
suretyship obligation executed for the performance of a contract exceeds
the contract price, the latter shall be taken as the basis for estimating
the limit of risk within the meaning of this Section.(4) Whenever the ratio of the annual premium volume in proportion to the
policyholder surplus of any company transacting the kinds of business
authorized in Class 2 and Class 3 of Section 4 when reviewed in conjunction
with the kinds and nature of risks insured, the financial condition of the
company and its ownership including but not limited to the liquidity of
assets, relationship of surplus to liabilities and adequacy of outstanding
loss reserves, creates a condition such that the further assumption of
risks might be hazardous to policyholders, creditors or the general public,
then the Director may order such company to take one or more of the
following steps:(a) to reduce the loss exposure by reinsurance;(b) to reduce the volume of new business being     accepted;(c) to suspend the writing of new business for a     period not to exceed 3 months;(d) to increase and maintain the company's surplus by     a contribution to surplus which will raise the surplus for such a period of time and by such an amount as the Director may deem necessary and essential; or(e) to reduce general or acquisition expenses by     specified methods.(f) (Blank).(5) The provisions of this Section do not apply to domestic, foreign, and
alien Lloyds.The company may, within 10 days after receipt of an Order of the
Director under this Section, request that the Director hold a hearing to
determine whether the Order of the Director should be modified in any way.
A request for a hearing by a company under this Section stays any Order of
the Director entered under this Section until such time as the Director has
entered an Order pursuant to the hearing.
		(Source: P.A. 89-97, eff. 7-7-95; 90-794, eff. 8-14-98.) (215 ILCS 5/144.1) (from Ch. 73, par. 756.1)Sec. 144.1. 
		
		Insurance Sales by Insolvent or Impaired Companies
Prohibited.) (1) Unless allowed by the Director, no foreign or alien
company officer, director, trustee,
agent, or employee of such company may renew, issue or deliver or cause
to be renewed, issued or delivered, any policy, contract or certificate
of insurance in this State, nor may any domestic company, officer,
director, trustee, agent or employee of such company renew, issue or
deliver or cause to be renewed, issued or delivered, any policy,
contract or certificate of insurance, for which a premium is charged or
collected, when the company writing such insurance is insolvent or
impaired and the fact of such insolvency or impairment is known to the
company officer, director, trustee, agent or employee of such company. A
company is impaired when its assets are less than its capital, minimum
required surplus and all liabilities.However, the existence of an impairment does not prevent the issuance
or renewal of a policy when an insured or owner exercises an option
granted to him under an existing policy to obtain new, renewed or
converted insurance coverage.(2) Any company officer, director, trustee, agent, or employee of
such company violating this Section shall be guilty of a Class A
misdemeanor.
		(Source: P.A. 82-498.) (215 ILCS 5/144.2) (from Ch. 73, par. 756.2)Sec. 144.2. 
		Notification of insurance business.(a) Upon notice by the Director, a company having direct premium income must file with the Director supplemental
information regarding its
insurance business.  The Director shall by rule
establish standards
to determine the companies to be given notice.(b) The notice prescribed by this Section may require the company to provide
information concerning, but not limited to, the following:(1) adequacy of rates;(2) marketing methodology and acquisition expenses;(3) underwriting standards;(4) recordkeeping and statistical systems;(5) claim systems and claim reserving systems;(6) reinsurance; and(7) the general financial condition of the company.
		(Source: P.A. 90-381, eff. 8-14-97.) (215 ILCS 5/145) (from Ch. 73, par. 757)Sec. 145. 
		Deposits.When any company is required by the laws of this State or of any state
or country, or by other competent authority, to make a deposit with an
insurance supervising official or other financial officer and the company
desires to make such deposit in this State the Director shall accept such
deposit, if made in securities authorized for investment by Article VIII
of this Code. So long as the company continues solvent and complies with
the laws of this State it may collect the income on such securities. The
company may substitute therefor other like securities as prescribed by this
Code for deposit. If the value of securities deposited by any company shall
decline below the amount so required, the company shall make a further
deposit.
		(Source: Laws 1959, p. 1431.) (215 ILCS 5/146) (from Ch. 73, par. 758)Sec. 146. 
		
		Withdrawal
of deposits.(1) The Director shall at any time upon request release to a company any
portion of its deposit which is not required as a compliance with the
conditions of this Code.(2) When all of the business of a company has been reinsured in
accordance with this Code and the assets thereof by contract assigned to
another company, the Director may deliver to the reinsured company or to
its assigns under the contract of reinsurance after one year from the
effective date of such reinsurance contract, all the securities deposited
by the reinsured company upon compliance with the following conditions:(a) The reinsuring company under the reinsurance contract has assumed
all liabilities of every kind due and to become due which the deposit of
the reinsured company was made to secure or adequate provision has been
made therefor;(b) The said reinsuring company shall have and maintain a deposit in
this State or with the department or official charged with the duty of
supervising the business of insurance in the state where it is incorporated
or, if an alien company, where it is entered, in securities authorized by
this Code as lawful investments of the company and in an amount and value
not less than the deposit formerly required of the reinsured company by
this Code; and(c) The deposit of the said reinsuring company shall be such that it
will subsist for the security of all the obligations of the reinsuring
company.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/147) (from Ch. 73, par. 759)Sec. 147. 
		
		Deceptive
statements as to assets prohibited.No company doing business in this State or agent thereof, shall state or
represent by advertisement in any newspaper, periodical, magazine or over
the radio, or by any sign, circular, card, policy of insurance or
certificate of renewal thereof or otherwise that any funds or assets are
owned by such company which are not actually owned by it and available for
the payment of losses and claims and held for the protection of its
policyholders and creditors.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/147.1) (from Ch. 73, par. 759.1)Sec. 147.1. Sale of insurance company shares.(1) No shares of the capital stock of a domestic stock company shall be sold or
offered for sale to the public in this State by an issuer, underwriter,
dealer or controlling person in respect of such shares without first
procuring from the Director a permit so to do.(2) Unless the context otherwise indicates the following terms as used
in this Section shall have the following meanings:(a) The word "issuer" shall mean every company which     shall have issued or proposes to issue any such shares of capital stock.(b) The word "underwriter" shall mean any person who     has purchased such shares of capital stock from an issuer or controlling person with a view to, or sells such shares of capital stock for an issuer or a controlling person in connection with, the distribution thereof, or participates or has a participation in the direct or indirect underwriting of such distribution; but such term shall not include a person whose interest is limited to a commission or discount from an underwriter or dealer not in excess of the usual and customary distributor's or seller's commission or discount or not in excess of any applicable statutory maximum commission or discount. An underwriter shall be deemed to be no longer an underwriter of an issue of shares of capital stock after he has completely disposed of his allotment of such shares or, if he did not purchase the shares, after he has ceased to sell such shares for the issuer or controlling person.(c) The word "dealer" shall mean any person other     than an issuer, a controlling person, a bank organized under the banking laws of this State or of the United States, a trust company organized under the laws of this State, an insurance company or a salesman, who engages in this State, either for all or part of his time, directly or indirectly, as agent, broker or principal, in the business of offering, selling, buying and selling, or otherwise dealing or trading in shares of capital stock of insurance companies.(d) The words "controlling person" shall mean any     person selling such shares of capital stock, or group of persons acting in concert in the sale of such shares, owning beneficially (and in the absence of knowledge, or reasonable grounds of belief, to the contrary, record ownership shall for the purposes hereof be presumed to be beneficial ownership) either:(i) 25% or more of the outstanding voting shares         of the issuer of such shares where no other person owns or controls a greater percentage of such shares, or(ii) such number of outstanding number of shares         of the issuer as would enable such person, or group of persons, to elect a majority of the Board of Directors of such issuer.(e) The word "salesman" shall mean an individual,     other than an issuer, an underwriter, a dealer or a controlling person, employed or appointed or authorized by an issuer, an underwriter, a dealer or a controlling person to sell such shares in this State. The partners or officers of an issuer, an underwriter, a dealer or a controlling person shall not be deemed to be a salesman within the meaning of this definition.(3) The provisions of this Section shall not apply to any of the
following transactions:(a) The sale in good faith, whether through a dealer     or otherwise, of such shares by a vendor who is not an issuer, underwriter, dealer or controlling person in respect of such shares, and who, being the bona fide owner of such shares deposes thereof for his own account; provided, that such sale is not made directly or indirectly for the benefit of the issuer or of an underwriter or controlling person.(b) The sale, issuance or exchange by an issuer of     its shares to or with its own shareholders, if no commission or other remuneration is paid or given directly or indirectly for or on account of the procuring or soliciting of such sale or exchange (other than a fee paid to underwriters based on their undertaking to purchase any shares not purchased by shareholders in connection with such sale or exchange), or the issuance by an issuer of its shares to a holder of convertible securities pursuant to a conversion provision granted at the time of issuance of such convertible securities, provided that no commission or other remuneration is paid or given directly or indirectly thereon on account of the procuring or soliciting of such conversion and no consideration from the holder in addition to the surrender or cancellation of the convertible security is required to effect the conversion.(c) The sale of such shares to any corporation, bank,     savings institution, trust company, insurance company, building and loan association, dealer, pension fund or pension trust, employees profit sharing trust or to any association engaged as a substantial part of its business or operations in purchasing or holding securities, or to any trust in respect of which a bank or trust company is trustee or co-trustee.(d) The sale of such shares by an executor,     administrator, guardian, receiver or trustee in insolvency or bankruptcy or at any judicial sale or at a public sale by auction held at an advertised time and place or the sale of such shares in good faith and not for the purpose of avoiding the provisions of this Section by a pledgee of such shares pledged for a bona fide debt.(e) Such other transaction as may be declared by     ruling of the Director to be exempt from the provisions of this Section.(4) Prior to the issuance of any permit under this Section, there shall
be delivered to the Director two copies of the following:(a) the prospectus which is to be used in connection     with the sale of such shares;(b) the underwriting and selling agreements, if any;(c) the subscription agreement;(d) the depository agreement under which the     subscription proceeds are to be held;(e) any and all other documents, agreements,     contracts and other papers of whatever nature which are to be used in connection with or relative to the sale of such shares, which may be required by the Director.(5) The Director shall within a reasonable time examine the documents
submitted to him and unless he finds from said documents that the sale of
said shares is inequitable or would work or tend to work a fraud or deceit
upon the purchasers thereof, he shall issue a permit authorizing the sale
of said shares.(6) The Director shall have the power to prescribe such rules and
regulations relating to the sale, issuance, and offering of said shares as
will effectuate the purpose of this Section to the end that no inequity,
fraud or deceit will be perpetrated upon the purchasers thereof.(7) If the Director finds that any of the provisions of this Section or
of the rules and regulations adopted pursuant hereto have been violated or
that the sale, issuance or offering of any such shares is inequitable or
works or tends to work a fraud or deceit upon the purchasers thereof he may
refuse to issue a permit to sell, issue or offer such shares or may, after
notice and hearing, revoke such permit. The action of the Director in
refusing, after due application therefor in form prescribed by the
Director, or revoking, any such permit shall be subject to judicial review
in the manner prescribed by the insurance laws of this State.(8) Any person who violates any of the provisions of this Section shall
be guilty of a business offense and, upon conviction thereof shall be fined
not less than $1,000 nor more than the greater of either $5,000 or twice
the whole amount, received upon the sale of shares in violation of this
Section and may in addition, if a natural person, be convicted of a Class A
misdemeanor.
(Source: P.A. 99-642, eff. 7-28-16.) (215 ILCS 5/147.2) (from Ch. 73, par. 759.2)Sec. 147.2. 
		
		Civil remedies.)  (A) Every sale of a security made in
violation of Sections 20, 32 or 147.1 of this Code or the rules and
regulations adopted pursuant thereto and every sale of any security for
which a prospectus is required to be filed with the Department which is
made without a copy of the prospectus as filed having been given to such
prospective purchaser prior to payment of all or part of the purchase
price shall be voidable at the election of the purchaser.  Any person
who offers or sells a security by means of a prospectus or oral
communication which contains an untrue statement of a material fact or
omits to state a material fact necessary in order to make the
statements, in the light of the circumstances under which they were
made, not misleading, (the purchaser not knowing of such untruth or
omission), and who shall not sustain the burden of proof that he did not
know, and in the exercise of reasonable care could not have known, of
such untruth or omission, shall be liable to the person purchasing such
security from him, who may bring a civil action in any circuit court.
Upon tender to the seller or into court of the securities sold or, where
the securities were not received, of any contract made in respect of
such sale, the issuer, controlling person, underwriter, dealer or other
person by or on behalf of whom said sale was made, and each underwriter,
dealer or salesman who shall have participated or aided in any way in
making such sale, and in case such issuer, controlling person,
underwriter or dealer is a corporation or unincorporated association or
organization, each of its officers and directors (or persons performing
similar functions) who shall have participated or aided in making such
sale, shall be jointly and severally liable to such purchaser for (1)
the full amount paid, together with interest from the date of payment
for the securities sold at the legal rate of interest less any income or
other amounts received by such purchaser on such securities or for any
damages if he no longer owns the security and (2) the reasonable fees of
such purchaser's attorney incurred in any action brought for recovery of
the amounts recoverable hereunder.(B) Notice of any election provided for in subsection (A) of this
Section shall be given by the purchaser, within 6 months after the
purchaser shall have knowledge that the sale of the securities to him is
voidable, to each person from whom recovery will be sought, by
registered letter addressed to the person to be notified at his last
known address with proper postage affixed, or by personal service.(C) No purchaser shall have any right or remedy under this Section
who shall fail, within 15 days from the date of receipt thereof, to
accept an offer to repurchase the securities purchased by him for a
price equal to the full amount paid therefor plus interest thereon and
less any income thereon as set forth in subsection (A) of this Section
or for damages if he no longer owns the security.  Every offer of
repurchase provided for in this subsection shall be in writing, shall be
delivered to the purchaser or sent by registered mail addressed to the
purchaser at his last known address, and shall offer to repurchase the
securities sold for a price equal to the full amount paid therefor plus
interest thereon and less any income thereon as set forth in subsection
(A) of this Section.  Such offer shall continue in force for 15 days
from the date on which it was received by the purchaser, shall advise
the purchaser of his rights and the period of time limited for
acceptance thereof, and shall contain such further information, if any,
as the Director may prescribe.  Any agreement not to accept or refusing
or waiving any such offer made during or prior to said 15 days shall be
void.(D) No action shall be brought for relief under this Section or upon
or because of any of the matters for which relief is granted by this
Section after 3 years from the date of sale.(E) The term purchaser as used in this Section shall include the
personal representative or representatives of the purchaser.(F) The term security does not include any insurance or endowment
policy or annuity contract under which an insurance company promises to
pay money either in a lump sum or periodically for life or for some
other specified period.(G) The rights and remedies provided by this Act are in addition to
any other rights or remedies that may exist.This Section shall not apply to insurance stock sales made prior to
the effective date of this Act.
		(Source: P.A. 81-1509.) (215 ILCS 5/147.3)Sec. 147.3. 
		Issuance of capital notes by domestic companies.(a) A domestic company may at any time or from time to time issue capital
notes pursuant to this Section in an aggregate principal amount not exceeding
(1) 25% of its total adjusted capital (including the aggregate
principal amount of outstanding capital notes and outstanding surplus notes or
guaranty fund certificates and guaranty capital shares) as of the end of the
immediately preceding calendar year less (2) the aggregate principal amount of
outstanding capital notes and outstanding surplus notes or guaranty fund
certificates and guaranty capital
shares; provided, however, that capital notes shall not be issued for an
aggregate principal amount that would cause the aggregate principal amount for
all of the insurer's capital notes scheduled to mature in any calendar year to
exceed 5%, or the aggregate principal amount of all of the insurer's
capital notes scheduled to mature in any 3 consecutive calendar years to
exceed 12%, of the insurer's total adjusted capital as of the end of
the calendar year immediately preceding the issuance of the capital notes.
The aggregate amount of capital notes and surplus notes or guaranty fund
certificates and guaranty capital shares is at all times limited to
33 1/3% of total adjusted capital.  Any aggregate amount in excess of
this
limit shall reduce the amount of capital notes included in the insurer's total
adjusted capital.(b) No insurer shall issue capital notes pursuant to this Section
unless the form and terms thereof shall have been approved by the Director.
The term of any capital note shall be no less than 5 years.(c) An insurer with a capital note outstanding shall file a report with the
Director at the same time that the insurer files its Annual Statement and at
such other times as the Director determines necessary.  The Director may by
rule establish times for and the content of these reports.(d) The insurer shall not pay or redeem the principal amount of any capital
notes, make any sinking fund payment, or pay any interest on the notes, and
the principal, payment, and interest shall not become due or payable if, based
on the preceding year-end annual statement filed with the Director:(1)(A) The insurer's total adjusted capital is less     than the insurer's company action level RBC or (B) the insurer's total adjusted capital is less than the product of 1.25 and its company action level RBC and there is a negative trend, as determined in accordance with the Article IIA of this Code; or(2) the aggregate of all payments or redemptions made     during a calendar year would, if made immediately prior to the preceding year-end, have caused (A) the insurer's total adjusted capital to be less than the insurer's company action level RBC or (B) the insurer's total adjusted capital at such time to be less than the product of 1.25 and its company action level RBC and there is a negative trend, as determined in accordance with Article IIA of this Code.Notwithstanding items (1) and (2), upon request by the insurer, the Director
may
approve, in whole or in part, any payment or redemption on the capital
notes if and at such time or times as in his or her judgment the financial
condition
of the insurer warrants.  The amount of the redemptions or payments of
principal amounts of any capital notes that cannot be made as the result of
the provisions of this subsection may accumulate at the rate of interest of the
capital notes.(e) Capital notes issued pursuant to this Section:(1) may provide (A) for interest payments at fixed or     adjustable rates, sinking fund payments, and payments and redemptions of principal, in each case in accordance with the terms of the capital note and without the prior approval of the Director except to the extent that such approval is required pursuant to this subsection or subsection (d) of this Section, (B) that the capital notes automatically become due and payable in the event the insurer becomes subject to an order of rehabilitation, liquidation, or conservation granted pursuant to a proceeding under Article XIII of this Code, and (C) for such other features as the Director determines are appropriate for capital notes issued according to this Section; and(2) shall provide that if at the end of any calendar     year the total amount of the insurer's total adjusted capital (including the aggregate principal amount of outstanding capital notes and outstanding surplus notes or guaranty fund certificates and guaranty capital shares) is less than 3 times the aggregate principal amount of capital notes outstanding and surplus notes or guaranty fund certificates and guaranty capital shares, the Director may notify the insurer that the financial condition of the insurer does not warrant the payment or redemption or sinking fund payment, in whole or in part, on the capital notes.  Such action by the Director shall, without any action on the part of the insurer or any other person, automatically defer payment or redemption until such time as the Director finds that the financial condition warrants payment or redemption.  The amount of redemptions or payments of principal amounts of any capital notes so deferred may accumulate at the rate of interest of the capital notes.(f) The outstanding principal of a capital note issued pursuant to this
Section shall be considered part of the insurer's total adjusted capital, but
shall not be considered part of the insurer's surplus; provided, however, (1)
that, in the case of any capital note maturing 15 years or less from the
year in which the capital note is issued, one-fifth of the aggregate principal
amount of the capital note shall be subtracted from total adjusted capital in
each year starting with the fifth year immediately preceding the calendar year
in which the capital note is scheduled to mature; and (2) that, in the case of
any capital note maturing more than 15 years from the year in which
the capital note is issued, one-tenth of the aggregate principal amount of the
capital note shall be subtracted from total adjusted capital in each year
starting with the tenth year immediately preceding the calendar year in which
the capital note is scheduled to mature, and further provided that, in no
event shall the amount included in total adjusted capital for any capital note
exceed the principal amount, at issue, of the outstanding capital note less the
aggregate of all sinking fund payments made on the capital note. The insurer
shall disclose the aggregate principal amount of capital notes
then outstanding as a liability on its financial statements filed with the
Director pursuant to this Code.(g) As used in this Section, the terms "total adjusted capital", "company
action level RBC", and "authorized control level RBC" shall have the
meanings given those terms in Article IIA of this Code.
		(Source: P.A. 90-831, eff. 8-14-97.) (215 ILCS 5/148) (from Ch. 73, par. 760)Sec. 148. 
		
		Contents
of advertisements as to financial condition.(1) No company authorized to do business in this State shall cause to be
inserted in any newspaper, periodical, magazine or other publication, any
advertisement purporting to set forth in figures its financial standing
unless the figures exhibited in such advertisement correspond to the
figures contained in the next preceding verified statement made to the
Director and unless there is set forth either(a) the total amount of the capital actually paid in, the total value of
the admitted assets owned, the total amount of the liabilities, including
therein the reserves required by law and the amount of the net surplus of
assets over liabilities actually available for the payment of losses and
claims and held for the protection of policyholders; or(b) the capital paid in or the surplus, separately or combined.(2) No alien company authorized to do business in this State shall cause
to be inserted in any newspaper, periodical or magazine any advertisement
purporting to set forth in figures its financial standing, unless the
figures exhibited in such advertisement correspond to the figures contained
in the next preceding verified statement made to the Director by the United
States Branch of such company and unless there is set forth the total
amount of the capital and assets held by its United States Branch, the
total amount of its liabilities, including therein the reserves required by
law and the total amount of the net surplus of assets over all liabilities
actually available for the payment of losses and claims and held for the
protection of its policyholders in the United States; provided that any
life company organized under the laws of the Dominion of Canada or any
province thereof may use in its advertising a statement of its total
business and condition in all countries if such statement is accompanied by
a statement showing the amount of its total assets and total liabilities in
the United States, corresponding to the figures contained in the next
preceding statement of such company filed with the Director.(3) Any company violating any provision of this section, and any officer
or director thereof knowingly participating in or abetting such violation,
shall be guilty of a business offense and shall be required to pay a
penalty of not less than five hundred dollars nor more than one thousand
dollars, to be recovered in the name of the People of the State of Illinois
by the State's Attorney of the county in which the violation occurs and the
penalty so recovered shall be paid into the county treasury.
		(Source: P.A. 77-2699.) (215 ILCS 5/149) (from Ch. 73, par. 761)Sec. 149. 
		Misrepresentation and defamation prohibited.(1) No company doing business in this State, and no officer, director,
agent, clerk or employee thereof, broker, or any other person, shall make,
issue or circulate or cause or knowingly permit to be made, issued or
circulated any estimate, illustration, circular, or verbal or written
statement of any sort misrepresenting the terms of any policy issued or to
be issued by it or any other company or the benefits or advantages promised
thereby or any misleading estimate of the dividends or share of the surplus
to be received thereon, or shall by the use of any name or title of any
policy or class of policies misrepresent the nature thereof.(2) No such company or officer, director, agent, clerk or employee
thereof, or broker shall make any misleading representation or comparison
of companies or policies, to any person insured in any company for the
purpose of inducing or tending to induce a policyholder in any company to
lapse, forfeit, change or surrender his insurance, whether on a temporary
or permanent plan.(3) No such company, officer, director, agent, clerk or employee
thereof, broker or other person shall make, issue or circulate or cause or
knowingly permit to be made, issued or circulated any pamphlet, circular,
article, literature or verbal or written statement of any kind which
contains any false or malicious statement calculated to injure any company
doing business in this State in its reputation or business.(4) No such company, or officer, director, agent, clerk or employee
thereof, no agent, broker, solicitor, or company service representative,
and no other person, firm, corporation, or association of any kind or
character, shall make, issue, circulate, use, or utter, or cause or
knowingly permit to be made, issued, circulated, used, or uttered, any
policy or certificate of insurance, or endorsement or rider thereto, or
matter incorporated therein by reference, or application blanks, or any
stationery, pamphlet, circular, article, literature, advertisement or
advertising of any kind or character, visual, or aural, including radio
advertising and television advertising, or any other verbal or written
statement or utterance (a) which tends to create the impression or from
which it may be implied or inferred, directly or indirectly, that the
company, its financial condition or status, or the payment of its claims,
or the merits, desirability, or advisability of its policy forms or kinds
or plans of insurance are approved, endorsed, or guaranteed by the State of
Illinois or United States Government or the Director or the Department or
are secured by Government bonds or are secured by a deposit with the
Director, or (b) which uses or refers to any deposit with the Director or
any certificate of deposit issued by the Director or any facsimile,
reprint, photograph, photostat, or other reproduction of any such
certificate of deposit.(5) Any company, officer, director, agent, clerk or employee thereof,
broker, or other person who violates any of the provisions of this Section,
or knowingly participates in or abets such violation, is guilty
of a
business offense and shall be required to pay a penalty of not less than
$200 nor more than $10,000, to be recovered in
the name of the People of the State of Illinois either by the Attorney
General or by the State's Attorney of
the county in which the violation occurs. The penalty so recovered
shall
be paid into the county treasury if recovered by the State's Attorney or
into the State treasury if recovered by the Attorney General.(6) No company shall be held guilty of having violated any of the
provisions of this Section by reason of the act of any agent, solicitor or
employee, not an officer, director or department head thereof, unless an
officer, director or department head of such company shall have knowingly
permitted such act or shall have had prior knowledge thereof.(7) Any person, association, organization, partnership, business trust
or corporation not authorized to transact an insurance business in this
State which disseminates in or causes to be disseminated in this State any
advertising, invitations to inquire, questionnaires or requests for
information designed to result in a solicitation for the purchase of
insurance by residents of this State is also subject to the sanctions of
this Section.  The phrase "designed to result in a solicitation for the
purchase of insurance" includes but is not limited to:(a) the use of any form or document which provides     either generalized or specific information or recommendations regardless of the insurance needs of the recipient or the availability of any insurance policy or plan; or(b) any offer to provide such information or     recommendation upon subsequent contacts or solicitation either by the entity generating the material or some other person; or(c) the use of a coupon, reply card or request to     write for further information; or(d) the use of an application for insurance or an     offer to provide insurance coverage for any purpose; or(e) the use of any material which, regardless of the     form and content used or the information imparted, is intended to result, in the generation of leads for further solicitations or the preparation of a mailing list which can be sold to others for such purpose.		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/150.1) (from Ch. 73, par. 762.1)Sec. 150.1. 
		
		No company doing business in this State shall enter into a
group contract for an annuity or pension plan to cover employees of the
State, its agencies, instrumentalities, political subdivisions or municipal
corporations prior to the time such employees are granted membership in any
established retirement system or pension fund, by whatever name called,
created by and operating pursuant to any of the provisions of the "Illinois
Pension Code" if such employees are eligible for coverage under such
statute; provided that this provision shall not apply to any contract
entered into by a company for such annuity or pension plan for any such
group of employees prior to the effective date of this amendatory Act.
		(Source: Laws 1967, p. 3002.) (215 ILCS 5/151) (from Ch. 73, par. 763)Sec. 151. 
		Payment or acceptance of rebates prohibited. 
		(1) No company doing business in this State and no insurance agent or
broker shall offer, promise, allow, give, set off or pay, directly or
indirectly, any rebate of or part of the premium payable on the policy, or
on any policy or agent's commission thereon or earnings, profits, dividends
or other benefits founded, arising, accruing or to accrue thereon or
therefrom, or any special advantage in date of policy or age of issue, or
any paid employment or contract for services of any kind or any other
valuable consideration or inducement to or for insurance on any risk in
this State, now or hereafter to be written, or for or upon any renewal of
any such insurance, which is not specified in the policy contract of
insurance, or offer, promise, give, option, sell, purchase any stocks,
bonds, securities or property or any dividends or profits accruing or to
accrue thereon, or other thing of value whatsoever as inducement to
insurance or in connection therewith, or any renewal thereof which is not
specified in the policy. Nothing in this Section shall prevent a company
from paying a bonus to policyholders or otherwise abating their premiums in
whole or in part out of surplus accumulated from nonparticipating insurance
nor prevent a company which transacts industrial life insurance on a weekly
payment plan from returning to policyholders who have made premium payments
for a period of at least one year directly to the company at its home or
district offices the percentage of premium which the company would
otherwise have paid for the weekly collection of such premium nor shall
this Section be construed to prevent the taking of a bona fide obligation,
with interest at six per centum per annum, in payment of any premium.Nothing in this Section shall prevent a company from offering a child
passenger restraint system or a discount from the purchase price of a child
passenger restraint system to policyholders, when the purpose of such
restraint system is the safety of a child and compliance with the "Child
Passenger Protection Act", approved June 27, 1983, as amended.(2) No insured person or party or applicant for insurance shall directly
or indirectly receive or accept, or agree to receive or accept any rebate
of premium or of any part thereof or all or any part of any agent's or
broker's commission thereon, or any favor or advantage, or share in any
benefit to accrue under any policy of insurance, or any valuable
consideration or inducement, other than such as is specified in the policy.
		(Source: P.A. 83-1320.) (215 ILCS 5/152) (from Ch. 73, par. 764)Sec. 152. 
		
		Rebates-
Penalties.(1) Any company or any person violating any of the provisions of section
151 shall be guilty of a Class B misdemeanor.(2) No agent or broker for any company doing business in this State
violating any of the provisions of section 151 shall be entitled to receive
any commission for the sale of any policy on which any rebate, as defined
in such section, shall have been given or offered, and if any such company
has paid any commission to any agent or broker for the sale of any policy
on which such rebate has been given or offered, the full amount thereof may
be recovered by such company from such agent or broker.(3) No company shall be held guilty of having violated the provisions of
section 151 by reason of an act of any agent, general agent,
representative, broker or employee not an officer, director or department
head thereof, unless an officer, director or department head of such
company shall have knowingly permitted such act, or shall have had prior
knowledge thereof.
		(Source: P.A. 77-2699.) (215 ILCS 5/153) (from Ch. 73, par. 765)Sec. 153. 
		
		Rebates-
Immunity from prosecution.No person shall be excused from testifying or from producing any books,
papers, contracts, agreements or documents at the trial or hearing of any
person or company charged with violating any of the provisions of section
151 on the ground that such testimony or evidence may tend to incriminate
himself but no person shall be prosecuted for any act concerning which he
shall be compelled so to testify or produce evidence, documentary or
otherwise, and no testimony so given or evidence produced shall be received
against him upon any criminal investigation or proceeding except for
perjury committed in so testifying.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/154) (from Ch. 73, par. 766)Sec. 154. 
		Misrepresentations and false warranties.No misrepresentation or false warranty made by the insured or in his
behalf in the negotiation for a policy of insurance, or breach of a
condition of such policy shall defeat or avoid the policy or prevent its
attaching unless such misrepresentation, false warranty or condition shall
have been stated in the policy or endorsement or rider attached thereto, or
in the written application therefor. No such misrepresentation
or false warranty shall defeat or avoid the policy unless it shall have
been made with actual intent to deceive or materially affects either the
acceptance of the risk or the hazard assumed by the company. With respect to
a policy of insurance as defined in subsection (a), (b), or (c) of
Section 143.13,
except life, accident and health, fidelity and surety, and ocean marine
policies,
a policy or
policy renewal shall not be rescinded after the policy has been in effect for
one year or one policy term, whichever is less. This Section
 shall  not apply to policies
of marine or transportation insurance.
		(Source: P.A. 89-413, eff. 6-1-96.) (215 ILCS 5/154.5) (from Ch. 73, par. 766.5)Sec. 154.5. 
		
		Improper Claims Practices)  It is an improper claims practice
for any domestic, foreign or alien company transacting business in this
State to commit any of the acts contained in Section 154.6 if:(a) it is committed knowingly in violation of this Act or any rules promulgated
hereunder; or(b) It has been committed with such frequency to indicate a persistent
tendency to engage in that type of conduct.
		(Source: P.A. 80-926.) (215 ILCS 5/154.6) (from Ch. 73, par. 766.6)Sec. 154.6. Acts constituting improper claims practice. Any of the
following acts by a company, if committed without just cause and in
violation of Section 154.5, constitutes an improper claims practice:(a) Knowingly misrepresenting to claimants and insureds relevant
facts or policy provisions relating to coverages at issue;(b) Failing to acknowledge with reasonable promptness pertinent
communications with respect to claims arising under its policies;(c) Failing to adopt and implement reasonable standards for the
prompt investigations and settlement of claims arising under its policies;(d) Not attempting in good faith to effectuate prompt, fair and
equitable settlement of claims submitted in which liability has become
reasonably clear;(e) Compelling policyholders to institute suits to recover amounts
due under its policies by offering substantially less than the amounts
ultimately recovered in suits brought by them;(f) Engaging in activity which results in a disproportionate number
of meritorious complaints against the insurer received by the Insurance
Department;(g) Engaging in activity which results in a disproportionate number
of lawsuits to be filed against the insurer or its insureds by
claimants;(h) Refusing to pay claims without conducting a reasonable
investigation based on all available information;(i) Failing to affirm or deny coverage of claims within a reasonable
time after proof of loss statements have been completed;(j) Attempting to settle a claim for less than the amount to which a
reasonable person would believe the claimant was entitled, by reference
to written or printed advertising material accompanying or made part of
an application or establishing unreasonable caps or limits on paint
or materials
when estimating vehicle repairs;(k) Attempting to settle claims on the basis of an application which
was altered without notice to, or knowledge or consent of, the insured;(l) Making a claims payment to a policyholder or beneficiary
omitting the coverage under which each payment is being made;(m) Delaying the investigation or payment of claims by requiring an
insured, a claimant, or the physicians of either to submit a preliminary
claim report and then requiring subsequent submission of formal proof of
loss forms, resulting in the duplication of verification;(n) Failing in the case of the denial of a claim or the offer of a
compromise settlement to promptly provide a reasonable and accurate
explanation of the basis in the insurance policy or applicable law for
such denial or compromise settlement;(o) Failing to provide forms necessary to present claims within 15
working days of a request with such explanations as are necessary to use
them effectively;(p) Failing to adopt and implement reasonable standards to verify that
a repairer designated by the insurance company to provide an estimate,
perform repairs, or engage in any other service in connection with an
insured loss on a vehicle is duly licensed under Section 5-301 of the
Illinois Vehicle Code;(q) Failing to provide as a persistent tendency a notification on any
written estimate prepared by an insurance company in connection with an
insured loss that Illinois law requires that vehicle repairers must be
licensed in accordance with Section 5-301 of the Illinois Vehicle Code;(r) Failing to pay the replacement vehicle use or occupation tax, title, and transfer fees required by Section 154.9 of this Code;(s) Engaging in any other acts which are in substance equivalent to
any of the foregoing.
(Source: P.A. 102-69, eff. 7-1-22.) (215 ILCS 5/154.7) (from Ch. 73, par. 766.7)Sec. 154.7. 
		
		Statement of Charges.)  (1) Whenever the Director finds
that any company doing business in this State is engaging in any improper
claims practice as defined in Section 154.5, and that a proceeding in respect
thereto would be in the public interest, he shall issue and serve upon such
company a statement of the charges in that respect and a notice of hearing
thereon pursuant to Article XXIV, which notice shall set a hearing date
not less than 10 days from the date of the notice.(2) The failure of a company to appear at a hearing after receipt of a
statement of the charges and notice of hearing is considered a waiver of
notice and hearing, a stipulation that the charges against the company are
true, immediately suspends such company's Certificate of Authority for 30
days, and subjects the company to any other applicable provisions of
this Code.  The Director must notify the company of any suspension or action
taken under this Section.
		(Source: P.A. 80-926.) (215 ILCS 5/154.8) (from Ch. 73, par. 766.8)Sec. 154.8. Cease and desist order; suspension of certificate; civil penalty; judicial review.(1) If, after a hearing pursuant to Section 154.7, the Director
finds that company has engaged in an improper claims practice, he shall
order such company to cease and desist from such practices and, in the
exercise of reasonable discretion, may suspend
the company's certificate of authority for a period not to exceed 6
months or impose a civil penalty of up to $250,000, or both.
Pursuant to Section 401, the Director shall adopt reasonable rules
 establishing standards for the implementation of this Section.(2) Any order of the Director pursuant to this Section is subject to
judicial review under Section 407 of this Code.
(Source: P.A. 101-81, eff. 7-12-19.) (215 ILCS 5/154.9)Sec. 154.9. Payment of applicable use or occupation tax, title, and transfer fees on a private passenger total loss claim.(a)   When an insurer determines that an insured's or third-party claimant's private passenger automobile is a total loss that is covered under the terms of a personal automobile policy issued or renewed on or after July 1, 2022 by the insurer, the insurer shall pay any use or occupation tax imposed by the State or a unit of local government and title and transfer fees as provided for in this Section. As used in this Section, "private passenger vehicle" means a private passenger motor vehicle, station wagon, or any other 4-wheeled motor vehicle with a load capacity of 1,500 pounds or less that is not used in the occupation, profession, or business of the insured or third-party claimant, not used as a public or livery conveyance for passengers, nor rented to others.(b)   If the insurer elects to replace the insured vehicle, the insurer shall pay any use or occupation tax imposed by the State or a unit of local government tax and title and transfer fees on the replacement vehicle.(c)   If a cash settlement is provided for the total loss private passenger vehicle, the insurer shall reimburse the insured or third-party claimant for any use or occupation tax imposed by the State or a unit of local government and title and transfer fees if the replacement vehicle is purchased or leased within 30 days after the receipt of the cash settlement by the insured or third-party claimant and the insured or third-party claimant substantiates such purchase and the payment of such taxes and fees by submission of appropriate documentation to the insurer within 33 days after the receipt of the settlement or receipt of the required reimbursement form from the insurer, whichever is later.(1)   With respect to leased vehicles, use or     occupation taxes and title and transfer fees shall be deemed to be incurred by the insured or the third-party claimant at the time the lease is entered into, but only if such use or occupation taxes and title and transfer fees are included in the cost of the lease or are paid directly by the insured or third-party claimant.(2)   The insurer is not required to reimburse the     insured or third-party claimant for any use or occupation taxes and title or transfer fees in excess of the amount payable based on the value of the total loss vehicle at the time of the loss or for taxes and title or transfer fees not actually paid by the insured or third-party claimant.(3)   In lieu of this reimbursement procedure, the     insurer may directly pay the required amount of any use or occupation taxes and title and transfer fees to the claimant at the time of settlement.(4)   If an insurer requires a particular form be     used to apply for reimbursement of any use or occupation taxes and title or transfer fees, the form must be delivered to the insured or third-party claimant at or before the time of settlement.(d)  The Department may adopt rules establishing uniform standards for implementation of this Section, including, but not limited to, prescribing the method of determining the market value of the insured's or third-party claimant's vehicle. 
(Source: P.A. 102-69, eff. 7-1-22.) (215 ILCS 5/155) (from Ch. 73, par. 767)Sec. 155. 
		Attorney fees.(1) In any action by or against a company wherein
there is in issue the liability of a company on a policy or policies of
insurance or the amount of the loss payable thereunder, or for an unreasonable
delay in settling a claim, and it appears to the court that such action
or delay is vexatious and unreasonable, the court may allow as part of the
taxable costs in the action reasonable attorney fees, other costs, plus
an amount not to exceed any one of the following amounts:(a) 60% of the amount which the court or jury finds     such party is entitled to recover against the company, exclusive of all costs;(b) $60,000;(c) the excess of the amount which the court or jury     finds such party is entitled to recover, exclusive of costs, over the amount, if any, which the company offered to pay in settlement of the claim prior to the action.(2) Where there are several policies insuring the same insured
against the same loss whether issued by the same or by different
companies, the court may fix the amount of the allowance so that the
total attorney fees on account of one loss  shall  not  be increased by
reason of the fact that the insured brings separate suits on such policies.
		(Source: P.A. 93-485, eff. 1-1-04.) (215 ILCS 5/155.01) (from Ch. 73, par. 767.1)Sec. 155.01. 
		Interlocking directorates - when prohibited.Any person may be a director in two or more companies which are
competitors, provided no person at the same time shall be a director in
two or more companies where the effect may be to substantially lessen
competition generally or tend to create a monopoly. Whenever the Director
has reason to believe that there is a violation of this Section, the
Director shall proceed with respect to any person or company deemed by him
to be in violation of this Section, in accordance with the provisions of
Article XXIV and shall have power to issue an order directing such person
or company to cease and desist from such violation within such time, or
extension thereof, as may be specified by the Director. Any such order of
the Director shall be subject to review in accordance with the provisions
of Article XXIV.
		(Source: Laws 1947, p. 1143.) (215 ILCS 5/155.03) (from Ch. 73, par. 767.3)Sec. 155.03. 
		Defense  of ultra vires.No company doing business in this State shall assert by way of defense
or otherwise, in any suit, action or claim arising directly or indirectly
out of the issuance or delivery of any policy or certificate of insurance,
that such company was without capacity or power to issue such policy or
certificate or that such policy or certificate is void, invalid or
unenforceable because of such lack of capacity, if the coverage under the
policy or certificate was afforded with the express knowledge or the
consent or acquiescence of the company.
		(Source: Laws 1959, p. 1970.) (215 ILCS 5/155.04) (from Ch. 73, par. 767.4)Sec. 155.04. 
		Standards for companies and officials.(1) The Director shall not approve any declaration of organization or
Articles of Incorporation or issue a Certificate of Authority to any
company until he has found that (a) the company has submitted a sound plan
of operation, and (b) the general character and experience of the
incorporators, directors and proposed officers is such as to assure
reasonable promise of a successful operation, based on the fact that such
persons are of known good character and that there is no good reason to
believe that they are affiliated, directly or indirectly, through
ownership, control, management, reinsurance transactions or other insurance
of business relations with any person or persons known to have been
involved in the improper manipulation of assets, accounts or reinsurance.
The Director may require, in substantially the same form, the information
required under Section 131.5 of this Code.(2) All companies licensed to do business in this state must notify the
Director within 30 days of the appointment or election of any new officers
or directors.(3)  Except in cases where the Director deems that any officer or
director meets the standards set forth in this section, he shall, after
notice and hearing afforded to the officer or director, and after a finding
that the officer or director is incompetent or untrustworthy or of known
bad character, order the removal of the person. If a company does not
comply with a removal order within 30 days, the Director shall suspend that
company's Certificate of Authority until such time as the order is complied
with.(4) It shall be unlawful for a company to borrow money or
receive a
loan or advance from anyone convicted of a felony, anyone who is
untrustworthy or of known bad character or anyone convicted of a criminal
offense involving
the conversion or misappropriation of fiduciary funds or insurance
accounts, theft, deceit, fraud, misrepresentation or corruption.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/155.05) (from Ch. 73, par. 767.5)Sec. 155.05. 
		Payment  of insurance in burial benefits prohibited.No company, officer, director, agent or broker and no other person,
firm, association or corporation shall advertise, solicit, negotiate,
issue, effect or deliver in this State any policy or contract of insurance
or any series or combination of related or separate contracts, assignments,
endorsements or agreements for the purpose of making, or as part of a plan
which has the effect of making the proceeds of the policy, in event of
death, payable other than in lawful money of the United States or for the
purpose or as part of a plan which has the effect of depriving the family
or representative of the deceased of the advantages of open competition and
unrestricted choice in the procuring and purchasing in the open market of
supplies and services in connection with the burial of the deceased.
		(Source: Laws 1947, p. 1152.) (215 ILCS 5/155.06) (from Ch. 73, par. 767.6)Sec. 155.06. 
		Emergency by-laws may be adopted.The board of directors of any domestic insurance company may adopt
emergency by-laws to be approved by the Director, which will become
operative during an emergency resulting from an attack upon the United
States by nuclear, chemical, bacteriological or biological weapons. The
emergency by-laws may include provisions relating to a line of succession
of the officers, the manner in which vacancies on the board of directors
shall be filled, how and when the emergency board of directors may transact
business, alternate locations for the principal and regional offices,
emergency maintenance of books and records, and any other measures
reasonably related to the interim management of company affairs. If
emergency by-laws are adopted, copies shall be sent to the shareholders, or
similar body in other than stock companies, who may repeal or modify them
at the annual meeting or at any special meeting called for that purpose.
		(Source: Laws 1965, p. 418.) (215 ILCS 5/155.07) (from Ch. 73, par. 767.7)Sec. 155.07. 
		Change  of location of offices.Where an emergency exists, as defined in Section 155.06, the board of
directors of a domestic insurance company may change the location of the
company's principal and regional offices, but must give written notice to
the Director within 10 days after such change stating the address of the
new and former locations.
		(Source: Laws 1965, p. 418.) (215 ILCS 5/155.08) (from Ch. 73, par. 767.8)Sec. 155.08. 
		Statutory provisions operative during emergency.In the event that any domestic company has not adopted emergency
by-laws, the following provisions shall become operative during an
emergency as defined in Section 155.06:(1) The board of directors acting during such period may take any and
every action reasonably necessary to enable the company to meet the
exigencies of the emergency and to continue the business.(2) A quorum of the emergency board of directors shall consist of a
majority of the available surviving directors. If less than three directors
are able to convene, company officers may temporarily substitute as acting
directors until formal elections can be conducted or the regular directors
become available to resume their duties.(3) The line of succession of the officers for the purpose of filling
temporary vacancies of company offices and maintaining a quorum of three
acting directors on the board in time of emergency shall be president,
secretary, and treasurer followed by the vice-presidents ranked according
to their seniority in the company.
		(Source: Laws 1965, p. 418.) (215 ILCS 5/155.10) (from Ch. 73, par. 767.10)Sec. 155.10. 
		(Repealed). 
		(Source: P.A. 86-1154; 86-1156. Repealed by P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/155.14) (from Ch. 73, par. 767.14)Sec. 155.14. 
		(Repealed). 
		(Source: P.A. 77-305.  Repealed by P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/155.15) (from Ch. 73, par. 767.15)Sec. 155.15. 
		(Repealed). 
		(Source: P.A. 77-305.  Repealed by P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/155.16) (from Ch. 73, par. 767.16)Sec. 155.16. 
		(Repealed). 
		(Source: P.A. 77-305.  Repealed by P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/155.17) (from Ch. 73, par. 767.17)Sec. 155.17. 
		
		
		Every domestic or foreign company authorized to write insurance for
motor vehicle bodily injury shall not base the rates for such insurance
upon divisions or districts within any municipality which has a population
of 2,000,000 or more.
		(Source: P.A. 77-1882.) (215 ILCS 5/155.18) (from Ch. 73, par. 767.18)(Text of Section WITH the changes made by P.A. 94-677, which has been held
unconstitutional)Sec. 155.18. (a) This Section shall apply to insurance on risks based
upon negligence by a physician, hospital or other health care provider,
referred to herein as medical liability insurance.  This Section shall not
apply to contracts of reinsurance, nor to any farm, county, district or
township mutual insurance company transacting business under an Act entitled
"An Act relating to local mutual district, county and township insurance
companies", approved March 13, 1936, as now or hereafter amended, nor to
any such company operating under a special charter.(b) The following standards shall apply to the making and use of rates
pertaining to all classes of medical liability insurance:(1) Rates shall not be excessive or inadequate nor     shall they be unfairly discriminatory.(2) Consideration shall be given, to the extent     applicable, to past and prospective loss experience within and outside this State, to a reasonable margin for underwriting profit and contingencies, to past and prospective expenses both countrywide and those especially applicable to this State, and to all other factors, including judgment factors, deemed relevant within and outside this State.Consideration may also be given in the making and use     of rates to dividends, savings or unabsorbed premium deposits allowed or returned by companies to their policyholders, members or subscribers.(3) The systems of expense provisions included in the     rates for use by any company or group of companies may differ from those of other companies or groups of companies to reflect the operating methods of any such company or group with respect to any kind of insurance, or with respect to any subdivision or combination thereof.(4) Risks may be grouped by classifications for the     establishment of rates and minimum premiums.  Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both.  Such standards may measure any difference among risks that have a probable effect upon losses or expenses.  Such classifications or modifications of classifications of risks may be established based upon size, expense, management, individual experience, location or dispersion of hazard, or any other reasonable considerations and shall apply to all risks under the same or substantially the same circumstances or conditions. The rate for an established classification should be related generally to the anticipated loss and expense factors of the class.(c) (1) Every company writing medical liability insurance shall file with
the Secretary of Financial and Professional Regulation the rates and rating schedules it uses for medical
liability insurance. A rate shall go into effect upon filing, except as otherwise provided in this Section.(2)  If (i) 1% of a company's insureds within a specialty or 25 of the company's insureds (whichever is greater) request a public hearing, (ii) the Secretary at his or her discretion decides to convene a public hearing, or (iii)  the percentage increase in a company's rate is greater than 6%, then the Secretary shall convene a public hearing in accordance with this paragraph (2). The Secretary shall notify the public of any application by an insurer for a rate increase to which this paragraph (2) applies. A public hearing under this paragraph (2) must be concluded within 90 days after the request, decision, or increase that gave rise to the hearing.  The Secretary may, by order, adjust a rate or take any other appropriate action at the conclusion of the hearing.(3) A rate filing shall occur upon a company's commencement of medical liability insurance business in this State
						
and thereafter as often as the rates
are changed or amended.(4) For the purposes of this Section, any change in premium to the company's
insureds as a result of a change in the company's base rates or a change
in its increased limits factors shall constitute a change in rates and shall
require a filing with the Secretary.(5) It shall be certified in such filing by an officer of the company
and a qualified actuary that the company's rates
are based on sound actuarial
principles and are not inconsistent with the company's experience.
The Secretary may request any additional statistical data and other pertinent information necessary to determine the manner the company used to set the filed rates and the reasonableness of those rates. This data and information shall be made available, on a company-by-company basis, to the general public.(d) If after
a public hearing the Secretary finds:(1) that any rate, rating plan or rating system     violates the provisions of this Section applicable to it, he shall issue an order to the company which has been the subject of the hearing specifying in what respects such violation exists and, in that order, may adjust the rate;(2) that the violation of any of the provisions of     this Section by any company which has been the subject of the hearing was wilful or that any company has repeatedly violated any provision of this Section, he may take either or both of the following actions:(A) Suspend or revoke, in whole or in part, the         certificate of authority of such company with respect to the class of insurance which has been the subject of the hearing.(B) Impose a penalty of up to $1,000 against the         company for each violation.  Each day during which a violation occurs constitutes a separate violation.The burden is on the company to justify the rate or proposed rate at the public hearing.(e) Every company writing medical liability insurance in this State shall offer to each of its medical liability insureds the option to make premium payments in quarterly installments as prescribed by and filed with the Secretary. This offer shall be included in the  initial offer or in the first policy renewal occurring after the effective date of this amendatory Act of the 94th General Assembly, but no earlier than January 1, 2006.(f) Every company writing medical liability insurance is encouraged, but not required, to offer the opportunity for participation in a plan offering deductibles to its medical liability insureds. Any plan to offer deductibles shall be filed with the Department.(g) Every company writing medical liability insurance is encouraged, but not required,  to offer their medical liability insureds a plan
providing premium discounts for participation in risk
management activities. Any
such plan shall be reported to the Department.(h) A company writing medical liability insurance in Illinois must give 180 days' notice before the company discontinues the writing of medical liability insurance in Illinois.
					(Source: P.A. 94-677, eff. 8-25-05.)(Text of Section WITHOUT the changes made by P.A. 94-677, which has been held
unconstitutional)Sec. 155.18. (a) This Section shall apply to insurance on risks based
upon negligence by a physician, hospital or other health care provider,
referred to herein as medical liability insurance.  This Section shall not
apply to contracts of reinsurance, nor to any farm, county, district or
township mutual insurance company transacting business under an Act entitled
"An Act relating to local mutual district, county and township insurance
companies", approved March 13, 1936, as now or hereafter amended, nor to
any such company operating under a special charter.(b) The following standards shall apply to the making and use of rates
pertaining to all classes of medical liability insurance:(1) Rates shall not be excessive or inadequate, as     herein defined, nor shall they be unfairly discriminatory.  No rate shall be held to be excessive  unless such rate is unreasonably high for the insurance provided, and a reasonable degree of competition does not exist in the area with respect to the classification to which such rate is applicable.No rate shall be held inadequate unless it is     unreasonably low for the insurance provided and continued use of it would endanger solvency of the company.(2) Consideration shall be given, to the extent     applicable, to past and prospective loss experience within and outside this State, to a reasonable margin for underwriting profit and contingencies, to past and prospective expenses both countrywide and those especially applicable to this State, and to all other factors, including judgment factors, deemed relevant within and outside this State.Consideration may also be given in the making and use     of rates to dividends, savings or unabsorbed premium deposits allowed or returned by companies to their policyholders, members or subscribers.(3) The systems of expense provisions included in the     rates for use by any company or group of companies may differ from those of other companies or groups of companies to reflect the operating methods of any such company or group with respect to any kind of insurance, or with respect to any subdivision or combination thereof.(4) Risks may be grouped by classifications for the     establishment of rates and minimum premiums.  Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both.  Such standards may measure any difference among risks that have a probable effect upon losses or expenses.  Such classifications or modifications of classifications of risks may be established based upon size, expense, management, individual experience, location or dispersion of hazard, or any other reasonable considerations and shall apply to all risks under the same or substantially the same circumstances or conditions. The rate for an established classification should be related generally to the anticipated loss and expense factors of the class.(c) Every company writing medical liability insurance shall file with
the 
						Director of Insurance the rates and rating schedules it uses for medical
liability insurance.(1)  This filing shall occur  at least annually and     as often as the rates are changed or amended.(2) For the purposes of this Section any change in     premium to the company's insureds as a result of a change in the company's base rates or a change in its increased limits factors shall constitute a change in rates and shall require a filing with the  Director.(3) It shall be certified in such filing by an officer of the company
and a qualified actuary that the company's rates
are based on sound actuarial
principles and are not inconsistent with the company's experience.(d) If after
a hearing the 
						Director finds:(1) that any rate, rating plan or rating system     violates the provisions of this Section applicable to it, he  may issue an order to the company which has been the subject of the hearing specifying in what respects such violation exists and stating when, within a reasonable period of time, the further use of such rate or rating system by such company in contracts of insurance made thereafter shall be prohibited;(2) that the violation of any of the provisions of     this Section applicable to it by any company which has been the subject of hearing was wilful, he may suspend or revoke, in whole or in part, the certificate of authority of such company with respect to the class of insurance which has been the subject of the hearing.					(Source: P.A. 79-1434.) (215 ILCS 5/155.18a)(This  Section was added by P.A. 94-677, which has been held unconstitutional)Sec. 155.18a. Professional Liability Insurance Resource Center. The Secretary of Financial and Professional Regulation shall establish a Professional Liability Insurance Resource Center on the Department's Internet website containing the name, telephone number, and base rates of each licensed company providing medical liability insurance and the name, address, and telephone number of each producer who sells medical liability insurance and the name of each licensed company for which the producer sells medical liability insurance. Each company and producer shall submit the information to the Department on or before September 30 of each year in order to be listed on the website. Hyperlinks to company websites shall be included, if available. The publication of the information on the Department's website shall commence on January 1, 2006. The Department shall update the information on the  Professional Liability Insurance Resource Center at least annually.
(Source: P.A. 94-677, eff. 8-25-05.) (215 ILCS 5/155.19) (from Ch. 73, par. 767.19)(Text of Section WITH the changes made by P.A. 94-677, which has been held
unconstitutional)Sec. 155.19. All claims filed after December 31, 1976 with any insurer
and all suits filed after December 31, 1976 in any court in this State,
alleging liability on the part of any physician, hospital or other health
care provider for medically related injuries, shall be reported to the Secretary of Financial and Professional Regulation in such form and under such terms and conditions as may be
prescribed by the Secretary.  In addition, and notwithstanding any other provision of law to the contrary, any insurer, stop loss insurer, captive insurer, risk retention group,  county risk retention trust, religious or charitable risk pooling trust, surplus line insurer, or other entity authorized or permitted by law to provide medical liability insurance in this State shall report to the Secretary,
in such form and under such terms and conditions as may be
prescribed by the Secretary, all claims filed
after December 31, 2005 and all suits filed
after December 31, 2005 in any court in this State alleging liability on the part of any physician, hospital, or health
care provider for medically related injuries. Each clerk of the circuit court shall provide to the Secretary  such information as the Secretary may deem necessary to verify the accuracy and completeness of reports made to the Secretary under this Section. The Secretary shall maintain complete and accurate
records of all claims and suits including their nature, amount, disposition
(categorized by verdict, settlement, dismissal, or otherwise and including disposition of any post-trial motions and types of damages awarded, if any, including but not limited to economic damages and non-economic damages) and other information as he may deem useful or desirable in observing and
reporting on health care provider liability trends in this State.  Records received by the Secretary under this Section shall be available to the general public; however, the records made available to the general public shall not include the names or addresses of the parties to any claims or suits. The Secretary
						
shall release to appropriate disciplinary and licensing agencies any such
data or information which may assist such agencies in
improving the quality of health care or which may be useful to such agencies
for the purpose of professional discipline.With due regard for appropriate maintenance of the confidentiality thereof,
the Secretary
						
						shall
						
						release, on an annual basis, to the Governor, the General
Assembly and the general public statistical reports based on such data and information.If the Secretary finds that any entity required to report information in its possession under this Section has violated any provision of this Section by filing late, incomplete, or inaccurate reports, the Secretary may fine the entity up to $1,000 for each offense. Each day during which a violation occurs constitutes a separate offense.The Secretary may promulgate such rules and regulations as may be necessary
to carry out the provisions of this Section.
					(Source: P.A. 94-677, eff. 8-25-05.)(Text of Section WITHOUT the changes made by P.A. 94-677, which has been held
unconstitutional)Sec. 155.19. All claims filed after December 31, 1976 with any insurer
and all suits filed after December 31, 1976 in any court in this State,
alleging liability on the part of any physician, hospital or other health
care provider for medically related injuries, shall be reported to the 
						Director
of Insurance in such form and under such terms and conditions as may be
prescribed by the 
						Director.   The 
						Director shall maintain complete and accurate
records of all such claims and suits including their nature, amount, disposition
and other information as he may deem useful or desirable in observing and
reporting on health care provider liability trends in this State.  The Director
shall release to appropriate disciplinary and licensing agencies any such
data or information which may assist such agencies in
improving the quality of health care or which may be useful to such agencies
for the purpose of professional discipline.With due regard for appropriate maintenance of the confidentiality thereof,
the 
						Director
						
						may
						release
						from time to time to the Governor, the General
Assembly and the general public statistical reports based on such data and information.The 
						Director may promulgate such rules and regulations as may be necessary
to carry out the provisions of this Section.
					(Source: P.A. 79-1434.) (215 ILCS 5/155.20) (from Ch. 73, par. 767.20)Sec. 155.20. 
		
		All final arbitration decisions rendered in relation to disputes
or controversies arising out of injuries allegedly caused by reason of hospital
or health care provider malpractice shall be recognized by any insurance
company doing business in the State of Illinois and all findings of facts
relating to liability and awards of damages in relation thereto which are
a part of the final arbitration decision shall be binding on such insurance companies.
		(Source: P.A. 79-1435.) (215 ILCS 5/155.21) (from Ch. 73, par. 767.21)Sec. 155.21. A company writing medical liability insurance shall not refuse
to offer insurance to a physician, hospital or other health care provider
on the grounds that the physician, hospital or health care provider has
entered or intends to enter an arbitration agreement pursuant to the Health Care
						
Arbitration Act.As used in this Section, medical liability insurance means insurance on
risks based upon negligence by a physician, hospital or other health care provider.
					(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 5/155.22) (from Ch. 73, par. 767.22)Sec. 155.22. 
		
		No company authorized to transact in this State the kinds
of business described in Classes 2 and 3 of Section 4, and no officer, director,
agent, clerk, employee or broker of such company shall upon proper application
refuse to provide insurance solely on the basis of
the specific geographic location
of the risk sought to be insured unless
such refusal is for a business purpose which is not a mere pretext for
unfair discrimination.
		(Source: P.A. 84-1431.) (215 ILCS 5/155.22a)Sec. 155.22a. 
		Coverage for subjects of abuse.(a) No company authorized to
transact life, health,
disability income, or property and casualty insurance in this State may:(1) Deny, refuse to issue, refuse to renew, refuse to     reissue, cancel, or otherwise terminate an insurance policy or restrict coverage on an individual because that individual is or has been the subject of abuse or because that individual seeks or has sought: (i) medical or psychological treatment for abuse; or (ii) protection or shelter from abuse;(2) Charge a different rate for the same coverage for     an insurance policy because an individual insured under such policy has a history of or is a subject of abuse;(3) Deny a claim by an insured as a result of his or     her status as being or having been a subject of abuse, except as otherwise permitted or required by the laws of this State; or(4) Ask an insured or an applicant for insurance     whether that individual is or has been a subject of abuse or whether that individual seeks or has sought: (i) medical or psychological treatment specifically for abuse; or (ii) protection or shelter from abuse.(b) No company authorized to transact life, health, disability
income,
or property and casualty
insurance in this State may fail to maintain strict confidentiality of
information, as defined in the Insurance Information and Privacy Protection
Article of this Code, relating to an applicant's or insured's abuse status or
to a medical or psychological condition that the company knows is
abuse-related.  Disclosure of such abuse-related information shall be subject
to the disclosure limitations and conditions contained in Section 1014 of this
Code.(c) Nothing in this Section shall be construed to prohibit a company
specified in subsection (a) from (i) refusing to insure, refusing to
continue to insure, limiting the amount, extent, or kind of coverage available
to an individual, or charging a different rate for the same coverage on the
basis of that individual's physical or mental condition regardless of the
underlying cause of such condition; (ii) declining to issue a life
insurance policy
insuring an individual who is or has been the subject of abuse if the
 perpetrator of the
abuse is the applicant or would be the owner of the insurance policy; or (iii)
inquiring about a physical or mental condition, even if that condition was
caused by or is related in any manner to
abuse.(d) As used in this Section, "abuse" means the occurrence of one or more of
the following acts between family members, current or former household members,
or current or former intimate partners:(1) Attempting to cause or intentionally, knowingly,     or recklessly causing another person, including a minor child, to be harassed or intimidated or subject to bodily injury, physical harm, rape, sexual assault, or involuntary sexual intercourse;  or(2) Knowingly engaging in a course of conduct or     repeatedly committing acts without proper authority that place the person toward whom such acts are directed, including a minor child, in a reasonable fear of bodily injury or physical harm; or(3) Subjecting another person, including a minor     child, to false imprisonment.(e) No company specified in subsection (a) above shall be held civilly or
criminally liable for any cause of action that may be brought because of
compliance with this Section.  Nothing in
this Section, however, shall preclude the jurisdiction of any administrative
agency to carry out its statutory authority.
		(Source: P.A. 93-200, eff. 1-1-04.) (215 ILCS 5/155.22b)Sec. 155.22b. 
		Rating, claims handling, and underwriting decisions.(a) No company issuing a policy of property and casualty insurance may use
the fact that an applicant or insured incurred
bodily
injury as a result of a battery
or other violent act committed against him or her by a spouse or person in
the same household as a
sole reason for a rating, underwriting, or claims handling decision.(b)  If a policy excludes property coverage for intentional acts, the
insurer may not deny payment to an innocent co-insured who did not cooperate in
or contribute to the creation of the loss if the loss arose out of a pattern of
criminal domestic violence and the perpetrator of the loss is criminally
prosecuted for the act causing the loss.  Payment to the innocent co-insured
may be limited to his or her ownership interest in the property as reduced by
any payments to a mortgagor or other secured interest.
		(Source: P.A. 93-200, eff. 1-1-04.) (215 ILCS 5/155.23) (from Ch. 73, par. 767.23)Sec. 155.23. 
		Fraud reporting.(1) The Director is authorized to promulgate     reasonable rules requiring insurers, as defined in Section 155.24, doing business in the State of Illinois to report factual information in their possession that is pertinent to suspected fraudulent insurance claims, fraudulent insurance applications, or premium fraud after he has made a determination that the information is necessary to detect fraud or arson. Claim information may include:(a) Dates and description of accident or loss.(b) Any insurance policy relevant to the accident or     loss.(c) Name of the insurance company claims adjustor and     claims adjustor supervisor processing or reviewing any claim or claims made under any insurance policy relevant to the accident or loss.(d) Name of claimant's or insured's attorney.(e) Name of claimant's or insured's physician, or any     person rendering or purporting to render medical treatment.(f) Description of alleged injuries, damage or loss.(g) History of previous claims made by the claimant     or insured.(h) Places of medical treatment.(i) Policy premium payment record.(j) Material relating to the investigation of the     accident or loss, including statements of any person, proof of loss, and any other relevant evidence.(k) any facts evidencing fraud or arson.The Director shall establish reporting requirements for application and
premium fraud information reporting by rule.(2) The Director of Insurance may designate one or more data processing
organizations or governmental agencies to assist him in gathering such
information
and making
compilations thereof, and may by rule establish the form and procedure
for gathering and compiling such information.  The rules may name any
organization or agency designated by the Director to provide this service,
and may in such case provide for a fee to be paid by the
reporting insurers
directly to the designated organization or agency to cover any of the costs
associated with providing this service.  After determination by the
Director of substantial
evidence of false
or fraudulent claims, fraudulent applications, or premium fraud, the
information shall be forwarded by the Director
or the Director's designee to the proper law enforcement agency
or prosecutor.  Insurers shall have
access to, and may use, the information compiled under the
provisions
of this Section.  Insurers shall release
information to, and shall cooperate with, any law enforcement agency
requesting such information.In the absence of malice, no insurer, or person who
furnishes
information on its behalf, is liable for damages in a civil action or subject
to criminal prosecution for any oral or written statement made or any other
action taken that is necessary to supply information required pursuant to
this Section.
		(Source: P.A. 92-233, eff. 1-1-02.) (215 ILCS 5/155.24) (from Ch. 73, par. 767.24)Sec. 155.24. 
Motor Vehicle Theft and Motor Insurance Fraud
Reporting and Immunity Law.(a) As used in this Section:(1) "authorized governmental agency" means the     Illinois State Police, a local governmental police department, a county sheriff's office, a State's Attorney, the Attorney General, a municipal attorney, a United States district attorney, a duly constituted criminal investigative agency of the United States government, the Illinois Department of Insurance, the Illinois Department of Professional Regulation and the office of the Illinois Secretary of State;(2) "relevant" means having a tendency to make the     existence of any information that is of consequence to an investigation of motor vehicle theft or insurance fraud investigation or a determination of such issue more probable or less probable than it would be without such information;(3) information will be "deemed important" if within     the sole discretion of the authorized governmental agency such information is requested by that authorized governmental agency;(4) "Illinois authorized governmental agency" means     an authorized governmental agency as defined in item (1) that is a part of the government of the State of Illinois or any of the counties or municipalities of this State or any other authorized entity; and(5) For the purposes of this Section and Section     155.23, "insurer" means insurance companies, insurance support organizations, self-insured entities, and other providers of insurance products and services doing business in the State of Illinois.(b) Upon written request to an insurer by an authorized governmental agency,
an insurer or agent authorized by an insurer to act on its behalf shall
release to the requesting authorized governmental agency any or all relevant
information deemed important to the authorized governmental agency which
the insurer may possess relating to any specific motor vehicle theft or motor
vehicle insurance fraud.  Relevant information may include, but is not limited
to:(1) Insurance policy information relevant to the     motor vehicle theft or motor vehicle insurance fraud under investigation, including any application for such a policy.(2) Policy premium payment records which are     available.(3) History of previous claims made by the insured.(4) Information relating to the investigation of the     motor vehicle theft or motor vehicle insurance fraud, including statements of any person, proofs of loss and notice of loss.(c) When an insurer knows or reasonably believes to know the identity
of a person whom it has reason to believe committed a criminal or fraudulent
act relating to a motor vehicle theft or a motor vehicle insurance claim
or has knowledge of such a criminal or fraudulent act which is reasonably
believed not to have been reported to an authorized governmental agency,
then for the purpose of notification and investigation, the insurer or an
agent authorized by an insurer to act on its behalf shall notify an authorized
governmental agency of such knowledge or reasonable belief and provide any
additional relevant information in accordance with subsection
(b) of this Section.  When the motor vehicle
theft or motor vehicle claim that gives rise to the suspected criminal or
fraudulent act has already generated an incident report to an Illinois
authorized governmental agency, the insurer shall report the suspected
criminal or fraudulent act to that agency.  When no prior
incident report has been made, the insurer shall report the suspected criminal
or
fraudulent act to the Attorney General or State's Attorney in the county or
counties where the incident is claimed to have occurred.  When the incident
that gives rise to the suspected criminal or fraudulent act is claimed to have
occurred outside the State of Illinois, but the suspected criminal or
fraudulent act occurs within the State of Illinois, the insurer shall make the
report to the Attorney General or State's Attorney in the county or counties
where the suspected criminal or fraudulent act occurred.  When the fraud occurs
in multiple counties the report shall also be sent to the Attorney General.(d) When an insurer provides any of the authorized governmental agencies
with notice pursuant to this Section it shall be deemed sufficient notice
to all authorized governmental agencies for the purpose of this Act.(e) The authorized governmental agency provided with information pursuant
to this Section may release or provide such information to any other authorized
governmental agency.(f) Any insurer providing information to an authorized governmental agency
pursuant to this Section shall have the right to request and receive relevant
information from such authorized governmental agency, and receive within
a reasonable time after the completion of the investigation, not to exceed
30 days, the information requested.(g) Any information furnished pursuant to this Section shall be privileged
and not a part of any public record.  Except as otherwise provided by law,
any authorized governmental agency, insurer, or an agent authorized by an
insurer to act on its behalf which receives any information furnished pursuant
to this Section, shall not release such information to public inspection.
Such evidence or information shall not be subject to subpoena duces tecum
in a civil or criminal proceeding unless, after reasonable notice to any
insurer, agent authorized by an insurer to act on its behalf and authorized
governmental agency which has an interest in such information and a hearing,
the court determines that the public interest and any ongoing investigation
by the authorized governmental agency, insurer, or any agent authorized
by an insurer to act on its behalf will not be jeopardized by obedience to
such a subpoena duces tecum.(h) No insurer, or agent authorized by an insurer on its behalf, authorized
governmental agency or their respective employees shall be subject to any
civil or criminal liability in a cause of action of any kind for releasing
or receiving any information pursuant to this Section.  Nothing herein is
intended to or does in any way or manner abrogate or lessen the common and
statutory law privileges and immunities of an insurer, agent authorized
by an insurer to act on its behalf or authorized governmental agency or
any of their respective employees.
(Source: P.A. 102-538, eff. 8-20-21.) (215 ILCS 5/155.25) (from Ch. 73, par. 767.25)Sec. 155.25. 
		Reports by certain property and casualty insurers.(A) The Director shall promulgate rules and regulations which shall
require, at the request of the Director, any insurer licensed to write medical
liability insurance in this State to file a report on a form furnished by the
Director showing its direct experience in this State.  All experience shall
be on a direct basis, prior to reinsurance, and shall be required only in
the aggregate. Individual claim reports shall not be required.(B) The reports required under subsection (A) shall include the
following data for the previous year ending on the 31st of December:(1) Direct premium written for the prior 12 months.(2) Direct premium earned for the prior 12 months.(3) (a) Incurred claims by accident year, showing the     most recent 8 accident years, and a subtotal combining all accident years prior to the most recent 8, valued as of the most recent December 31, valued as of the prior December 31, each developed as the sum of, and with figures provided for under division (b) of this paragraph (3).(b) Show for each such item, the difference between 2     valuations:(i) dollar amount of claim payments, cumulated         from the beginning of each accident year, where the dollar amount of claim payments shall be separately reported for closed claims under paragraph (3) (a) and for open and reopened claims under paragraph (3) (a), plus(ii) reserves for reported claims as of the         valuation dates, open or reopened, plus(iii) reserves for claims incurred but not         reported as the valuation dates, plus(iv) any other loss reserves carried by the         company as of the valuation dates and not reported in (3) (ii) or (3) (iii).(v) number of claims, cumulated from the         beginning of each accident year, showing the most recent 8 accident years, and a subtotal combining all accident years prior to the most recent 8 valued as of the most recent December 31, land valued as of the prior December 31, with figures provided for the number of closed claims under paragraph (3) (a) and the number of open and unopened claims under paragraph (3) (a). Show for each such item, the difference between the 2 valuations.(4) Actual incurred expenses allocated separately to     loss adjustment, commissions, or other acquisition costs, general office expenses, taxes, licenses and fees, and all other expenses.(5) Net underwriting gain or loss.
		(Source: P.A. 87-1090.) (215 ILCS 5/155.25a) (from Ch. 73, par. 767.25a)Sec. 155.25a. 
		
		Notwithstanding the provisions of subsection (D) of
Section 123B-9, a purchasing group may purchase insurance providing for a
group aggregate limit from an insurer licensed to write medical liability
insurance in this State if (1) such group is domiciled in Illinois and all
or substantially all of such group's members are residents of Illinois, (2)
each insured in the purchasing group is specifically informed prior to
issuance of the policy to such insured of the existence of the group
aggregate limit, and (3) either (a) the amount of the group aggregate limit
is determined by the Director in his discretion to be sufficiently high
(when considered in conjunction with other factors such as each individual
insured's per claim limit and each individual insured's aggregate limit),
such that the risk that the group aggregate limit will be exhausted is not
substantial, or (b) (i) each individual insured's aggregate limit is not
more than 300% of such individual insured's per claim limit and (ii) the
group aggregate limit (at the time of the insured's claim) is equal to or
exceeds the amount set forth in the following table:
		

Number of Insureds
Required Purchasing


in Purchasing
Group Aggregate Limit



Group


Less than 10
Individual claim limit X



Number of Insureds


10 to 24
The sum of (i) 3 X the



individual claim limit,



plus (ii) the individual



claim limit X the Number



of Insureds X 2/3


25 to 50
The sum of (i) 7 X the



individual claim



limit, plus (ii) the individual



claim limit X the Number of



Insureds X 1/2


Over 50
The sum of (i) 17 X the individual



claim limit, plus (ii) the



individual claim limit X the



Number of Insureds X 3/10.

 		(Source: P.A. 86-632.) (215 ILCS 5/155.26) (from Ch. 73, par. 767.26)Sec. 155.26. 
		
		No insurance company authorized to do business in
Illinois may increase the premium rates for a renewal policy which insures
an individual with a personal lines automobile insurance policy against any
loss or liability resulting from or incident to the ownership, maintenance
or use of any motor vehicle if the sole basis for the proposed increase is
that the insured was convicted of no more than one offense for speeding
where such speeding was not in
excess of 10 miles an hour over the posted speed limit, and no claim
for recovery of damages or loss has been paid by the insurer because of such offense.
		(Source: P.A. 85-332.) (215 ILCS 5/155.27) (from Ch. 73, par. 767.27)Sec. 155.27. 
		
		No insurance company authorized to transact business in
this State may impose a surcharge upon an applicant for
a policy of automobile insurance or refuse to insure the applicant solely
based upon the identity of the
applicant's prior automobile insurance carrier, unless the applicant fails
to provide the company with the applicant's
loss experience with the prior carrier within 21 calendar days after the
application for automobile insurance is filed.
		(Source: P.A. 86-1408.) (215 ILCS 5/155.28) (from Ch. 73, par. 767.28)Sec. 155.28. 
		
		(a) Any individual who is a potential applicant for a
policy of personal automobile insurance as defined in subsection (a) of
Section 143.13 of this Code shall be provided an oral estimate of premium
charges based on the information provided to an insurance producer or
designated representative who maintains an office within any municipality
with 500,000 or more inhabitants.  Such an estimate shall be given
by any such insurance producer or designated representative of an insurer but
shall not be binding.(b) No such insurer, insurance producer or designated representative
shall require that an individual described in subsection (a) of this
Section shall be present in person in order to obtain the estimate
described in subsection (a).(c) Nothing in this Section shall be construed to prohibit an insurer,
insurance producer or designated representative from requiring that an
individual be present in person to complete a final application for a
policy of personal automobile insurance as defined in subsection (a) of
Section 143.13 of this Code.
		(Source: P.A. 86-1408.) (215 ILCS 5/155.29) (from Ch. 73, par. 767.29)Sec. 155.29. 
		
		(a) Purpose. The purpose of this Section
is to regulate the use of
aftermarket crash parts by requiring disclosure when any use of
an aftermarket non-original equipment manufacturer's crash part is proposed and by
requiring that the manufacturers of such aftermarket crash parts be identified.(b) Definitions.  As used in this Section the following terms have
the following meanings:"Aftermarket crash part" means a replacement for any of the nonmechanical
sheet metal or plastic parts that generally constitute the exterior of a
motor vehicle, including inner and outer panels."Non-original equipment manufacturer (Non-OEM) aftermarket crash part"
means an aftermarket crash part not made for or by the manufacturer of the motor vehicle."Repair facility" means any motor vehicle dealer, garage, body shop, or
other commercial entity that undertakes the repair or replacement of those
parts that generally constitute the exterior of a motor vehicle."Installer" means an individual who actually does the work of replacing
or repairing parts of a motor vehicle.(c) Identification.  Any aftermarket crash part supplied by a
non-original equipment manufacturer for use in this State after the
effective date of this Act shall have affixed thereto or inscribed thereon
the logo or name of its
manufacturer.  The manufacturer's logo or name shall be visible after
installation whenever practicable.(d) Disclosure.  No insurer shall specify the use of non-OEM
aftermarket crash parts in the repair of an insured's motor vehicle, nor
shall any repair facility or installer use non-OEM aftermarket crash parts
to repair a vehicle unless the customer is advised of that fact in
writing.  In all instances where an insurer intends that non-OEM
aftermarket crash parts be used in the repair of a motor vehicle, the
insurer shall  provide the customer with the following information:(1) a written estimate that clearly identifies each     non-OEM aftermarket crash part; and(2) a disclosure settlement incorporated into or     attached to the estimate that reads as follows:  "This estimate has been prepared based on the use of crash parts supplied by a source other than the manufacturer of your motor vehicle.  Warranties applicable to these replacement parts are provided by the manufacturer or distributor of these parts rather than the manufacturer of your vehicle."		(Source: P.A. 86-1234; 86-1475.) (215 ILCS 5/155.30) (from Ch. 73, par. 767.30)Sec. 155.30. 
		
		For purposes of determining premium rates to be charged
for personal multi-peril property insurance policies covering real property
used principally for residential purposes or any household or personal
property that is usual or incidental to the occupancy of any premises used
for residential purposes (commonly known as "homeowners" or "renters"
insurance), an insurance company authorized to do business in this State
shall not treat a child placed in the household by the Illinois Department
of Children and Family Services or a private child welfare agency
differently from a natural or adopted child of the policy owner.  An
insurance company authorized to do business in this State shall not
consider a policy owner's acceptance of the placement of a foster child in
his or her household as a use of the family dwelling for a business purpose.
		(Source: P.A. 86-1482.) (215 ILCS 5/155.31)Sec. 155.31. 
		Day care and group day care homes; coverage.(a) No insurer providing insurance coverage, as defined in subsection (b)
of
Section 143.13 of this Code, shall nonrenew or cancel an insurance policy on a
day care home or group day care home, as defined in the Child Care Act of 1969,
solely on the basis that the insured operates a duly licensed day care home or
group day care home on the insured premises.(b) An insurer providing such insurance coverage to a licensed day care home
or licensed group day care home may provide such coverage with a separate
policy or endorsement to a policy of fire and extended coverage insurance, as
defined in subsection (b) of Section 143.13.(c) Notwithstanding subsections (a) and (b) of this Section, the insurer
providing such coverage shall be allowed to cancel or nonrenew an insurance
policy on a day care home or group day care home based upon the authority
provided under Sections 143.21 and 143.21.1 of this Code.
		(Source: P.A. 90-401, eff. 1-1-98; 90-655, eff. 7-30-98.) (215 ILCS 5/155.32)Sec. 155.32. 
		Policy explanations; language other than English.(a) A company, as defined in Section 132.2 of this Code, may conduct
transactions in a language other than English through an employee or agent
acting as interpreter or through an interpreter provided by the customer.(b) An insurance carrier licensed to provide insurance as defined in
subsections
(a) and (b) of Section 143.13 of this Code may provide insurance policies,
endorsements, riders, and any explanatory or advertising material in a language
other than English.  In the event of a dispute or complaint regarding the
insurance or advertising material, the English language version of the
insurance coverage shall control the resolution of the dispute or
complaint.
		(Source: P.A. 92-578, eff. 6-26-02.) (215 ILCS 5/155.33)Sec. 155.33. 
		
		Illinois Health Insurance Portability and
Accountability Act.
 The provisions of this Code are subject to the Illinois Health Insurance
Portability and Accountability Act as provided in Section 15 of that Act.
		(Source: P.A. 90-30, eff. 7-1-97; 90-655, eff. 7-30-98.) (215 ILCS 5/155.34)Sec. 155.34. 
		(Repealed). 
		(Source: P.A. 90-655, eff. 7-30-98. Repealed by P.A. 93-502, eff.
1-1-04.) (215 ILCS 5/155.35)Sec. 155.35. 
		Insurance compliance self-evaluative privilege.(a) To encourage insurance companies and persons conducting activities
regulated under this Code, both to conduct voluntary internal audits of their
compliance programs and management systems and to assess and improve compliance
with State and federal statutes, rules, and orders, an insurance compliance
self-evaluative privilege is recognized to protect the confidentiality of
communications relating to voluntary internal compliance audits.  The General
Assembly hereby finds and declares that protection of insurance consumers is
enhanced by companies' voluntary compliance with this State's insurance and
other laws and that the public will benefit from incentives to identify and
remedy insurance and other compliance issues.  It is further declared that
limited expansion of the protection against disclosure will encourage voluntary
compliance and improve insurance market conduct quality and that the voluntary
provisions of this Section will not inhibit the exercise of the regulatory
authority by those entrusted with protecting insurance consumers.(b)(1) An insurance compliance self-evaluative audit document is privileged
information and is not admissible as evidence in any legal action in any
civil, criminal, or administrative proceeding, except as provided in
subsections (c) and (d) of this Section.  Documents, communications, data,
reports, or other information created as a result of a claim involving personal
injury or workers' compensation made against an insurance policy are not
insurance compliance self-evaluative audit documents and are admissible as
evidence in civil proceedings as otherwise provided by applicable rules of
evidence or civil procedure, subject to any applicable statutory or common law
privilege, including but not limited to the work product doctrine, the
attorney-client privilege, or the subsequent remedial measures exclusion.(2) If any company, person, or entity performs or directs the performance
of an insurance compliance audit, an officer or employee involved with the
insurance compliance audit, or any consultant who is hired for the purpose of
performing the insurance compliance audit, may not be examined in any civil,
criminal, or administrative proceeding as to the insurance compliance audit or
any insurance compliance self-evaluative audit document, as defined in this
Section. This subsection (b)(2) does not apply if the privilege set forth in
subsection (b)(1) of this Section is determined under subsection (c) or (d) not
to apply.(3) A company may voluntarily submit, in connection with examinations
conducted under this Article, an insurance compliance self-evaluative audit
document to the Director, or his or her designee, as a confidential document
under subsection (f) of Section 132.5 of this Code without waiving the
privilege set forth in this Section to which the company would otherwise be
entitled;
provided, however, that the provisions in subsection (f) of Section 132.5
permitting the Director to make confidential documents public pursuant to
subsection (e) of Section 132.5 and access to the National Association of
Insurance Commissioners shall not apply to the insurance compliance
self-evaluative audit
document so voluntarily submitted.  Nothing contained in this subsection shall
give the Director any authority to compel a company to disclose involuntarily
or otherwise provide an insurance compliance self-evaluative audit document.(c)(1) The privilege set forth in subsection (b) of this Section does not
apply to the extent that it is expressly waived by the company that prepared
or caused to be prepared the insurance compliance self-evaluative audit
document.(2) In a civil or administrative proceeding, a court of record may, after
an in camera review, require disclosure of material for which the privilege set
forth in subsection (b) of this Section is asserted, if the court determines
one of the following:(A) the privilege is asserted for a fraudulent     purpose;(B) the material is not subject to the privilege; or(C) even if subject to the privilege, the material     shows evidence of noncompliance with State and federal statutes, rules and orders and the company failed to undertake reasonable corrective action or eliminate the noncompliance within a reasonable time.(3) In a criminal proceeding, a court of record may, after an in camera
review, require disclosure of material for which the privilege described in
subsection (b) of this Section is asserted, if the court determines one of the
following:(A) the privilege is asserted for a fraudulent     purpose;(B) the material is not subject to the privilege;(C) even if subject to the privilege, the material     shows evidence of noncompliance with State and federal statutes, rules and orders and the company failed to undertake reasonable corrective action or eliminate such noncompliance within a reasonable time; or(D) the material contains evidence relevant to     commission of a criminal offense under this Code, and all of the following factors are present:(i) the Director, State's Attorney, or Attorney         General has a compelling need for the information;(ii) the information is not otherwise available;         and(iii) the Director, State's Attorney, or Attorney         General is unable to obtain the substantial equivalent of the information by any means without incurring unreasonable cost and delay.(d)(1) Within 30 days after the Director, State's Attorney, or Attorney
General makes a written request by certified mail for disclosure of an
insurance compliance self-evaluative audit document under this subsection, the
company that
prepared or caused the document to be prepared may file with the appropriate
court a petition requesting an in camera hearing on whether the insurance
compliance self-evaluative audit document or portions of the document are
privileged under this Section or subject to disclosure.  The court has
jurisdiction over a petition filed by a company under this subsection
requesting an in camera hearing on whether the insurance compliance
self-evaluative audit document or portions of the document are privileged or
subject
to disclosure.  Failure by the company to file a petition waives the privilege.(2) A company asserting the insurance compliance self-evaluative privilege
in response to a request for disclosure under this subsection shall include in
its request for an in camera hearing all of the information set forth in
subsection (d)(5) of this Section.(3) Upon the filing of a petition under this subsection, the court shall
issue an order scheduling, within 45 days after the filing of the petition, an
in camera hearing to determine whether the insurance compliance self-evaluative
audit document or portions of the document are privileged under this Section or
subject to disclosure.(4) The court, after an in camera review, may require disclosure of
material for which the privilege in subsection (b) of this Section is asserted
if the court determines, based upon its in camera review, that any one of the
conditions set forth in subsection (c)(2)(A) through (C) is applicable as to a
civil or administrative proceeding or that any one of the conditions set forth
in subsection (c)(3)(A) through (D) is applicable as to a criminal proceeding.
Upon making such a determination, the court may only compel the disclosure of
those portions of an insurance compliance self-evaluative audit document
relevant to issues in dispute in the underlying proceeding.
Any compelled disclosure will not be considered to be a public document or be
deemed to be a waiver of the privilege for any other civil, criminal, or
administrative proceeding.  A party unsuccessfully opposing disclosure may
apply to the court for an appropriate order protecting the document from
further disclosure.(5) A company asserting the insurance compliance self-evaluative privilege
in response to a request for disclosure under this subsection (d) shall provide
to the Director, State's Attorney, or Attorney General, as the case may be, at
the time of
filing any objection to the disclosure, all of the following information:(A) The date of the insurance compliance     self-evaluative audit document.(B) The identity of the entity conducting the audit.(C) The general nature of the activities covered by     the insurance compliance audit.(D) An identification of the portions of the     insurance compliance self-evaluative audit document for which the privilege is being asserted.(e) (1) A company asserting the insurance compliance self-evaluative
privilege set forth in subsection (b) of this Section has the burden of
demonstrating the applicability of the privilege. Once a company has
established the applicability of the privilege, a party
seeking disclosure under subsections (c)(2)(A) or (C) of this Section has the
burden of proving that the privilege is asserted for
a fraudulent purpose or that the company failed to
undertake reasonable corrective action or eliminate the noncompliance with a
reasonable time. The Director, State's Attorney, or Attorney General seeking
disclosure under subsection (c)(3) of this Section has the burden of proving
the elements set forth in subsection (c)(3) of this Section.(2) The parties may at any time stipulate in proceedings under subsections
(c) or (d) of this Section to entry of an order directing that specific
information contained in an insurance compliance self-evaluative audit document
is or is not subject to the privilege provided under subsection (b) of this
Section.(f) The privilege set forth in subsection (b) of this Section shall not
extend to any of the following:(1) documents, communications, data, reports, or     other information required to be collected, developed, maintained, reported, or otherwise made available to a regulatory agency pursuant to this Code, or other federal or State law, rule, or order;(2) information obtained by observation or monitoring     by any regulatory agency; or(3) information obtained from a source independent of     the insurance compliance audit.(g) As used in this Section:(1) "Insurance compliance audit" means a voluntary,     internal evaluation, review, assessment, or audit not otherwise expressly required by law of a company or an activity regulated under this Code, or other State or federal law applicable to a company, or of management systems related to the company or activity, that is designed to identify and prevent noncompliance and to improve compliance with those statutes, rules, or orders.  An insurance compliance audit may be conducted by the company, its employees, or by independent contractors.(2) "Insurance compliance self-evaluative audit     document" means documents prepared as a result of or in connection with and not prior to an insurance compliance audit. An insurance compliance self-evaluation audit document may include a written response to the findings of an insurance compliance audit.  An insurance compliance self-evaluative audit document may include, but is not limited to, as applicable, field notes and records of observations, findings, opinions, suggestions, conclusions, drafts, memoranda, drawings, photographs, computer-generated or electronically recorded information, phone records, maps, charts, graphs, and surveys, provided this supporting information is collected or developed for the primary purpose and in the course of an insurance compliance audit.  An insurance compliance self-evaluative audit document may also include any of the following:(A) an insurance compliance audit report prepared         by an auditor, who may be an employee of the company or an independent contractor, which may include the scope of the audit, the information gained in the audit, and conclusions and recommendations, with exhibits and appendices;(B) memoranda and documents analyzing portions or         all of the insurance compliance audit report and discussing potential implementation issues;(C) an implementation plan that addresses         correcting past noncompliance, improving current compliance, and preventing future noncompliance; or(D) analytic data generated in the course of         conducting the insurance compliance audit.(3) "Company" has the same meaning as provided in     Section 2 of this Code.(h) Nothing in this Section shall limit, waive, or abrogate the scope or
nature of any statutory or common law privilege including, but not limited to,
the work product doctrine, the attorney-client privilege, or the subsequent
remedial measures exclusion.
		(Source: P.A. 90-499, eff. 8-19-97; 90-655, eff. 7-30-98.) (215 ILCS 5/155.36)Sec. 155.36. Managed Care Reform and Patient Rights Act. Insurance
companies that transact the kinds of insurance authorized under Class 1(b) or
Class 2(a) of Section 4 of this Code shall comply
with Sections  45, 45.1, 45.2, 65, 70, and 85, subsection (d) of Section 30, and the definition of the term "emergency medical
condition" in Section
10 of the Managed Care Reform and Patient Rights Act.
(Source: P.A. 101-608, eff. 1-1-20; 102-409, eff. 1-1-22.) (215 ILCS 5/155.37)Sec. 155.37. 
		Drug formulary; notice. 
		Insurance
companies that transact the kinds of insurance authorized under Class 1(b) or
Class 2(a) of Section 4 of this Code and provide coverage for prescription
drugs through the use of a drug formulary must notify insureds of any change in
the formulary.  A company may comply with this Section by posting changes in
the formulary on its website.
		(Source: P.A. 92-440, eff. 8-17-01; 92-651, eff. 7-11-02.) (215 ILCS 5/155.38)Sec. 155.38. 
		(Repealed). 
		(Source: P.A. 92-651, eff. 7-11-02.  Repealed by P.A.
93-114, eff. 10-1-03.) (215 ILCS 5/155.39)Sec. 155.39. Vehicle protection products.(a) As used in this Section:"Administrator" means a third party other than the warrantor who is
designated by the warrantor to be responsible for the administration of
vehicle protection product warranties."Incidental costs" means expenses specified in the vehicle protection
product warranty incurred by the warranty holder related to the failure of the
vehicle protection product to perform as provided in the warranty.
Incidental costs may include, without limitation, insurance policy
deductibles, rental vehicle charges, the difference between the actual value
of the stolen vehicle at the time of theft and the cost of a replacement
vehicle, sales taxes, registration fees, transaction fees, and mechanical
inspection fees."Vehicle protection product" means a protective chemical, substance, device,
system, or service that is (i) installed on or applied to a vehicle and (ii) 
designed to prevent loss or damage to a vehicle from a specific cause. The term "vehicle protection product"
shall include, without limitation, protective chemicals, alarm systems, body part marking products,
steering locks, window etch products, pedal and ignition locks, fuel and
ignition kill switches, and electronic, radio, and satellite tracking devices. "Vehicle protection product" does not include fuel additives, oil additives, or other chemical products applied to the engine, transmission, or fuel system of a motor vehicle."Vehicle protection product warrantor" or "warrantor"
means a person who is contractually obligated to the
warranty holder under the terms of a vehicle protection product warranty.
"Warrantor" does not include an authorized insurer."Vehicle protection product warranty" means a written warranty by a vehicle protection product warrantor that (i) is included, for no separate and identifiable consideration, with the purchase of a vehicle protection product sold or offered for sale in this State and (ii) provides if the vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause, that the warranty holder shall be paid specified incidental costs by the warrantor as a result of the failure of the vehicle protection product to perform pursuant to the terms of the warranty."Warranty reimbursement insurance policy" means a policy of
insurance
issued to the vehicle protection product warrantor
to pay on behalf of the warrantor
all covered contractual obligations incurred by the warrantor under the terms
and conditions of the insured vehicle protection product warranties sold by
the warrantor.  The warranty reimbursement insurance policy shall be issued by
an insurer authorized to do business in this State that has filed its policy
form with the Department.(a-5) A vehicle protection product warrantor's liabilities under a vehicle protection product warranty shall be covered by a warranty reimbursement insurance policy.(b) No vehicle protection product warranty sold or offered for sale in this State
shall be subject to the provisions of this Code. Vehicle protection product warranties are express warranties and not insurance.Vehicle protection product warrantors and related vehicle protection
product sellers and warranty administrators are
not required to comply with and are not subject to any other provision of this
Code.(c) This Section applies to all vehicle protection products sold or
offered for sale prior to, on, or after the effective date of this amendatory
Act
of the 93rd General Assembly. The enactment of this Section does not
imply that vehicle protection products should have been subject to regulation
under this Code prior to the enactment of this Section. The changes made to this Section by this amendatory Act of the 100th General Assembly do not imply that vehicle protection products and vehicle protection product warranties should have been subject to regulation under this Code prior to this amendatory Act of the 100th General Assembly. 
(Source: P.A. 100-272, eff. 1-1-18.) (215 ILCS 5/155.40)Sec. 155.40.  Auto insurance; application; false address.(a) An applicant for a policy of insurance that insures against any loss or
liability resulting from or incident to the ownership, maintenance, or use of a
motor vehicle shall not provide to the insurer to which the application for
coverage is made any address for the applicant other than the address
at which the applicant resides.(b) A person who knowingly violates this Section is guilty of a business
offense.  The penalty is a fine of not less than $1,001 and not more than
$1,200.
					(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 5/155.41)Sec. 155.41.  Slave era policies.(a) The General Assembly finds and declares all of the
following:(1) Insurance policies from the slavery era have been     discovered in the archives of several insurance companies, documenting insurance coverage for slaveholders for damage to or death of their slaves, issued by a predecessor insurance firm. These documents provide the first evidence of ill-gotten profits from slavery, which profits in part capitalized insurers whose successors remain in existence today.(2) Legislation has been introduced in Congress for     the past 10 years demanding an inquiry into slavery and its continuing legacies.(3) The Director of Insurance and the Department of     Insurance are entitled to seek information from the files of insurers licensed and doing business in this State, including licensed Illinois subsidiaries of international insurance corporations, regarding insurance policies issued to slaveholders by predecessor corporations. The people of Illinois are entitled to significant historical information of this nature.(b) The Department shall request and obtain information from
insurers licensed and doing business in this State regarding any
records of slaveholder insurance policies issued by any predecessor
corporation during the slavery era.(c) The Department shall obtain the names of any
slaveholders or slaves described in those insurance records, and
shall make the information available to the public and the
General Assembly.(d) Any insurer licensed and doing business in this State
shall research and report to the Department with respect to any
records within the insurer's possession or knowledge relating to
insurance policies issued to slaveholders that provided coverage for
damage to or death of their slaves.(e) Descendants of slaves, whose ancestors were defined as
private property, dehumanized, divided from their families, forced to
perform labor without appropriate compensation or benefits, and
whose ancestors' owners were compensated for damages by insurers, are
entitled to full disclosure.
					(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 5/155.42)Sec. 155.42. Identity theft insurance consumer fact sheet. The Department shall develop an appropriate consumer fact sheet to be provided to consumers, either via the Department's
website or by hard copy if requested, regarding identity theft insurance. The fact sheet shall include at a minimum, information on what is generally covered under identity theft insurance and on how to protect himself or herself from
identity theft.
(Source: P.A. 96-167, eff. 1-1-10.) (215 ILCS 5/155.43)Sec. 155.43. Misrepresentation of Senior-Specific Certification.(a)  No insurance producer shall use a senior-specific certification or professional designation that indicates or implies in such a way as to mislead a purchaser or prospective purchaser that the insurance producer has a special certification or training in advising or servicing seniors in connection with the solicitation, sale, or purchase of a life insurance or annuity product or in the provision of advice as to the value of or the advisability of purchasing or selling a life insurance or annuity product, either directly or indirectly through publications, writings, or by issuing or promulgating analyses or reports related to a life insurance or annuity product.(b) "Use of senior-specific certifications or professional designations" includes, but is not limited to, all of the following:(1)  Use of a certification or professional     designation by an insurance producer who has not actually earned or is otherwise ineligible to use such certification or designation.(2)  Use of a nonexistent or self-conferred     certification or professional designation.(3)  Use of a certification or professional     designation that indicates or implies a level of occupational qualifications obtained through education, training, or experience that the insurance producer using the certification or designation does not have.(4) Use of a certification or professional     designation that was obtained from a certifying or designating organization that:(i) is primarily engaged in the business of         instruction in sales or marketing;(ii)  does not have reasonable standards or         procedures for assuring the competency of its certificate holders or designees;(iii) does not have reasonable standards or         procedures for monitoring and disciplining its certificate holders or designees for improper or unethical conduct; or(iv) does not have reasonable continuing         education requirements for its certificate holders or designees in order to maintain the certificate or designation.(c)  There is a rebuttable presumption that a certifying or designating organization is not disqualified under this Section if the certification or designation issued from the organization does not primarily apply to sales or marketing and if the organization or the certification or designation in question has been accredited by any of the following entities:(i)  the American National Standards Institute;(ii) the National Commission for Certifying Agencies;     or(iii) any organization included on the list     "Accrediting Agencies Recognized for Title IV Purposes" prepared by the United States Department of Education.(d) In determining whether a combination of words or an acronym standing for a combination of words constitutes a certification or professional designation indicating or implying that a person has a special certification or training in advising or servicing seniors, the Department of Insurance shall consider all of the following:(1) Use of one or more words, such as "senior",     "retirement", "elder", or like words combined with one or more words, such as "certified", "registered", "chartered", "advisor", "specialist", "consultant", "planner", or like words in the name of the certification or professional designation.(2)  The manner in which the words listed in     paragraph (1) of subsection (b) are combined.(e)  For purposes of this Section, a job title within an organization that is licensed or registered by a State or federal financial services regulatory agency is not a certification or professional designation, unless it is used in a manner that would confuse or mislead a reasonable consumer, if the job title indicates seniority or standing within the organization or specifies an individual's area of specialization within the organization.  For purposes of this subsection (e), "financial services regulatory agency" includes, but is not limited to, an agency that regulates insurers, insurance producers, broker-dealers, investment advisers, or investment companies.
(Source: P.A. 97-527, eff. 8-23-11.) (215 ILCS 5/155.44)Sec. 155.44. Financial requirements; large deductible agreements for workers' compensation insurance.(a) An insurer shall:(1) require full collateralization of the outstanding     obligations owed under a large deductible agreement by using one of the following methods:(A) a surety bond issued by a surety insurer         authorized to transact business by the Department and whose financial strength and size ratings from A.M. Best Company are not less than "A" and "V", respectively;(B) an irrevocable letter of credit issued by a         financial institution with an office physically located within the State and the deposits of which are federally insured; or(C) cash or securities held in trust by a third         party or by the insurer and subject to a trust agreement for the express purpose of securing the policyholder's obligation under a large deductible agreement, provided that if the assets are held by the insurer those assets are not commingled with the insurer's other assets; and(2) limit the size of the policyholder's obligations     under a large deductible agreement to no greater than 20% of the total net worth of the policyholder at each policy inception, as determined by an audited financial statement as of the most recently available fiscal year end.(b) As used in this Section, "insurer" means any insurer authorized to issue a workers' compensation policy covering risks located in this State that has an A.M. Best Company rating below "A-" and does not have at least $200,000,000 in surplus.(c) As used in this Section, "large deductible agreement" means any combination of one or more policies, endorsements, contracts, or security agreements which provide for the policyholder to bear the risk of loss of $100,000 or greater per claim or occurrence covered under a policy of workers' compensation insurance and which may be subject to the aggregate limit of policyholder reimbursement obligations.(d) Except when approved by the Director of Insurance, any insurer determined to be in a financially hazardous condition pursuant to Article XII 1/2 or XIII of this Code by the Director of Insurance in this State or the equivalent in any other state is prohibited from issuing or renewing a policy that includes a large deductible agreement.(e) This Section applies to large deductible agreements issued or renewed by any insurer on or after January 1, 2016. 
(Source: P.A. 99-369, eff. 8-14-15.) (215 ILCS 5/155.45)Sec. 155.45. Certificates of insurance.(a) In this Section:"Certificate of insurance" means a document prepared     by an insurer or insurance producer as evidence of property or casualty insurance coverage. "Certificate of insurance" does not include a policy of insurance, an insurance binder, a policy endorsement, or a motor vehicle insurance identification or information card."Department" means the Department of Insurance."Director" means the Director of Insurance."Insurance producer" means a person required to be     licensed under the laws of this State to sell, solicit, or negotiate insurance."Insurer" means a company, firm, partnership,     association, order, society, or system making any kind or kinds of insurance and shall include associations operating as Lloyds, reciprocal or inter-insurers, or individual underwriters."Person" means any individual, aggregation of     individuals, trust, association, partnership, or corporation, or any affiliate thereof."Property or casualty insurance" means the kinds of     insurance described in either or both Class 2 or Class 3 of Section 4 of this Code.(b) This Section applies to a certificate of insurance that is
issued in connection with a contract related to property,
operations, or risks located in this State, regardless of the location of
the policyholder, insurer, insurance producer, or person that
requests or requires the issuance of the certificate of insurance.(c) The use of a certificate of insurance form that is unfair, misleading, or deceptive or
violates any law
is an unfair and deceptive act or practice in the business of
insurance under Article XXVI of this Code.(d) A certificate of insurance may not amend, extend, or alter the coverage provided under, or
confer to a person any rights in addition to the rights
expressly provided in,
the policy of property or casualty insurance to which the certificate
of insurance refers.(e) A person may not prepare, issue, request, or
require the issuance of a certificate of insurance that:(1) contains false or misleading information     concerning the policy of property or casualty insurance to which the certificate of insurance refers; or(2) alters, amends, or extends the coverage provided     by the policy of property or casualty insurance to which the certificate of insurance refers.(f) A certificate of insurance may not contain a
warranty that the policy of property or casualty insurance to which
the certificate of insurance refers complies with the insurance or
indemnification requirements of a contract. The inclusion of a contract number or contract description
in a certificate of insurance does not warrant that the policy of
property or casualty insurance to which the certificate of insurance
refers complies with the insurance or indemnification requirements
of the contract.(g) A person is not entitled to notice of, cancellation of, nonrenewal of, or
a material change in
a policy of property or casualty insurance unless the person has
notice rights under the terms of the policy of property or casualty
insurance or an endorsement to the policy.
The terms and conditions of notice described in this subsection
(g) are governed by the policy of property or casualty insurance or
an endorsement to the policy and are not altered by a certificate of
insurance.(h) A certificate of insurance or any other document that is
prepared, issued, requested, or required in violation of this Section
is void.(i) The Director may refer a matter to the Department of Financial and Professional Regulation for review pursuant to the rules of that department if the Director has reason to believe that a certificate of
insurance form as described in subsection (c) of this Section has been  provided by a
financial institution.(j) The Director may examine and investigate the
activities of a person that the Director reasonably believes has
violated the provisions of this Section. The Director shall have the power to enforce the provisions of this Section and impose any authorized penalty or remedy as provided under Section 401 of this Code upon any person who violates the provisions of this Section.(k) The Department may adopt rules to
implement the provisions of this Section.
(Source: P.A. 98-819, eff. 1-1-15.) (215 ILCS 5/155.46)Sec. 155.46. Prohibition on denial of coverage or increase in premiums for living organ donors.(a) As used in this Section:"Human organ" means all or part of a human's liver, pancreas, kidney, intestine, lung, blood, plasma, skin, or bone marrow."Living organ donor" means an individual who has donated all or part of a human organ and is not deceased."Disability insurance policy" means a contract under which an entity promises to pay a person a sum of money if an illness or injury resulting in a disability prevents that person from working."Life insurance policy" means a contract under which an entity promises to pay a designated beneficiary a sum of money upon the death of the insured."Long-term care insurance policy" means a contract for which the only insurance protection provided under the contract is coverage of qualified long-term care services.(b)   Notwithstanding any other provision of law, it is unlawful to refuse to insure, to refuse to continue to insure, to limit the amount, extent, or kind of coverage available for life insurance, disability insurance, or long-term care insurance to an individual, or to charge an individual a different rate for the same coverage, solely because of the individual's status as a living organ donor.(c)   With respect to all other conditions, persons who are living organ donors shall be subject to the same standards of sound actuarial principles or actual or reasonably anticipated experience as are persons who are not organ donors. 
(Source: P.A. 101-179, eff. 1-1-20.) (215 ILCS 5/155.47)Sec. 155.47. Prohibited practices relating to substance use disorder treatment.(a)   As used in this Section, "recovery support", "substance use disorder", and "treatment" have the meanings set forth in the Substance Use Disorder Act.(b)   A company authorized to transact life insurance in this State may not, based solely on whether an individual has participated in a substance use treatment or recovery support program no less than 5 years before application:(1)   deny coverage to the individual;(2)   limit the amount, extent, or kind of coverage     available to the individual; or(3)   charge the individual or a group to which the     individual belongs a rate that is different from the rate charged to other individuals or groups, respectively, for the same coverage, unless the charge is based on sound underwriting or actuarial principles reasonably related to actual or anticipated loss experience for a particular risk.(Source: P.A. 102-107, eff. 1-1-22.) (215 ILCS 5/155.48)Sec. 155.48. Prohibited practices relating to prescription for or obtainment of opioid antagonist.(a) As used in this Section, "opioid antagonist" means any drug that binds to opioid receptors and blocks or otherwise inhibits the effects of opioids acting on those receptors to reverse the effects of an opioid overdose.(b) A company authorized to transact life insurance in this State may not, based solely on whether an individual has been prescribed or has obtained through a standing order an opioid antagonist:(1) deny coverage to the individual;(2) limit the amount, extent, or kind of coverage     available to the individual; or(3) charge the individual or a group to which the     individual belongs a rate that is different from the rate charged to other individuals or groups, respectively, for the same coverage, unless the charge is based on sound underwriting or actuarial principles reasonably related to actual or anticipated loss experience for a particular risk.(Source: P.A. 102-107, eff. 1-1-22.)
(215 ILCS 5/Art. V.75 heading) Article V 3/4  
		Group Workers' Compensation
Pools; pooling; insolvency fund. (215 ILCS 5/107a.01)Sec. 107a.01. 
		Short title. 
		This Article may be cited as the Workers'
Compensation Pool
Law.
		(Source: P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/107a.02)Sec. 107a.02. 
		Scope. 
		This Article applies to all qualified group workers'
compensation
pools.
		(Source: P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/107a.03)Sec. 107a.03. 
		Purpose. 
		The purpose of this Article is to permit 2 or more
employers with
homogeneous risk characteristics or that are members of a bona fide
professional, commercial,
industrial, or trade association, with homogenous risk characteristics to pool
their workers'
compensation and employer's liability exposures under this Article.The State of Illinois, a unit of local government or school district, or
association or instrumentality thereof, or an intergovernmental risk management
association, self-insurance pool or self-administered health and accident
cooperative or pool shall not be deemed an "employer" or "pool" for the purpose
of this
Article.
		(Source: P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/107a.04)Sec. 107a.04. 
		Organization under the Illinois Insurance Code.(a) After December 31, 2000, group workers' compensation pools shall for the
purpose of
this Article, and this Article only, be considered as though they were
assessable domestic mutual
insurance companies and subject to the following:(1) Article XII 1/2, Article XIII, Article XIII 1/2,     Article XXIV; and(2) Sections 126.2, 126.4, 126.7, 132, 132.1 through     132.7, 133, 134, 137, 139, 140, 141.1, 141.2, 142, 143, 143c, 147, 148, 149, 154.5, 154.6, 154.7, 154.8, 155.01, 155.04, 173.1, 173.2, 173.3, 173.4, 173.5, 174, 174.1, 175, 176, 178, 179b, 378, 379.1, 408, 408.3, 449, 456, 457, and 458, subsections A, B, C, and E of Section 126.5, subsection A of Section 126.6, and subsections (1) and (7) of Section 412 of this Code.(b) If there is a conflict between any Section of this Article and any
other Section of this
Code, then the provisions of this Article shall apply.(c) No other provision of this Code shall be applicable to any qualified
workers'
compensation group workers' compensation pool except as provided in this
Article.(d) A certificate of authority that is in effect on the effective date of
this amendatory Act of the 91st General Assembly and that was issued pursuant
to Section 4a of the Workers' Compensation Act or Section 4a of the Workers'
Occupational Diseases Act to a group self-insurer
shall remain in effect under this Article.  Such group self-insurer
shall then be deemed to be a qualified group workers' compensation pool and
shall be
subject to this Article.
		(Source: P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/107a.05)Sec. 107a.05. 
		Definitions and interchangeable terms.(a) Unless otherwise provided, the following definitions shall apply:"Authorized insurer" means an insurer licensed in this State to
transact business as described
in  Clauses (c) and (d) of Class 2 of Section 4 of this Code."Calendar Quarter" means the 3-month periods ending March 31, June 30,
September 30,
and December 31."Director" means the Director of Insurance."Engaged actively in the business" means a bona fide business concern having
conducted
commerce, trade, or industry in this State for a specified period of time. Any
and all records relating
to this requirement shall be open to inspection by the Director or his designee
during normal
business hours."Gross annual payroll" means payroll for the preceding fiscal year."Independent actuarial opinion" means an opinion expressed by a member of the
American
Academy of Actuaries or Casualty Actuarial Society."Independent CPA" means an independent certified public accountant or
independent
certified public accounting firm in good standing and licensed to practice by
the Department of
Professional
Regulation."Pool" means a qualified group workers' compensation  pool as authorized by
this Article."Qualified group workers' compensation pool" means a group workers'
compensation pool
that has received a certificate of authority pursuant to this Article.(b) For purposes of incorporating the provisions of this Code designated in
paragraphs (1)
and (2) of subsection (a) of Section 107a.04 into this Article, the following
terms shall be
interchangeable:"Contribution" shall be considered premium."Pooling agreement" shall be considered a policy of insurance."Trustees of a group workers' compensation pool" shall be considered as
though they were
directors of a domestic mutual insurance company.
		(Source: P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/107a.06)Sec. 107a.06. 
		Pool administration.(a) An application for Certificate of Authority to establish a pool must
include the
documentation and information regarding its administrator, pooling agreement,
plan of operation,
and membership required by this Section.(b) Administrators must disclose all of the following:(1) Biography of the risk manager on forms prescribed     by the Director.(2) If a corporation, biographies of all officers and     directors.(3) The size of staff and other information, such as     the kinds of staff positions, location of administrative offices and the nature of any electronic data processing equipment, if any, available for servicing the pool, to demonstrate that the administrator has the resources to administer the program disclosed pursuant to subsection (d).(4) The most recent financial statement of the     administrator. If a publicly held company, a copy of the last 10-K filed with the Securities and Exchange Commission.(5) The compensation contract of the administrator.(6) The bylaws of the pool and articles of     incorporation, if any.(7) Any agreement that subcontracts any of the     administrator's duties or responsibilities.(c) A pooling agreement must contain all of the following:(1) A description of the services to be provided by     the administrator.(2) The manner in which costs are to be apportioned     by the administrator.(3) The initial premium deposit.(4) The assessment provision.(5) The termination provisions and minimum term of     membership, which minimum term of membership shall not be less than one year.(6) The duration of liability for additional     assessments following termination of membership, which shall be for a period of not less than 3 years.(7) The prerequisites for membership.(8) A provision stating that a claim shall be paid by     the pool, regardless of the size of the claim, and that the pool shall be reimbursed by the employer for any amounts required to be paid by the employer under the agreement.(9) A provision stating that the terms of termination     after the first year of pool membership shall be dictated by the pooling agreement.(10) If a pooling agreement requires a member to     submit written notice in order for the member to withdraw from a qualified pool, then the period in which the member must provide the written notice cannot be greater than 90 days.(d) Plans of operation must disclose all of the following:(1) A listing of initial members.(2) The aggregate loss history of initial members for     each of the last 3 years.(3) The amount of the net retention of the pool and a     list of reinsurers.(4) The names of all entities that will provide     services for the pool and copies of proposed contracts in connection those services.(5) The safety and loss control programs to be     provided or required.(e) The application must contain information about initial members specified
on forms
prescribed by the Director.(f) The application must contain the combined loss experience for the group
for
the last 3 years and
any other financial data required by the Director.(g) A pool administrator's original books and records relating to the
operations of the pool
shall  at all times be located within the State of Illinois.(h) Any change of the pooling agreement, bylaws, plan of operation,
reinsurance
agreements, or membership shall be delivered to the Director within 30 days
after the amendment
or change.(i) A pool trustee must be an employee, officer, director, or owner of a
pool member.
		(Source: P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/107a.07)Sec. 107a.07. 
Standards for issuing and maintaining pool certificates of
authority.(a) The Department shall consider
the following in
evaluating the financial strength of the pool:(1) The number of employees covered by the pool.(2) The particular industries in which the     participants are engaged.(3) The combined net worth of pool participants.(4) Any excess insurance purchased from authorized     insurers.(5) The gross annual payroll of members, which must     be at least $10,000,000 for active pools not in runoff.(b) The pool administrator must either contract with a licensed service
company or have
sufficient resources, such as those set forth in item (3) of subsection (b) of
Section 107a.06, to
administer the proposed pool.(c) The Department must determine whether the pool can ensure that
individual pool
members are in compliance with Section 107a.08.
(Source: P.A. 96-965, eff. 7-2-10.) (215 ILCS 5/107a.08)Sec. 107a.08. 
		Provisions applicable to members of a group workers'
compensation pool.(a) All members of a group workers' compensation pool must have homogeneous
risk
characteristics as provided in Section 107a.03.(b) In determining whether members exhibit homogeneous risk characteristics,
the Director
shall consider any or all of the following characteristics:(1) The loss frequency inherent in the occupational     framework of group members.(2) The loss severity inherent in the occupational     framework of group members.(3) The occupational disease potential inherent in     the occupational framework of group members.(4) The occupational tasks of member employees.(5) Any other relevant fact the group members present     to the Director that has reference to the classification of similar risks (e.g. SIC codes).(c) Eligibility as a pool participant shall be based upon having a minimum
of:(1) 20 employees and $250,000 gross annual payroll; or(2) 10 employees and $125,000 gross annual payroll     for participants who have engaged actively in business for a minimum of 3 years; or(3) 5 employees and $62,500 gross annual payroll for     participants who have actively engaged in business for a minimum of 5 years.(d) Exceptions to the minimum eligibility requirements of this Section may
be
allowed by any pool whenever the following conditions are met:(1) the participant has been actively engaged in     business for a minimum period of 5 consecutive years in Illinois; and(2) the participant agrees to make all of its     financial records available to the Director for reasonable inspection during the period of membership; and(3) the pool administrator certifies to the Director     that he examined the financial records of the pool participant prior to the participant's admission to the pool and found the participant to be solvent and financially stable.		(Source: P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/107a.09)Sec. 107a.09. 
		Service companies for group workers' compensation pools.(a) No association, corporation, partnership, sole proprietorship, trust, or
other business
entity shall provide services in the design, establishment, or administration
of a group workers'
compensation pool unless it is licensed to do so by the Department. An
applicant for  a license shall
state in writing the type of activities it seeks authorization to engage in and
the type of services it
seeks authorization to provide. The license shall be granted only when the
Director is satisfied that
the entity possesses the necessary organization, background, character,
expertise, and
financial integrity to
supply the services sought to be offered. The Department may issue a license
subject to restrictions
or limitations, including restrictions or limitations on the type of services
that may  be supplied or
the activities in which the entity may engage. A license issued under this
Section shall be valid for
2 years.(b) To assure that administrators are financially solvent, that pools are
administered in a fair
and capable fashion, and that administrators are able to process claims and pay
benefits in a prompt,
fair, and equitable manner, entities licensed to engage in those activities
under this Section are
subject to supervision and examination by the Department.(c) The Department may adopt rules for the purposes of this Article. The
rules shall (i)
establish reporting requirements for administrators for group workers'
compensation pools,
including experience
reporting requirements consistent with those established under this Code for
insurers; (ii) establish
bonding requirements or other provisions assuring the financial integrity of
entities administering
group self-insurance; and (iii) establish other reasonable requirements to
further the purposes of this
Article.
		(Source: P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/107a.10)Sec. 107a.10. 
		Bond requirements.(a) An administrator shall obtain and maintain in force fidelity bonds on
employees, officers,
or positions in an amount not less than the amount set forth in the column
"Minimum Amount of
Bond", based on the amount of assets administered on behalf of pools by the
administrator (as
determined from year to year) stated in the annual statement of the
pools as filed with the
Department. All such bonds shall be written with at least a one-year discovery
period and, if written
with less than a 3-year discovery period, shall contain a provision that no
cancellation or termination
of the bond, whether by or at the request of the insured or by the underwriter,
shall take effect before
the expiration of 90 days after written notice of the cancellation or
termination has been filed with
the Department unless an earlier date of cancellation or termination is
approved by the Department.(b) The bonds shall include all employees, officers, or positions for the
following perils,
which may be covered under separate policies:(1) dishonesty of employees and officers;(2) robbery, burglary, larceny, theft, false     pretense, hold-up, misplacement, mysterious disappearance, and damage or destruction while property is in any bank, any recognized place of safe deposit, or in transit; and(3) forgery or alteration.(c) The bond shall be written by an insurer licensed to transact business in
the State of
Illinois.(d) Schedule of assets in relationship to amount of bond:
		

TOTAL ASSETS
MINIMUM AMOUNT OF BOND


$500,000 or less..........
$20,000 plus 6% of total



assets



more than $ 500,000 and


not more than $1,000,000.....
$50,000 plus 4% of assets



over $500,000



more than $1,000,000 and


not more than $3,000,000.....
$70,000 plus 3% of assets



over $1,000,000



more than $3,000,000 and


not more than $5,000,000.....
$130,000 plus 2% of assets



over $3,000,000



more than $5,000,000 and


not more than $10,000,000.....
$170,000 plus 1.5% of assets



over $5,000,000


more than $10,000,000.......
$245,000 plus 0.75% of assets



more than $10,000,000

 		(Source: P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/107a.11)Sec. 107a.11. 
		Admissible assets.(a) Admitted assets include amounts permitted under Section 107a.12
as modified by only
the following:(1) Direct obligations of the United States of     America for the payment of money or obligations for the payment of money that are guaranteed as to the payment of principal and interest by the United States of America.(2) Direct obligations for the payment of money     issued by an agency or instrumentality of the United States of America or obligations for the payment of money that are guaranteed as to payment of principal and interest by an agency or instrumentality of the United States of America.(3) Bonds or securities that are issued by any state     of the United States and that are secured by the full faith and credit of that state.(4) Certificates of deposit, time deposits, or demand     deposits in a bank in the State of Illinois that has deposits insured by the Federal Deposit Insurance Corporation.(5) Saving certificates issued by any savings and     loan association in the State of Illinois that has deposits insured by the Federal Deposit Insurance Corporation.(6) Direct, unconditional obligations of a solvent     business corporation for the payment of money on the following conditions:(A) the corporation is incorporated under the         laws of the United States of America or any state of the United States of America;(B) the corporation has a tangible net worth of         not less than $500,000 and the obligations have been awarded a "1" or "2" rating by the Securities Valuation Office of the National Association of Insurance Commissioners;(C) the corporation is not affiliated with any         member of the pool;(D) no such obligation of the corporation has         been in default as to principal or interest during the 5 years preceding the date of investment, however, the corporation need not have had obligations outstanding during that period and need not have been in existence for that period, and obligations acquired under this Section may be newly issued;(E) a pool may not invest more than 33 1/3% of         its assets under this item (6); and(F) a pool may not invest under this Section more         than 5% of its assets in the obligations of any one corporation.(7) Obligations of any political subdivision of any     state of the United States of America for the payment of money on the following conditions:(A) the obligations are payable from ad valorem         taxes;(B) the political subdivision is not in default         in the payment of principal or interest on any of its direct, general obligations;(C) no investment may be made under this Section         in obligations that are secured only by special assessments for local improvements;(D) a pool may not invest under this Section more         than 4% of its assets in direct, general obligations issued by any one political subdivision; and(E) a pool may not invest more than 50% of its         assets under this item (7).(8) Mutual funds:(A) government money market mutual funds that         meet the conditions of paragraphs (c)(2), (c)(3), and (c)(4) of 17 C.F.R. 270.2a-7, revised as of April 1, 1992, that have been rated in one of the 2 highest rating categories by an independent rating agency recognized by the National Association of Insurance Commissioners, and that invest in obligations issued, guaranteed, or insured by the United States or Canada or any agency or instrumentality of the United States or Canada.(B) fixed income bond mutual funds that meet the         conditions of paragraphs (c)(2), (c)(3), and (c)(4) of 17 C.F.R. 270.2a-7, revised as of April 1, 1992, and that have been rated in one of the 2 highest rating categories by an independent rating agency recognized by the National Association of Insurance Commissioners, however, a pool may not invest in fixed income bond mutual funds more than the greater of $100,000 or 10% of its total assets in any one fund.(9) Not more than 5% of a pool's admitted assets may     be assessment receivables. In order to be an admitted asset, an assessment receivable cannot be more than 60 days past due.(10) Not more than 10% of a pool's admitted assets     may be reinsurance receivables. In order to be an admitted asset, a reinsurance receivable cannot be more than 90 days past due.(b) Amounts recoverable from authorized reinsurers on unpaid losses may be
deducted from
the reserves required by Section 4 of the Workers' Compensation Act.(c) All securities eligible for registration shall be registered in the name
of the pool and all
securities shall be maintained in a State or National Bank having trust powers
and located within this
State.
		(Source: P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/107a.12)Sec. 107a.12. Annual statement.(a) A pool authorized to do business in this State shall file with the
Director by March
1st in each year 2 copies of its financial statement for the year ending
December 31st
immediately preceding on forms prescribed by the Director, which shall conform
substantially to
the form of statement adopted by the National Association of Insurance
Commissioners.  Unless
the  Director provides otherwise, the annual statement is to be prepared in
accordance with the
annual statement instructions and the Accounting Practices and Procedures
Manual adopted by
the National Association of Insurance Commissioners.  The Director may
promulgate rules for
determining which portions of the annual statement instructions and Accounting
Practices and
Procedures Manual adopted by the National Association of Insurance
Commissioners are
germane for the purpose of  ascertaining the condition and affairs of a pool.(b) The Director shall have authority to extend the time for filing any
statement by any
pool for reasons that he considers good and sufficient. The admitted assets
shall be shown in the
statement at the actual values as of the last day of the preceding year, in
accordance with Section
126.7 of this Code. The statement shall be verified by oaths of a majority of
the trustees
or directors of the
pool.  In addition, when the Director considers it to be necessary and
appropriate for the
protection of policyholders, creditors, shareholders, or claimants, the
Director may require the
pool to file, within 60 days after mailing to the pool a notice that a
supplemental summary
statement is required, a supplemental summary statement, as of the last day of
any calendar
month occurring during the 100 days next preceding the mailing of the notice,
designated by him
or her on forms prescribed and furnished by the Director. The Director may
require supplemental
summary statements to be certified by an independent actuary deemed competent
by the Director
or by an independent certified public accountant.(c) On or before June 1 of each year, a pool shall file with the Director an
audited financial
statement reporting the financial condition of the pool as of the end of the
most recent calendar year
and changes in the surplus funds for the year then ending. The annual audited
financial report shall
include the following:(1) a report of an independent certified public     accountant;(2) a balance sheet reporting assets, as defined in     this Article, liabilities, and surplus funds;(3) a statement of gain and loss from operations;(4) a statement of changes in financial position;(5) a statement of changes in surplus funds; and(6) the notes to financial statements.(d) The Director shall require a pool to file an independent actuarial
opinion
as to the
sufficiency of the loss and loss adjustment expense reserves. This opinion
shall be due on March 1 of
each year.
(Source: P.A. 102-135, eff. 1-1-22.) (215 ILCS 5/107a.13)Sec. 107a.13. 
		Group Workers' Compensation Pool Insolvency Fund.(a) All qualified group workers' compensation pools shall pay a sum equal to
0.5% of
all
compensation and medical service payments made under either the Workers'
Compensation Act or the
Workers'
Occupational Diseases Act during the 6 months immediately preceding the date of
payment, into
the Group Workers' Compensation Pool Insolvency Fund, the successor fund to the
Group Self-Insurers' Insolvency Fund.  On the effective
date of this amendatory Act of the 91st General Assembly, all moneys in the
Group Self-Insurers' Insolvency Fund shall be transferred into the Group
Workers' Compensation Pool Insolvency Fund.(b) The State Treasurer is ex-officio custodian of the Group Workers'
Compensation Pool
Insolvency Fund. Moneys in the Fund shall be deposited the same as are State
funds and any interest
accruing on moneys in the Fund shall be added to the Fund every 6 months. The
Fund shall be
subject to audit the same as State funds and accounts and shall be protected by
the general bond
given by the State Treasurer. The Fund shall be considered always appropriated
for the purposes of
compensating employees who are eligible to receive benefits from their
employers pursuant to the
provisions of the Workers' Compensation Act or Workers' Occupational Diseases
Act when their
employer is a member of a qualified group workers' compensation pool and the
qualified group
workers' compensation
pool has become unable to pay compensation and medical service payments due to
financial insolvency either
prior to or following
the date of award. Moneys in the Fund may be used to compensate any type of
injury or occupational
disease that is compensable under either the Workers' Compensation Act or the
Workers'
Occupational Diseases Act. The State Treasurer shall be joined with the
qualified group
workers'
compensation pool as party respondent in any claim or application for
adjustment of claim filed
against a qualified group workers' compensation pool whenever the compensation
and
medical services
provided pursuant to this Article may be unpaid by reason of default of an
insolvent qualified group workers'
compensation pool.(c) Payment shall be made out of the Group Workers' Compensation Pool
Insolvency Fund
only upon order of the Director and only after the penal sum of the fidelity
bond and securities, if any, has
been exhausted. It shall be the obligation of a qualified group workers'
compensation
pool or its successor to
make arrangements to repay the Group Workers' Compensation Pool Insolvency Fund
for all
moneys paid out in its behalf. The Director is authorized to make arrangements
with the qualified group
workers' compensation pool as to terms of repayment. The obligations of
qualified group
workers'
compensation pools to make contributions to the Group Workers' Compensation
Pool Insolvency
Fund shall be waived on any January 1 or July 1, if the Fund has a positive
balance of at least
$2,000,000 on the date one month prior to the date of payment.
		(Source: P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/107a.14)Sec. 107a.14. 
		Group workers' compensation pools assessment provisions.(a) When the Director determines by means of audit, annual certified
statement, actuarial
opinion, or otherwise that the assets possessed by a pool are less than the
reserves required together
with any other unpaid liabilities, he or she shall order the pool trustees
to assess the individual
pool participants in an amount not less than necessary to correct the
deficiency. This Section is not
intended to restrict or preclude the trustees from time to time levying
assessments or increasing
premium deposits in accordance with the pooling agreement.(b) When the Director determines that the compensation and medical services
provided
pursuant to this Article may be unpaid by reason of the default of an insolvent
qualified group workers'
compensation pool and the penal sum of the fidelity bond and the securities
provided by the qualified group
workers' compensation pool are about to become exhausted, the Director  shall
declare the qualified group
workers' compensation pool to be in default and first levy upon and collect
from the individual
employer members of the qualified group workers' compensation pool in default
an
assessment to assure
prompt payment of compensation and medical services. No assessment of any
individual employer
member of the qualified group workers' compensation pool made pursuant to this
subsection
shall exceed
25% of the average annual contribution paid by that employer over the previous
3-year period;
however, if the Group Workers' Compensation Pool Insolvency Fund is then for
any reason
financially unable to assure prompt payment of compensation and medical
services, the employer
member may be assessed without limitation. If and only if (i) the Group
Workers' Compensation
Pool Insolvency Fund has a positive balance of less than $1,000,000, (ii) the
Director has declared
a qualified group workers' compensation pool to be in default, and (iii) the
Group Workers' Compensation
Pool Insolvency Fund is financially unable to pay all employees whose
compensation and medical
services have been approved, the Director  shall levy upon and collect from all
qualified group workers'
compensation pools an assessment to provide the balance necessary to assure
prompt payment of
approved compensation and medical services. If an insurance carrier
becomes liable for
workers' compensation and occupational diseases payments under the terms of the
policy covering
the qualified group workers' compensation pool, the carrier shall make
appropriate payments and
payments from the Fund shall cease.  Payments from the Fund shall resume only
when the
insurance carrier's liability is exhausted.
		(Source: P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/107a.15)Sec. 107a.15. 
		Authority of Director.(a) If the Director determines that a group workers'
compensation pool is not in compliance with this Article, the Director
shall
require the pool to eliminate the condition causing the noncompliance within a
specified time
from the date the notice of the Director's requirement is mailed or delivered
to the pool.(b) If a pool fails to comply with the Director's requirement, the pool
shall be deemed
to be in a hazardous financial condition, and the Director may take one or more
of the actions
authorized by law as to pools in hazardous financial condition.
		(Source: P.A. 91-757, eff. 1-1-01.)
(215 ILCS 5/Art. V heading) ARTICLE V.  
		LLOYDS
(Article scheduled to be repealed on January 1, 2027) (215 ILCS 5/86) (from Ch. 73, par. 698)(Section scheduled to be repealed on January 1, 2027)Sec. 86. Scope of Article.(1) This Article applies to all groups including
incorporated and
individual unincorporated underwriters transacting an insurance business in
this State through an
attorney-in-fact under the name Lloyds or under a Lloyds plan of operation.
 Groups that meet the requirements of subsection (3) are referred to
in this Code as "Lloyds", and incorporated and individual unincorporated
underwriters are referred to as "underwriters".(2) As used in this Code:"Domestic Lloyds" means a Lloyds having its
home office in this State."Foreign Lloyds" means a Lloyds having its home
office in any state of the United States other than this State."Alien
Lloyds" means a Lloyds having its home office or principal place of
business in any country other than the United States.(3) A domestic Lloyds must: (i) be established pursuant to a statute or
written charter; (ii) provide for governance by a board of directors or similar
body; and (iii) establish and monitor standards of solvency of its
underwriters.  A foreign or alien Lloyds must be subject to requirements of its
state or country of domicile.  Those requirements must be substantially similar
to those required
of domestic Lloyds.  Domestic, foreign, and alien Lloyds shall
not be
subject to Section 144 of this Code.(4) All foreign and alien
entities and individuals transacting an insurance business as domestic,
foreign, or alien
Lloyds shall notify the Director and the Secretary of State under the
provisions of this Article, shall be
regulated exclusively by the Director, and shall not be required to obtain a
certificate of authority from the Secretary of State pursuant to any other law
of this State so long as they solely transact business as a domestic, foreign,
or alien Lloyds.  Upon notification, the Secretary of State may require
submission of additional information to determine whether a foreign or alien
individual or entity is transacting business solely as a domestic, foreign, or
alien Lloyds.
(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 5/87) (from Ch. 73, par. 699)(Section scheduled to be repealed on January 1, 2027)Sec. 87. 
		Certificate
of authority. 
		It shall be unlawful for any domestic, foreign or alien Lloyds to
transact business in this State unless it has first obtained and has in
force a certificate of authority issued by the Director. All certificates
of authority issued under the provisions of this Article shall terminate on
the thirtieth day of June next following the date of issuance and may be
renewed upon compliance with this Code.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/88) (from Ch. 73, par. 700)(Section scheduled to be repealed on January 1, 2027)Sec. 88. 
		Name. 
		
		The name of any Lloyds authorized to transact business under this
Article shall not be the same as, or deceptively similar to, the name of
any domestic company or of any foreign or alien company authorized to
transact business in this State.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/89) (from Ch. 73, par. 701)(Section scheduled to be repealed on January 1, 2027)Sec. 89. 
		Principal
office of attorney-in-fact. 
		The principal office of the attorney-in-fact of a domestic Lloyds shall
be maintained in this State.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/90) (from Ch. 73, par. 702)(Section scheduled to be repealed on January 1, 2027)Sec. 90. 
		Kinds of
business permitted. 
		Except as otherwise provided in this Article, a Lloyds may be authorized
to transact any or all of the kind or kinds of business enumerated in
Classes 2 and 3 of Section 4.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/91) (from Ch. 73, par. 703)(Section scheduled to be repealed on January 1, 2027)Sec. 91. 
		Declaration of domestic Lloyds. 
		The attorney-in-fact for underwriters who desire to form a domestic
Lloyds under this Article shall sign and acknowledge before an officer
authorized to take acknowledgments, a declaration in duplicate. When the
attorney-in-fact is a corporation the declaration shall be acknowledged
by an officer of such corporation. The declaration shall set forth(a) the name of the attorney-in-fact, and the name or     designation under which contracts are to be effected;(b) the location of the office of the     attorney-in-fact;(c) the names and addresses, including streets and     numbers, if any, of the underwriters;(d) the class or classes of insurance which such     Lloyds proposes to transact and the kinds of insurance in each class which it proposes to write;(e) such other provisions not inconsistent with law     which may be deemed by the attorney-in-fact or the underwriters to be necessary or advisable.		(Source: P.A. 88-535.) (215 ILCS 5/92) (from Ch. 73, par. 704)(Section scheduled to be repealed on January 1, 2027)Sec. 92. 
		Documents
to be delivered to director. 
		Upon the execution of the declaration by the attorney-in-fact for a
domestic Lloyds, there shall be delivered to the Director(a) duplicate originals of the declaration;(b) a copy of the power of attorney of the     attorney-in-fact;(c) an instrument authorizing the service of process     on the Director provided for in Section 105;(d) 2 organization bonds or the cash or securities     provided for in Section 93.		(Source: Laws 1965, p. 422.) (215 ILCS 5/93) (from Ch. 73, par. 705)(Section scheduled to be repealed on January 1, 2027)Sec. 93. 
		Bonds. 
		
		The attorney-in-fact for any domestic Lloyds in the process of
organization shall deliver to the Director two bonds in the same penalties
and containing the same provisions so far as applicable as the bonds
required for the organization of a stock company by Section 16, for the
use and benefit of the State of Illinois, the underwriters and creditors,
or in lieu of delivering such bonds the attorney-in-fact may deposit cash
or securities of the same kind or amount and on the same terms and
conditions so far as applicable as provided by said Section.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/94) (from Ch. 73, par. 706)(Section scheduled to be repealed on January 1, 2027)Sec. 94. 
		Approval of
documents. 
		The documents and papers so delivered to the Director may be approved or
disapproved by the Director, and the attorney-in-fact or underwriters shall
be entitled to a hearing in the same manner as provided in Section 18 in
the case of documents delivered for approval in connection with the
organization of stock companies. If the documents and papers so delivered
are approved by the Director, the Director shall, thereupon, place on file
in his office all of such documents except one of the duplicate originals
of the declaration, and shall endorse upon such duplicate original his
approval thereof and the month, day and year of such approval, and deliver
it to the attorney-in-fact. Upon the date of approval of said declaration
by the Director, the domestic Lloyds shall be deemed to be in existence.
		(Source: Laws 1959, p. 627.) (215 ILCS 5/95) (from Ch. 73, par. 707)(Section scheduled to be repealed on January 1, 2027)Sec. 95. 
		Authority
to solicit underwriters. 
		Upon the approval of the declaration by the Director, he shall issue to
the attorney-in-fact a permit which shall expire at the end of one year
from its date, authorizing the attorney-in-fact to solicit deposits of
underwriters in accordance with this Code and in accordance with the power
of attorney filed with the Director, and to do such other acts as may be
necessary or proper in order to complete the organization of such Lloyds
and to entitle it to receive a certificate of authority to transact an
insurance business.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/96) (from Ch. 73, par. 708)(Section scheduled to be repealed on January 1, 2027)Sec. 96. 
		Issuance of
certificate of authority. 
		When the Director has been notified that the underwriters have deposited
a sum not less than the minimum admitted assets required by Section 99,
he shall conduct an examination of such Lloyds. If he finds that the
organization has been completed and that all other requirements of this
Code have been met, he shall issue to such Lloyds a certificate of
authority to transact the kind or kinds of business specified in the
declaration.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/97) (from Ch. 73, par. 709)(Section scheduled to be repealed on January 1, 2027)Sec. 97. 
		Deposit
required of underwriters. 
		Each underwriter of a domestic Lloyds shall make and maintain a deposit
of cash or securities, or both, in trust with a responsible bank or trust
company in this State to indemnify policyholders against loss. Securities
so deposited shall be of a character conformable to the requirements of
Article VIII applicable to companies transacting the same kind or kinds
of business. The attorney-in-fact shall file with the Director an
authenticated copy of each trust agreement under which any such deposit is
made. All such deposits shall be considered as admitted assets of such
Lloyds. No change or withdrawal of cash or securities deposited in trust
shall be made without the approval of the Director.
		(Source: Laws 1959, p. 1431.) (215 ILCS 5/98) (from Ch. 73, par. 710)(Section scheduled to be repealed on January 1, 2027)Sec. 98. 
		Verified statement. 
		Whenever the Director shall so require, the
attorney-in-fact of a domestic Lloyds shall file with the Director a verified
statement setting forth(a) the names and addresses of all underwriters; and(b) a description of the cash and securities     deposited in trust by each underwriter.		(Source: P.A. 90-794, eff. 8-14-98.) (215 ILCS 5/99) (from Ch. 73, par. 711)(Section scheduled to be repealed on January 1, 2027)Sec. 99. 
		Minimum
admitted assets required of domestic Lloyds. 
		Each domestic Lloyds shall at all times keep and maintain in this State
admitted assets, including the deposits of underwriters required by section
97, exceeding all outstanding claims and other liabilities plus the
unearned premiums (less reinsurance premiums) on the policies in force, by
not less than $900,000 if such Lloyds is writing all or any kinds of
insurance enumerated in Class 2 of section 4, by not less than $600,000
if such Lloyds is writing all or any kinds of insurance enumerated in Class
3 of section 4 and by not less than $1,500,000 if such Lloyds is writing
the kinds of insurance enumerated in both Class 2 and Class 3 of section 4,
provided however, that any such Lloyds organized prior to the effective
date of this amendatory Act of 1965 shall have and at all times maintain
admitted assets in excess of all liabilities in the amount which was
required for that particular Lloyds at the time it was issued a certificate
of authority.
		(Source: Laws 1965, p. 971.) (215 ILCS 5/100) (from Ch. 73, par. 712)(Section scheduled to be repealed on January 1, 2027)Sec. 100. 
		Minimum
available assets required of domestic Lloyds. 
		The aggregate of the amounts on deposit of all underwriters and all
other admitted assets of each domestic Lloyds available for the payment of
losses shall at all times be at least five times the amount to be assumed
by such Lloyds, net not including reinsurance in licensed insurers, upon a
single risk cumulative for each kind of insurance.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/101) (from Ch. 73, par. 713)(Section scheduled to be repealed on January 1, 2027)Sec. 101. 
		Restrictions upon domestic Lloyds.(1) A domestic Lloyds shall not(a) change its name or title without first obtaining     the written approval of the Director; nor(b) establish branches under other or different names     or titles; nor(c) amend or change its declaration or power of     attorney without the approval of the Director and any amendment thereto or change therein shall be set forth in an amended verified declaration or power of attorney filed with the Director.(2) A domestic Lloyds shall(a) maintain the assets required by this Article     either in cash or in investments permitted by this Code;(b) maintain in this State the principal office of     its attorney-in-fact for the transaction of business therein, and shall notify the Director of any change in the location of the principal office of its attorney-in-fact;(c) notify the Director of any change in     underwriters; and(d) notify the Director of any change of     attorney-in-fact by filing with the Director an instrument signed by the underwriters of such Lloyds revoking the previous appointment of any attorney-in-fact and designating and appointing a substitute attorney-in-fact.(3) All notices required by subsections (1) and (2) except the notice
prescribed by clause (d) of subsection (2) shall be in writing and shall be
verified by the attorney-in-fact if an individual or by an officer of the
attorney-in-fact if a corporation.(4) Additional underwriters may join and be included in any such Lloyds,
subject to such conditions and requirements as may from time to time be
imposed by such Lloyds and upon meeting the requirements in this Article
with regard to underwriters. Such additional underwriters who may so join
such Lloyds shall be bound by the documents on file with the Director in
the same manner as though they had personally executed the same and shall
have the same rights, powers and duties as all other underwriters of such
Lloyds. The attorney-in-fact authorized by the underwriters to act for them
shall thereafter also be the attorney-in-fact for such additional
underwriters.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/102) (from Ch. 73, par. 714)(Section scheduled to be repealed on January 1, 2027)Sec. 102. 
		Restrictions upon foreign Lloyds.(1) Each foreign Lloyds authorized to transact business in this State
shall(a) maintain cash and securities, including the     deposits of its underwriters, of a character conformable to the requirements of Article VIII of this Code for domestic companies, at least equal at all times to the minimum admitted assets required by this Article for a domestic Lloyds doing the same kind or kinds of business.(b) file with the Director an authenticated copy of     its power of attorney and an authenticated copy of the trust agreement or other agreement under which deposits made by underwriters are held;(c) notify the Director forthwith of any amendment to     its power of attorney, deposit agreement or other documents underlying its organization, by filing with the Director an authenticated copy of such document as amended;(d) notify the Director forthwith of any change in     its name or change of attorney-in-fact or change of address of its attorney-in-fact.(2) A foreign Lloyds shall not establish branches under other or
different names or titles.(3) There shall be filed with the Director by the
attorney-in-fact of such foreign Lloyds at the time of filing the annual
statement, or more
often if required by the Director, a statement verified by the appropriate
official of such Lloyds, setting forth(a) the names and addresses of all underwriters of     such Lloyds; and(b) a description of the cash and securities     deposited in trust by each underwriter.		(Source: P.A. 90-794, eff. 8-14-98.) (215 ILCS 5/103) (from Ch. 73, par. 715)(Section scheduled to be repealed on January 1, 2027)Sec. 103. 
		Alien
Lloyds.(1) Each alien Lloyds authorized to transact business in this State
shall(a) maintain in this State or any other state of the     United States in which they are authorized to transact business, cash or securities of a character conformable to the requirements of Article VIII of this Code for domestic companies at least equal at all times to the minimum of admitted assets required by this Article for a domestic Lloyds doing the same kind or kinds of business;(b) make deposits of underwriters in this State in     accordance with the requirements imposed upon domestic Lloyds;(c) file with the Director an authenticated copy of     its power of attorney and an authenticated copy of the trust agreement or other agreement under which deposits made by underwriters in this State are held;(d) notify the Director forthwith of any amendment to     its power of attorney, deposit agreement or other documents by filing with the Director an authenticated copy of such document as amended; and(e) notify the Director forthwith of any change in     its name or change of attorney-in-fact or change of address of its attorney-in-fact.(2) An alien Lloyds shall not establish branches under other or
different names or titles.(3) There shall be filed with the Director by the
attorney-in-fact for such Lloyds, who or which shall be a resident person or
corporation of this
State, at the time of filing the annual statement, or more often if
required by the Director, a verified statement setting forth(a) the names and addresses of all underwriters of     such Lloyds; and(b) a description of the cash and securities     deposited in trust by each underwriter.(4) Additional underwriters may join and be included in any such
Lloyds subject to such conditions and requirements as may from time to time be
imposed by such Lloyds and upon meeting the requirements of this Section,
such additional underwriters who may so join such Lloyds shall be bound by
the documents on file with the Director in the same manner as though they
had personally executed the same and shall have the same rights, powers and
duties as all other underwriters of such Lloyds. The attorney-in-fact
authorized by the underwriters to act for them shall thereafter be the
attorney-in-fact for such additional underwriters to the extent of the
power of attorney or other document or authorization by such underwriters
to the attorney-in-fact.
		(Source: P.A. 90-794, eff. 8-14-98.) (215 ILCS 5/104) (from Ch. 73, par. 716)(Section scheduled to be repealed on January 1, 2027)Sec. 104. 
		Policy
forms. 
		Every policy issued in this State by any domestic, foreign or alien
Lloyds shall have printed upon its face and back the name of such Lloyds,
the name and address of its attorney-in-fact in this State or agent for
service of process in this State, and in type not smaller than ten point
the words "Not Incorporated."
		(Source: Laws 1937, p. 696.) (215 ILCS 5/105) (from Ch. 73, par. 717)(Section scheduled to be repealed on January 1, 2027)Sec. 105. 
		Director as agent;
service of process.(1) The attorney-in-fact of every Lloyds transacting business in this
State shall file with the Director a duly executed instrument whereby such
Lloyds shall appoint and constitute the Director, his successor or
successors in office, the true and lawful agent of such Lloyds upon whom
all lawful process in any action or legal proceeding against such Lloyds
may be served, and shall agree that any lawful process against such Lloyds
which may be served upon said agent shall be of the same force and validity
as if served upon the attorney-in-fact, and that the authority thereof
shall continue in force irrevocably so long as any liability of such Lloyds
in this State shall remain outstanding.(2) In any suit instituted against any domestic, foreign or alien Lloyds
transacting business in this State, it shall not be necessary to name the
underwriters as parties defendant, but such Lloyds may be named
as the party defendant in any such suit and service may be had upon all the
underwriters by service upon the last appointed attorney-in-fact or by
service upon the Director, and not otherwise. Any such suit may be brought
in the county in which the cause of action arises or in which the claimant
resides. When such process is served upon the Director as agent to accept
service, duplicate copies of such process shall be delivered to him and he
shall immediately forward one copy of each such process to the last
appointed attorney-in-fact by certified or registered mail, postage
prepaid, giving the
day and hour of such service.
		(Source: P.A. 88-535.) (215 ILCS 5/106) (from Ch. 73, par. 718)(Section scheduled to be repealed on January 1, 2027)Sec. 106. 
		Penalties. 
		
		It shall be unlawful for any person to act as an underwriter of or
attorney-in-fact for a Lloyds except in accordance with the provisions of
this Article, and any person violating any of the provisions of this
section shall be guilty of a business offense and shall be required to pay
a penalty of not more than one thousand dollars, for each offense, to be
recovered in the name of the People of the State of Illinois by the State's
Attorney of the county in which the violation occurs, and the penalty so
recovered shall be paid into the county treasury.
		(Source: P.A. 77-2699.) (215 ILCS 5/107) (from Ch. 73, par. 719)(Section scheduled to be repealed on January 1, 2027)Sec. 107. 
		Application of other Code provisions. 
		
		Unless otherwise provided in this Article, every Lloyds shall be subject
to other applicable provisions of this Code.
		(Source: Laws 1937, p. 696.)
(215 ILCS 5/Art. VI heading) ARTICLE VI.  
		FOREIGN OR ALIEN COMPANIES
(Article scheduled to be repealed on January 1, 2027) (215 ILCS 5/108) (from Ch. 73, par. 720)(Section scheduled to be repealed on January 1, 2027)Sec. 108. 
		Companies
that may be admitted to do business.(1) Upon complying with the provisions of this Article, a foreign or
alien company organized as a stock company, mutual company, reciprocal,
Lloyds or fraternal benefit society
may be admitted to transact in this State the kind or kinds of business
which a domestic company similarly organized may be authorized to transact
under this Code. Any certificate of authority issued to an alien Lloyds
shall be subject to all of the provisions of Section 103.(2) No foreign or alien mutual benefit society or burial society shall
hereafter be admitted to transact business in this State.(3) No foreign or alien company shall transact in this State any
insurance business not classified under Section 4.
		(Source: P.A. 82-498.) (215 ILCS 5/109) (from Ch. 73, par. 721)(Section scheduled to be repealed on January 1, 2027)Sec. 109. 
		Application for certificate of authority.(1) A foreign or alien company in order to procure a certificate of
authority to transact business in this State shall make application
therefor to the Director.  The application shall set forth:(a) the name of the company, and the state or country     under the laws of which it is organized or authorized;(b) the title of the Act under or by which it was     incorporated or organized, the date of its incorporation or organization and, if a corporation, the period of its duration;(c) the class or classes of insurance business, as     provided in Section 4, in which it proposes to engage in this State, and the kinds of insurances in each class it proposes to write in this State;(d) if a life company, that it is not engaged in any     state in practices which, if engaged in in this State, would constitute a violation of Section 237;(e) whether or not it was authorized to transact     business in this State during any part of the 3-year period prior to its application and, if so, for what period;(f) whether or not it survives or was formed by a     merger, consolidation, reorganization, or reincorporation effected within 3 years prior to its application and, if so, whether and for what period or periods any of the companies that are parties to the merger, consolidation, reorganization, or reincorporation were authorized to transact business in this State within the 3-year period prior to its application; and(g) such additional information as the Director may     require to enable the Director to determine whether the company is entitled to a certificate of authority to transact business in this State and to determine and assess the taxes, fees and charges payable as in this Code prescribed.(2) Such application shall be made on forms prescribed and furnished by
the Director and shall be executed by the company by its president or a
vice-president or executive officer corresponding thereto, and verified by
such officer, and if a corporation, the corporate seal shall be thereto
affixed, attested by its secretary or other proper officer.
		(Source: P.A. 90-655, eff. 7-30-98.) (215 ILCS 5/110) (from Ch. 73, par. 722)(Section scheduled to be repealed on January 1, 2027)Sec. 110. 
		Delivery
to director of application and documents. 
		There shall be delivered to the Director(a) the application of the company for a certificate     of authority;(b) a copy of its articles of incorporation or     articles of association as amended, duly certified by the proper officer of the state or country under whose laws the company is organized or incorporated, or if a reciprocal or Lloyds the power of attorney of the attorney-in-fact;(c) if an alien company, a copy of the appointment     and authority of its United States manager, certified by a proper officer of the company;(d) a copy of its by-laws or regulations, and if a     fraternal benefit society, a copy of its constitution, certified by its secretary or officer corresponding thereto;(e) the instrument authorizing service of process on     the Director required by section 112;(f) a statement of its financial condition and     business as of the end of the preceding calendar year complying as to form, content and verification with the requirements of this Code for annual statements, or a financial statement as of such later date as the Director may require;(g) a copy of the last report of examination     certified to by an insurance commissioner or other proper supervisory official; and(h) a certificate from the proper official of the     state or country wherein it is incorporated or organized that it is duly incorporated or organized and is authorized to write the kind or kinds of insurance which it proposes to write in this State.		(Source: Laws 1965, p. 422.) (215 ILCS 5/111) (from Ch. 73, par. 723)(Section scheduled to be repealed on January 1, 2027)Sec. 111. 
		Conditions of issuance of certificate of authority.(1) Before a certificate of authority to transact business in this State
is issued to a foreign or alien company, such company shall satisfy the
Director that:(a) the company is duly organized under the laws of     the state or country under whose laws it professes to be organized and authorized to do the business it is transacting or proposes to transact;(b) its name is not the same as, or deceptively     similar to, the name of any domestic company, or of any foreign or alien company authorized to transact business in this State;(c) if a company transacting business of the kind or     kinds enumerated in Class 1 of Section 4, it is not engaging in practices in any state which if engaged in this State, would constitute a violation of Section 237; and it is not transacting any kinds of business other than those enumerated in Class 1 of Section 4;(d) if a stock company, it has a paid up capital and     surplus at least equal to the capital and original surplus required by this Code for a domestic company doing the same kind or kinds of business or, if a mutual company or reciprocal, it has a surplus and provision for contingent liability of policyholders, at least equal to the original surplus and provision for contingent liability of policyholders required for a similar domestic company doing the same kind or kinds of business, or, if a fraternal benefit society, it meets the requirements prescribed in this Code for the organization of a domestic company or society, or if a Lloyds it meets the requirements of Article V;(e) its funds are invested in accordance with the     laws of its domicile; and(f) in the case of a stock company its minimum     capital and surplus and required reserves, or in the case of a mutual company or a reciprocal proposing to issue policies without contingent liability, its minimum surplus and required reserves, or in the case of any other company, all its funds, are invested in securities or property which afford a degree of financial security equal to that required for similar domestic companies, provided that this clause shall not be construed as requiring the application of limitations relating either to the kind or amount of securities prescribed by this Code for the investments of domestic companies.(2) In determining whether an alien company complies with the provisions
of subsection (1) of this section the Director shall consider only business
transacted in the United States, only the assets described in Section 60j
and only liabilities in connection with its United States business.(3) Before a certificate of authority is issued to a foreign or alien
company, other than a Lloyds, it shall deposit with the Director securities
which are authorized investments for similar domestic companies under
Section 126.11A(1), 126.11A(2), 126.24A(1), or 126.24A(2) of
the amount, if any, required of a domestic company
similarly organized and doing the same kind or kinds of business; or in
lieu of such deposit such foreign or alien company shall satisfy the
Director that it has on deposit with an official of a state of the United
States or a depositary designated or authorized for such purpose by such
official, authorized by the law of such state to accept such deposit,
securities of at least a like amount, for the benefit and security of all
creditors, policyholders and policy obligations of such company.(4) Before issuing a certificate of authority to a foreign or alien
company, the Director may cause an examination to be made of the condition
and affairs of such company.
		(Source: P.A. 90-418, eff. 8-15-97; 90-794, eff. 8-14-98.) (215 ILCS 5/112) (from Ch. 73, par. 724)(Section scheduled to be repealed on January 1, 2027)Sec. 112. 
		Service of process - Director as attorney.(1) Every foreign or alien company desiring to transact business in this
State shall file with the Director a duly executed instrument whereby the
company shall appoint and constitute the Director and his successor or
successors in office the true and lawful attorney of such company upon whom
all lawful process in any action or legal proceeding against it may be
served and shall agree that any such lawful process against it which may be
served upon its said attorney as provided in this section shall be of the
same force and validity as if served upon the company and that the
authority thereof shall continue in force irrevocably so long as any
liability of the company in the State shall remain outstanding.(2) Process authorized by such instrument or by any similar instrument
heretofore executed shall be served by delivering to and leaving with the
Director duplicate copies of such process with payment of the fee
prescribed by this Code, and the service thereof upon such attorney shall
be deemed service upon the company. The Director shall forthwith forward
one copy of each such process by certified or registered mail prepaid
to the company, or
in the case of an alien company, to the United States Manager or last
appointed United States general agent of the company, giving the day and
the hour of such service. Service of such process shall not be complete
until the copy thereof has been so mailed and received by the company, and
the certified receipt or registry receipt shall be prima facie evidence
of the completion of
such service. Service of process on a reciprocal or Lloyds shall be
governed by sections 77 and 105 respectively.
		(Source: P.A. 83-598.) (215 ILCS 5/113) (from Ch. 73, par. 725)(Section scheduled to be repealed on January 1, 2027)Sec. 113. 
		When
certificate of authority to issue. 
		When a foreign or alien company has complied with the requirements of
this Article and all other requirements imposed on such company by existing
laws and has paid the taxes, fees and charges imposed by law, and the
operational history of the company when reviewed in conjunction with its
loss experience, the kinds and nature of risks insured, the financial
condition of the company and its ownership and the ratio of annual premium
volume to incurred acquisition expenses and to its policyholders' surplus
indicates a condition such that the expanded operation of the company in
this State will not create a condition which might be hazardous to its
policyholders, creditors or the general public, the Director must file in
his office the documents delivered to him and must issue to the company a
certificate of authority to transact in this State the kind or kinds of
business specified therein. Such certificate shall expire on the 30th day
of June of the calendar year succeeding the calendar year in which such
certificate is issued.
		(Source: P.A. 77-1513.) (215 ILCS 5/113.1) (from Ch. 73, par. 725.1)(Section scheduled to be repealed on January 1, 2027)Sec. 113.1. 
		Effect of acceptance of certificate of authority.(1) No foreign or alien company which accepts a certificate of authority
or renewal certificate of authority to transact in this State any insurance
business as described in Section 4 of this Code shall transfer by sale,
contribution, merger, consolidation, reinsurance or otherwise, its direct
policy obligations under insurance contracts with Illinois policyholders
unless:a.  the transfer is made to a company authorized to     transact in this State the type of insurance business transferred; orb.  the transferring company gives 30 days prior     written notice to each policyholder to be transferred stating that the insurance contract and the company's liabilities thereunder are to be transferred to a specified insurer which is not subject to regulation by the Illinois Insurance Department or the administrative requirements of the Illinois Insurance Code; andc. the unauthorized company to which the insurance     business is to be transferred makes and maintains a special deposit with the Director for the protection and benefit of all Illinois policyholders of such unauthorized company, in assets acceptable to the Director and having a fair market value not less than the required statutory reserves for the Illinois insurance business to be transferred.(2) Any and all transfers resulting in the violation of this Section
shall be construed as a violation of all applicable provisions of Article
VII of this Code; including, but not limited to, Section 121-4 providing
for liability to insureds for claims or insured losses not honored by the
unauthorized insurer.(3) Unless permitted by and obtained in compliance with this Section, or
specifically authorized by another provision of this Code, it shall be
unlawful for any unauthorized company to obtain as direct insurer any
insurance contracts written in this State.
		(Source: P.A. 86-753.) (215 ILCS 5/114) (from Ch. 73, par. 726)(Section scheduled to be repealed on January 1, 2027)Sec. 114. 
		Renewal of
certificate of authority.(1) The Director shall renew for one year the certificate of authority
of a foreign or alien company on the first day of July of the calendar year
following the calendar year in which it is admitted to transact business in
this State and annually thereafter, without application by the company,
upon payment of the annual privilege tax imposed by this Code, if any,
provided the Director is satisfied that(a) none of the facts specified in this article as     grounds for revoking a certificate of authority exists; and(b) the company is complying with the conditions for     admission in respect to capital, contingent liability, the investment of its assets or the maintenance of deposits in this or another state and maintains the surplus which similar domestic companies transacting the same kind or kinds of business are required to maintain.(2) Except in case of nonpayment of taxes, the Director shall give
notice of his intention to refuse to renew the certificate of authority of
a foreign or alien company and the grounds therefor at least twenty days
before the end of the term for which the existing certificate was issued,
and, the company shall be given an opportunity for a hearing before the end
of such term.(3) In the event that a company admitted to transact business in this
State prior to the effective date of this Code has been and is transacting
in this State or in any other state or country the kind or kinds of
business enumerated in Class 1 of Section 4 and in addition thereto any of
the kinds of business not enumerated in such class, the Director may for a
period of three years renew annually its certificate of authority to
transact such kinds of business. At the end of such three year period or at
the end of any extended period as herein provided for, the Director may
extend the period during which the certificate of authority of such company
may be renewed annually, upon a showing by the company at a hearing before
the Director that(a) it has made reasonable progress in the     discontinuance of kinds of business other than those enumerated in Class 1 of Section 4; and(b) complete and immediate discontinuance of such     kinds of business would result in undue loss to the company and the policyholders would suffer materially thereby; or(c) there are other reasons for such extension deemed     by the Director to be good and sufficient. The extension herein provided for shall be for such period as the Director may deem proper on the showing made, but the total of such extended periods shall not exceed three years.		(Source: P.A. 82-498.) (215 ILCS 5/115) (from Ch. 73, par. 727)(Section scheduled to be repealed on January 1, 2027)Sec. 115. 
		Amended
certificate of authority.(1) In the event that a foreign or alien company authorized to transact
business in this State changes its name or desires to transact in this
State a kind or kinds of business other than those it is then authorized to
transact, it shall file with the Director an application for an amended
certificate of authority.(2) Such application shall comply as to form and manner of execution
with the requirements of this Article for an original application and shall
set forth the name of the company, the respects in which the company
desires its certificate of authority amended, and such other information as
is necessary or appropriate to enable the Director to determine whether
such an amended certificate of authority should be issued.(3) The Director shall issue such amended certificate if he is satisfied
that(a) the company might lawfully be authorized to     transact the kind or kinds of business it desires to transact if application for such authority were made in an original application; and(b) the conditions provided for in Section 111 are     complied with.		(Source: Laws 1937, p. 696.) (215 ILCS 5/116) (from Ch. 73, par. 728)(Section scheduled to be repealed on January 1, 2027)Sec. 116. 
		Amendments
to articles of incorporation. 
		Whenever the articles of incorporation or articles of association of a
foreign or alien company authorized to transact business in this State
shall be amended, such company shall, within thirty days after the
effective date of such amendment, file with the Director a copy thereof
duly authenticated by the proper officer of the state or country under the
laws of which such company is organized. The filing of such copy shall not
of itself enlarge the authority of the company in the transaction of
business in this State, nor authorize such company to transact business in
this State under any other name than the name set forth in its certificate
of authority.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/117) (from Ch. 73, par. 729)(Section scheduled to be repealed on January 1, 2027)Sec. 117. 
		Merger or
consolidation.(1) Whenever a foreign or alien company authorized to transact business
in this State shall be the surviving company of a statutory merger
permitted by the laws of the state or country under which it is organized,
and such merger is not subject to the provisions of Article X; it shall
forthwith file with the Director(a) copies of the agreement and certificate of merger     duly authenticated by the proper officer of the state or country under the laws of which such statutory merger was effected; and(b) if any of the companies party to such merger were     not admitted to transact business in this State, a statement of the financial condition and business of each of such companies, as of the end of the preceding calendar year complying as to form, content and verification with the requirements of this Code for annual statements, or a financial statement as of such later date as the Director may require.(2) It shall not be necessary for such surviving company to procure a
new certificate of authority to transact business in this State nor an
amended certificate unless the name of such company be changed thereby or
unless the company desires to transact in this State a kind or kinds of
business other than those which it is then authorized to transact.(3) Whenever a foreign or alien company authorized to transact business
in this State shall be a party to a statutory merger and such company shall
not be the surviving company, or if such foreign or alien company shall be
a party to a consolidation, then the certificate of authority of such
foreign or alien company shall terminate upon such merger or consolidation,
and the surviving company, if not previously authorized to transact
business in this State, or the new company, in the case of consolidation,
shall be subject to the same requirements for admission to transact
business in this State as any other foreign or alien company.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/118) (from Ch. 73, par. 730)(Section scheduled to be repealed on January 1, 2027)Sec. 118. 
		Withdrawal
from the State.(1) Any foreign or alien company admitted to do business in this State
may withdraw from this State by filing with the Director a statement of
withdrawal, signed and verified by a president, vice-president or an
executive officer corresponding thereto, or in the case of a reciprocal or
Lloyds, by the attorney-in-fact, and setting forth(a) that the company surrenders its authority to     transact business in this State and returns for cancellation its certificate of authority;(b) except in the case of a reciprocal or Lloyds,     that the withdrawal of the company from this State has been duly authorized by the board of directors, trustees or other governing body of such company; and(c) a postoffice address to which the Director may     mail a copy of any process against the withdrawing company that may be served upon him.(2) Upon the filing of such statement together with its certificate of
authority with the Director and payment of any taxes or charges that may be
due, the Director shall cancel the certificate of authority and return the
cancelled certificate to the company. The authority of the company to
transact business in this State shall thereupon cease.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/119) (from Ch. 73, par. 731)(Section scheduled to be repealed on January 1, 2027)Sec. 119. 
		Revocation and suspension of certificate of authority.(1) The Director may revoke or suspend the certificate of authority of a
foreign or alien company or may by order require such insurance company to
pay to the people of the State of Illinois a penalty in a sum not exceeding
$500, and upon the failure of such insurance company to pay such penalty
within 20 days after the mailing of such order, postage prepaid, certified or
registered, and addressed to the last known place of business of such
insurance company, unless such order is stayed by an order of a court of
competent jurisdiction, the Director of Insurance may revoke or suspend the
license of such insurance company for any period of time up to, but not
exceeding a period of, 2 years whenever he finds that such company(a) is insolvent;(b) fails to comply with the requirements for     admission in respect to capital, contingent liability, the investment of its assets or the maintenance of deposits in this or another state or fails to maintain the surplus which similar domestic companies transacting the same kind or kinds of business are required to maintain;(c) is in such a financial condition that its further     transaction of business in this State would be hazardous to policyholders and creditors in this State and to the public;(d) has refused or neglected to pay a valid final     judgment against such company within 30 days after the rendition of such judgment;(e) has violated any law of this State or has in this     State violated its charter or exceeded its corporate powers;(f) has refused to submit its books, papers,     accounts, records, or affairs to the reasonable inspection or examination of the Director, his actuaries, deputies or examiners;(g) has an officer who has refused upon reasonable     demand to be examined under oath touching its affairs;(h) fails to file its annual statement within 30 days     after the date when it is required by law to file such statement;(i) fails to file with the Director a copy of an     amendment to its charter or articles of association within 30 days after the effective date of such amendment;(j) fails to file with the Director copies of the     agreement and certificate of merger and the financial statements of the merged companies, if required, within 30 days after the effective date of the merger;(k) fails to pay any fees, taxes or charges     prescribed by this Code within 30 days after they are due and payable; provided, however, that in case of objection or legal contest the company shall not be required to pay the tax until 30 days after final disposition of the objection or legal contest.(l) fails to file any report or reports for the     purpose of enabling the Director to compute the taxes to be paid by such company within 30 days after the date when it is required by law to file such report or reports;(m) has had its corporate existence dissolved or its     certificate of authority revoked in the state in which it was organized; or(n) has had all its risks reinsured in their entirety     in another company.(2) Except for the grounds stated in clauses (a), (c) or (k) of
subsection (1) of this section the Director shall not revoke or suspend the
certificate of authority of a foreign or alien company until he has given
the company at least twenty days' notice of the revocation or suspension
and of the grounds therefor and has afforded the company an opportunity for
a hearing.
		(Source: P.A. 83-598.) (215 ILCS 5/120) (from Ch. 73, par. 732)(Section scheduled to be repealed on January 1, 2027)Sec. 120. 
		Withdrawal
of deposits. 
		When a foreign or alien company has withdrawn from this State or has had
its certificate of authority to transact business in this State revoked and
such company desires to withdraw any deposit made in this State pursuant to
this Code, the Director shall upon the application of the company and at
its expense, give notice of such intention to the insurance commissioner or
other proper supervisory official of each state or country where it appears
from information on file with the Director, the company is authorized to
transact business, and shall publish notice of such intention in a
newspaper of general circulation in this State once a week for four
consecutive weeks. After such notice and publication the Director shall
deliver to such company or its assigns the securities so deposited when he
is satisfied upon examination and investigation made by him, or under his
authority, and upon the oaths of the president and secretary or other chief
officers of the company that all debts and liabilities of every kind due
and to become due which the deposit was made to secure have been paid or
otherwise extinguished.
		(Source: Laws 1937, p. 696.)
(215 ILCS 5/Art. VII heading) ARTICLE VII.  
		UNAUTHORIZED COMPANIES (215 ILCS 5/121) (from Ch. 73, par. 733)Sec. 121. 
		Transacting business without certificate of authority prohibited.(1) It shall be unlawful for any company to enter into a contract of
insurance as an insurer or to transact insurance business in this State,
without a certificate of authority from the Director; provided that this
subsection shall not apply to contracts procured by agents under the
authority of section 445, nor to contracts of reinsurance.(2) The following acts, if performed in this State, shall be included
among those deemed to constitute transacting insurance business in this
State:(a) maintaining an agency or office where contracts are executed which
are or purport to be contracts of insurance with citizens of this or any
other State;(b) maintaining files or records of contracts of insurance; or(c) receiving payment of premiums for contracts of insurance.(3) Any company that violates any of the provisions of subsections (1)
and (2) of this section shall be guilty of a business offense and shall be
required to pay a penalty of not less than $100 nor more
than $1000 for each offense, to be recovered in the name of
the People of the State of Illinois by the State's Attorney of the county
in which the violation occurs and the penalty so recovered shall be paid
into the county treasury. Each day in which a violation occurs shall
constitute a separate offense.(4) The failure of a company to obtain a certificate of authority shall
not impair the validity of any act or contract of such company and shall
not prevent such company from defending any action
in any court of this State, but no company transacting insurance business
in this State without a certificate of authority shall be permitted to
maintain an action in any court of this State to
enforce any right, claim or demand arising out of the transaction of such
business until such company shall have obtained a certificate of authority.
Nor shall an action be maintained in any court of this
State by any successor or assignee of such company on any such right, claim
or demand originally held by such company until a certificate of authority
shall have been obtained by such company or by a company which has acquired
all or substantially all of its assets.
		(Source: P.A. 83-345.) (215 ILCS 5/121-1) (from Ch. 73, par. 733-1)Sec. 121-1. 
		Purpose of Article. 
		The purpose of this Article is to subject certain insurers to the
jurisdiction of the Director of Insurance and the courts of this State in
suits by or on behalf of the State. The General Assembly declares that it
is concerned with the protection of residents of this State against acts by
insurers not authorized to do an insurance business in this State, by the
maintenance of fair and honest insurance markets, by protecting authorized
insurers which are subject to regulation from unfair competition by
unauthorized insurers, and by protecting against the evasion of the
insurance regulatory laws of this State. In furtherance of this State
interest, the General Assembly in this Article provides methods for
substituted service of process upon such insurers in any proceeding, suit
or action in any court and substituted service of any notice, order,
pleading or process upon such insurers in any proceeding by the Director of
Insurance to enforce or effect full compliance with the insurance laws of
this State. In so doing, the State exercises its powers to protect its
residents and to define what constitutes transacting an insurance business
in this State, and also exercises powers and privileges available to this
State under Public Law 79-15, 79th Congress of the United States, Chapter
20, 1st Sess., S. 340, 59 Stat. 33; 15 U.S.C. 1011 through 1015, as
amended, which declares that the business of insurance and every person
engaged therein shall be subject to the laws of the several states.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-2) (from Ch. 73, par. 733-2)Sec. 121-2. 
		
		Transacting business without certificate of authority
prohibited - Exempt transactions.
It is unlawful for any insurer to transact insurance business in this
State, (as described in Section 121-3,) without a certificate of authority
from the Director. This Section does not however, apply to any transaction
described in Sections 121-2.01 through 121-2.10.
		(Source: P.A. 89-124, eff. 7-7-95.) (215 ILCS 5/121-2.01) (from Ch. 73, par. 733-2.01)Sec. 121-2.01. 
		The lawful transaction of business under Section 445. 
		(Source: P.A. 77-1565.) (215 ILCS 5/121-2.02) (from Ch. 73, par. 733-2.02)Sec. 121-2.02. 
		The lawful transaction of reinsurance by insurers. 
		(Source: P.A. 77-1565.) (215 ILCS 5/121-2.03) (from Ch. 73, par. 733-2.03)Sec. 121-2.03. 
		
		Transactions in this State involving a policy lawfully solicited,
written, and delivered outside of this State covering only subjects of
insurance not resident, located, or expressly to be performed in this State
at the time of issuance, and which transactions are subsequent to the
issuance of such policy.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-2.04) (from Ch. 73, par. 733-2.04)Sec. 121-2.04. 
		
		Attorneys acting in the ordinary relation of attorney and client in the
adjustment of claims or losses.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-2.05) (from Ch. 73, par. 733-2.05)Sec. 121-2.05. 
		
		Group insurance policies issued and delivered in other
State-Transactions in this State.
With the
exception of insurance transactions authorized under Sections 230.2 or
367.3 of this Code, transactions in this State involving group legal, group
life and
group accident and health or blanket
accident and health insurance or group
annuities where the master policy of such groups was lawfully issued and
delivered in, and under the laws of, a State in which the insurer was
authorized to do an insurance business, to a group properly established
pursuant to law or regulation, and where the
policyholder is domiciled or otherwise has a bona fide situs.
		(Source: P.A. 86-753.) (215 ILCS 5/121-2.06) (from Ch. 73, par. 733-2.06)Sec. 121-2.06. 
		
		Transactions in this State involving any policy of insurance or annuity
contract issued before the effective date of this amendatory Act of 1971.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-2.07) (from Ch. 73, par. 733-2.07)Sec. 121-2.07. 
		
		Transactions in this State relative to a policy issued or to be issued
outside this State involving insurance on vessels, craft or hulls, cargos,
marine builder's risk, marine protection and indemnity or other risk,
including strikes and war risks commonly insured under ocean or wet marine
forms of policy.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-2.08) (from Ch. 73, par. 733-2.08)Sec. 121-2.08. Transactions in this State involving contracts of
insurance independently procured directly from an unauthorized insurer by industrial insureds.(a) As used in this Section:"Exempt commercial purchaser" means exempt commercial purchaser as the term is defined in subsection (1) of Section 445 of this Code."Home state" means home state as the term is defined in subsection (1) of Section 445 of this Code."Industrial insured" means an insured:(i) that procures the insurance of any risk or risks     of the kinds specified in Classes 2 and 3 of Section 4 of this Code by use of the services of a full-time employee who is a qualified risk manager or the services of a regularly and continuously retained consultant who is a qualified risk manager;(ii) that procures the insurance directly from an     unauthorized insurer without the services of an intermediary insurance producer; and(iii) that is an exempt commercial purchaser whose     home state is Illinois."Insurance producer" means insurance producer as the term is defined in Section 500-10 of this Code."Qualified risk manager" means qualified risk manager as the term is defined in subsection (1) of Section 445 of this Code."Safety-Net Hospital" means an Illinois hospital that qualifies as a Safety-Net Hospital under Section 5-5e.1 of the Illinois Public Aid Code."Unauthorized insurer" means unauthorized insurer as the term is defined in subsection (1) of Section 445 of this Code.(b) For contracts of insurance effective January 1, 2015 or later, within 90 days after the effective date of each contract of insurance issued under this Section, the insured shall file a report with the Director by submitting the report to the Surplus Line Association of Illinois in writing or in a computer readable format and provide information as designated by the Surplus Line Association of Illinois. The information in the report shall be substantially similar to that required for surplus line submissions as described in subsection (5) of Section 445 of this Code.  Where applicable, the report shall satisfy, with respect to the subject insurance, the reporting requirement of Section 12 of the Fire Investigation Act.(c) For contracts of insurance effective January 1, 2015 through December 31, 2017, within 30 days after filing the report, the insured shall pay to the Director for the use and benefit of the State a sum equal to the gross premium of the contract of insurance multiplied by the surplus line tax rate, as described in paragraph (3) of subsection (a) of Section 445 of this Code, and shall pay the fire marshal tax that would otherwise be due annually in March for insurance subject to tax under Section 12 of the Fire Investigation Act. For contracts of insurance effective January 1, 2018 or later, within 30 days after filing the report, the insured shall pay to the Director for the use and benefit of the State a sum equal to 0.5% of the gross premium of the contract of insurance, and shall pay the fire marshal tax that would  otherwise be due annually in March for insurance subject to tax under Section 12 of the Fire Investigation Act. For contracts of insurance effective January 1, 2015 or later, within 30 days after filing the report, the insured shall pay to the Surplus Line Association of Illinois a countersigning fee that shall be assessed at the same rate charged to members pursuant to subsection (4) of Section 445.1 of this Code.(d) For contracts of insurance effective January 1, 2015 or later, the insured shall withhold the amount of the taxes and countersignature fee from the amount of premium charged by and otherwise payable to the insurer for the insurance. If the insured fails to withhold the tax and countersignature fee from the premium, then the insured shall be liable for the amounts thereof and shall pay the amounts as prescribed in subsection (c) of this Section.(e) Contracts of insurance with an industrial insured that qualifies as a Safety-Net Hospital are not subject to subsections (b) through (d) of this Section. (Source: P.A. 100-535, eff. 9-22-17; 100-1118, eff. 11-27-18.) (215 ILCS 5/121-2.09) (from Ch. 73, par. 733-2.09)Sec. 121-2.09. 
		
		Transactions in this State involving bankers' blanket
bonds or directors' and officers' liability insurance issued by a captive
insurance company, formed exclusively for the purpose of providing directors'
and officers' liability and bankers' blanket bond insurance to a bank or
bank holding company, as such terms are defined in Section 2 of "The Illinois Bank
Holding Company Act of 1957", as amended, if the aggregate annual premiums
for each bank or bank holding company for insurance on all of its property
and liability risks total at least $25,000, and such insurance is procured
by a full-time employee acting as an insurance manager or buyer or through
the services of a regularly and continuously retained qualified insurance consultant.
		(Source: P.A. 84-1431.) (215 ILCS 5/121-2.10)Sec. 121-2.10. 
		Exempt charitable gift annuities. 
		The insurance laws of
this State, including this Code, do not apply to any charitable gift annuity,
as defined in Section 501(m)(5) of the Internal Revenue Code, issued by an
organization that is described in Section 170(c) of the Internal
Revenue
Code, if either (i) an insurer authorized to transact
business in this State is directly obligated to the annuitant or (ii) the
organization has been in active
operation for not less than 20 years
before the
date the annuity is issued and has an unrestricted fund balance
of not
less than $2,000,000 on the date the annuity is issued.  For
purposes of this Section, "Internal Revenue Code" refers to the
Internal Revenue Code of 1986, as amended, and corresponding provisions of
subsequent federal tax laws.
		(Source: P.A. 89-124, eff. 7-7-95; 89-485, eff. 6-21-96.) (215 ILCS 5/121-3) (from Ch. 73, par. 733-3)Sec. 121-3. 
		Transaction of insurance business defined. 
		Any of the following acts in this State, effected by mail or otherwise
by or on behalf of an unauthorized insurer, constitutes the transaction of
an insurance business in this State.(a) The making of or proposing to make, as an insurer, an insurance
contract.(b) The making of or proposing to make, as guarantor or surety, any
contract of guaranty or suretyship as a vocation and not merely incidental
to any other legitimate business or activity of the guarantor or surety.(c) The taking or receiving of any application for insurance.(d) The receiving or collection of any premium, commission, membership
fees, assessments, dues or other consideration for any insurance or any
part thereof.(e) The issuance or delivery of contracts of insurance to residents of
this State or to persons authorized to do business in this State.(f) Directly or indirectly acting as an agent for or otherwise
representing or aiding on behalf of another any person or insurer in the
solicitation, negotiation, procurement or effectuation of insurance or
renewals thereof or in the dissemination of information as to coverage or
rates, or forwarding of applications, or delivery of policies or contracts,
or inspection of risks, a fixing of rates or investigation or adjustment of
claims or losses or in the transaction of matters subsequent to
effectuation of the contract and arising out of that contract, or in any
other manner representing or assisting a person or insurer in the
transaction of insurance with respect to subjects of insurance resident,
located or to be performed in this State. This paragraph does not prohibit
full-time salaried employees of a corporate insured from acting in the
capacity of an insurance manager or buyer in placing insurance in behalf of
that employer.(g) The transaction of any kind of insurance business specifically
recognized as transacting an insurance business within the meaning of this
Act.(h) The transacting or proposing to transact any insurance business in
substance equivalent to any of the foregoing in a manner designed to evade
this Act.The venue of an act committed by mail is at the point where the matter
transmitted by mail is delivered and takes effect. Unless otherwise
indicated, the term "insurer" as used in this Article includes all
corporations, associations, partnerships and individuals, engaged as
principals in the business of insurance and also includes interinsurance
exchanges and mutual benefit societies.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-4) (from Ch. 73, par. 733-4)Sec. 121-4. 
		
		Validity of contracts - court actions.)
The failure of an insurer transacting insurance business in this State
to obtain a certificate of authority does not impair the validity of any
act or contract of that insurer nor does it prevent that insurer from
defending any action in any court of this State.
However, no insurer transacting insurance business in this State without a
certificate of authority may maintain an action in any court of this State
to enforce any right, claim or demand arising out of the transaction of
that business until the insurer has obtained a certificate of authority.If any such unauthorized insurer fails to pay any claim or loss within
the provisions of such an insurance contract, any person who assisted or in
any manner aided directly or indirectly in the procurement of the insurance
contract shall be liable to the insured for the full amount of the claim or
loss as provided in that insurance contract.
		(Source: P.A. 79-1362.) (215 ILCS 5/121-5) (from Ch. 73, par. 733-5)Sec. 121-5. 
		Injunctive proceedings. 
		Whenever the Director believes, from evidence satisfactory to him that
any insurer is violating or about to violate Section 121-2 of this Act, the
Director may, through the Illinois Attorney General, cause a complaint to
be filed in the Circuit Court of Cook County, or the Circuit Court of
Sangamon County, to enjoin and restrain that insurer from continuing such
violation or engaging therein or doing any act in furtherance thereof. The
court shall have jurisdiction of the proceeding and may make and enter an
order or judgment awarding such preliminary or final injunctive relief as,
in its judgment, is proper.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-6) (from Ch. 73, par. 733-6)Sec. 121-6. 
		Acts constituting Secretary of State as agent for process. 
		Any act of transacting an insurance business, as set forth in Section
121-3; by any unauthorized insurer constitutes an irrevocable appointment
by that insurer, binding upon him, his executor or administrator, or
successor in interest if a corporation, of the Secretary of State, to be
the true and lawful attorney of such insurer upon whom may be served all
lawful process in any action, suit, or proceeding in any court by the
Director or by the State and upon whom may be served any notice, order,
pleading or process in any proceeding before the Director which arises out
of transacting an insurance business in this State by that insurer. Any act
of transacting an insurance business in this State by any unauthorized
insurer signifies its agreement that any lawful process in such a court
action, suit, or proceeding and any such notice, order, pleading, or
process in an administrative proceeding before the Director so served shall
be of the same legal force and validity as personal service of process in
this State upon that insurer.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-7) (from Ch. 73, par. 733-7)Sec. 121-7. 
		Service of process - notice. 
		Service of process in an action described in Section 121-6 shall be made
by delivering to and leaving with the Secretary of State, or some person in
apparent charge of his office, 2 copies thereof and by payment to the
Secretary of State of the fee prescribed by law. Service upon the Secretary
of State as such attorney shall be service upon the principal.The Secretary of State shall forthwith forward by certified mail one of
the copies of the process or notice, order, pleading, or process in
proceedings before the Director to the defendant in such court proceeding
or to whom the notice, order, pleading, or process in such administrative
proceeding is addressed or directed at its last known principal place of
business and shall keep a record of all process so served on him which
shall show the day and hour of service. Such service is sufficient if:(a) Notice of such service and a copy of the court process or the
notice, order, pleading, or process in such administrative proceeding are
sent within 10 days thereafter by certified mail by the plaintiff or the
plaintiff's attorney in the court proceeding, or by the Director of
Insurance in the administrative proceeding, to the defendant in the court
proceeding or to whom the notice, order, pleading, or process in such
administrative proceeding is addressed or directed at the last known
principal place of business of the defendant in the court or administrative
proceeding.(b) The defendant's receipt or receipts issued by the post office with
which the letter is registered, showing the name of the sender of the
letter and the name and address of the person or insurer to whom the letter
is addressed, and an affidavit of the plaintiff or the plaintiff's attorney
in a court proceeding or of the Director in an administrative proceeding,
showing compliance therewith are filed with the clerk of the court in which
such action, suit, or proceeding is pending or with the Director in
administrative proceedings, by the date the defendant in the court or
administrative proceeding is required to appear or respond thereto, or
within such further time as the court or Director, as the case may be, may
allow.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-8) (from Ch. 73, par. 733-8)Sec. 121-8. 
		Judgment or default - time limitation. 
		No plaintiff is entitled to a judgment or to a determination by default
in any court or administrative proceeding in which court process or notice,
order, pleading, or process in proceedings before the Director is served
under Section 121-7 until the expiration of 45 days from the date of filing
of the affidavit of compliance under that Section.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-9) (from Ch. 73, par. 733-9)Sec. 121-9. 
		Other proceedings not barred. 
		Nothing in this Article limits or affects the right to serve any
process, notice, order, or demand upon any person or insurer in any other
manner now or hereafter permitted by law.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-10) (from Ch. 73, par. 733-10)Sec. 121-10. 
		Pleadings by unauthorized insurer - bond or certificate of authority. 
		Before any unauthorized insurer files or causes to be filed any pleading
in any court action, suit or proceeding or any notice, order, pleading, or
process in an administrative proceeding before the Director instituted
against such person or insurer, by services made as provided in Section
121-7, such insurer must either:(a) Deposit with the clerk of the court in which such action, suit, or
proceeding is pending, or with the Director in administrative proceedings
before him, cash or securities, or file with such clerk or Director a bond
with good and sufficient sureties, to be approved by the clerk or Director
in an amount to be fixed by the court or Director sufficient to secure the
payment of any final judgment which may be rendered in such action or
administrative proceeding; or(b) Procure a certificate of authority to transact the business of
insurance in this State. In considering the application of an insurer for a
certificate of authority, for the purposes of this paragraph, the Director
need not assert the provisions of Section 444 against such insurer with
respect to its application if he determines that such company would
otherwise comply with the requirements for a certificate of authority.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-11) (from Ch. 73, par. 733-11)Sec. 121-11. 
		Postponement of proceedings - Motions by unauthorized insurer. 
		The Director, in any administrative proceeding in which service is made
under Section 121-7, may order such postponement as may be necessary to
afford the defendant reasonable opportunity to comply with Section 121-10
and to defend such action.Nothing in this Article prevents an unauthorized insurer from filing a
motion to quash process or to set aside service thereof made
under Section
121-7, on the ground that the unauthorized insurer has not done any of the
acts enumerated in Section 121-3.
		(Source: P.A. 83-346.) (215 ILCS 5/121-12) (from Ch. 73, par. 733-12)Sec. 121-12. 
		Enforcement by Attorney General. 
		The Attorney General, upon request of the Director, may proceed in the
courts of this State or any reciprocal State to enforce an order or
decision in any court proceeding or in any administrative proceeding before
the Director.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-13) (from Ch. 73, par. 733-13)Sec. 121-13. 
		Definitions.) As used in this Article:(a) "Reciprocal state" means any State or territory of the United States
and the laws of which contain procedures substantially similar to those
specified in this Article for the enforcement of judgments or orders issued
by courts located in other States or territories of the
United States, against an insurer incorporated or authorized to do business
in that State or territory.(b) "Foreign judgment" means any judgment or order relating to fraudulent
claims practices, false and deceptive advertising, unfair methods of
transacting business, or payment of taxes, of a court located in
a "reciprocal state", including a court of the United States located
therein, against any insurer incorporated or authorized to do business in
this State.(c) "Qualified party" means a state regulatory agency acting in its
capacity to enforce the insurance laws of this State.
		(Source: P.A. 79-1362.) (215 ILCS 5/121-14) (from Ch. 73, par. 733-14)Sec. 121-14. 
		List of reciprocal states. 
		The Director shall determine which States and territories qualify as
reciprocal States and shall maintain at all times an up-to-date list of
those States.
		(Source: P.A. 77-1565.) (215 ILCS 5/121-15) (from Ch. 73, par. 733-15)Sec. 121-15. 
		
		Filing and status of foreign judgments.)
A copy of any foreign judgment authenticated in accordance with the
statutes of this State may be filed in the office of the clerk of any
circuit court of this State.  The clerk, upon verifying with the Director
that the judgment or order qualifies as a "foreign judgment", shall treat the
foreign judgment in the same manner as a judgment of any circuit court of this
State.  A foreign judgment so filed has the same effect, is subject to the
same procedures, defenses and proceedings for reopening, vacating, or
staying and may be enforced or satisfied in like manner as a judgment of any
circuit court of this State.
		(Source: P.A. 79-1362.) (215 ILCS 5/121-16) (from Ch. 73, par. 733-16)Sec. 121-16. 
		
		Notice of filing.)
At the time of the filing of a foreign judgment, the Attorney General
shall make and file with the clerk of the court an affidavit setting forth
the name and last known post office address of the defendant.Promptly upon the filing of the foreign judgment and the affidavit, the
clerk shall mail notice of the filing of the foreign judgment to the
defendant at the address given and to the Director and shall note that
mailing in the docket.  In addition, the Attorney General may mail a notice
of the filing of the foreign judgment to the defendant and to the Director
and may file proof of mailing with the clerk.  Lack of mailing notice of
filing by the clerk does not affect the enforcement proceedings if proof of
mailing by the Attorney General has been filed.No process for enforcement of a foreign judgment filed
under this Article may issue until 30 days after the date the judgment is
filed.
		(Source: P.A. 84-546.) (215 ILCS 5/121-17) (from Ch. 73, par. 733-17)Sec. 121-17. 
		
		Stay.)
If the defendant shows the circuit court that an appeal from the foreign
judgment is pending or will be taken, or that a stay of enforcement has been
granted, the court shall stay enforcement of the foreign judgment until the
appeal is concluded, the time for appeal expires or the stay of
enforcement
expires or is vacated, upon proof that the defendant has furnished the
security for the satisfaction of the judgment required by the State in which
it was entered.If the defendant shows the circuit court any ground upon which
enforcement of a judgment of any circuit court of this State would be stayed,
the court shall stay enforcement of the foreign judgment for an appropriate
period, upon requiring the same security for satisfaction of the judgment as
is required in this State.
		(Source: P.A. 84-546.) (215 ILCS 5/121-18) (from Ch. 73, par. 733-18)Sec. 121-18. 
		Fees. 
		Any person filing a foreign judgment must pay to the clerk of the court
such fees as may apply in other cases. Fees for docketing, transcription
or other enforcement proceedings shall be as provided for judgment of the
circuit court.
		(Source: P.A. 79-1362.) (215 ILCS 5/121-19) (from Ch. 73, par. 733-19)Sec. 121-19. 
		Fine for unauthorized insurance. 
		Any unauthorized insurer who transacts any unauthorized act of an
insurance business as set forth in this Act is guilty of a business offense
and may be fined not more than $20,000.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/122) (from Ch. 73, par. 734)Sec. 122. 
		Representing unauthorized company prohibited.(a) It is unlawful for a person as officer,
director,
clerk,
employee, or agent to serve or represent a company in
connection with an
act performed or contract entered into in violation of Section 121. A person who violates
this
Section is guilty of a Class A misdemeanor.(b) If, after notice and hearing, the Director finds that a person who
holds or seeks a license or privilege under the jurisdiction of the Director
has represented or served an unauthorized insurer as an owner, director,
officer,
employee, agent, or producer in connection with the sale or solicitation of
insurance contracts or the collection of insurance premiums, the
Director may deny, revoke, refuse to renew, or suspend any of the person's
licenses or privileges.
		(Source: P.A. 88-627, eff. 9-9-94.) (215 ILCS 5/122-1) (from Ch. 73, par. 734-1)Sec. 122-1. 
		The authority and jurisdiction of Insurance Department. 
		
Notwithstanding any other provision of law, and except as provided herein,
any person or other entity which provides coverage in this State for medical,
surgical, chiropractic, naprapathic, physical therapy, speech pathology,
audiology, professional mental health, dental, hospital, ophthalmologic, or
optometric expenses, whether such coverage is by direct-payment, reimbursement,
or otherwise, shall be presumed to be subject to the jurisdiction of the
Department unless the person or other entity shows that while providing such
coverage it is subject to the jurisdiction of another agency of this State,
any subdivision of this State, or the federal government, or is a plan of
self-insurance or other employee welfare benefit program of an individual
employer or labor union established or maintained under or pursuant to a
collective bargaining agreement or other arrangement which provides for
health care services solely for its employees or members and their dependents.
		(Source: P.A. 90-7, eff. 6-10-97.) (215 ILCS 5/122-2) (from Ch. 73, par. 734-2)Sec. 122-2. 
		How to Show Jurisdiction. 
		A person or entity may show that
it is subject to the jurisdiction of another agency of this or another state,
any subdivision of this State, or the Federal Government by providing to
the Director the appropriate certificate, license or other document issued
by the other governmental agency which permits or qualifies it to provide
those coverages.
		(Source: P.A. 86-753.) (215 ILCS 5/122-3) (from Ch. 73, par. 734-3)Sec. 122-3. 
		Examination. 
		Any person or entity which is unable to show
that it is subject to the jurisdiction of another agency of this
state, any subdivision of this state, or the Federal Government, or is an
employee welfare benefit program of an individual employer or labor union
as described in Section 122-1, shall submit to an examination by the Director
to determine the organization and solvency of the person or entity, and to
determine whether or not such person or entity is in compliance with the
applicable provisions of this Code.
		(Source: P.A. 86-753.) (215 ILCS 5/122-4) (from Ch. 73, par. 734-4)Sec. 122-4. 
		Subject to State Laws. 
		Any person or entity unable to show
that it is subject to the jurisdiction of another agency of this
state, any subdivision of this state, or the Federal Government, or is an
employee welfare benefit program of an individual employer or labor union
as described in Section 122-1, shall be subject to all appropriate provisions
of this Code regarding the conduct of its business.
		(Source: P.A. 86-753.) (215 ILCS 5/122-5) (from Ch. 73, par. 734-5)Sec. 122-5. 
		Disclosure. 
		(1) Any agent, broker, producer, administrator, or other
person or company which advertises, solicits, negotiates, procures, sells,
renews, continues or administers coverage in this state, described in Section
122-1 and which is provided by any person or entity described in Section
122-3 shall, if that coverage is not fully insured or otherwise fully covered
by a company authorized to do such business in this State advise any purchaser,
prospective purchaser, and covered person of such
lack of insurance or other coverage.(2) Any administrator which advertises or administers coverage in this
state, described in Section 122-1 and which is provided by any person or
entity described in Section 122-3 shall advise any agent, broker or other
person or company which advertises, solicits, negotiates, sells, procures,
renews or continues such coverage of the elements of the coverage including
the amount of
"stop-loss" insurance in effect.
		(Source: P.A. 86-753.) (215 ILCS 5/123) (from Ch. 73, par. 735)Sec. 123. 
		
		Service of process upon an unauthorized foreign or alien
company.(1) The purpose of this Section is to subject unauthorized
foreign and alien companies to the jurisdiction of courts of this State in
actions by or on behalf of insureds, reinsureds, or beneficiaries under
insurance
or reinsurance contracts. The Legislature declares that it is a subject of
concern that
many residents of this State or corporations authorized to do business in
this State hold policies of insurance or reinsurance issued by companies
not authorized to do business in this State, thus presenting to such
residents or corporations authorized to do business in this State the often
insuperable obstacle of
resorting to distant forums for
the purpose of asserting legal rights under such policies. In furtherance
of such State interest, the Legislature herein provides a method of
substituted service of process upon such companies and declares that in so
doing it exercises its power to protect its residents and corporations
authorized to do business in this State and to define, for
the purpose of this statute, what constitutes doing business in this State,
and also exercises powers and
privileges available to the State by virtue of Public Law 15, 79th Congress
of the United States, Chapter 20, 1st. Sess., S. 340, as amended, which
declares that the business of insurance and every person engaged therein
shall be subject to the laws of the several states.(2) Any of the following acts in this State, effected by mail or
otherwise, by an unauthorized foreign or alien company: (a) the issuance or
delivery of contracts of insurance or reinsurance to residents of
this State or to corporations authorized to do business therein, (b) the
solicitation of applications for such contracts, (c) the collection of
premiums, membership fees, assessments or other considerations for such
contracts, or (d) any other transaction of business, is equivalent to and
shall constitute an appointment by such company, of the Director and his or her
successor or successors in office, to be its true and lawful attorney upon
whom may be served all lawful process in any action or proceeding against
it, arising out of such policy or contract of insurance or reinsurance, and
the acts
shall be a signification of its agreement that any such process against it
which is so served shall be of the same legal force and validity as if
served upon the company.(3) Service of such process shall be made by delivering and leaving with
the Director a copy thereof and the payment to the Director of the fee
prescribed by this Code. The Director shall keep a record of all process so
served upon him or her. Such process shall be sufficient service upon such
foreign or alien company provided notice of such service and a copy of the
process are, within 10 days thereafter, sent by certified or registered
mail by the plaintiff's attorney of record to the defendant at the last
known principal place of business of the defendant, and the defendant's
receipt and the plaintiff's attorney's affidavit of compliance herewith are
filed with the Clerk of the Court in which such action is pending on or
before the return date of the process or within such further time as the court may allow.(4) Service of process in any such action against any such company shall
in addition to the mode hereinabove described be valid and legal if served
upon any person within this State who, in this State on behalf of such
company, is(a) soliciting insurance or reinsurance, or(b) making, issuing, or delivering any policies or     contracts of insurance or reinsurance, or(c) collecting or receiving any premium, membership     fee, assessment or other consideration for insurance or reinsurance, or(d) in any manner aiding or assisting in doing any of     the things enumerated in clauses (a), (b), or (c) of this subsection; and a copy of such process is within 10 days thereafter sent by certified or registered mail by the plaintiff's attorney of record to the defendant at the last known principal place of business of the defendant and the defendant's receipt and the plaintiff's attorney's affidavit of compliance herewith are filed with the clerk of the court in which such action is pending on or before the return date of the process or within such further time as the court may allow.(5) Before any unauthorized foreign or alien company shall file or cause
to be filed any pleading in any action or proceeding, including any
arbitration, instituted
against it, such unauthorized company shall either (1) deposit with the
clerk of the court in which such action or proceeding is pending or with the
clerk of the court in the jurisdiction in which the arbitration is pending
cash
or securities or file with such clerk a bond with good and sufficient
sureties, to be approved by the court, in an amount to be fixed by the
court sufficient to secure the payment of any final judgment which may be
rendered in such action, proceeding, or arbitration; or (2) where the
unauthorized company continues to transact the business of insurance by issuing
new contracts of insurance or reinsurance, procure a certificate of authority
to
transact the business of insurance in this State.The court in any action or proceeding, in which service is made
in the manner provided in subsections (3) or (4) may, in its discretion,
order such postponement as may be necessary to afford the defendant
reasonable opportunity to comply with the provisions of this subsection and
to defend such action.Nothing in this Section is to be construed to prevent an unauthorized
foreign or alien company from filing a motion to quash process or to set
aside service thereof made in the manner provided in subsections (3) or (4)
on the ground either (a) that such unauthorized company has not done any of
the acts enumerated in subsection (2) or (b) that the person on whom
service was made pursuant to subsection (4) was not doing any of the acts
therein enumerated.(6) In any action against an unauthorized foreign or alien company upon
a contract of insurance or reinsurance issued or delivered in this State to
a resident
thereof or to a corporation authorized to do business therein, if the
company has failed for 30 days after demand prior to the commencement
of the action to make payment in accordance with the terms of the contract,
and it appears to the court that such refusal was vexatious and without
reasonable cause, the court may allow to the plaintiff a reasonable
attorney fee and include such fee in any judgment that may be rendered in
such action. Such fee shall not exceed 12-1/2 per cent of the
amount which the court or jury finds the plaintiff is entitled to recover
against the insurer, but in no event shall such fee be less than $25.
Failure of a company to defend any such action shall
be deemed prima facie evidence that its failure to make payment was
vexatious and without reasonable cause.(7) No plaintiff shall be entitled to a judgment by
default under this Section until the expiration of 30 days from the
date of the filing of the affidavit of compliance.(8) The provisions of this Section shall not apply to any action
or proceeding against any unauthorized foreign or alien company arising out
of any contract of direct insurance(a) effected in accordance with Section 445, or(b) covering ocean marine, aircraft, railway     insurance risks, or(c) against legal liability arising out of the     ownership, operation or maintenance of any property having a permanent situs outside this State, or(d) against loss of or damage to any property having     a permanent situs outside this State,
		where such contract of insurance contains a provision designating the
Director and his or her successor or successors in office or a bona fide
resident of Illinois to be the true and lawful attorney of such
non-admitted insurer upon whom may be served all lawful process in any
action or proceeding arising out of any such contract of insurance or where
the insurer enters a general appearance in any such action or proceeding.(9) Nothing in this Section contained shall limit or affect the right to
serve any process, notice or demand required or permitted by law to be
served upon any company in any other manner now or hereafter permitted by
law.
		(Source: P.A. 90-53, eff. 7-3-97.) (215 ILCS 5/123.1) (from Ch. 73, par. 735.1)Sec. 123.1. 
		
		Service of process upon unauthorized insurers for false
advertising.(1) (a) The purpose of this Act is to subject to the jurisdiction of the
Director of Insurance of this State and to the jurisdiction of the courts
of this State insurers not authorized to transact business in this State
which place in or send into this State any false advertising designed to
induce residents of this State to purchase insurance from insurers not
authorized to transact business in this State. The Legislature declares it
is in the interest of the citizens of this State who purchase insurance
from insurers which solicit insurance business in this State in the manner
set forth in the preceding sentence that such insurers be subject to the
provisions of this Act. In furtherance of such state interest, the
Legislature herein provides a method of substituted service of process upon
such insurers and declares that in so doing, it exercises its power to
protect its residents and also exercises powers and privileges available to
the State by virtue of Public Law 15, 79th Congress of the United States,
Chapter 20, 1st Session, S. 340, which declares that the business of
insurance and every person engaged therein shall be subject to the laws of
the several states; the authority provided herein to be in addition to any
existing powers of this State.(b) The provisions of this Section shall be liberally construed.(2) No unauthorized foreign or alien insurer of the kind described in
subsection (1) shall make, issue, circulate or cause to be made, issued or
circulated, to residents of this State any estimate, illustration,
circular, pamphlet, or letter, or cause to be made in any newspaper,
magazine or other publication or over any radio or television station, any
announcement or statement to such residents misrepresenting its financial
condition or the terms of any contracts issued or to be issued or the
benefits or advantages promised thereby, or the dividends or share of the
surplus to be received thereon in violation of Article XXVI, and whenever
the Director shall have reason to believe that any such insurer is engaging
in such unlawful advertising, it shall be his duty to give notice of such
fact by certified or registered mail to such insurer and to the insurance
supervisory official of the domiciliary state of such insurer. For the purpose
of this Section the domiciliary state of an alien insurer shall be deemed to be
the state of entry or the state of the principal office in the United States.(3) If after thirty days following the giving of the notice mentioned in
subsection (2) such insurer has failed to cease making, issuing, or
circulating such false misrepresentations or causing the same to be made,
issued or circulated in this State, and if the Director has reason to
believe that a proceeding by him in respect to such matters would be to the
interest of the public, and that such insurer is issuing or delivering
contracts of insurance to residents of this State or collecting premiums on
such contracts or doing any of the acts enumerated in subsection (4), he
shall take action against such insurer under Article XXVI.(4) (a) Any of the following acts in this State, effected by mail or
otherwise, by any such unauthorized foreign or alien insurer:(i) the issuance or delivery of contracts or     insurance to residents of this State; or(ii) the solicitation of applications for such     contracts; or(iii) the collection of premiums, membership fees,     assessments or other considerations for such contracts; or(iv) any other transaction of insurance business;
		is equivalent to and shall constitute an appointment by such insurer of the
Director and his successor or successors in office, to be its true and lawful
attorney, upon whom may be served all statements of charges, notices and lawful
process in any proceeding instituted in respect to the misrepresentations set
forth in subsection (2) hereof under the provisions of Article XXVI, or in any
action, suit or proceeding for the recovery of any penalty therein provided,
and any such act shall be signification of its agreement that such service of
statement of charges, notices or process is of the same legal force and
validity as personal service of such statement of charges, notices or process
in this State, upon such insurer.(b) Service of a statement of charges and notices under Article XXVI
shall be made by any deputy or employee of the Department of Insurance
delivering to and leaving with the Director or some person in apparent
charge of his office, two copies thereof. Service of process issued by any
court in any action, suit or proceeding to collect any penalty under
Article XXVI provided, shall be made by delivering and leaving with the
Director, or some person in apparent charge of his office, two copies
thereof. The Director shall forthwith cause to be mailed by certified
or registered mail one of the copies of such statement of charges, notices or
process to the defendant at its last known principal place of business, and
shall keep a record of all statements of charges, notices and process so
served. Such service of statement of charges, notices or process shall be
sufficient provided they shall have been so mailed and the defendant's receipt
or receipt issued by the post office with which the letter is certified or
registered, showing the name of the sender of the letter and the name and
address of the person to whom the letter is addressed, and the affidavit of the
person mailing such letter showing a compliance herewith are filed with the
Director in the case of any statement of charges or notices, or with the clerk
of the court in which such action is pending in the case of any process, on or
before the date the defendant is required to appear or within such further time
as may be allowed.(c) Service of statement of charges, notices and process in any such
proceeding, action or suit shall in addition to the manner provided in
paragraph (b) of this subsection be valid if served upon any person within
this State who on behalf of such insurer is(i) soliciting insurance; or(ii) making, issuing or delivering any policies or     contracts of insurance; or(iii) collecting or receiving in this State any     premium, membership fee, assessment or other consideration for insurance; or(iv) in any manner aiding or assisting in doing any     of the things enumerated in clauses (i), (ii) or (iii) of this paragraph;
		and a copy of such statement of charges, notices or process is sent within
ten days thereafter by certified or registered mail by or on behalf
of the Director to the defendant at the last known principal place of business
of the defendant, and the defendant's receipt, or the receipt issued by the
post office with which the letter is certified or registered, showing the name
of the sender of the letter, the name and address of the person to whom the
letter is addressed, and the affidavit of the person mailing the same showing a
compliance herewith, are filed with the Director in the case of any statement
of charges or notices, or with the clerk of the court in which such action is
pending in the case of any process, on or before the date the defendant is
required to appear or within such further time as the court may allow.(d) No cease or desist order or judgment by default under this section
shall be entered until the expiration of thirty days from the date of the
filing of the affidavit of compliance.(e) Service of process and notice under the provisions of this section
shall be in addition to all other methods of service provided by law, and
nothing in this section shall limit or prohibit the right to serve any
statement of charges, notices or process upon any insurer in any other
manner now or hereafter permitted by law.(5) When used in this Act, "residents" shall mean and include person,
partnership or corporation, domestic, alien or foreign.
		(Source: P.A. 83-598.) (215 ILCS 5/123.3) (from Ch. 73, par. 735.3)Sec. 123.3. 
		
		Insurance Sales by Companies in Hazardous Financial
Condition Prohibited. Notwithstanding any other provision of this Code, no
unauthorized foreign or alien company officer, director, trustee, agent or
employee of such company may renew, issue, or deliver or cause to be
renewed, issued or delivered any policy, contract, or certificate of
insurance for which a premium is charged or collected if the Director of
Insurance has found that such company is in a hazardous financial condition
and such officer, director, trustee, agent or employee is aware of such finding.If upon request of the Director, such company officer, director, trustee
or employee is unable or unwilling to submit to the Director a copy of such
unauthorized company's most recent financial statement, such unwillingness
or inability shall be deemed prima facie evidence of a hazardous financial condition.However, a finding of hazardous financial condition does not prevent the
issuance or renewal of a policy when an insured or owner exercises an
option granted to him under an existing policy to obtain new, renewed or
converted insurance coverage.Any company officer, director, trustee, agent, or employee of such
company violating this Section shall be guilty of a Class A misdemeanor.
		(Source: P.A. 85-1139.)
(215 ILCS 5/Art. VIIA heading) ARTICLE VIIA.  
		ADVISORY ORGANIZATIONS
(Article scheduled to be repealed on January 1, 2027) (215 ILCS 5/123A-1) (from Ch. 73, par. 735A-1)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-1. 
		Purpose of Article. 
		
		The purpose of this Article is to authorize the existence, operation,
and regulation of qualified advisory organizations generally available to
all admitted companies and to permit under certain conditions joint
underwriting and joint reinsurance.
		(Source: P.A. 77-1882.) (215 ILCS 5/123A-2) (from Ch. 73, par. 735A-2)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-2. 
		Definitions. 
		As used in this Article, unless the context requires
otherwise:(a) "Advisory Organization" means every person, other than an insurance
company who as its primary functions (i)
compiles insurance statistics, or (ii) prepares insurance policies, bond
forms, and underwriting rules, and (iii) furnishes that which it compiles
and prepares to insurance companies who are its only members and
subscribers.(b) "Member" means an insurance company who participates in or is
entitled to participate in the management of an advisory organization.(c) "Subscriber" means an insurance company which is furnished at its
request with those services provided for in par. (a) of this Section by an
advisory organization of which it is not a member.
		(Source: P.A. 82-626.) (215 ILCS 5/123A-3) (from Ch. 73, par. 735A-3)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-3. 
		Scope of Article. 
		
		The provisions of this Article apply to all classes of insurance in
Section 4 of the "Illinois Insurance Code" except Clause (d) of Class 2.This Article applies to all companies, Lloyds associations, reciprocal
and interinsurance exchanges, and Fraternal Benefits Societies which, under
the laws of this State, write any of the kinds of insurance to which this
Article applies.
		(Source: P.A. 77-1882.) (215 ILCS 5/123A-4) (from Ch. 73, par. 735A-4)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-4. 
		Licenses - Application - Fees.(1) An advisory organization must be licensed by the Director before it
is authorized to conduct activities in this State.(2) Any advisory organization shall make application for a license as an
advisory organization by providing with the application satisfactory
evidence to the Director that it has complied with Sections 123A-6 and
123A-7 of this Article.(3) The fee for filing an application as an advisory organization is $50
payable to the Director.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/123A-5) (from Ch. 73, par. 735A-5)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-5. 
		Issuance of License.(1) The Director shall examine each application for license as an
advisory organization and the supporting documents and data filed with it
and may make a further investigation of the applicant and its officers, its
affairs, and its proposed plan of operation.(2) The Director shall issue the license applied for within 45 days from
the date the application is properly submitted to him if he is satisfied(a) that the applicant, its officers, its affairs and     its proposed plan of operation conform to this Article;(b) that the business reputation of the applicant is     good and that the business reputation and character of its officers is good; and(c) that the rules required under Section 123A-7 are     reasonable and conform with this Article.(3) The Director shall notify in writing the applicant of his decision
to deny the application and submit the reasons for the denial. The
applicant has 10 days from the date he receives the Director's denial to
request a hearing which shall be held within 20 days of the date of the
request.(4) Any advisory organization conducting activities in this State for a
period of at least 90 days prior to the effective date of this Article is
authorized to continue to conduct its activities in this State without the
required license for 90 days from the effective date of this Article if the
activities comply with this Article.
		(Source: P.A. 77-1882.) (215 ILCS 5/123A-6) (from Ch. 73, par. 735A-6)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-6. 
		Documents prerequisite to engaging in activities. 
		
		No advisory organization and no group, association or other organization
authorized in 123A-10 of this Code may engage in activities in this State
unless it has filed with the Director(a) a copy of its constitution, of its articles of     incorporation, agreement or association, and of its by-laws, rules and regulations governing its activities, all duly certified by the custodian of the originals thereof;(b) a list of its members and subscribers; and(c) the name and address of a resident of this State     upon whom notices or orders of the Director or process may be served.Every such organization shall notify the Director promptly of every
change in its constitution, in its article of incorporation, agreement or
association, and in its by-laws, rules and regulations governing the
conduct of its business; in its list of members and subscribers; and in the
name and address of the resident of this State designated by it upon whom
notices or orders of the Director or process affecting such organization
may be served.
		(Source: P.A. 77-1882.) (215 ILCS 5/123A-7) (from Ch. 73, par. 735A-7)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-7. 
		Eligibility for membership-activities of Advisory Organization. 
		
		Subject to the approval of the Director, every advisory organization
must make reasonable rules governing eligibility for membership and must
make rules governing their activities. These rules must provide that the
advisory organization will(a) permit any admitted company to become a member of     or a subscriber to such organization at a reasonable cost and without discrimination, or to withdraw therefrom;(b) refrain from adopting any policy, the effect of     which would be to require any member or subscriber as a condition to membership or subscribership, to adhere to its insurance statistics, insurance policies, bond forms, or underwriting rules;(c) neither practice nor sanction any plan or act of     boycott or intimidation tending to result in the unreasonable restraint of or monopoly in the business of insurance; and(d) allow admitted companies who are not members or     subscribers to the organization to purchase the same services of such organization as are made available to members and subscribers without discrimination as respects costs to members and subscribers.		(Source: P.A. 77-1882.) (215 ILCS 5/123A-8) (from Ch. 73, par. 735A-8)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-8. 
		Common ownership or management organization. 
		
		If 2 or more companies have common ownership or are operating in this
State under common management, the advisory organization may require as a
condition to membership or subscribership of one or more then all such
companies must become members or subscribers.
		(Source: P.A. 77-1882.) (215 ILCS 5/123A-9) (from Ch. 73, par. 735A-9)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-9. 
		Authorization to act.(1) Any advisory organization is authorized to compile statistics and to
formulate insurance policies, bond forms and underwriting rules and to
furnish that which it prepares to its members and subscribers.(2) Subject to the provisions of this Article, two or more companies are
authorized to act in concert with each other and with others with respect
to any activities of an advisory organization as authorized under this
Article.(3) Any company is authorized but not required by this Article to
furnish to any advisory organization information in its possession relating
to that which the advisory organization is authorized in this Article.(4) Any company is authorized to become a member or subscriber to any
advisory organization.(5) The Director may review such cooperative activities and practices as
are authorized in this section and if, after a hearing upon notice to all
the cooperating parties, he finds that any activity or practice is unfair
or unreasonable or otherwise inconsistent with the provisions of the
Illinois Insurance Code, he may issue a written order requiring the
discontinuance of such activity or practice.
		(Source: P.A. 77-1882.) (215 ILCS 5/123A-10) (from Ch. 73, par. 735A-10)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-10. 
		Compliance of membership with Article. 
		
		Any group, association or organization of admitted companies which
engages in joint underwriting or joint reinsurance through any group,
association or organizations or by standing agreement among the members of
such organizations, which has complied with the applicable provisions of
this Article are authorized to conduct joint reinsurance and joint
underwriting activities relative to individual risks in this State.
		(Source: P.A. 77-1882.) (215 ILCS 5/123A-11) (from Ch. 73, par. 735A-11)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-11. 
		Prohibition against agreements of use or adherence.(1) Two or more companies, except as authorized in this Article or in
Section 478.1 of this Code, must not agree with each other or any advisory
organization to adhere to or to use any statistics, policy or bond forms or
underwriting rules furnished by any advisory organization or other source,
either as a condition to receive such statistics, policy or bond forms or
underwriting rules or otherwise.(2) The fact that two or more companies, whether or not members or
subscribers of an advisory organization, use consistently or
intermittently, the insurance statistics, insurance policy or bond forms or
underwriting rules of an advisory organization, is not sufficient in itself
to support a finding that an agreement to adhere exists, and may be used
only for the purpose of supplementing or explaining direct evidence of the
existence of any such agreement.(3) Two or more companies having a common ownership or operating in this
State under common management or control may act in concert with respect to
any matters pertaining to those activities authorized in this Article or in
Section 478.1 of this Code between or among themselves the same as if they
constituted a single company, and to the extent that such matters relate to
co-surety bonds, two or more admitted companies executing such bonds are
authorized to act in concert between or among themselves as if they
constituted a single company. Nothing hereunder requires such companies to
act in concert.
		(Source: P.A. 77-1882.) (215 ILCS 5/123A-12) (from Ch. 73, par. 735A-12)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-12. 
		Exchange of information or statistical data between advisory Organizations
and companies. 
		Advisory organizations, or advisory organizations and companies may
exchange the type of information or statistical data authorized under this
Article. The Director may review such cooperative activities and practices
and if, after a hearing, upon notice of all the cooperating parties, he
finds that any activity or practice is unfair or unreasonable or otherwise
inconsistent with the provisions of the Illinois Insurance Code, he may
issue a written order requiring the discontinuance of such activity or
practice.
		(Source: P.A. 77-1882.) (215 ILCS 5/123A-13) (from Ch. 73, par. 735A-13)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-13. 
		Examination of advisory organization, members, subscribers and other
companies.(1) As often as may be reasonable and necessary, the Director must make
or cause to be made an examination of any advisory organization. In lieu of
any such examination the Director may accept the report of an examination
made by the insurance regulatory official of another state. In examining
any organization pursuant to this Section, the Director shall ascertain
whether such organization complies with the requirements of this Article
and all other applicable provisions of the Illinois Insurance Code.(2) If after examination of a company or advisory organization, or upon
the basis of other information, the Director has good cause to believe that
the company or organization does not comply with the applicable provisions
of the Illinois Insurance Code, he shall, unless he has good cause to
believe such noncompliance is knowingly and wilfully, give notice in
writing to the company or organization, stating therein to the extent
practicable, in what manner such noncompliance is allowed to exist and
specifying therein a reasonable time, not less than 10 days thereafter, in
which such noncompliance may be corrected. Notices under this Section shall
be confidential between the Director and the parties unless a hearing is
held thereon.(3) If the Director has good cause to believe such noncompliance to be
wilful, or if within, the period prescribed by the Director in the notice
required by paragraph (2) of this Section the company or organization does
not make the changes as may be necessary to correct the noncompliance
specified by the Director or establish to the satisfaction of the Director
that the specified noncompliance does not exist, then the Director may hold
a public hearing in connection therewith, provided that within a reasonable
period of time, which shall be not less than 10 days before the date of
such hearing, he must mail written notice specifying the matters to be
considered at such hearing to such company or organization. If no notice
has been given as provided in paragraph (2) of this Section, notice of
hearing shall state therein, to the extent practicable, in what manner such
noncompliance is alleged to exist.
		(Source: P.A. 77-1882.) (215 ILCS 5/123A-14) (from Ch. 73, par. 735A-14)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-14. 
		Notice of violation-suspension or revocation of certificate-cease and
desist order. 
		If after a hearing pursuant to Sec. 123A-13, the Director finds(a) that a company or advisory organization is in     violation of this Article or other applicable provisions of the Illinois Insurance Code, he may issue an order to such company or organization which has been the subject of the hearing specifying the violation which exists and requiring compliance within a reasonable time thereafter;(b) that the violation of any of the applicable     provisions of the Illinois Insurance Code by any company or advisory organization was wilful, he may suspend or revoke, in whole or in part, the certificate of authority of such company, and revoke the license of the advisory organization and order it to cease all activities within the State of Illinois.		(Source: P.A. 77-1882.) (215 ILCS 5/123A-15) (from Ch. 73, par. 735A-15)(Section scheduled to be repealed on January 1, 2027)Sec. 123A-15. 
		Failure to comply with final order of Director; penalty; collection; to be
in addition to other penalties; wilful violation of Act-misdemeanor.(1) Any person, company or organization who fails to comply with a final
order of the Director under this Article shall be liable to the State up to
$100 per violation, according to the findings of the Director. If the
Director finds the noncompliance wilful, the person, company, or
organization shall be liable to the State up to $5,000 per violation. The
Director may bring action in the name of the people of the State of
Illinois to enforce collection. These penalties may be in addition to any
other penalties provided by law.(2) A wilful violation of the provisions of this Article by any person
is a misdemeanor.
		(Source: P.A. 77-1882.)
(215 ILCS 5/Art. VIIB heading) ARTICLE VIIB.  
		RISK RETENTION COMPANIES
(Article scheduled to be repealed on January 1, 2027) (215 ILCS 5/123B-1) (from Ch. 73, par. 735B-1)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-1. 
		Purpose. 
		The purpose of this Article is to regulate the formation
or operation, or both, of risk retention groups and purchasing
groups in Illinois formed pursuant to the provisions
of the federal Liability Risk Retention Act of 1986
to the extent permitted by such law.
		(Source: P.A. 85-131.) (215 ILCS 5/123B-2) (from Ch. 73, par. 735B-2)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-2. Definitions. As used in this Article:(1) "Director" means the Director of the Department of Insurance.(2) "Completed operations liability" means liability
arising out of the installation,
maintenance, or repair of any product at a site
which is not owned or controlled by:(a) any person who performs that work; or(b) any person who hires an independent contractor to     perform that work; but shall include liability for activities which are completed or abandoned before the date of the occurrence giving rise to the liability.(3) "Domicile", for purposes of determining the state
in which a purchasing group is domiciled, means:(a) for a corporation, the state in which the     purchasing group is incorporated; and(b) for an unincorporated entity, the state of its     principal place of business.(4) "Hazardous financial condition" means that, based
on its present or reasonably anticipated financial condition,
a risk retention group, although not yet financially
impaired or insolvent, is unlikely to be able:(a) to meet obligations to policyholders with respect     to known claims and reasonably anticipated claims; or(b) to pay other obligations in the normal course of     business.(5) "Insurance" means primary insurance, excess insurance,
reinsurance, surplus lines insurance, and any other
arrangement for shifting and distributing risk which
is determined to be insurance under the laws of Illinois.(6) "Liability" means:(a) legal liability for damages (including costs of     defense, legal costs and fees, and other claims expenses) because of injuries to other persons, damage to their property, or other damage or loss to such other persons resulting from or arising out of:(i) any business (whether for profit or not for         profit), trade, product, services (including professional services), premises, or operations; or(ii) any activity of any state or local         government, or any agency or political subdivision thereof; but(b) does not include personal risk liability and an     employer's liability with respect to its employees other than legal liability under the Federal Employers' Liability Act (45 U.S.C. 51 et seq.).(7) "Personal risk liability" means liability for
damage because of injury to any person, damage to property,
or other loss or damage resulting from any personal,
familial, or household responsibilities or activities,
rather than from responsibilities or activities referred
to in paragraph (a) of subsection (6) of this Section;(8) "Plan of operation or a feasibility study" means
an analysis which presents the expected activities and
results of a risk retention group including, at a minimum:(a) information sufficient to verify that its members     are engaged in businesses or activities similar or related with respect to the liability to which such members are exposed by virtue of any related, similar, or common business, trade, product, services, premises or operations;(b) for each state in which it intends to operate,     the coverages, deductibles, coverage limits, rates, and rating classification systems for each line of insurance the group intends to offer;(c) historical and expected loss experience of the     proposed members and national experience of similar exposures to the extent this experience is reasonably available;(d) pro forma financial statements and projections;(e) appropriate opinions by a qualified, independent     casualty actuary, including a determination of minimum premium or participation levels required to commence operations and to prevent a hazardous financial condition;(f) identification of management, underwriting and     claims procedures, marketing methods, managerial oversight methods, investment policies and reinsurance agreements;(f-5)   identification of each state in which the     risk retention group has obtained, or sought to obtain, a charter and license and a description of its status in each such state; and(g) such other matters as may be prescribed by the     commissioner of the state in which the group is chartered for liability insurance companies authorized by the insurance laws of such state.(9) "Product liability" means liability for damages
because of any personal injury, death, emotional harm,
consequential economic damage, or property damage (including
damages resulting from the loss of use of property)
arising out of the manufacture, design, importation,
distribution, packaging, labeling, lease, or sale of
a product, but does not include the liability of any
person for those damages if the product involved was
in the possession of such a person when the incident
giving rise to the claim occurred.(10) "Purchasing group" means any group which:(a) has as one of its purposes the purchase of     liability insurance on a group basis;(b) purchases such insurance only for its group     members and only to cover their similar or related liability exposure, as described in paragraph (c) of this subsection (10);(c) is composed of members whose businesses or     activities are similar or related with respect to the liability to which members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations; and(d) is domiciled in any State.(11) "Risk retention group" means any corporation
or other limited liability association:(a) whose primary activity consists of assuming and     spreading all, or any portion, of the liability exposure of its group members;(b) which is organized for the primary purpose of     conducting the activity described under paragraph (a) of this subsection (11);(c) which:(i) is organized and licensed as a liability         insurance company and authorized to engage in the business of insurance under the laws of any state; or(ii) before January 1, 1985 was organized or         licensed and authorized to engage in the business of insurance under the laws of Bermuda or the Cayman Islands and, before such date, had certified to the insurance commissioner of at least one state that it satisfied the capitalization requirements of such state, except that any such group shall be considered to be a risk retention group only if it has been engaged in business continuously since such date and only for the purposes of continuing to provide insurance to cover product liability or completed operations liability (as such terms were defined in the Product Liability Risk Retention Act of 1981 before the date of the enactment of the Risk Retention Act of 1986);(d) which does not exclude any person from membership     in the group solely to provide for members of such a group a competitive advantage over such a person;(e) which:(i) has as its owners (directly or indirectly)         only persons who comprise the membership of the risk retention group and who are provided insurance by such group; or(ii) has as its sole owner (directly or         indirectly) an organization which:(I) has as its members only persons who             comprise the membership of the risk retention group; and(II) has as its owners only persons who             comprise the membership of the risk retention group and who are provided insurance by such group;(f) whose members are engaged in businesses or     activities similar or related with respect to the liability of which such members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations;(g) whose activities do not include the provision of     insurance other than:(i) liability insurance for assuming and         spreading all or any portion of the liability of its group members; and(ii) reinsurance with respect to the liability of         any other risk retention group (or any members of such other group) which is engaged in businesses or activities so that such group or member meets the requirement described in paragraph (f) of this subsection (11) for membership in the risk retention group which provides such reinsurance; and(h) the name of which includes the phrase "Risk     Retention Group".(12) "State" means any state of the United States
or the District of Columbia.(13)   "NAIC" means the National Association of Insurance Commissioners.(Source: P.A. 99-512, eff. 1-1-17.) (215 ILCS 5/123B-3) (from Ch. 73, par. 735B-3)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-3. Risk retention groups organized in this State.A. A risk retention group shall either:(1) pursuant to the provisions of Articles II or III,     be organized to write only liability insurance and, except as provided elsewhere in this Article, must comply with all of the laws, rules, regulations and requirements applicable to such insurers organized in this State and with Section 123B-4 of this Article to the extent such requirements are not a limitation on laws, rules, regulations or requirements of this State; or(2) pursuant to the provisions of Article VIIC, be     organized to write only liability insurance as a captive insurance company and, except as provided elsewhere in this Article, must comply with all of the laws, rules, regulations and requirements applicable to such insurers organized in this State and with Section 123B-4 of this Article to the extent such requirements are not a limitation on laws, rules, regulations or requirements of this State.Except that, as of the effective date of this amendatory Act of 1995, a new
risk retention group must qualify under paragraph (1) of this subsection.B. Before it may offer insurance in any state, each risk retention group
shall also submit for approval to the Director a plan of operation or a
feasibility study and revisions of such plan or study if the group intends to
offer any additional lines of liability insurance. In the event of any
subsequent material change in any item of its plan or study, such risk
retention group shall submit an appropriate revision to the Director within 10
days of any such change for approval by the Director.  The group shall not
offer any additional kinds of liability insurance, in this State or in any
other state, until a revision of such plan or study is approved by the
Director.C. At the time of filing its application for organization, the risk
retention group shall provide to the Director in summary form the following
information:  the identity of the initial members of the group, the identity of
those individuals who organized the group or who will provide administrative
services or otherwise influence or control the activities of the group, the
amount and nature of initial capitalization, the coverages to be afforded, and
the states in which the group intends to operate. Upon receipt of this information, the Director shall forward the information to the NAIC. Providing notification to the NAIC is in addition to and shall not be sufficient to satisfy the requirements of Section 123B-4 of this Code or any other provisions of this Article.D. The name under which a risk retention group may be organized and
licensed shall include the phrase "Risk Retention Group".E. Notwithstanding any other provision to the contrary, all risk
retention groups chartered in this State shall file an annual statement with
the Department and NAIC.
The annual statement shall be in a form prescribed by the Director.  The
statement may be required to be in diskette form.  The statement shall be
completed in accordance with the annual statement instructions and the NAIC
Accounting Practices and Procedures Manual.F. As used in this subsection F:"Board of directors" means the governing body of the risk retention group elected by shareholders or members to establish policy, elect or appoint officers and committees, and make other governing decisions."Director" means a natural person designated in the articles of the risk retention group, or designated, elected, or appointed by any other manner, name, or title, to act as a director."Material relationship" means a relationship of a person with the risk retention group that includes, but is not limited to:(a)   The receipt in any one 12-month period of     compensation or payment of any other item of value by the person, a member of the person's immediate family, or any business with which the person is affiliated from the risk retention group or a consultant or services provider to the risk retention group is greater than or equal to 5% of the risk retention group's gross written premium for the 12-month period or 2% of its surplus, whichever is greater, as measured at the end of any fiscal quarter falling in a 12-month period. The person or immediate family member of that person is not independent until one year after his or her compensation from the risk retention group falls below the threshold.(b)   A relationship with the auditor as follows: a     director or an immediate family member of a director who is affiliated with or employed in a professional capacity by a present or former internal or external auditor of the risk retention group is not independent until one year after the end of the affiliation, employment, or auditing relationship.(c)    A relationship with a related entity as     follows: a director or an immediate family member of a director who is employed as an executive officer of another company where any of the risk retention group's present executives serve on that other company's board of directors is not independent until one year after the end of the service or the employment relationship.Within one year after the effective date of this amendatory Act of the 99th General Assembly, existing risk retention groups shall be in compliance with the following governance standards and new risk retention groups shall be in compliance with the standards at the time of licensure:(1)   The board of directors of the risk retention     group shall have a majority of independent directors. If the risk retention group is a reciprocal, then the attorney-in-fact shall adhere to the same standards regarding independence of operations and governance as imposed on the risk retention group's board of directors or subscribers advisory committee under these standards and, to the extent permissible under State law, service providers of a reciprocal risk retention group shall contract with the risk retention group and not the attorney-in-fact.No director qualifies as independent unless the board     of directors affirmatively determines that the director has no material relationship with the risk retention group. Each risk retention group shall disclose these determinations to the Department at least annually and the Director may approve or refute the board's determination. For this purpose, any person that is a direct or indirect owner of or subscriber in the risk retention group (or is an officer, director, or employee of an owner and insured, unless some other position of the officer, director, or employee constitutes a material relationship), as contemplated by 15 U.S.C. 3901(a)(4)(E)(ii), shall be deemed independent.A material relationship shall not be deemed to exist     by reason that a majority of the membership of the related entity's board of directors is the same as the membership of the board of directors of the risk retention group unless the director decides otherwise.(2)    The term of any material service provider     contract with the risk retention group shall not exceed 5 years. Any contract, or its renewal, shall require the approval of the majority of the risk retention group's independent directors. The risk retention group's board of directors shall have the right to terminate any service provider, audit, or actuarial contracts at any time for cause after providing adequate notice as defined in the contract. The service provider contract is deemed material if the amount to be paid for the contract is greater than or equal to 5% of the risk retention group's annual gross written premium or 2% of its surplus, whichever is greater.No service provider in a material relationship with     the risk retention group shall enter into a contract with the risk retention group unless the risk retention group has notified the Director of Insurance in writing of its intention to enter into a transaction at least 30 days prior thereto and the Director of Insurance has not disapproved it within that period.For the purposes of this paragraph (2), "service     providers" includes captive managers, auditors, accountants, actuaries, investment advisors, lawyers, managing general underwriters, and other parties responsible for underwriting, determination of rates, collection of premium, adjusting and settling claims or preparation of financial statements."Lawyers" does not include defense counsel retained     by the risk retention group to defend claims, unless the amount of fees paid to the lawyers meet the definition of a material relationship.(3)   The risk retention group's board of directors     shall adopt a written policy in the plan of operation as approved by the board that requires the board to:(a) ensure that all owner-insureds of the risk         retention group receive evidence of ownership interest;(b) develop a set of governance standards         applicable to the risk retention group;(c) oversee the evaluation of the risk retention         group's management, including, but not limited to, the performance of the captive manager, managing general underwriter, or other party or parties responsible for underwriting, determination of rates, collection of premium, adjusting or settling claims or the preparation of financial statements;(d) review and approve the amount to be paid for         all material service providers; and(e) review and approve at least annually:(i) the risk retention group's goals and             objectives relevant to the compensation of officers and service providers;(ii) the officers' and service providers'             performance in light of those goals and objectives; and(iii) the continued engagement of the             officers and material service providers.(4)   The risk retention group shall have an audit     committee composed of at least 3 independent board members as defined in this subsection F. A non-independent board member may participate in the activities of the audit committee, if invited by the members, but cannot be a member of the committee.The audit committee shall have a written charter that     defines the committee's purpose, which at a minimum must be to:(a)   assist board oversight of: (I) the         integrity of the financial statements, (II) the compliance with legal and regulatory requirements, and (III) the qualifications, independence, and performance of the independent auditor and actuary;(b)   discuss the annual audited financial         statements and quarterly financial statements with management;(c)   discuss the annual audited financial         statements with its independent auditor and, if advisable, discuss its quarterly financial statements with its independent auditor;(d)   discuss policies with respect to risk         assessment and risk management;(e)   meet separately and periodically, either         directly or through a designated representative of the committee, with management and independent auditors;(f)   review with the independent auditor any         audit problems or difficulties and management's response;(g)   set clear hiring policies of the risk         retention group as to the hiring of employees or former employees of the independent auditor;(h)   require the external auditor to rotate the         lead or coordinating audit partner having primary responsibility for the risk retention group's audit as well as the audit partner responsible for reviewing that audit so that neither individual performs audit services for more than 5 consecutive fiscal years; and(i) report regularly to the board of directors.The Department may waive the requirement to establish     an audit committee composed of independent board members if the risk retention group is able to demonstrate to the Department that it is impracticable to do so and the risk retention group's board of directors itself is otherwise able to accomplish the purposes of an audit committee as described in this paragraph (4).(5)   The board of directors shall adopt and disclose     governance standards, either through electronic or other means, and provide information to members and insureds upon request, including, but not limited to:(a)   a process by which the directors are         elected by the owner or insureds;(b)   director qualification standards;(c)   director responsibilities;(d)   director access to management and, as         necessary and appropriate, independent advisors;(e)   director compensation;(f)   director orientation and continuing         education;(g)   the policies and procedures that are         followed for management succession; and(h)   the policies and procedures that are         followed for annual performance evaluation of the board.(6)   The board of directors shall adopt and disclose     a code of business conduct and ethics for directors, officers, and employees and promptly disclose to the board of directors any waivers of the code for directors or executive officers. The code of business conduct and ethics shall include, but is not limited to, the following topics:(a) conflicts of interest;(b) matters covered under the corporate         opportunities doctrine under the state of domicile;(c) confidentiality;(d) fair dealing;(e) protection and proper use of risk retention         group assets;(f) compliance with all applicable laws, rules,         and regulations; and(g) the required reporting of any illegal or         unethical behavior that affects the operation of the risk retention group.(7)   The captive manager, president, or chief     executive officer of the risk retention group shall promptly notify the Department in writing if he or she becomes aware of any material non-compliance with any of these governance standards. (Source: P.A. 99-512, eff. 1-1-17.) (215 ILCS 5/123B-4) (from Ch. 73, par. 735B-4)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-4. Risk retention groups not organized in this State. Any risk retention group organized and licensed in a state other than this
State and seeking to do business as a risk retention group in this State shall
comply with the laws of this State as follows:A. Notice of operations and designation of the Director as agent.Before offering insurance in this State, a risk retention group shall submit
to the Director on a form prescribed by the NAIC:(1) a statement identifying the state or states in     which the risk retention group is organized and licensed as a liability insurance company, its date of organization, its principal place of business, and such other information, including information on its membership, as the Director may require to verify that the risk retention group is qualified under subsection (11) of Section 123B-2 of this Article;(2) a copy of its plan of operations or a feasibility     study and revisions of such plan or study submitted to its state of domicile; provided, however, that the provision relating to the submission of a plan of operation or a feasibility study shall not apply with respect to any line or classification of liability insurance which (a) was defined in the Product Liability Risk Retention Act of 1981 before October 27, 1986, and (b) was offered before such date by any risk retention group which had been organized and operating for not less than 3 years before such date; and(3) a statement of registration which designates the     Director as its agent for the purpose of receiving service of legal documents or process, together with a filing fee of $200 payable to the Director.A risk retention group shall submit a copy of any material revision to its plan of operation or feasibility study required by subsection B of Section 123B-3 of this Code within 30 days after the date of the approval of the revision by the Director or, if no such approval is required, within 30 days after filing.B. Financial condition.  Any risk retention group doing business in this
State shall submit to the Director:(1) a copy of the group's financial statement     submitted to the state in which the risk retention group is organized and licensed, which shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a qualified loss reserve specialist (under criteria established by the NAIC);(2) a copy of each examination of the risk retention     group as certified by the public official conducting the examination;(3) upon request by the Director, a copy of any     information or document pertaining to any outside audit performed with respect to the risk retention group; and(4) such information as may be required to verify its     continuing qualification as a risk retention group under subsection (11) of Section 123B-2.C. Taxation.(1) Each risk retention group shall be liable for the     payment of premium taxes and taxes on premiums of direct business for risks resident or located within this State, and shall report to the Director the net premiums written for risks resident or located within this State.  Such risk retention group shall be subject to taxation, and any applicable fines and penalties related thereto, on the same basis as a foreign admitted insurer.(2) To the extent licensed insurance producers are     utilized pursuant to Section 123B-11, they shall report to the Director the premiums for direct business for risks resident or located within this State which such licensees have placed with or on behalf of a risk retention group not organized in this State.(3) To the extent that licensed insurance producers     are utilized pursuant to Section 123B-11, each such producer shall keep a complete and separate record of all policies procured from each such risk retention group, which record shall be open to examination by the Director, as provided in Section 506.1 of this Code. These records shall, for each policy and each kind of insurance provided thereunder, include the following:(a) the limit of the liability;(b) the time period covered;(c) the effective date;(d) the name of the risk retention group which         issued the policy;(e) the gross premium charged; and(f) the amount of return premiums, if any.D. Compliance With unfair claims practices provisions.  Any risk retention
group, its agents and representatives shall be subject to the unfair claims
practices provisions of Sections 154.5 through 154.8 of this Code.E. Deceptive, false, or fraudulent practices.  Any risk retention group
shall comply with the laws of this State regarding deceptive, false, or
fraudulent acts or practices.  However, if the Director seeks an injunction
regarding such conduct, the injunction must be obtained from a court of
competent jurisdiction.F. Examination regarding financial condition.  Any risk retention group must
submit to an examination by the Director to determine its financial condition
if the commissioner of insurance of the jurisdiction in which the group is
organized and licensed has not initiated an examination or does not initiate an
examination within 60 days after a request by the Director.  Any such
examination shall be coordinated to avoid unjustified repetition and conducted
in an expeditious manner and in accordance with the NAIC's Examiner Handbook.G. Notice to purchasers.  Every application form for insurance from a
risk retention group and the front page and declaration page of every policy
issued by a risk retention group shall contain in 10 point type the following
notice:
"NOTICEThis policy is issued by your risk retention group. Your risk retention group
is not subject to all of the insurance laws and regulations of your state.
State insurance insolvency guaranty fund protection is not available for your
risk retention group".H. Prohibited acts regarding solicitation or sale.  The following acts by a
risk retention group are hereby prohibited:(1) the solicitation or sale of insurance by a risk     retention group to any person who is not eligible for membership in such group; and(2) the solicitation or sale of insurance by, or     operation of, a risk retention group that is in a hazardous financial condition or is financially impaired.I. Prohibition on ownership by an insurance company.  No risk retention
group shall be allowed to do business in this State if an insurance company is
directly or indirectly a member or owner of such risk retention group, other
than in the case of a risk retention group all of whose members are insurance
companies.J. Prohibited coverage.  No risk retention group may offer insurance policy
coverage prohibited by Articles IX or XI of this Code or declared unlawful by
the Illinois Supreme Court; provided however, a risk retention group
organized and licensed in a state other than this State that selects the law of
this State to govern the validity, construction, or enforceability of policies
issued by it is permitted to provide coverage under policies issued by it for
penalties in the nature of compensatory damages including, without limitation,
punitive damages and the multiplied portion of multiple damages, so long as
coverage of those penalties is not prohibited by the law of the state under
which the risk retention group is organized.K. Delinquency proceedings.  A risk retention group not organized in this
State and doing business in this State shall comply with a lawful order issued
in a voluntary dissolution proceeding or in a conservation, rehabilitation,
liquidation, or other delinquency proceeding commenced by the Director or by
another state insurance commissioner if there has been a finding of financial
impairment after an examination under subsection F of Section 123B-4 of this
Article.L. Compliance with injunctive relief.  A risk retention group shall comply
with an injunctive order issued in another state by a court of competent
jurisdiction or by a United States District Court based on a finding of
financial impairment or hazardous financial condition.M. Penalties.  A risk retention group that violates any provision of this
Article will be subject to fines and penalties applicable to licensed insurers
generally, including revocation of its license or the right to do business in
this State, or both.N. (Blank).
(Source: P.A. 99-512, eff. 1-1-17.) (215 ILCS 5/123B-5) (from Ch. 73, par. 735B-5)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-5. 
		Compulsory associations.A. No risk retention group shall
be required or permitted
to join or contribute financially to the Illinois Insurance
Guaranty Fund, or any other plan, pool, association or guaranty or
insolvency fund or any similar mechanism, in this State,
nor shall any risk retention group, or its insureds
or claimants against its insureds, receive any benefit
from any such fund or any such plan, pool, association or guaranty or insolvency fund for
claims arising under the insurance
policies issued by such risk retention group.B.  When a purchasing group obtains insurance covering
its members' risks from an insurer not authorized in
this State or a risk retention group, no such risks,
wherever resident or located, shall be covered by an
insurance guaranty fund or similar mechanism in this
State.C. When a purchasing group obtains insurance covering
its members' risks from an authorized insurer, only
risks resident or located in this State shall be covered
by the State guaranty fund subject to the provisions
of Article XXXIV.
		(Source: P.A. 85-131.) (215 ILCS 5/123B-6) (from Ch. 73, par. 735B-6)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-6. 
		Countersignatures not required. 
		Notwithstanding any
contrary provision of this Code,
a policy of insurance issued to a risk retention group
or any member of that group shall not be required to
be countersigned.
		(Source: P.A. 85-131.) (215 ILCS 5/123B-7) (from Ch. 73, par. 735B-7)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-7. Purchasing groups - exemption from certain laws relating to
the group purchase of insurance.
Any purchasing group meeting the criteria established
under the provisions of the federal Liability Risk Retention
Act of 1986 shall be exempt from any law of this State prohibiting
 the creation of risk purchasing of groups for the purchase
of insurance; any countersignature requirements as provided
in this Code; and any prohibition of group purchasing or any
law that would discriminate against a purchasing group
or its members, prohibit a purchasing group from obtaining insurance on a group basis or because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time, require that a purchasing group must have a minimum number of members, common ownership or affiliation, or certain legal form, or require that a certain percentage of a purchasing group must obtain insurance on a group basis.  In addition, an insurer shall be exempt
from any law of this State which prohibits providing,
or offering to provide, to a purchasing group or its
members advantages based on their loss and expense experience
not afforded to other persons with respect to rates,
policy forms, coverages or other matters.  A purchasing
group shall be subject to all other applicable laws
of this State.
(Source: P.A. 99-512, eff. 1-1-17.) (215 ILCS 5/123B-8) (from Ch. 73, par. 735B-8)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-8. 
		Notice and registration requirements
of purchasing groups.A. A purchasing group that intends to do business
in this State shall, prior to doing business, furnish
notice to the Director, on a form prescribed by the Director, that shall:(1) identify the state in which the group is     domiciled;(2) specify the lines and classifications of     liability insurance which the purchasing group intends to purchase;(3) identify the insurance company from which the     group intends to purchase its insurance and the domicile of such company;(4) specify the method by which, and the person or     persons, if any, through whom insurance will be offered to its members whose risks are resident or located in this State;(5) identify the principal place of business of the     group;(6) identify all other states in which the group     intends to do business; and(7) provide such other information as may be required     by the Director to verify that the purchasing group is qualified under subsection (10) of Section 123B-2 of this Article.B. A purchasing group shall, within 10 days, notify the Director of any
changes in any item set forth in subsection A of this Section.C. The purchasing group shall register with and designate
the Director as its agent solely for the purpose of
receiving service of legal documents or process, for
which a filing fee of $100 payable to the Director shall
be required, except that such requirements shall not
apply in the case of a purchasing group:(1) which in any state of the United States:(a) was domiciled before April 2, 1986; and(b) is domiciled on and after October 27, 1986,         in any state of the United States;(2) which:(a) before October 27, 1986, purchased insurance         from an insurance carrier licensed in any state; and(b) since October 27, 1986, purchased its         insurance from an insurance carrier licensed in any state;(3) which was a purchasing group under the     requirements of the Product Liability Risk Retention Act of 1981 before October 27, 1986; and(4) which does not purchase insurance that was not     authorized for purposes of an exemption under that Act, as in effect before October 27, 1986.D. Any purchasing group which was doing business in
this State prior to August 3, 1987, shall,
within 30 days after that date, furnish notice to the Director pursuant to
the provisions of subsection A of this Section and furnish
such information as may be required pursuant to subsection B
of this Section.
		(Source: P.A. 87-1090.) (215 ILCS 5/123B-9) (from Ch. 73, par. 735B-9)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-9. 
		Restrictions on insurance purchased by purchasing groups.A. A purchasing group may not purchase insurance from
a risk retention group that is not organized in a state
or from an insurer not admitted in the state in which
the purchasing group is located, unless the purchase
is effected through a licensed surplus line producer acting
pursuant to the surplus  lines laws and regulations of such state.B.  No purchasing group may offer insurance policy
coverage prohibited by this Code or declared unlawful
by the Illinois Supreme Court.C.  A purchasing group which obtains liability insurance
from an insurer not admitted in this State or a risk
retention group shall inform each of the members of
such group which has a risk resident or located in this
State that such risk is not protected by an insurance
insolvency guaranty fund in this State, and that such
risk retention group or such insurer may not be subject
to all insurance laws and regulations of this State.D. No purchasing group may purchase insurance providing for a deductible
or an aggregate limit unless the deductible or aggregate limit applies
separately to each individual member of the purchasing group.
		(Source: P.A. 85-131.) (215 ILCS 5/123B-10) (from Ch. 73, par. 735B-10)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-10. 
		Administrative and procedural authority
regarding risk retention groups and purchasing groups. 
The Director is authorized to make use of any of the
powers established under this Code to enforce the laws
of this State so long as those powers are not specifically
preempted by the Product Liability Risk Retention Act
of 1981, as amended by the Risk Retention Amendments
of 1986.  This includes, but is not limited to, the
Director's administrative authority to investigate,
issue subpoenas, conduct depositions and hearings, issue
orders (including without limitation orders pursuant
to Article XII 1/2 and Section 401.1), and impose penalties.
 With regard to any investigation, administrative proceedings,
or litigation, the Director can rely on the procedural
law and regulations of this State.
		(Source: P.A. 85-131.) (215 ILCS 5/123B-11) (from Ch. 73, par. 735B-11)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-11. 
		Duty on producers to obtain
license.A. Any person offering, acting or seeking to solicit,
sell, purchase, administer or otherwise
service a liability insurance
contract between a
purchasing group located in this State and a risk retention
group or insurance company, and any person offering,
acting or seeking to solicit, sell, purchase, administer
or otherwise service membership contracts, certificates
or agreements for enrollment in any purchasing group
to any resident of this State, must obtain a license
to act as an insurance producer for casualty
lines of insurance under Article XXXI; provided,
however, that the foregoing provisions of this subsection A, and the
following provisions of this Section 123B-11, shall not apply, if:(1) such purchasing group is composed entirely of     industrial insureds (as defined in subsection F of Section 123C-1);(2) any such purchasing group, that obtains liability     insurance from an insurer or risk retention group for one or more members of such group which has risks resident or located in this State, shall file a report in writing with the Director not later than April 1 of each year, in the form prescribed by the Director, signed and sworn to by an officer of such group, setting forth such information as the Director may require to determine whether taxes due this State with respect to the purchase of such insurance have properly been paid; and(3) such purchasing group filing a report under     paragraph (2) shall furnish to each insurer or risk retention group whose name is set forth in such report a written statement, showing:(a) the name and address of the purchasing group         making such report;(b) such additional information as the Director         may require with respect to the liability insurance obtained by such purchasing group from such insurer or risk retention group; and(c) that such information has been filed with the         Director.The written statement required under the preceding     sentence shall be furnished in a separate mailing by first-class mail to the insurer or risk retention group on or before April 1 of the year following the calendar year for which the report under paragraph (2) was made and shall be in such form as the Director may prescribe.B. Any such person shall be subject to all requirements
of and regulations under Article XXXI, except that:(1) such person shall be exempt from any residency     requirement imposed by statute or rule, if he or she states in writing that the activities to be carried out under the license will be limited to those described in subsection A of this Section; and(2) where such person does not qualify for the     exemption set forth in paragraph (1) of subsection B of this Section, all residency requirements under the laws of this State shall be applicable; and(3) where such person engages in activities, as a     licensed insurance producer, beyond those described in subsection A of this Section, all books, records, statements and accounts required to be established and maintained with respect to activities described in subsection A shall be established and maintained on a segregated basis, separate and apart from all other books, records, statements and accounts regarding the licensee's other transactions.  All premiums, commissions or other funds collected as a result of the activities described in subsection A shall be segregated from all other funds of the licensee, shall be held in separate accounts and shall in no event be commingled with any other funds held by the licensee; and(4) in addition to any other statutory bonding     requirements, any person required to be licensed by this Section shall file with his license application, and thereafter maintain, a fidelity bond in favor of the people of this State executed by a surety company and payable to any party injured by the licensee's breach of a fiduciary duty under the terms of the bond.  Such bond shall be continuous in form and maintained in the amount of the greater of $50,000 or 5% of premiums or contributions projected to be received or collected by the applicant from Illinois residents during the next succeeding year as a result of activities under this Section, but not to exceed $1,000,000.  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. Activities described under subsection A of this Section
shall require licensing if carried out, in whole or
in part, within this State either directly or indirectly
by the use of the mails, advertising or other means
of communication with a terminal located in this State.D. In addition to any other lawful duties, any person
engaging in the activities described in subsection A
of this Section shall be obligated to exercise reasonable
and customary skill and diligence to ascertain that:(1) any purchasing group or purchasing group member,     to or for whom an offer or solicitation is made, receives a written disclosure that the liability insurance coverage being offered may not be subject to all of the insurance laws and regulations of this State and that, if such company is not otherwise authorized to transact business in this State, insolvency guaranty fund protection is not available for the purchasing group or purchasing group members; and that(2) any risk retention group or insurance company     which provides a liability insurance policy or certificate to any purchasing group member to or for whom an offer or solicitation is made is:(a) solvent, and has standards of solvency and         management which are adequate for the protection of policyholders and certificate holders; and(b) operating in a lawful manner under this         Article.E. Any insurance producer who breaches a fiduciary
duty or who violates any provision of this Section will
be subject to fine and revocation or suspension of its
license in accordance with the procedures established
under Article XXXI and may be held liable for civil
damages to any person or group resulting from such violation
or breach of a fiduciary duty.F. Any person retained or employed to solicit, offer,
sell or purchase memberships in a purchasing group may
be ordered to cease any such enrollment activity in
this State whenever the Director has reason to believe
that any such purchasing group has liability insurance
coverage from a risk retention group or insurance company
which is insolvent or in a hazardous financial condition.
 Orders entered under this paragraph shall be issued
in accordance with the procedures set forth at Section
401.1.G. The Director may permit, on a reciprocal basis,
a person licensed in another state to engage in the
activities described in subsection A of this Section,
whenever he is satisfied that the laws of such other
state impose standards and duties
on such licensee no less stringent
than the standards and duties required by this Section.
		(Source: P.A. 85-131.) (215 ILCS 5/123B-12) (from Ch. 73, par. 735B-12)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-12. 
		Binding effect of orders issued in
U.S. District Court. An order issued by any United States District Court
enjoining a risk retention group from soliciting or
selling insurance, or operating, in any state (or in
all states or in any territory or possession of the
United States) upon a finding that such a group is in
a hazardous financial condition or financially impaired condition shall be
enforceable in the courts of this State.
		(Source: P.A. 85-131.) (215 ILCS 5/123B-13) (from Ch. 73, par. 735B-13)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-13. 
		Rules and regulations. 
		The Director may establish and from time to time amend
such rules relating to risk retention groups as may
be necessary or desirable to carry out the provisions
of this Article.
		(Source: P.A. 85-131.) (215 ILCS 5/123B-14) (from Ch. 73, par. 735B-14)(Section scheduled to be repealed on January 1, 2027)Sec. 123B-14. 
		Severability. 
		If any clause, sentence, paragraph,
Section or part of this Article or the application thereof to any person or
circumstances, shall, for any reason, be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair or
invalidate the remainder of this Article, and the application thereof to
other persons or circumstances, but shall be confined in its operation to
the clause, sentence, paragraph, Section or part thereof directly involved
in the controversy in which such judgment shall have been rendered and to
the person or circumstances involved.
		(Source: P.A. 85-131.)
(215 ILCS 5/Art. VIIC heading) ARTICLE VIIC.  
		DOMESTIC CAPTIVE INSURANCE COMPANIES
(Article scheduled to be repealed on January 1, 2027)  (215 ILCS 5/123C-1) (from Ch. 73, par. 735C-1)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-1. Definitions. As used in this Article:A.  "Affiliate" or "Affiliated company" includes a parent entity that controls a captive insurance company and:(1)   is an affiliate of another entity if the entity     directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the other entity.(2) is an affiliate of another entity if the entity     is an affiliate of and is controlled by the other entity directly or indirectly through one or more intermediaries.A subsidiary or holding company of an entity is an affiliate of that entity.B.  "Association" means any entity meeting the requirements
set forth in either of the following paragraphs (1), (2) or (3):(1) any organized association of individuals, legal     representatives, corporations (whether for profit or not for profit), partnerships, trusts, associations, units of government or other organizations, or any combination of the foregoing, that has been in continuous existence for at least one year, the member organizations of which collectively:(a) own, control, or hold with power to vote         (directly or indirectly) all of the outstanding voting securities of an association captive insurance company incorporated as a stock insurer; or(b) have complete voting control (directly or         indirectly) over an association captive insurance company organized as a mutual insurer;(2) any organized association of individuals, legal     representatives, corporations (whether for profit or not for profit), partnerships, trusts, associations, units of government or other organizations, or any combination of the foregoing:(a) whose member organizations are engaged in         businesses or activities similar or related with respect to the liability of which such members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations; and(b) whose member organizations:(i) directly or indirectly own or control,             and hold with power to vote, at least 80% of all of the outstanding voting securities of an association captive insurance company incorporated as a stock insurer; or(ii) directly or indirectly have at least 80%             of the voting control over an association captive insurance company organized as a mutual insurer; or(3) any risk retention group, as defined in     subsection (11) of Section 123B-2, domiciled in this State and organized under this Article; however, beginning 6 months after the effective date of this amendatory Act of 1995, a risk retention group shall no longer qualify as an association under this Article.Provided, however, that with respect to each of
the associations described in paragraphs (1),
(2) and (3) above, no member organization may (i)
own, control, or hold with power to vote in excess of
25% of the voting securities of an association captive
insurance company incorporated as a stock insurer, or
(ii) have more than 25% of the voting control of an association
captive insurance company organized as a mutual insurer.C. "Association captive insurance company" means any
company that insures risks of (i) the member organizations
of an association, and (ii) their affiliated companies.D. "Captive insurance company" means any pure captive
insurance company, association captive insurance company
or industrial insured captive insurance company organized
under the provisions of this Article.E. "Director" means the Director of the Department of Insurance.F. "Industrial insured" means an insured which (together
with its affiliates) at the time of its initial procurement
of insurance from an industrial insured captive insurance
company:(1) has available to it advice with respect to the     purchase of insurance through the use of the services of a full-time employee acting as an insurance manager or buyer or the services of a regularly and continuously retained qualified insurance consultant; and(2) pays aggregate annual premiums in excess of         $100,000 for insurance on all risks except for life, accident and health; and(3) either (i) has at least 25 full-time employees,     or (ii) has gross assets in excess of $3,000,000, or (iii) has annual gross revenues in excess of $5,000,000.G. "Industrial insured captive insurance company"
means any company that insures risks of industrial insureds
that are members of the industrial insured group, and
their affiliated companies.H. "Industrial insured group" means any group of industrial
insureds that collectively:(1) directly or indirectly (including ownership or     control through a company which is wholly owned by such group of industrial insureds) own or control, and hold with power to vote, all of the outstanding voting securities of an industrial insured captive insurance company incorporated as a stock insurer; or(2) directly or indirectly (including control through     a company which is wholly owned by such group of industrial insureds) have complete voting control over an industrial insured captive insurance company organized as a mutual insurer; provided, however, that no member organization may (i) own, control, or hold with power to vote in excess of 25% of the voting securities of an industrial insured captive insurance company incorporated as a stock insurer, or (ii) have more than 25% of the voting control of an industrial insured captive insurance company organized as a mutual insurer.I. "Member organization" means any individual, legal
representative, corporation (whether for profit or not
for profit), partnership, association, unit of government, trust or other
organization that belongs to an association or an industrial
insured group.J. "Parent" means a corporation, partnership, individual or other legal entity
that directly or indirectly owns, controls, or holds
with power to vote more than 50% of the outstanding
voting securities of a company.K. "Personal risk liability" means liability to other
persons for (i) damage because of injury to any person,
(ii) damage to property, or (iii) other loss or damage,
in each case resulting from any personal, familial, or household
responsibilities
or activities, but does not include legal liability
for damages (including costs of defense, legal costs
and fees, and other claims expenses) because of injuries
to other persons, damage to their property, or other
damage or loss to such other persons resulting from
or arising out of:(i) any business (whether for profit or not for     profit), trade, product, services (including professional services), premises, or operations; or(ii) any activity of any state or local government,     or any agency or political subdivision thereof.L. "Pure captive insurance company" means any company
that insures only risks of its parent or affiliated companies
or both.M. "Unit of government" includes any state, regional or local
government, or any agency or political subdivision thereof, or any
district, authority, public educational institution or school district,
public corporation or other unit of government in this State or any similar
unit of government in any other state.N.   "Control" means the power to direct, or cause the direction of, the management and policies of an entity, other than the power that results from an official position with or corporate office held in the entity.  The power may be possessed directly or indirectly by any means, including through the ownership of voting securities or by contract, other than a commercial contract for goods or non-management services.O.     "Qualified independent actuary" means a person that is either:(1)    a member in good standing with the Casualty     Actuarial Society; or(2)    a member in good standing with the American     Academy of Actuaries who has been approved as qualified for signing casualty loss reserve opinions by the Casualty Practice Council of the American Academy of Actuaries.P.    "Controlled unaffiliated business" means an entity:(1)     that is not an affiliate;(2)     that has an existing contractual relationship     with an affiliate under which the affiliate bears a potential financial loss; and(3)     whose risks are managed by a captive     insurance company under Section 123C-24 of this Code.Q.    "Operational risk" means any potential financial loss of an affiliate, except for a loss arising from an insurance policy issued by a captive or insurance affiliate.R.     "Captive management company" means an entity providing administrative services to a captive insurance company.S. "Safety-Net Hospital" means an Illinois hospital that qualifies as a Safety-Net Hospital under Section 5-5e.1 of the Illinois Public Aid Code. (Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-2) (from Ch. 73, par. 735C-2)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-2. Authority of captives; restrictions.A. (Blank).A-5.    A captive insurance company may not issue:(1)     life insurance;(2)     annuities;(3)     accident and health insurance for the     company's parent and affiliates, except to insure employee benefits that are subject to the federal Employee Retirement Income Security Act of 1974 or, to the extent the parent company is a college or university, an accident or health plan offered to enrolled students of the college or university;(4)    title insurance;(5)     mortgage guaranty insurance;(6)    financial guaranty insurance;(7)    homeowner's insurance coverage;(8)    personal automobile insurance; or(9)    workers' compensation insurance, except to the     extent allowed in subsection A-10.A-10.   A captive insurance company is authorized to issue a contractual reimbursement policy to:(1)     the parent company or an affiliated certified     self-insurer authorized under the Workers' Compensation Act or a similar affiliated entity expressly authorized by analogous laws of another state; or(2)    the parent company or an affiliate that is     insured by a workers' compensation insurance policy with a negotiated deductible endorsement.B. No captive insurance company shall do any insurance
business in this State unless:(1) it first obtains from the Director a certificate     of authority authorizing it to do such insurance business in this State; and(2) it appoints a resident registered agent to accept     service of process and to otherwise act on its behalf in this State.C. No captive insurance company shall adopt a name
that is the same as, deceptively similar to, or likely
to be confused with or mistaken for, any other existing
business name registered in this State.D. Each captive insurance company, or the organizations
providing the principal administrative or management
services to such captive insurance company, shall maintain
a place of business in this State.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-3) (from Ch. 73, par. 735C-3)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-3. Minimum capital and surplus.A. The Department may not issue a certificate of authority to a captive insurance company unless the company possesses and maintains unencumbered capital and surplus in an amount determined by the Director after considering:(1)    the amount of premium written by the captive     insurance company;(2)    the characteristics of the assets held by the     captive insurance company;(3)    the terms of reinsurance arrangements entered     into by the captive insurance company;(4)    the type of business covered in policies     issued by the captive insurance company;(5)    the underwriting practices and procedures of     the captive insurance company; and(6)    any other criteria that has an impact on the     operations of the captive insurance company determined to be significant by the Director.B. The amount of capital and surplus determined by the Director under subsection A of this Section may not be less than $250,000 for a pure captive insurance company, $500,000 for an industrial insured captive insurance company, and $750,000 for an association captive insurance company.C.    The capital and surplus required by subsection A of this Section must be in the form of:(1)    United States currency;(2)    an irrevocable letter of credit, in a form     approved by the Director and not secured by a guarantee from an affiliate, naming the Director as beneficiary for the security of the captive insurance company's policyholders and issued by a bank approved by the Director;(3)    bonds of this State; or(4)    bonds or other evidences of indebtedness of     the United States, the principal and interest of which are guaranteed by the United States. (Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-4)Sec. 123C-4. (Repealed).
	 
	 (Source: 86-632. Repealed by P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-5) (from Ch. 73, par. 735C-5)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-5. 
		Formation of captive insurance companies
in this State; certificate of authority.A. A pure captive insurance company shall be incorporated
as a stock insurer with its capital divided into shares
and held by the stockholders.B.  An association captive insurance company or an industrial
insured captive insurance company may be incorporated:(1) as a stock insurer with its capital divided into     shares and held by the stockholders; or(2) as a mutual insurer without capital stock, the     governing body of which is elected by the member organizations of its association.C. No stock captive insurance company shall issue any
shares of stock having a par value of less than $1
per share.  The capital stock of a captive insurance
company incorporated as a stock insurer shall be issued
at not less than par value.D. The provisions of subsection (1) of Section 10, subsection (1) of
Section 12, Sections 14, 14.1, 15 (excluding subsections (d) and (e)
thereof), 18, 19, 20 and 21, subsections (3) and (4) of Section 23, and
Section 25 shall apply to the organization of a stock captive insurance
company.E. The provisions of subsection (1) of Section 40, subsections (1) and
(2) of Section 42, Section 44, subsection (a) and (b) of Section 45, and
Sections 48, 49, 50 and 52 shall apply to the organization of a mutual
captive insurance company.F. (1) In order to receive a certificate of authority,
at the same time as the documents referred to in subsections (a), (b) and
(c) of Section 15 (in the case of a stock captive insurance company) or
subsections (a) and (b) of Section 45 (in the case of a mutual captive
insurance company) are delivered to the Director, the incorporators shall
file with the Director any statements or documents required by the
Director, including evidence of the following:(a) the amount and liquidity of its assets relative     to the risks to be assumed;(b) the expertise, experience, character, financial     responsibility, reputation and business qualifications of the officers, directors and persons who will manage it;(c) the overall soundness of its plan of operation     (which shall include (i) the lines of business to be written by the captive insurance company, (ii) the geographic areas in which the captive insurance company is to operate, (iii) the type of policy (occurrence or claims-made) to be offered by the captive insurance company, (iv) the net retention limits and reinsurance program, including whether the captive insurance company intends to assume reinsurance, and (v) in the case of an industrial insured captive insurance company, an investment policy specifying the type of investments to be made by such company and the diversity of such investments);(d) whether major operations functions, such as     underwriting, rating, claims administration, loss prevention programs, accounting and investment of funds, will be handled by the captive insurance company's employees or through contractual arrangements with other parties;(e) the scope of the loss prevention programs of its     parent, member organizations, or industrial insureds, as applicable; and(f) such other factors deemed relevant by the     Director in ascertaining whether the proposed captive insurance company will be able to meet its policy obligations.The Director may deny the incorporators' application
for a certificate of authority if he determines, in
the exercise of his discretion, either that the foregoing
standards have not been satisfied or that the proposed
captive insurance company is being organized for purposes
inimical to the interests of policyholders.(2) If the Director is satisfied, on the basis of
the documents and statements referred to in paragraph (1) of subsection F,
that the captive insurance company meets the criteria
set forth in paragraph (1) of subsection F, and that the captive insurance
company meets all other requirements imposed by this
Article (other than those set forth in Sections 123C-3 and
123C-4), he shall, at the same time as he effects the
filing referred to in Section 18 (or, in the case of
a mutual insurance company, Section 48) and issues the
permit referred to in Section 20 (or, in the case of
a mutual insurance company, Section 50), notify the
captive insurance company in writing of his determination,
which notification shall state that the Director will
issue a certificate of authority upon receipt of evidence
satisfactory to the Director that the company has fully
collected the capital and surplus required by Sections
123C-3 and 123C-4.  Upon receipt of evidence satisfactory
to the Director that the required capital and surplus
have been fully collected by the company, the Director
shall grant a certificate of authority authorizing the
captive insurance company to transact the kind or kinds
of business specified therein.
		(Source: P.A. 86-632.) (215 ILCS 5/123C-6) (from Ch. 73, par. 735C-6)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-6. 
		Change in plan of operation; violations. 
		Any material change in items (i) through (v)
of the captive insurance company's plan of operations
described in subparagraph (c) of paragraph (1) of subsection F of Section
123C-5 requires prior approval
of the Director.  Any material change which is not disapproved
by the Director within 30 days after its submission
shall be deemed approved.  The provisions of Sections 401.1
and 403A shall apply to a captive insurance company's
material failure to adhere to items (i) through
(v) of its plan of operations described in subparagraph (c) of paragraph
(1) of subsection F of Section 123C-5
(to the same extent and in the same manner as if such
failure were a violation of this Code).
		(Source: P.A. 85-131.) (215 ILCS 5/123C-7) (from Ch. 73, par. 735C-7)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-7. 
		Directors - conflicts of interest.A. The provisions of Section 10 shall apply to stock
captive insurance companies and all those having dealings
therewith and the provisions of Section 40 shall apply
to mutual captive insurance companies and all those
having dealings therewith; provided that no residents
or citizens of this State need be directors.  No director
may serve who has been convicted of fraud involving
any financial institution or of a felony.  The Director
may waive the prohibition regarding a felony if he determines
that the particular felony does not jeopardize the person's
ability to act as a director.B.  Every captive insurance company shall report to
the Director within 30 days after any change in
its executive officers or directors, including in its
report a statement of the business and professional
affiliations of any new executive officer or director.
For purposes of this subsection B, the term "executive
officer" includes only the following: chairman of the
board of directors; president; executive or senior vice-president;
secretary; and treasurer.C. No director, officer, or employee having any authority
in the investment or disposition of the funds of a captive
insurance company shall accept, except on behalf of
the company, or be the beneficiary of, any fee, brokerage,
gift, or other emolument because of any investment,
loan, deposit, purchase, sale, payment, or exchange
made by or for the company; but a director who is not
otherwise an officer or employee of the company may
receive reasonable compensation for services performed
for sales or purchases made to or for the company in
the ordinary course of its business and in the usual
private professional or business capacity of such director.D. Any profit or gain received by or on behalf of any
person in violation of subsection C of this Section
shall inure to and be recoverable by the company.  A
suit to recover such profit may be instituted in any
court of competent jurisdiction by the company, or by
any stockholder of the company in its name and on its
behalf if the company fails or refuses to bring such
suit within 60 days after request in writing or if
the company fails diligently to prosecute the same
thereafter.  No such suit shall be brought more than
2 years after the date such profit or gain was discovered.
		(Source: P.A. 85-131.) (215 ILCS 5/123C-8) (from Ch. 73, par. 735C-8)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-8. 
		Merger, consolidation, plans of exchange
and reorganization.A. The provisions of Article X shall apply to captive
insurance companies; provided, however, that:(1) if the surviving or new company is to be a     domestic captive insurance company,(a) the Director shall, in determining whether         such company meets the requirements set forth in paragraph (b) of subsection (2) of Section 162, refer only to the provisions of this Article VIIC and the other provisions of Article X;(b) the Director shall, in determining whether         such company meets the requirements of Sections 123C-3 and 123C-4, take into account the capital and surplus of the company to be merged into the domestic captive insurance company or the companies to be consolidated into the domestic captive insurance company (but any approval by the Director of such merger or consolidation shall be contingent upon the receipt of such capital and surplus by the domestic captive insurance company and satisfactory evidence thereof being presented to the Director);(c) notwithstanding the provisions of paragraph         (c) of subsection (1) of Section 166, such surviving or new company shall have all of the rights, privileges, immunities and powers and shall be subject to all of the duties and liabilities granted or imposed by this Article VIIC (and not by the entire Code); and(2) in the event that such merger or consolidation is     to be effected in conjunction with the formation and licensing of a new domestic captive insurance company in this State, the Director shall follow procedures for the contemporaneous and expeditious review of the materials presented to the Director for his approval of such formation, licensing and merger or consolidation.B. (1) Any domestic, foreign or alien stock company,
mutual company, or reciprocal company, authorized or
which may be authorized to do business in this State,
may reorganize as a domestic captive insurance company
under the laws of this State, by complying with the
provisions of Article XII.  Domestic companies are hereby
authorized to reorganize as domestic captive insurance
companies.(2) In the event that such reorganization is to be     effected in conjunction with the formation and licensing of a new captive insurance company in this State, the Director shall follow procedures for the contemporaneous and expeditious review of the materials presented to the Director for his approval of such formation, licensing and reorganization.		(Source: P.A. 85-131.) (215 ILCS 5/123C-9) (from Ch. 73, par. 735C-9)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-9. Reports, statements and mandatory reserves.A.  Captive insurance companies shall not be required
to make any annual report except as provided in this
Article.B.  (1) On or before March 1 of each year, each captive
insurance company shall submit to the Director a report
of its financial condition, verified by oath of 2
of its executive officers and including (i) a balance
sheet reporting assets, liabilities, capital and surplus,
(ii) a statement of gain or loss from operations, (iii)
a statement of changes in financial position, (iv) a
statement of changes in capital and surplus, (v)
in the case of industrial insured captive insurance
companies, an analysis of loss reserve development,
information on risks ceded and assumed under reinsurance
agreements, on forms prescribed by the Director, and
a schedule of its invested assets on forms prescribed
by the Director, and (vi) a statement of actuarial opinion by a qualified independent actuary concerning the reasonableness of the captive insurance company's loss and loss adjustment expense reserves in such form and of such content as specified in the National Association of Insurance Commissioners Annual Statement Instructions: Property and Casualty.(2) In addition, prior to March 1 of each year, each
association captive insurance company shall submit to
the Director such additional data or information, which
the Director may from time to time require, on a form
specified by the Director.(3) On or before June 1 of each year, each captive insurance company shall submit to the Director a report of its financial condition at last year's end with an independent certified public accountant's opinion of the company's financial condition.(4) Unless the Director permits otherwise, the reports
of financial condition referred to in paragraphs (1)
and (3) of this subsection B are to be prepared in accordance with the Accounting
Practices and Procedures Manual adopted by the National
Association of Insurance Commissioners.  The Director
shall have authority to extend the time for filing any
report or statement by any company for reasons which
he considers good and sufficient.C. In addition, any captive insurance company may be
required by the Director, when he considers such action
to be necessary and appropriate for the protection of
policyholders, creditors, shareholders or claimants,
to file, within 60 days after mailing to the company
of a notice that such is required, a supplemental summary
statement as of the last day of any calendar month occurring
during the 100 days next preceding the mailing of such
notice designated by him on forms prescribed and furnished
by the Director.  No company shall be required to file
more than 4 supplemental summary statements during any
consecutive 12 month period.D. Every captive insurance company shall, at all times,
maintain reserves in an amount estimated in the aggregate
to provide for the payment of all losses and claims
incurred, whether reported or unreported, which are
unpaid and for which such company may be liable, and
to provide for the expenses of adjustment or settlement
of such losses and claims.  The aggregate reserves shall
be reduced by reinsurance ceded which meets the requirements
of Section 123C-13.
For the purpose of such reserves, the company shall keep a complete and
itemized record showing all losses and claims on which it has received
notice, including all notices received by it of the occurrence of any event
which may result in a loss. Such record shall be opened in chronological
receipt order, with each notice of loss or claim identified by appropriate
number or coding.E. Every captive insurance company shall maintain an
unearned premium reserve on all policies in force which
reserve shall be charged as a liability.  The portions
of the gross premiums in force, after deducting reinsurance
qualifying under Section 123C-13, which shall be held
as a premium reserve, shall never be less in the aggregate
than the company's actual liability to all its insureds
for the return of gross unearned premiums.  In the calculation
of the company's actual liability to all its insureds,
the reserve shall be computed pursuant to the method
commonly referred to as the monthly pro rata method;
provided, however, that the Director may require that
such reserve shall be equal to the unearned portions
of the gross premiums in force, after deducting reinsurance
qualifying under Section 123C-13, in which case the reserve shall
be computed on each respective risk from the date of
the issuance of the policy.E-5.  A captive insurance company may make a written application to the Director for filing its annual report required under this Section on a fiscal year's end.  If an alternative filing date is granted, the company shall file:(1)     the annual report, including a  statement of     actuarial opinion by a qualified independent actuary concerning the reasonableness of the captive insurance company's loss and loss adjustment expense reserves in such form and of such content as specified in the National Association of Insurance Commissioners Annual Statement Instructions: Property and Casualty, no later than the 60th day after the date of the company's fiscal year's end;(2)     the report of its financial condition at last     year's end with an independent certified public accountant's opinion of the company's financial condition; and(3)    its balance sheet, income statement, and     statement of cash flows, verified by 2 of its executive officers, before March 1 of each year to provide sufficient detail to support a premium tax return.F. The reports required by this Section shall be prepared
and filed on a calendar year basis.G. Notwithstanding the requirements of this Section,
a captive insurance company may prepare and issue financial
statements prepared in accordance with generally accepted
accounting principles.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-10) (from Ch. 73, par. 735C-10)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-10. 
		Examinations and investigations;
fees.A.  The provisions of Sections 132 through 132.7 shall
apply to captive
insurance companies.  The expenses and charges of any
examination conducted pursuant to those Sections shall
be paid by the company examined.B.  When necessary to supplement its evaluation or examination
procedures, the Department may retain independent actuaries
deemed competent by the Director, qualified loss
reserve consultants, independent risk managers,
independent certified public accountants, or
qualified examiners of insurance companies deemed competent
by the Director, or any combination of the foregoing.  The Director may
also accept as a part of the Department's examination of any company
or person (a) a report by an independent actuary deemed
competent by the Director or (b) a report of an audit
made by an independent certified public accountant.
Neither those persons so designated nor any members
of their immediate families shall be officers of,
connected with, or financially interested in any company
other than as policyholders, nor shall they be financially
interested in any other corporation or person affected
by the examination, investigation or hearing.  The reasonable
expenses and charges of persons so retained or
designated shall be paid directly by the company.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/123C-11) (from Ch. 73, par. 735C-11)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-11. Grounds and procedures for suspension
or revocation of certificate of authority.A. The certificate of authority of a captive insurance
company to do an insurance business in this State may
be suspended or revoked by the Director for any of the
following reasons:(1) insolvency or impairment of required capital or     surplus to policy holders;(2) failure to meet the requirements of Sections     123C-3 or 123C-4;(3) refusal or failure to submit an annual report, as     required by Section 123C-9, or any other report or statement required by law or by lawful order of the Director;(4) failure to comply with the provisions of its own     charter or bylaws (or, in the case of an industrial insured captive, with the provisions of the investment policy set forth in its plan of operation as approved from time to time by the Director);(5) failure to submit to examination or any legal     obligation relative thereto, as required by Section 123C-10;(6) refusal or failure to pay expenses, charges, and     taxes as required by Sections 408, 409, 123C-10, and 123C-17;(7) use of methods that, although not otherwise     specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders; or(8) failure otherwise to comply with the laws of this     State.B. If the Director finds, upon examination, hearing,
or other evidence, that any captive insurance company
has committed any of the acts specified in subsection A,
he may suspend or revoke such certificate of authority
if he deems it in the best interest of the public and
the policyholders of such captive insurance company,
notwithstanding any other provision of this Article.C. The provisions of Articles XIII and XIII 1/2 shall
apply to and govern the conservation, rehabilitation,
liquidation and dissolution of captive insurance companies.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-12) (from Ch. 73, par. 735C-12)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-12. Legal investments.A. The provisions of Article VIII and of Sections 131.2
and 131.3 shall apply to association captive insurance
companies.B.  No pure captive insurance company or industrial
insured captive insurance company shall be subject to
any restrictions on allowable investments whatever,
including those limitations contained in Articles VIII
and VIII 1/2; provided, however, that the Director
may prohibit or limit any investment or type of investment
that threatens the solvency or liquidity of any such
company; and provided further that an industrial insured
captive insurance company must adhere to the investment
policy set forth in its plan of operation as approved
from time to time by the Director.C.     A captive insurance company may make loans to its affiliates with the prior approval of the Director.  Each loan must be evidenced by a note approved by the Director.  A captive insurance company may not make a loan of the minimum capital and surplus funds required by this Article.D.    The Director may prohibit or limit an investment that threatens the solvency or liquidity of a captive insurance company. (Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-13) (from Ch. 73, par. 735C-13)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-13. Reinsurance.A.  Any captive insurance company may provide reinsurance
on risks ceded by any other insurer; provided, however,
that the risks so assumed are the same as the captive
insurance company could legally insure on a direct basis.The provisions of Section 174.1 shall not apply to
any captive insurance company providing reinsurance.B.  Subject to the provisions of Article XI, any captive
insurance company may cede, and may take credit for
in the establishment of reserves, all or any part of
its risks.
Furthermore, in addition to Section 173.1, any pure or industrial insured
captive insurance company may take credit, as either an
asset or a deduction from liability, for reinsurance so ceded to the extent:(1) The reinsurer satisfies all of the following (a)     through (g):(a) the principal business of the reinsurer         (other than investments in subsidiaries and other investment activities) is to accept reinsurance from captive insurance companies organized under Article VIIC, of which the company accepting the reinsurance directly or indirectly owns, controls, or holds with power to vote more than 80% of the outstanding voting securities if organized as a stock company or more than 80% of the voting control if organized as a mutual company and to provide insurance related services;(b) is licensed to transact insurance or         reinsurance in its jurisdiction of domicile;(c) submits to this State's authority to examine         its books and records and agrees to pay the cost thereof;(d) files annually with the Director a copy of         its most recent audited financial statements;(e) maintains a surplus as regards policyholders         in an amount that is not less than $20,000,000;(f) files with the Department the following:(i) evidence of its submission to the             jurisdiction of any court of competent jurisdiction in any state of the United States and its agreement to comply with all requirements necessary to give the court jurisdiction and to abide by the final decision of the court or of any appellate court in the event of an appeal; and(ii) an instrument designating the Director             or a designated attorney as its true and lawful attorney upon whom may be served any lawful process in any action, suit, or proceeding instituted by or on behalf of the ceding company;(g) has not been the subject of an order of the         Director entered after notice and hearing prohibiting the reinsurer from utilizing this paragraph (1); or(2) the taking of credit by the captive insurance     company has otherwise received the prior approval of the Director.C.    A captive insurance company shall provide notice to the Director of a reinsurance agreement to which the company becomes a party not later than the 30th day after the date of the execution of the agreement.D.    A captive insurance company shall provide notice of a termination of a previously filed reinsurance agreement to the Director not later than the 30th day after the date of termination.E.    Notwithstanding Section 123C-15 of this Code, a captive insurance company, with the Director's approval, may accept risks from and cede risks to or take credit for reserves on risks ceded to:(1)    a captive reinsurance pool composed only of     other captive insurance companies holding a certificate of authority under this Article or a similar law of another jurisdiction; or(2)    an affiliated captive insurance company     holding a certificate of authority under this Article or a similar law of another jurisdiction. (Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-14) (from Ch. 73, par. 735C-14)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-14. 
		Rating organizations; memberships;
rate or policy filing.
No captive insurance company shall be required to join
a rating organization.  No captive insurance company
shall be required to file its premium rates or policy
forms with, or to seek approval of such rates or forms
from, the Director or any other authority of this State.
		(Source: P.A. 85-131.) (215 ILCS 5/123C-15) (from Ch. 73, par. 735C-15)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-15. 
		Exemption from compulsory associations. 
		No captive insurance company shall be permitted or
required to join or contribute financially to any plan,
pool, association, or guaranty or insolvency fund in
this State, nor shall any captive insurance company,
nor its insureds nor any claimants against the insureds,
nor its parent nor any affiliated company, nor any member
organization of its association, receive any benefit
from any such plan, pool, association, or guaranty or
insolvency fund for claims arising out of the operations
of such captive insurance company.  Each association
captive insurance company and each industrial insured
captive insurance company shall inform each insured,
in both the application for insurance and in the policy
issued to such insured, that (i) the captive insurance
company is not subject to all of the insurance laws
and regulations of this State, and (ii) state insurance
insolvency guaranty funds are not available to such
insured for claims arising out of the operations of
such captive insurance company.
		(Source: P.A. 85-131.) (215 ILCS 5/123C-16) (from Ch. 73, par. 735C-16)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-16. Tax.A. Every captive insurance company organized under
the provisions of this Article and doing business in
this State shall, for the privilege of doing business
in this State, pay to the Director for the State treasury
the State tax imposed under Section 409 to the same
extent and in the same manner as a domestic insurance company using a tax form prescribed by the Director on or before March 15 of each year.B.  Domestic captive insurance companies shall be insurance companies
subject to the rules now provided for such companies under the Illinois
Income Tax Act.C.  A domestic captive insurance company that has engaged one or more
administrative or management service organizations in order to comply with
subsection D of Section 123C-2 shall be deemed to meet the requirements of
Section 409(4)(a) through (d) provided that the company and such
organizations when viewed collectively as a group:(a) maintain a place of business in this State; and(b) maintain in this State personnel knowledgeable of     and responsible for the company's operations, books, records, administration and annual statement; and(c) conduct in this State substantially all of the     company's underwriting, policy issuing and servicing operations relating to the company's policyholders and certificate holders; and(d) comply with the provisions of  Section 133(2)     with respect to such domestic captive insurance company's books, records, documents, accounts, vouchers and securities.(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-17) (from Ch. 73, par. 735C-17)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-17. Fees.A. The Director shall charge, collect, and give proper
acquittances for the payment of the following fees and
charges with respect to a captive insurance company:1. For filing all documents submitted for the     incorporation or organization or certification of a captive insurance company, $2,000.2. For filing requests for approval of changes in the     elements of a plan of operations, $200.B. Except as otherwise provided in subsection A of this Section and in
Section 123C-10, the provisions of Section 408 shall
apply to captive insurance companies.C. Any funds collected from captive insurance companies
pursuant to this Section shall be treated in the manner
provided in subsection (11) of Section 408.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-18) (from Ch. 73, par. 735C-18)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-18. Additional powers, rights, and obligations. In addition to the powers and duties set forth in the
other provisions of this Article VIIC and to the extent
not inconsistent with the provisions of this Article VIIC:A. The provisions of Article XXVI, subsection E of     Section 123B-3, subsection A of Section 123B-4, subsection A of Section 123B-8, and Sections 2.1, 131.4 through 131.12, 131.20, 131.20a(2)(except as otherwise provided by subsection B of Section 123C-12), 131.22, 133, 141.1, 141.2, 144.1, 144.2, 147, 148, 149, 154.5, 154.6, 154.7, 154.8, 155, 186.1, 186.2, 401, 401.1, 402, 403, 403A, 407, 407.1, 407.2, 4l2, 415 and subsections (1) and (3) of Section 441 shall apply to captive insurance companies and all those having dealings therewith.B. The provisions of subsection (2) of Section 9,     Section 11, subsection (2) of Section 12, and Sections 27.1, 28, 28.2, 28.2a, 29, 30, 31, 32, 33, 34, and 35 shall apply to stock captive insurance companies and all those having dealings therewith.C. The provisions of subsection (2) of Section 39,     Section 41, subsections (1) and (2) of Section 42, and Sections 54, 55, 56, 57, 58, 59, and 60 shall apply to mutual captive insurance companies and all those having dealings therewith.D. The Director and each captive insurance company     and all those having dealings therewith shall have the authorities, powers, rights, duties and obligations set forth in Section 144 (excluding paragraph (f) of subsection (4) of Section 144); provided, however, that:(i) subsection (1) of Section 144 shall not apply         to pure captive insurance companies; and(ii) the Director may exempt any association         captive insurance company and any industrial insured captive insurance company from the requirements of subsection (1) of Section 144, on terms and conditions established by the Director, upon a showing by any such captive insurance company and a determination by the Director that the limitations of subsection (1) of Section 144 are not necessary to protect the interests of policyholders in light of such captive insurance company's financial condition and the nature of the risks insured by such company.E. Nothing in this Article or Code shall be deemed to     prohibit the by-laws of a captive insurance company from providing for the allocation of underwriting or investment income or loss to the respective accounts of its members, or to prohibit a captive insurance company, if its by-laws so provide and the requirements of this Article are otherwise met, from distributing to a withdrawing member, whether by way of ordinary or liquidating distributions and whether the withdrawal of such member is voluntary or otherwise, on terms and conditions set forth in the by-laws, that member's share of the company's surplus, as well as that portion of the underwriting and investment income allocated to such withdrawing member for the period that such withdrawing member was a member of the mutual company; provided that (i) no such distribution may be made except out of earned, as distinguished from contributed, surplus, (ii) no such distribution shall be made if the surplus of the captive insurance company is less than the original surplus required for the kind or kinds of business authorized to be transacted by such company, or if the payment of such distribution would reduce its surplus to less than the minimum, and (iii) no such distribution shall be made without the approval of the Director if such distribution, together with other such distributions made within the period of 12 consecutive months ending on the date on which the proposed distribution is scheduled for payment or distribution, exceeds the greater of: (i) 10% of the company's surplus as regards policyholders as of the 31st day of December next preceding, or (ii) the net income of the company for the 12-month period ending the 31st day of December next preceding.  For the purposes of this subsection, net income includes net realized capital gains in an amount not to exceed 20% of net unrealized capital gains.  The right of a member of a captive insurance company to receive distributions under this Section shall be included within the provisions of paragraph (i) of subsection (1) of Section 205 in the event of liquidation or dissolution of such captive insurance company.(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 5/123C-19) (from Ch. 73, par. 735C-19)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-19. Letters of credit.A. Any letter of credit used to meet the requirements
set forth in Sections 123C-3 and 123C-4:(1) (blank);(2) may not be allowed to expire without the prior     written approval of the Director and shall provide for 30 days' advance written notice to the Director of the proposed expiration of the letter of credit; and(3) must be provided pursuant to arrangements,     acceptable to the Director, wherein all funds obtained by the company under the letter of credit are free of claims of any party which may arise on account of the company's resort to the letter of credit.B. If letters of credit are used to provide surplus
in excess of the amounts required in Section 123C-4:(1) the aggregate amount of all such letters of     credit shall not exceed the policyholder surplus of the company;(2) without the prior written approval of the     Director, no such letter of credit may be allowed to expire, in any period of 12 consecutive months ending on the date of such expiration, in an amount greater than the greater of (a) 10% of the company's surplus as regards policyholders as of the 31st day of December next preceding, or (b) the net income of the company for the 12 month period ending the 31st day of December next preceding.  For purposes of this Section, net income includes net realized capital gains in an amount not to exceed 20% of net unrealized capital gains; and(3) each such letter of credit shall provide for 30     days' advance written notice to the Director of the proposed expiration of the letter of credit.C. (Blank).D. (Blank).
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-20) (from Ch. 73, par. 735C-20)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-20. 
		Laws applicable. 
		No provisions of this Code, other than
those contained in this Article or contained in specific references
contained in this Article, shall apply to domestic captive
insurance companies.
		(Source: P.A. 85-131.) (215 ILCS 5/123C-21) (from Ch. 73, par. 735C-21)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-21. 
		Severability. 
		If any clause, sentence, paragraph,
Section or part of this Article or the application thereof to any person or
circumstances, shall, for any reason, be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair or
invalidate the remainder of this Article, and the application thereof to
other persons or circumstances, but shall be confined in its operation to
the clause, sentence, paragraph, Section or part thereof directly involved
in the controversy in which such judgment shall have been rendered and to
the person or circumstances involved.
		(Source: P.A. 85-131.) (215 ILCS 5/123C-22) (from Ch. 73, par. 735C-22)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-22. 
		Subordinated indebtedness. 
		A captive insurance company
organized under this Article may borrow or assume a liability for the
repayment of a sum of money upon a written agreement for the loan or
advance, with interest at a rate not exceeding the corporate base rate as
reported by the largest bank (measured by assets) with its head office
located in Chicago, Illinois, as in effect on the first business day of the
month, plus 3 percent per annum.  Such rate shall be fixed on the execution
of the loan and apply for the term of the loan.  Such loan and interest
thereon shall be repaid only out of surplus of the company in excess of such
minimum surplus as is stipulated in and by the agreement.  The agreement
shall first be submitted to and approved by (A) not less than a majority of
the Board of Directors of a stock company or a mutual
company, and (B) the Director.  Repayment of principal or payment of
interest may be made only with the approval of the Director when he is
satisfied that the financial condition of the company warrants such action.
  No loan or advance made under this Section or interest accruing thereon
shall form a part of the legal liabilities of the company until authorized
for payment by the Director but, until such authorization, all statements
published by the company or filed with the Director shall show the amount
thereof then remaining unpaid as a special surplus or capital account at
the election of the company.  Such account shall be considered in
determining whether initial minimum capital and surplus requirements have
been met.  Nothing in this Section shall be construed to mean that a
company may not otherwise borrow money, but the amount so borrowed with
accrued interest thereon shall be carried by the company as a liability.
		(Source: P.A. 86-632.) (215 ILCS 5/123C-23)Sec. 123C-23. Approval of captive reinsurance pools.  Before determining whether to approve a captive insurance company's participation in a captive reinsurance pool under Section 123C-13 of this Code, the Director may:(1)  require the captive insurance company provide to     the Director evidence that the captive reinsurance pool:(a)    is composed only of other captive         insurance companies holding a certificate of authority under this Article or a similar law of another jurisdiction; and(b)    will be able to meet the pool's financial         obligations; and(2)  impose any other limitation or requirement on     the captive insurance company that is necessary and proper to provide adequate security for the captive insurance company.(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-24)Sec. 123C-24. Standards for risk management of controlled unaffiliated business.  The Director may adopt rules establishing standards to ensure that an affiliated company is able to exercise control of the risk management function of any controlled unaffiliated business to be insured by the captive insurance company.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-25)Sec. 123C-25. Captive managers.  Before providing captive management services to a licensed captive insurance company, a captive management company shall register with the Director by providing the information required on a form adopted by the Director.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-26)Sec. 123C-26. Dividends.A.   A captive insurance company shall notify the Director in writing when issuing policyholder dividends.B.    A captive insurance company, with the Director's approval, may issue dividends or distributions to the holders of an equity interest in the captive insurance company.  The Director shall adopt rules to implement this subsection B.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-27)Sec. 123C-27. Rulemaking authority.  The Director may adopt reasonable rules as necessary to implement the purposes and provisions of this Article.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/123C-28)Sec. 123C-28. Confidentiality.A.    Any information filed by an applicant or captive insurance company under this Article is confidential and privileged for all purposes, including for purposes of the Freedom of Information Act, a response to a subpoena, or evidence in a civil action.  Except as provided by subsections B and C of this Section, the information may not be disclosed without the prior written consent of the applicant or captive insurance company to which the information pertains.B.     If the recipient of the information described by subsection A of this Section has the legal authority to maintain the confidential or privileged status of the information and verifies that authority in writing, the Director or his or her designee may disclose the information to any of the following entities functioning in an official capacity:(1)    a director of insurance or an insurance     department of another state;(2)    an authorized law enforcement official;(3)    a State's Attorney of this State;(4)    the Attorney General;(5)    a grand jury;(6)    the National Association of Insurance     Commissioners if the captive insurance company is affiliated with an insurance company that is part of an insurance holding company system as described in Article VIII 1/2 of this Code;(7)    another state or federal regulator if the     applicant or captive insurance company to which the information relates operates in the entity's jurisdiction;(8)    an international insurance regulator or     analogous financial agency if the captive insurance company is affiliated with an insurance company that is part of an insurance holding company system as described in Article VIII 1/2 of this Code and the holding company system operates in the entity's jurisdiction; or(9)    members of a supervisory college described by     Section 131.20c of this Code, if the captive insurance company is affiliated with an insurance company that is part of an insurance holding company system as described in Article VIII 1/2 of this Code.C.    The Director may use information described by subsection A of this Section in the furtherance of a legal or regulatory action relating to the administration of this Code.
(Source: P.A. 100-1118, eff. 11-27-18.)
(215 ILCS 5/Art. VIID heading)
							 ARTICLE VIID. NONPROFIT RISK ORGANIZATIONS
(Source: P.A. 93-918, eff. 1-1-05.) (215 ILCS 5/123D-1)Sec. 123D-1. Purpose; construction. The purpose of this Article is to provide for the organization of and
issuance
of a certificate of authority to nonprofit risk organizations that insure
nonprofit
organizations and that will qualify, and continue to qualify, as a qualified
charitable risk
pool, as defined in subsection (n) of Section 501 of the Internal Revenue Code.
				
(Source: P.A. 93-918, eff. 1-1-05.) (215 ILCS 5/123D-5)Sec. 123D-5. Definitions.  As used in this Article:"Member" means a nonprofit organization that participates as an insured in a nonprofit risk organization."Nonmember charitable organization" has the meaning set forth in
subsection (n) of Section 501 of the Internal Revenue Code."Nonprofit organizations" means organizations described in paragraph (3) of
subsection (c), and exempt from taxation under subsection (a), of Section 501
of the
Internal Revenue Code."Nonprofit risk organization" means a nonprofit company organized to do
business solely with nonprofit organizations as a qualified charitable risk
pool under
subsection (n) of Section 501 of the Internal Revenue Code that is organized in
accordance with this Article."Startup capital" has the meaning set forth in subsection (n) of
Section 501
of the Internal Revenue Code.
					
				
(Source: P.A. 93-918, eff. 1-1-05.) (215 ILCS 5/123D-10)Sec. 123D-10. Organization of nonprofit risk organizations.(a) A company organized pursuant to Articles III or IV, including such
companies organized as a risk retention group in this State pursuant to Article
VIIB of
this Code, that satisfies the requirements of this Article may be organized as
a nonprofit
risk organization.(b) Notwithstanding any contrary provision in subsection A of Section 123B-3
of
this Code, a nonprofit risk organization may be organized as a reciprocal
insurance
company and qualify for organization under Article VIIB as a risk retention
group.(c) No nonprofit risk organization issued a certificate of authority
pursuant to this
Article shall be converted into a corporation or other entity organized for
pecuniary profit
or into a for-profit organization of any kind.
					
				
(Source: P.A. 93-918, eff. 1-1-05.) (215 ILCS 5/123D-15)Sec. 123D-15. Conduct of insurance business by nonprofit risk
organizations.(a) The Director may, pursuant to this Article, issue a certificate of
authority to write the kinds of insurance enumerated in Classes 2 and 3 of Section 4 to a
nonprofit risk organization that is a company organized pursuant to Articles
III or IV,
including such companies organized as a risk retention group in this State
pursuant to
Article VIIB, if such organization:(1) complies with the applicable requirements of     Articles III or IV and VIIB, if organized as a risk retention group; and(2) has an initial paid-up capital and surplus at     least equal to the amount of applicable paid-up capital and surplus required by Articles III or IV for a newly organized company doing the same kind or kinds of insurance business.
					Thereafter, every such nonprofit risk organization shall maintain capital and
surplus at
least equal to the amount of applicable capital and surplus required to be
maintained by
companies under Articles III or IV doing the same kind or kinds of
insurance
business.(b) Every certificate of authority to engage in an insurance business issued
by the
Director to any nonprofit risk organization pursuant to the provisions of this
Article shall
specify the company's name, the location of its principal office, the name and
principal
address of its attorney-in-fact, if any, and the kind or kinds of insurance
business that it
is authorized to engage in this State.
					
				
(Source: P.A. 93-918, eff. 1-1-05.) (215 ILCS 5/123D-20)Sec. 123D-20. Relevant criteria.(a) A nonprofit risk
organization
must meet all of the following criteria:(1) Be organized and operated solely to insure risks     of its members.(2) Directly provide information to its members with     respect to loss control and risk management.(3) Be comprised solely of members.(4) Be organized under this Article.(5) Be exempt from Illinois income taxes with respect     to its activities or operations in furtherance of the powers conferred upon it by this Article.(6) Obtain at least $1,000,000 in startup capital     from nonmember charitable organizations. The startup capital may take the form of advancements or borrowings in the form permitted by Section 56 or 76 of this Code, as applicable. Startup capital may be used to satisfy the financial requirements contained in this Article applicable to a nonprofit risk organization only to the extent the Director determines that it complies with those requirements.(7) Be controlled by a board of directors elected by     its members.(8) Require in its organizational documents that:(A) each member of the nonprofit risk         organization shall at all times be an organization described in paragraph (3) of subsection (c) of Section 501 of the Internal Revenue Code and exempt from tax under subsection (a) of Section 501 of the Internal Revenue Code;(B) any member that receives a final         determination that it no longer qualifies as an organization described in paragraph (3) of subsection (c) of Section 501 of the Internal Revenue Code shall immediately notify the nonprofit risk organization of the determination and the effective date of the determination; and(C) each policy of insurance issued by the         nonprofit risk organization shall provide that the policy does not cover the insured with respect to events occurring after the date the final determination was issued to the insured.(b) An organization shall not cease to qualify as a     nonprofit risk organization solely by reason of the failure of any of its members to continue to be an organization described in paragraph (3) of subsection (c) of Section 501 of the Internal Revenue Code if, within a reasonable period of time after the nonprofit risk organization is notified as required under subparagraph (8)(B) of subsection (a) of this Section, the nonprofit risk organization takes such action as may be reasonably necessary to remove the member from the nonprofit risk organization. 
				(Source: P.A. 93-918, eff. 1-1-05.) (215 ILCS 5/123D-25)Sec. 123D-25. Applicability of other provisions of this Code. Except as otherwise provided in this Article, where inconsistent with
this
Article, or where the context otherwise requires, all of the provisions of this
Code and the
rules of the Director relating to all insurers and those relating to a company
organized
pursuant to Articles III or IV or a risk retention group organized in this
State pursuant
to Article VIIB transacting the same kind or kinds of insurance shall be
applicable to a
nonprofit risk organization organized and issued a certificate of authority
pursuant to this
Article. Where any of such provisions of law refer to a corporation, company,
or insurer,
those references, when read in connection with and applicable to this Article,
shall mean
such a nonprofit risk organization.
				
(Source: P.A. 93-918, eff. 1-1-05.) (215 ILCS 5/123D-30)Sec. 123D-30. Residual market participation exemption;
security
funds. A nonprofit risk organization shall not be permitted or required to join
or
contribute financially to any plan, pool, association, or guaranty or
insolvency fund in
this State, nor shall any nonprofit risk organization, nor its insureds nor any
claimants
against the insureds, nor its parent nor any affiliated company, nor any member
organization of its association, receive any benefit from any such plan, pool
association,
or guaranty or insolvency fund for claims arising out of the operations of the
nonprofit
risk organization. Each nonprofit risk organization must inform each insured,
in both the
application for insurance and in the policy issued to the insured, that (i)
the nonprofit
risk organization is not subject to all of the insurance laws and rules of this
State, and (ii)
State insurance insolvency guaranty funds are not available to  the insured for
claims
arising out of the operations of the nonprofit risk organization.
				
(Source: P.A. 93-918, eff. 1-1-05.) (215 ILCS 5/123D-35)Sec. 123D-35. Rules.  The Director shall adopt such rules as may be
necessary
for
the implementation of this Article.
					
(Source: P.A. 93-918, eff. 1-1-05.)
(215 ILCS 5/Art. VIII.5 heading) ARTICLE VIII 1/2.  
		INSURANCE HOLDING COMPANY SYSTEMS (215 ILCS 5/131.1)Sec. 131.1. Definitions. As used in this Article, the following terms have the respective
meanings set forth in this Section unless the context requires otherwise:(a) An "affiliate" of, or person "affiliated" with, a specific person,
is a person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control
with, the person specified.(a-5) "Acquiring party" means such person by whom or on whose behalf the merger or other acquisition of control referred to in Section 131.4 is to be affected and any person that controls such person or persons.(a-10) "Associated person" means, with respect to an acquiring party, (1) any beneficial owner of shares of the company to be acquired, owned, directly or indirectly, of record or beneficially by the acquiring party, (2) any affiliate of the acquiring party or beneficial owner, and (3) any other person acting in concert, directly or indirectly, pursuant to any agreement, arrangement, or understanding, whether written or oral, with the acquiring party or beneficial owner, or any of their respective affiliates, in connection with the merger, consolidation, or other acquisition of control referred to in Section 131.4 of this Code.(a-15) "Company" has the same meaning as "company" as defined in Section 2 of this Code, except that it does not include agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state.(b) "Control" (including the terms "controlling", "controlled by" and
"under common control with") means the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies
of a person, whether through the ownership of voting securities, the holding
of shareholders' or policyholders' proxies by
contract other than a commercial contract for goods or non-management
services, or otherwise, unless the power is solely the result of an
official position with or corporate office held by the person. Control is presumed
to exist if any person, directly or indirectly, owns, controls, holds with
the power to vote, or holds shareholders' proxies representing 10% or
more of the voting securities of any other person, or holds or controls
sufficient policyholders' proxies to elect the majority of the board of
directors of the domestic company. This presumption may be rebutted by a
showing made in the manner as the Director may provide by rule. The Director
may determine, after
furnishing all persons in interest notice and opportunity to be heard and
making specific findings of fact to support such determination, that
control exists in fact, notwithstanding the absence of a presumption to
that effect.(b-5) "Enterprise risk" means any activity, circumstance, event, or series of events involving one or more affiliates of a company that, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the company or its insurance holding company system as a whole, including, but not limited to, anything that would cause the company's risk-based capital to fall into company action level as set forth in Article IIA of this Code or would cause the company to be in
hazardous financial condition as set forth in Article XII 1/2 of this Code.(b-10) "Exchange Act" means the Securities Exchange Act of 1934, as amended, together with the rules and regulations promulgated thereunder.(b-12)        "Group capital calculation instructions" means the group capital calculation instructions as adopted by the NAIC and as amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.(b-15)    "Group-wide supervisor" means the regulatory official authorized to engage in conducting and coordinating group-wide supervision activities who is determined or acknowledged by the Director under Section 131.20d of this Code to have sufficient contacts with an internationally active insurance group.(c) "Insurance holding company system" means two or more affiliated
persons, one or more of which is an insurance company as defined in
paragraph (e) of Section 2 of this Code.(c-5)        "Internationally active insurance group" means an insurance holding company system that:(1) includes an insurer registered under Section 4 of     this Code; and(2) meets the following criteria:(A) premiums written in at least 3 countries;(B) the percentage of gross premiums written         outside the United States is at least 10% of the insurance holding company system's total gross written premiums; and(C) based on a 3-year rolling average, the total         assets of the insurance holding company system are at least $50,000,000,000 or the total gross written premiums of the insurance holding company system are at least $10,000,000,000.(d) (Blank).(d-1)   "NAIC" means the National Association of Insurance Commissioners.(d-2) "NAIC Liquidity Stress Test Framework" is a separate NAIC publication which includes a history of the NAIC's development of regulatory liquidity stress testing, the scope criteria applicable for a specific data year, and the liquidity stress test instructions, and reporting templates for a specific data year, such scope criteria, instructions, and reporting template being as adopted by the NAIC and as amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.(d-5) "Non-operating holding company" is a general business corporation functioning solely for the purpose of forming, owning, acquiring, and managing subsidiary business entities and having no other business operations not related thereto.(d-10) "Own", "owned," or "owning" means shares (1) with respect to which a person
has title or to which a person's nominee, custodian, or other agent has title and which such
nominee, custodian, or other agent is holding on behalf of the person or (2) with respect to
which a person (A) has purchased or has entered into an unconditional contract, binding on both
parties, to purchase the shares, but has not yet received the shares, (B) owns a security
convertible into or exchangeable for the shares and has tendered the security for conversion or
exchange, (C) has an option to purchase or acquire, or rights or warrants to subscribe to, the shares and has exercised such option, rights, or warrants, or (D) holds a securities futures contract
to purchase the shares and has received notice that the position will be physically settled and is
irrevocably bound to receive the underlying shares. To the extent that any
affiliates of the stockholder or beneficial owner are acting in concert with the stockholder or
beneficial owner, the determination of shares owned may include the effect of aggregating the
shares owned by the affiliate or affiliates. Whether shares constitute shares owned shall
be decided by the Director in his or her reasonable determination.(e) "Person" means an individual, a corporation, a limited liability company, a partnership, an
association, a joint stock company, a trust, an unincorporated
organization, any similar entity or any combination of the foregoing acting
in concert, but does not include any securities broker performing no more
than the usual and customary broker's function or joint venture
partnership exclusively engaged in owning, managing, leasing or developing
real or tangible personal property other than capital stock.(e-5) "Policyholders' proxies" are proxies that give the holder the right to vote for the election of the directors and other corporate actions not in the day to day operations of the company.(f) (Blank).(f-3) "Scope criteria", as detailed in the NAIC Liquidity Stress Test Framework, are the designated exposure bases along with minimum magnitudes thereof for the specified data year, used to establish a preliminary list of insurers considered scoped into the NAIC Liquidity Stress Test Framework for that data year.(f-5)    "Securityholder" of a specified person is one who owns any security of such person, including common stock, preferred stock, debt obligations, and any other security convertible into or evidencing the right to acquire any of the foregoing.(g) "Subsidiary" of a specified person is an affiliate controlled by
such person directly, or indirectly through one or more intermediaries.(h) "Voting Security" is a security which gives to the holder thereof
the right to vote for the election of directors and includes any security
convertible into or evidencing a right to acquire a voting security.(Source: P.A. 102-394, eff. 8-16-21; 102-578, eff. 7-1-22 (See Section 5 of P.A. 102-672 for effective date of P.A. 102-578); 102-813, eff. 5-13-22.) (215 ILCS 5/131.2) (from Ch. 73, par. 743.2)Sec. 131.2. Subsidiaries. A domestic company, either by itself or in cooperation with one or more persons, may organize or acquire one or more subsidiaries.  The subsidiaries may conduct any kind of business or businesses and their authority to do so shall not be limited by reason of the fact that they are subsidiaries of a domestic company. In addition to investments in common stock,
preferred stock, debt obligations and other securities of subsidiaries
permitted under all other sections of this Code, a domestic company, other
than a company subject to Articles XVIII or XIX, may also:(a) invest, in common stock, preferred stock, debt     obligations, and other securities of one or more subsidiaries, amounts which do not exceed the lesser of 10% of the company's assets or 50% of the company's surplus as regards policyholders, but after such investments the company's surplus as regards policyholders must be reasonable in relation to the company's outstanding liabilities and adequate to its financial needs. In calculating the amount of such investments, there must be included (i) total net monies or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary whether or not represented by the purchase of capital stock or issuance of other securities, and (ii) all amounts expended in acquiring additional common stock, preferred stock, debt obligations, and other securities, and all contributions to the capital or surplus of a subsidiary subsequent to its acquisition or formation;(b) invest any amount in common stock, preferred     stock, debt obligations and other securities of one or more direct subsidiaries acting only as a non-operating holding company or engaged or organized exclusively for the ownership and management of assets authorized as investments for the company, provided that each subsidiary agrees to limit its investments in any asset so that such investments will not cause the amount of the total investment of the company to exceed the amount the company could have invested in such asset. For the purpose of this clause, "the total investment of the company" will include (i) any direct investment by the company in an asset and (ii) the company's proportionate share of any investment in such asset by any  subsidiary of the company, which must be calculated by multiplying the amount of the subsidiary's investment by the percentage of the company's ownership of such subsidiary;(c) invest in common stock of one or more insurance     corporation subsidiaries any amount by which the investing company's capital and surplus exceeds the minimum capital and surplus required of a new company under Section 13 to qualify for a certificate of authority to write the kind or kinds of insurance which the company is authorized to write, if the company is a stock company, and if the company is other than a stock company, the company may invest the amount by which the company's surplus exceeds the minimum surplus required of a new company under Section 43 or 66 to qualify for a certificate of authority to write the kind or kinds of insurance which the company is authorized to write;(d) with the approval of the Director, invest any     greater amount in common stock, preferred stock, debt obligations, or other securities of one or more subsidiaries, but after such investment the company's surplus as regards policyholders must be reasonable in relation to the company's outstanding liabilities and adequate to its financial needs.(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.3) (from Ch. 73, par. 743.3)Sec. 131.3. 
(1) Investments in common stock, preferred stock, debt obligations or
other securities of subsidiaries made under Section 131.2 of this Article
are subject to Sections 126.3, 126.4, 126.5, 126.6, 126.7, and 133 of this Code
but are not subject to any other of the otherwise applicable restrictions or
prohibitions contained in this Code applicable to such investments of a
domestic
company subject to this Code.(2) If a company ceases to control a subsidiary, it must dispose of any
investment therein made under this section within 3 years from the time of
the cessation of control or within such further time as the Director may
prescribe, unless at any time after the investment is made, the investment
meets the requirements for investment under any other section of this Code,
and the company has notified the Director thereof.(3) Whether any investment made pursuant to this Section  meets the applicable requirements of this Section is to be determined before the investment is made by calculating the applicable investment limitations as though the investment had already been made, taking into account the then outstanding principal balance on all previous investments in debt obligations, and the value of all previous investments in equity securities as of the day they were made, net of any return of capital invested, not including dividends.(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.4) (from Ch. 73, par. 743.4)Sec. 131.4. Acquisition of control of or merger with domestic company.(a) No person other than the issuer may make a tender for or a request or
invitation for tenders of, or enter into an agreement to exchange
securities for, or seek to acquire or acquire shareholders' proxies to vote or seek to acquire or acquire in the open market, or otherwise, any voting
security of a domestic company or acquire policyholders' proxies of a
domestic company or any entity that controls a domestic company, for consideration if, after the consummation thereof, that
person would, directly or indirectly, (or by conversion or by exercise of
any right to acquire) be in control of the company, and no person may enter
into an agreement to merge or consolidate with or otherwise to acquire
control of a domestic company, unless the offer, request, invitation, or
agreement is conditioned on receiving the approval of the Director based on
Section 131.8 of this Article
and no such acquisition of control or a merger with a domestic
company may be consummated unless the person has filed with the Director and has sent to the company a statement containing the information required by Section 131.5 and the Director has approved the transaction
or granted an exemption. Prior to the acquisition,
the Director may conclude that a statement need not be filed by the
acquiring
party if the acquiring party demonstrates to the
satisfaction of the Director that:(1) such transaction will not result in the change of     control of the domestic company; or(2) (blank);(3) the acquisition of, or attempt to acquire control     of, such other person is subject to requirements in the jurisdiction of its domicile which are substantially similar to those contained in this Section and Sections 131.5 through 131.12; or(4) the control of the policyholders' proxies is     being acquired solely by virtue of the holders official office and not as the result of any agreement or for any consideration.The purpose of this Section is to afford to the Director the
opportunity to review acquisitions in order to determine whether or not the
acquisition would be adverse to the interests of the existing and future
policyholders of the company.(b) For purposes of this Section, any controlling person of a domestic company seeking to divest its controlling interest in the domestic company in any manner shall file with the Director, with a copy to the company, confidential notice of its proposed divestiture at least 30 days prior to the cessation of control. The Director shall determine those instances in which the party or parties seeking to divest or to acquire a controlling interest in a company shall be required to file for and obtain approval of the transaction. The information shall remain confidential until the conclusion of the transaction unless  the Director, in his or her discretion, determines that confidential treatment shall interfere with enforcement of this Section. If the statement referred to in subsection (a) of this Section is otherwise filed in connection with the proposed divestiture or related acquisition, this subsection (b) shall not apply.(c) For purposes of this Section, a domestic company shall include any person controlling a domestic company unless the person, as determined by the Director, is either directly or through its affiliates primarily engaged in business other than the business of insurance.  For the purposes of this Section, "person" shall not include any securities broker holding, in the usual and customary broker's function, less than 20% of the voting securities of an insurance company or of any person that controls an insurance company. (Source: P.A. 98-609, eff. 1-1-14; 99-642, eff. 7-28-16.) (215 ILCS 5/131.5) (from Ch. 73, par. 743.5)Sec. 131.5. Statement; contents. In order to seek the approval of the
Director pursuant to Section 131.8, the applicant must file a statement
with the Director under oath or affirmation which contains as a minimum the
following information:(1) The name and address of each acquiring party, and(a) if such person is an individual, his         principal occupation and all offices and positions held during the past 5 years, and any conviction of crimes, other than minor traffic violations, during the past 10 years;(b) if such person is not an individual, a report         of the nature of its business operations during the past 5 years or for such lesser period as the person and any predecessors thereof has been in existence; an informative description of the business intended to be conducted by the person and the person's subsidiaries; and a list of all individuals who are or who have been selected to become directors or executive officers of the person, or who perform or will perform functions appropriate to such positions. The list must include for each individual the information required by subsection (1)(a).(2) The source, nature and amount of the     consideration used or to be used in effecting the merger, consolidation or other acquisition of control, a description of any transaction wherein funds were or are to be obtained for any such purpose, including any pledge of the company's own securities or the securities of any of its subsidiaries or affiliates, and the identity of persons furnishing such consideration. However, where a source of such consideration is a loan made in the lender's ordinary course of business, the identity of the lender must remain confidential, if the person filing the statement so requests.(3) Financial information as to the earnings and     financial condition of each acquiring party for the preceding 5 fiscal years of each acquiring party (or for such lesser period as the acquiring party and any predecessors thereof have been in existence) audited by an independent certified public accountant in accordance with generally accepted auditing standards and similar unaudited information as of a date not earlier than 90 days prior to the filing of the statement.(4) Any plans or proposals which each acquiring party     may have to liquidate such company, to sell its assets or merge or consolidate it with any person, or to make any other material change in its business or corporate structure or management.(5) The number of shares of any security referred to     in Section 131.4 which each acquiring party proposes to acquire, the terms of the offer, request, invitation, agreement, or acquisition referred to in Section 131.4, and a statement as to the method by which the fairness of the proposal was arrived.(6) The amount of each class of any security referred     to in Section 131.4 which is beneficially owned or concerning which there is a right to acquire beneficial ownership by each acquiring party.(7) A full description of any existing contracts,     arrangements or understandings with respect to any security referred to in Section 131.4 in which any acquiring party is involved, including but not limited to transfer of any of the securities, joint ventures, loan or option arrangements, puts or calls, guarantees of loans, guarantees against loss or guarantees of profits, division of losses or profits, or the giving or withholding of proxies. The description must identify the persons with whom such contracts, arrangements or understandings have been entered into.(8) A description of the acquisition of any security     or policyholders' proxy referred to in Section 131.4 during the 12 calendar months preceding the filing of the statement, by any acquiring party, including the dates of acquisition, names of the acquiring parties, and consideration paid or agreed to be paid therefor.(9) A description of any recommendations to acquire     any security referred to in Section 131.4 made during the 12 calendar months preceding the filing of the statement, by any acquiring party, or by anyone based upon interviews or at the suggestion of such acquiring party.(10) Copies of all tender offers for, requests or     invitations for tenders of, exchange offers for, and agreements to acquire or exchange any securities referred to in Section 131.4, and (if distributed) of additional soliciting material relating thereto.(11) The terms of any agreement, contract or     understanding made with, or proposed to be made with, any broker-dealer as to solicitation of securities referred to in Section 131.4 for tender, and the amount of any fees, commissions or other compensation to be paid to broker-dealers with regard thereto.(12) Beginning July 1, 2014, an agreement by the     person required to file the statement referred to in this Section 131.5 that the person will provide the annual report specified in subsection (a) of Section 131.14b for so long as control exists.(13) Beginning July 1, 2014, an acknowledgement by     the person required to file the statement referred to in this Section 131.5 that the person and all subsidiaries within its control in the insurance holding company system shall provide information to the Director upon request as necessary to evaluate enterprise risk to the company.(14) Any additional information as the Director may     by rule or regulation prescribe as necessary or appropriate for the protection of policyholders or in the public interest.(15) With respect to each acquiring party, the     following information:(A) the name and address of all associated         persons and a detailed description of every agreement, arrangement, and understanding between the acquiring party and all associated persons in connection with the merger, consolidation, or other acquisition of control;(B) the class or series and number of shares of         securities of the company that are directly or indirectly owned beneficially and of record by the acquiring party or the associated persons or both; and(C) a detailed description of each proxy,         contract, arrangement, understanding, or relationship pursuant to which the acquiring party or the associated persons, or both, have a right to vote, or cause or direct the vote of, any securities of the company. (Source: P.A. 102-578, eff. 7-1-22 (See Section 5 of P.A. 102-672 for effective date of P.A. 102-578).) (215 ILCS 5/131.6) (from Ch. 73, par. 743.6)Sec. 131.6. 
(1) If the person required to file the statement referred to in Section
131.5 is a partnership, limited partnership, syndicate or other group, the
Director may require that the information be
given with respect to each partner of such partnership or limited
partnership, each member of such syndicate or group, and each person who
controls such partner or member. If any partner, member or person is a
corporation or the person required to file the statement referred to in
Section 131.5 is a corporation, the Director may require that the
information be given with respect to the
corporation, each officer and director of the corporation, and each person
who is directly or indirectly the beneficial owner of more than 10% of the
outstanding voting securities of the corporation.(2) If any material change occurs in the facts set forth in the
statement filed with the Director and sent to the company under Section 131.5, an amendment setting forth the change, together with
copies of all documents and other material relevant to the change, must be
filed with the Director and sent to the company within 2 business days
after the person learns of the change.
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.7) (from Ch. 73, par. 743.7)Sec. 131.7. 
		
		
		If any offer, request, invitation, agreement or acquisition referred to
in Section 131.4 is proposed to be made by means of a registration
statement under the Securities Act of 1933 or in circumstances requiring
the disclosure of similar information under the Securities Exchange Act of
1934, or under a state law requiring similar registration or disclosure,
the person required to file the statement referred to in Section 131.4 may
utilize such documents in furnishing the information called for by that
statement.
		(Source: P.A. 77-673.) (215 ILCS 5/131.8) (from Ch. 73, par. 743.8)Sec. 131.8. 
(1) After the statement required by Section 131.5 has been
filed, the Director shall approve
any merger, consolidation or other acquisition of control referred to in
Section 131.4 unless
the Director finds that:(a) after the change of control, the domestic company     referred to in Section 131.4 would not be able to satisfy the requirements for the issuance of a license to write the line or lines of insurance for which it is presently licensed;(b) the effect of the merger, consolidation or other     acquisition of control would be substantially to lessen competition in insurance in this State or tend to create a monopoly therein. In applying the competitive standard in this paragraph:(i) the informational requirements of subsection         (3)(a) and the standards of subsection (4)(b) of Section 131.12a shall apply,(ii) the merger or other acquisition shall not be         found substantially to lessen competition in insurance in this State or tend to create a monopoly therein if the Director finds that any of the situations meeting the criteria provided by subsection (4)(c) of Section 131.12a exist, and(iii) the Director may condition the approval of         the merger or other acquisition on the removal of the basis of disapproval within a specified period of time;(c) the financial condition of any acquiring party is     such as might jeopardize the financial stability of the domestic company or jeopardize the interests of its policyholders;(d) the plans or proposals which the acquiring party     has to liquidate the domestic company, sell its assets or consolidate or merge it with any person, or to make any other material change in its business or corporate structure or management, are unfair and unreasonable to policyholders of such company and not in the public interest; or(e) the competence, experience and integrity of those     persons who would control the operation of the domestic company are such that it would not be in the best interests of policyholders of such company and of the insurance buying public to permit the merger, consolidation or other acquisition of control.(2) The Director may hold a public hearing on any merger,
consolidation or other acquisition of control referred to in Section 131.4 if
the Director determines that the statement filed as required by
Section 131.5 does
not demonstrate compliance with the standards referred to in subsection (1), of
this Section, or if he determines that such acquisition of control is likely to be hazardous or prejudicial to the insurance buying public.(3) The public hearing referred to in subsection
(2) must be held within 60 days after the statement
required by Section 131.5 is filed, and at least 20 days'
notice thereof must be
given by the Director to the person filing the statement and to the domestic
company. Not less than 7 days' notice of such hearing must be given by the person
filing the statement to such other persons as may be designated by the
Director and by the company to its shareholders. The Director must make
a determination within 60 days after the conclusion of the hearing. At the
hearing, the person filing the statement, the domestic company, any person to
whom notice of the hearing was sent, and any other person whose interests
may be affected thereby has the right to present evidence, examine and
cross-examine witnesses, and offer oral and written arguments and in connection
therewith is entitled to conduct discovery proceedings in the same manner as is
presently allowed in the Circuit Courts of this State. All discovery proceedings
must be concluded not later than 3 days prior to the commencement of the public hearing.(4)  If the proposed acquisition of control will require the approval of more than one state insurance commissioner, the public hearing referred to in subsection (2) of this Section may be held on a consolidated basis upon request of the person filing the statement referred to in Section 131.5 of this Code.  Such person shall file the statement referred to in Section 131.5 of this Code with the National Association of Insurance Commissioners (NAIC) within 5 days after making the request for a public hearing. A commissioner may opt out of a consolidated hearing and shall provide notice to the applicant of the opt out within 10 days after the receipt of the statement referred to in Section 131.5 of this Code. A hearing conducted on a consolidated basis shall be public and shall be held within the United States before the commissioners of the states in which the companies are domiciled. Such commissioners shall hear and receive evidence. A commissioner may attend such hearing in person or by telecommunication.(5) In connection with a change of control of a domestic company, any determination by the Director that the person acquiring control of the company shall be required to maintain or restore the capital of the company to the level required by the laws and regulations of this State shall be made not later than 60 days after the filing of the statement required by Section 131.5 of this Code. (Source: P.A. 102-394, eff. 8-16-21.) (215 ILCS 5/131.8a) (from Ch. 73, par. 743.8a)Sec. 131.8a. 
The Director may retain at the applicant's expense any
attorneys,
actuaries, accountants and other experts not otherwise a part of the Director's
staff as may be reasonably necessary to assist in reviewing an acquisition proposed under
Section 131.4.
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.9) (from Ch. 73, par. 743.9)Sec. 131.9. 
		
		All statements, amendments or other material filed under Section 131.5
must be delivered to the domestic company
within 10 business days after the
acquiring party has made the
filing with the Director. The domestic company shall then send
to its securityholders
the summary of the proposed acquisition within 5 business days of such delivery.
The notice shall contain an address where a copy of the statement filed
with the Director can be obtained upon request. The expenses of the mailing
and any requests
for the statement and the mailing
of the notice of hearing by the company required under subsection (2) of
Section 131.8 must be borne by the person making the filing. As security
for the payment of the expenses, the person may be required to
file with the Director an
acceptable bond or other deposit in an amount to be determined by the
Director.
		(Source: P.A. 84-805.) (215 ILCS 5/131.9a)Sec. 131.9a. (Repealed).
	 
	 (Source: P.A. 98-609, eff. 1-1-14. Repealed by P.A. 102-394, eff. 8-16-21.) (215 ILCS 5/131.10) (from Ch. 73, par. 743.10)Sec. 131.10. 
		Sections 131.4 through 131.12 do not apply to:(1) any transaction which is subject to Article X of this Code
dealing with merger, consolidation or plans of exchange;(2) any offer, request, invitation, agreement or acquisition which
the Director by order exempts therefrom as (a) not having been made or
entered into for the purpose and not having the effect of changing or
influencing the control of a domestic company, or (b) as otherwise not
comprehended within the purposes of Sections 131.4 through 131.12.
		(Source: P.A. 80-545.) (215 ILCS 5/131.11) (from Ch. 73, par. 743.11)Sec. 131.11. 

The following are violations of Sections 131.4 through 131.12:(1) the failure to file any statement, amendment, or     other material required to be filed under Sections 131.4 or 131.5; or(2) the effectuation or any attempt to effectuate an     acquisition of control of, divestiture of, or merger or consolidation with, a domestic company unless the Director has given his approval.(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.12) (from Ch. 73, par. 743.12)Sec. 131.12. 

The courts of this State are hereby vested with jurisdiction over every
person not resident, domiciled, or authorized to do business in this State
who files a statement with the Director under Section 131.4, and over all
actions involving such person arising out of violations of Sections 131.4,
131.5, 131.6, or 131.11, and each such person is deemed to have
performed acts equivalent to and constituting an appointment by such a
person of the Director to be his true and lawful attorney upon whom may be
served all lawful process in any action, suit or proceeding arising out of
violations of Sections 131.4, 131.5, 131.6, or 131.11. Copies of all
such lawful process must be served on the Director and transmitted by
registered or certified mail by the Director to such person at his last
known address.
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.12a) (from Ch. 73, par. 743.12a)Sec. 131.12a. Acquisitions involving companies not otherwise covered.(1) Definitions.  The following definitions shall apply for the purposes
of this Section only:(a) "Acquisition" means any agreement, arrangement or activity the
consummation
of which results in a person acquiring directly or indirectly the control
of another person or control of the insurance in force of another person,
and includes but is not limited to the acquisition of voting securities,
the acquisition of assets, the transaction of bulk reinsurance and the act
of merging or consolidating.(b) An "involved company" includes a company which either acquires or
is acquired, is affiliated with an acquirer or acquired or is the result of a
merger.(2) Scope.(a) Except as exempted in paragraph (b) of this subsection (2), this Section
applies to any acquisition in which there is a change in control of a company 
authorized to do business in this State.(b) This Section shall not apply to the following:(i) an acquisition subject to approval or disapproval     by the Director pursuant to Section 131.8;(ii) a purchase of securities solely for investment     purposes so long as such securities are not used by voting or otherwise to cause or attempt to cause the substantial lessening of competition in any insurance market in this State.  If a purchase of securities results in a presumption of control under subsection (b) of Section 131.1, it is not solely for investment purposes unless the commissioner of the company's state of domicile accepts a disclaimer of control or affirmatively finds that control does not exist and such disclaimer action or affirmative finding is communicated by the domiciliary commissioner to the Director of this State;(iii) the acquisition of a person by another person     when both persons are neither directly nor through affiliates primarily engaged in the business of insurance, if pre-acquisition notification is filed with the Director in accordance with subsection (3)(a) of this Section, 30 days prior to the proposed effective date of the acquisition.  However, such pre-acquisition notification is not required for exclusion from this Section if the acquisition would otherwise be excluded from this Section by any other subparagraph of subsection (2)(b);(iv) the acquisition of already affiliated persons;(v) an acquisition if, as an immediate result of the     acquisition,(A) in no market would the combined market share         of the involved companies exceed 5% of the total market,(B) there would be no increase in any market         share, or(C) in no market would the combined market share         of the involved companies exceed 12% of the total market, and the market share increase by more than 2% of the total market.For the purpose of this subparagraph (b)(v), "market"     means direct written insurance premium in this State for a line of business as contained in the annual statement required to be filed by companies licensed to do business in this State;(vi) an acquisition for which a pre-acquisition     notification would be required pursuant to this Section due solely to the resulting effect on the ocean marine insurance line of business;(vii) an acquisition of a company whose domiciliary     commissioner affirmatively finds that such company is in failing condition; there is a lack of feasible alternative to improving such condition; the public benefits of improving such company's condition through the acquisition exceed the public benefits that would arise from not lessening competition; and such findings are communicated by the domiciliary commissioner to the Director of this State.(3) Pre-acquisition Notification; Waiting Period.  An acquisition
covered by subsection (2) may be subject to an order pursuant to subsection
(5) unless the acquiring person files a pre-acquisition notification and the
waiting period has expired.  The acquired person may file a pre-acquisition
notification.  The Director shall give confidential treatment to information
submitted under this subsection in the same manner as provided in Section
131.22 of this Article.(a) The pre-acquisition notification shall be in such form and contain
such information as prescribed by the Director, which shall conform
substantially to the form of notification adopted by the National Association
of Insurance Commissioners relating to those markets which, under subsection
(b)(v) of Section (2), cause the acquisition not to be exempted from the
provisions of this Section.  The Director may require such additional material
and information as he deems necessary to determine whether the proposed
acquisition, if consummated, would violate the competitive standard of
subsection (4).  The required information may include an opinion of an
economist as to the competitive impact of the acquisition in this State
accompanied by a summary of the education and experience of such person
indicating his or her ability to render an informed opinion.(b) The waiting period required shall begin on the date of the receipt
by the Director of a pre-acquisition notification and shall end on the earlier
of the 30th day after the date of such receipt, or termination of the waiting
period by the Director.  Prior to the end of the waiting period, the Director
on a one time basis may require the submission of additional needed information
relevant to the proposed acquisition, in which event the waiting period shall
end on the earlier of the 30th day after the receipt of such additional
information by the Director or termination of the waiting period by the
Director.(4) Competitive Standard.(a) The Director may enter an order under subsection (5)(a) with respect
to an acquisition if there is substantial evidence that the effect of the
acquisition may be substantially to lessen competition in any line of insurance
in this State or tend to create a monopoly therein or if the company fails
to file adequate information in compliance with subsection (3).(b) In determining whether a proposed acquisition would violate the
competitive standard of paragraph (a) of this subsection the
Director shall consider the following:(i) any acquisition covered under subsection (2)     involving 2 or more companies competing in the same market is prima facie evidence of violation of the competitive standards:(A) if the market is highly concentrated and the         involved companies  possess the following shares of the market:Company  ACompany  B4%                    4% or more10%                    2% or more15%                    1% or more(B) if the market is not highly concentrated and         the involved companies possess the following shares of the market:Company  ACompany  B5%                    5% or more10%                    4% or more15%                    3% or more19%                    1% or moreA highly concentrated market is one in which the     share of the 4 largest companies is 75% or more of the market.  Percentages not shown in the tables are to be interpolated proportionately to the percentages that are shown. If more than 2 companies are involved, exceeding the total of the 2 columns in the table is prima facie evidence of violation of the competitive standard in paragraph (a) of this subsection.  For the purpose of this subparagraph, the company with the largest share of the market shall be deemed to be Company  A.(ii) There is a significant trend toward increased     concentration when the aggregate market share of any grouping of the largest companies in the market from the 2 largest to the 8 largest has increased by 7% or more of the market over a period of time extending from any base year 5-10 years prior to the acquisition up to the time of the acquisition.  Any acquisition covered under subsection (2) involving 2 or more companies competing in the same market is prima facie evidence of violation of the competitive standard in paragraph (a) of this subsection if:(A) there is a significant trend toward increased         concentration in the market,(B) one of the companies involved is one of the         companies in a grouping of such large companies showing the requisite increase in the market share, and(C) another involved company's market is 2% or         more.(iii) For the purpose of subsection (4)(b):(A) The term "company" includes any company or         group of companies under common management, ownership or control.(B) The term "market" means the relevant product         and geographic markets.  In determining the relevant product and geographical markets, the Director shall give due consideration to, among other things, the definitions or guidelines, if any, promulgated by the National Association of Insurance Commissioners and to information, if any, submitted by parties to the acquisition.  In the absence of sufficient information to the contrary, the relevant product market is assumed to be the direct written insurance premium for a line of business with such line being that used in the annual statement required to be filed by companies doing business in this State and the relevant geographical market is assumed to be this State.(C) The burden of showing prima facie evidence of         violation of the competitive standard rests upon the Director.(iv) Even though an acquisition is not prima facie     violative of the competitive standard under subparagraph (b)(i) and (b)(ii) of this subsection the Director may establish the requisite anticompetitive effect based upon other substantial evidence.  Even though an acquisition is prima facie violative of the competitive standard under subparagraphs (b)(i) and (b)(ii) of this subsection (4), a party may establish the absence of the requisite anticompetitive effect based upon other substantial evidence.  Relevant factors in making a determination under this paragraph include, but are not limited to, the following:  market shares, volatility of ranking of market leaders, number of competitors, concentration, trend of concentration in the industry, and ease of entry and exit into the market.(c) An order may not be entered under subsection (5)(a) if:(i) the acquisition will yield substantial economies     of scale or economies in resource utilization that cannot be feasibly achieved in any other way, and the public benefits which would arise from such economies exceed the public benefits which would arise from not lessening competition; or(ii) the acquisition will substantially increase the     availability of insurance, and the public benefits of such increase exceed the public benefits which would arise from not lessening competition.(5) Orders and Penalties:(a)(i) If an acquisition violates the standard of     this Section, the Director may enter an order(A) requiring an involved company to cease and         desist from doing business in this State with respect to the line or lines of insurance involved in the violation, or(B) denying the application of an acquired or         acquiring company for a license to do business in this State.(ii) Such an order shall not be entered unless there     is a hearing, notice of such hearing is issued prior to the end of the waiting period and not less than 15 days prior to the hearing, and the hearing is concluded and the order is issued no later than 60 days after the end of the waiting period.  Every order shall be accompanied by a written decision of the Director setting forth his findings of fact and conclusions of law.(iii) (Blank).(iv) An order pursuant to this paragraph shall not     apply if the acquisition is not consummated.(b) Any person who violates a cease and desist order of the Director under
paragraph (a) and while such order is in effect may after notice and hearing
and upon order of the Director be subject at the discretion of the Director to
any one or more of the following:(i) a monetary penalty of not more than $10,000 for     every day of violation or(ii) suspension or revocation of such person's     license.(c) Any company or other person who fails to make any filing required
by this Section and who also fails to demonstrate a good faith effort to
comply with any such filing requirement shall be subject to a civil penalty of
not more than $50,000.(6) Inapplicable Provisions.  Subsections (2) and (3) of Section 131.23 and
Section 131.25 do not apply to acquisitions covered under subsection (2).
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.13) (from Ch. 73, par. 743.13)Sec. 131.13. Registration of companies. Every company which is authorized to do business in this State and which
is a member of an insurance holding company system must register with the
Director, except a foreign or alien company subject to registration
requirements and standards adopted by statute or regulation in the
jurisdiction of its domicile which are substantially similar to those
contained in this section and Sections 131.14 through 131.20a. Any company
which is subject to registration under this section must register within 60
days after the effective date of this Article or 15 days after it becomes
subject to registration, whichever is later, unless the Director for good
cause shown extends the time for registration, and then within such
extended time. The Director may require any authorized company which is a
member of a holding company system which is not subject to registration
under this section to furnish a copy of the registration statement or other
information filed by such company with the insurance regulatory authority
of its domiciliary jurisdiction.

(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.14) (from Ch. 73, par. 743.14)Sec. 131.14. 
Every company subject to registration must file a registration statement on a
 form and in a format prescribed by the Director, which shall contain the following current information:(1) the capital structure, general financial     condition, ownership and management of the company and any person controlling the company;(2) the identity and relationship of every member of     the insurance holding company system;(3) the following agreements in force, relationships     subsisting, and transactions currently outstanding or that have occurred during the last calendar year between such company and its affiliates:(a) loans, other investments, or purchases, sales         or exchanges of  securities of the affiliates by the company or of the company by its affiliates;(b) purchases, sales, or exchanges of assets;(c) transactions not in the ordinary course of         business;(d) guarantees or undertakings for the benefit of         an affiliate which result in an actual contingent exposure of the company's assets to liability, other than insurance contracts entered into in the ordinary course of the company's business;(e) all management agreements, service contracts,         and cost-sharing arrangements;(f) reinsurance agreements;(f-5) dividends and other distributions to         shareholders;(g) any pledge of the company's own securities,         securities of any subsidiary or controlling affiliate, to secure a loan made to any member of the insurance holding company system; and(h) consolidated tax allocation agreements;(4) (blank);(5) financial statements of or within an insurance     holding company system, including all affiliates, if requested by the Director; financial statements may include, but are not limited to, annual audited financial statements filed with the U.S. Securities and Exchange Commission (SEC) pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended; a company required to file financial statements pursuant to this paragraph (5) may satisfy the request by providing the Director with the most recently filed parent corporation financial statements that have been filed with the SEC;(6) statements that the company's or its parent     company's board of directors or a committee thereof oversees corporate governance and internal controls and that the company's officers or senior management have approved and implemented and continue to maintain and monitor corporate governance and internal controls; and(7) other matters concerning transactions between     registered companies and any affiliates as may be included from time to time in any registration forms adopted or approved by the Director. (Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.14a)Sec. 131.14a. Summary filing. Every company subject to registration must file a summary outlining all items in the current registration statement representing changes from the prior registration statement.
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.14b)Sec. 131.14b. Enterprise risk filings.(a) Annual enterprise risk report. The ultimate controlling person of every company subject to registration shall also file an annual enterprise risk report. The report shall, to the best of the ultimate controlling person's knowledge and belief, identify the material risks within the insurance holding company system that could pose enterprise risk to the company. The report shall be filed with the lead state commissioner of the insurance holding company system as determined by the procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners.(b)    Group capital calculation. Except as provided in this subsection, the ultimate controlling person of every insurer subject to registration shall concurrently file with the registration an annual group capital calculation as directed by the lead state commissioner. The report shall be completed in accordance with the NAIC Group Capital Calculation Instructions, which may permit the lead state commissioner to allow a controlling person who is not the ultimate controlling person to file the group capital calculation. The report shall be filed with the lead state commissioner of the insurance holding company system as determined by the commissioner in accordance with the procedures within the Financial Analysis Handbook adopted by the NAIC. Insurance holding company systems described in the following are exempt from filing the group capital calculation:(1)   an insurance holding company system that has     only one insurer within its holding company structure, that only writes business and is only licensed in Illinois, and that assumes no business from any other insurer;(2)    an insurance holding company system that is     required to perform a group capital calculation specified by the United States Federal Reserve Board; the lead state commissioner shall request the calculation from the Federal Reserve Board under the terms of information sharing agreements in effect; if the Federal Reserve Board cannot share the calculation with the lead state commissioner, the insurance holding company system is not exempt from the group capital calculation filing;(3)   an insurance holding company system whose     non-U.S. group-wide supervisor is located within a reciprocal jurisdiction as described in paragraph (C-10) of subsection (1) of Section 173.1 that recognizes the U.S. state regulatory approach to group supervision and group capital; and(4)   an insurance holding company system:(i)   that provides information to the lead state         that meets the requirements for accreditation under the NAIC financial standards and accreditation program, either directly or indirectly through the group-wide supervisor, who has determined such information is satisfactory to allow the lead state to comply with the NAIC group supervision approach, as detailed in the NAIC Financial Analysis Handbook; and(ii)   whose non-U.S. group-wide supervisor that         is not in a reciprocal jurisdiction recognizes and accepts, as specified by the commissioner in regulation, the group capital calculation as the world-wide group capital assessment for U.S. insurance groups who operate in that jurisdiction.Notwithstanding the provisions of paragraphs (3) and (4) of this subsection, a lead state commissioner shall require the group capital calculation for U.S. operations of any non-U.S. based insurance holding company system where, after any necessary consultation with other supervisors or officials, it is deemed appropriate by the lead state commissioner for prudential oversight and solvency monitoring purposes or for ensuring the competitiveness of the insurance marketplace.Notwithstanding the exemptions from filing the group capital calculation stated in paragraphs (1) through (4) of this subsection, the lead state commissioner has the discretion  to exempt the ultimate controlling person from filing the annual group capital calculation or to accept a limited group capital filing or report in accordance with criteria as specified by the Director in regulation.(c) Liquidity stress test. The ultimate controlling person of every insurer subject to registration and also scoped into the NAIC Liquidity Stress Test Framework shall file the results of a specific year's liquidity stress test. The filing shall be made to the lead state insurance commissioner of the insurance holding company system as determined by the procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners:(1)     The NAIC Liquidity Stress Test Framework     includes scope criteria applicable to a specific data year. These scope criteria are reviewed at least annually by the NAIC Financial Stability Task Force or its successor. Any change to the NAIC Liquidity Stress Test Framework or to the data year for which the scope criteria are to be measured shall be effective on January 1 of the year following the calendar year when such changes are adopted. Insurers meeting at least one threshold of the scope criteria are considered scoped into the NAIC Liquidity Stress Test Framework for the specified data year unless the lead state insurance commissioner, in consultation with the NAIC Financial Stability Task Force or its successor, determines the insurer should not be scoped into the Framework for that data year. Similarly, insurers that do not trigger at least one threshold of the scope criteria are considered scoped out of the NAIC Liquidity Stress Test Framework for the specified data year, unless the lead state insurance commissioner, in consultation with the NAIC Financial Stability Task Force or its successor, determines the insurer should be scoped into the Framework for that data year.The lead state insurance commissioner, in     consultation with the Financial Stability Task Force or its successor, shall assess the regulator's wish to avoid having insurers scoped in and out of the NAIC Liquidity Stress Test Framework on a frequent basis as part of the determination for an insurer.(2)   The performance of, and filing of the results     from, a specific year's liquidity stress test shall comply with the NAIC Liquidity Stress Test Framework's instructions and reporting templates for that year and any lead state insurance commissioner determinations, in conjunction with the NAIC Financial Stability Task Force or its successor, provided within the Framework. (Source: P.A. 102-578, eff. 7-1-22 (See Section 5 of P.A. 102-672 for effective date of P.A. 102-578); 102-813, eff. 5-13-22.) (215 ILCS 5/131.14c)Sec. 131.14c. Violations.  The failure to file a registration statement or any summary of the registration statement or enterprise risk filing required by this Article within the time specified for filing shall be a violation of this Article.
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.14d)Sec. 131.14d. (Repealed).
	 
	 (Source: P.A. 98-609, eff. 1-1-14. Repealed by P.A. 102-394, eff. 8-16-21.) (215 ILCS 5/131.15) (from Ch. 73, par. 743.15)Sec. 131.15. 
No information need be disclosed on the registration statement filed
under Section 131.14 if the information is not material for the purposes of
Sections 131.13 through 131.19. Unless the Director by rule, regulation or
order provides otherwise, sales, purchases, exchanges, loans or extensions
of credit, investments, or guarantees involving one-half of one
percent or less of a
company's admitted assets as of the 31st day of December next preceding,
are not deemed material for purposes of Sections 131.13 through 131.19. The description of materiality provided in this Section shall not apply for purposes of subsections (b) and (c) of Section 131.14b. 
(Source: P.A. 102-578, eff. 7-1-22 (See Section 5 of P.A. 102-672 for effective date of P.A. 102-578).) (215 ILCS 5/131.16) (from Ch. 73, par. 743.16)Sec. 131.16. Reporting material changes or additions; penalty for late
registration statement.(1) Each registered company must keep current the information required to be
included in its registration statement by reporting all material changes
or additions on amendment forms designated by the Director within 15 days
after the end of the month in which it learns of each change or addition,
or within a longer time thereafter as the Director may establish. Any
transaction which has been submitted to the Director pursuant to Section
131.20a need not be reported to the Director under this subsection; except
each registered company must
report all dividends and other distributions to shareholders within 5 
business days following the declaration, and no less than 10 business days prior to payment thereof.(2) On or before May 1 each year, each company subject to registration
under this Article shall file a statement in a format as designated by
the Director.  This statement shall include information previously included
in an amendment under subsection (1) of this Section, transactions and
agreements
submitted under Section 131.20a, and any other material transactions which
are required to be reported.(2.5) Any person within an insurance holding company system subject to registration shall be required to provide complete and accurate information to a company where the information is reasonably necessary to enable the company to comply with the provisions of this Article.(3) Any company failing, without just cause, to file any registration
statement, any summary of changes to a registration statement, or any Enterprise Risk Filing or any person within an insurance holding company system who fails to provide complete and accurate information to a company as required in this Code shall be required
to pay a penalty of up to $1,000 for each day's delay, to be
recovered by the Director
of Insurance of the State of Illinois, using the notice and hearing procedure in subsection (2) of Section 403A of this Code, and the penalty so recovered shall
be paid into the General Revenue Fund of the State of Illinois. The maximum
penalty under this section is $50,000. The Director may reduce
the penalty if the company demonstrates to the Director that the imposition
of the penalty would constitute a financial hardship to the company.
(Source: P.A. 98-609, eff. 1-1-14; 98-910, eff. 7-1-15.) (215 ILCS 5/131.17) (from Ch. 73, par. 743.17)Sec. 131.17. 

(1) The Director must terminate the registration of any company which
demonstrates that it no longer is a member of an insurance holding company
system.(2) The Director may require or allow 2 or more
affiliated companies subject to registration to file a consolidated registration statement.(3) A company which is authorized to do business in this State and which
is part of an insurance holding company system may register on behalf of
any affiliated company which is required to register under Section 131.13
and to file all information and material required to be filed under this
Article unless the Director requires a separate registration by the
affiliated company.
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.18) (from Ch. 73, par. 743.18)Sec. 131.18. 

Sections 131.13 through 131.19 do not apply to any company, information,
or transaction if and to the extent that the Director by rule, regulation,
or order may exempt the same from Sections 131.13 through 131.19.

(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.19) (from Ch. 73, par. 743.19)Sec. 131.19. Disclaimer of affiliation. Any person may file with the Director a disclaimer of affiliation
with any authorized company or a disclaimer may be filed by the company or
any member of an insurance holding company system. The disclaimer shall 
fully disclose all material relationships and bases for affiliation between
the person and the company as well as the basis for disclaiming the
affiliation. A disclaimer of affiliation shall be deemed to have been granted unless the Director, within 30 days following receipt of a complete disclaimer, notifies the filing party that the disclaimer is disallowed. In the event of disallowance, the disclaiming party may request an administrative hearing, which shall be granted. The disclaiming party shall be relieved of its duty to register under Section 131.13 of this Code if approval of the disclaimer has been granted by the Director or if the disclaimer is deemed to have been approved.
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.20) (from Ch. 73, par. 743.20)Sec. 131.20. Standards for transactions with affiliates; adequacy of
surplus.(1) Transactions with their affiliates by
companies subject to registration
are subject to the following standards:(a) the terms are fair and reasonable;(a-5) agreements for cost sharing services and     management shall include such provisions as may be required by rules and regulations issued by the Director;(b) charges or fees for services performed are     reasonable;(c) expenses incurred and payment received must be     allocated to the company in conformity with customary insurance accounting practices consistently applied;(d) the books, accounts, and records of each party     must be so maintained as to clearly and accurately disclose the precise nature and details of the transactions, including accounting information necessary to support the reasonableness of the charges or fees to the respective parties; and(e) the company's surplus as regards policyholders     following any transactions with affiliates or dividends or distributions to securityholders or affiliates must be reasonable in relation to the company's outstanding liabilities and adequate to meet its financial needs.(2) For purposes of this Article, in determining whether a company's
surplus as regards policyholders is reasonable in relation to the company's
outstanding liabilities and adequate to meet its needs, the following factors,
among others, may be considered:(a) the size of the company as measured by its     assets, capital and surplus, reserves, premium writings, insurance in force and other appropriate criteria;(b) the extent to which the company's business is     diversified among  several lines of insurance;(c) the number and size of risks insured in each line     of business;(d) the extent of the geographical dispersion of the     company's insured risks;(e) the nature and extent of the company's     reinsurance program;(f) the quality, diversification, and liquidity of     the company's investment portfolio;(g) the recent past and projected future trend in the     size of the company's investment portfolio;(h) the surplus as regards policyholders maintained     by companies comparable to the registrant in respect of the factors enumerated in this paragraph;(i) the adequacy of the company's reserves;(j) the quality of the company's earnings and the     extent to which the reported earnings include extraordinary items; and(k) the quality and liquidity of investments in     affiliates. The Director may discount any such investment or treat any such investment as a non-admitted asset for purposes of determining the adequacy of surplus as regards policyholders whenever the investment so warrants.(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.20a) (from Ch. 73, par. 743.20a)Sec. 131.20a. Prior notification of transactions; dividends and
distributions.(1) (a) The following transactions listed in items (i) through (vii) involving a domestic
company and any person in its insurance holding company system,  including amendments or modifications (other than termination) of affiliate agreements previously filed pursuant to this Section, which are subject to any materiality standards contained in this Section, may not be entered
into unless the company has notified the Director in writing of its
intention to enter into such transaction at least 30 days prior thereto, or
such period as the Director may permit, and the Director has not
disapproved it within such period. The notice for amendments or modifications (other than termination) shall include the reasons for the change and the financial impact on the domestic company.  Informal notice shall be reported, within 30 days after a termination of a previously filed agreement, to the Director for determination of the type of filing required, if any.(i) Sales, purchases, exchanges of assets, loans or     extensions of credit, guarantees, investments, or any other transaction, except dividends, that involves the transfer of assets from or liabilities to a company (A) equal to or exceeding the lesser of 3% of the company's admitted assets or 25% of its surplus as regards policyholders as of the 31st day of December next preceding or (B) that is proposed when the domestic company is not eligible to declare and pay a dividend or other distribution pursuant to the provisions of Section 27.(ii) Loans or extensions of credit to any person that     is not an affiliate (A) that involve the lesser of 3% of the company's admitted assets or 25% of the company's surplus, each as of the 31st day of December next preceding, made with the agreement or understanding that the proceeds of such transactions, in whole or in substantial part, are to be used to make loans or extensions of credit to, to purchase assets of, or to make investments in, any affiliate of the company making such loans or extensions of credit or (B) that are proposed when the domestic company is not eligible to declare and pay a dividend or other distribution pursuant to the provisions of Section 27.(iii) Reinsurance agreements or modifications     thereto, including all reinsurance pooling agreements, reinsurance agreements in which the reinsurance premium or a change in the company's liabilities, or the projected reinsurance premium or a change in the company's liabilities in any of the next 3 years, equals or exceeds 5% of the company's surplus as regards policyholders, as of the 31st day of December next preceding, including those agreements that may require as consideration the transfer of assets from a company to a nonaffiliate, if an agreement or understanding exists between the company and nonaffiliate that any portion of those assets will be transferred to one or more affiliates of the company.(iv) All management agreements; service contracts,     other than agency contracts; tax allocation agreements; all reinsurance allocation agreements related to reinsurance agreements required to be filed under this Section; and all cost-sharing arrangements.(v) Direct or indirect acquisitions or investments in     a person that controls the company, or in an affiliate of the company, in an amount which, together with its present holdings in such investments, exceeds 2.5% of the company's surplus as regards policyholders. Direct or indirect acquisitions or investments in subsidiaries acquired pursuant to Section 131.2 of this Article (or authorized under any other Section of this Code), or in non-subsidiary insurance affiliates that are subject to the provisions of this Article, are exempt from this requirement.(vi) Any series of the previously described     transactions that are substantially similar to each other, that take place within any 180 day period, and that in total are equal to or exceed the lesser of 3% of the domestic company's admitted assets or 25% of its policyholders surplus, as of the 31st day of the December next preceding.(vii) Any other material transaction that the     Director by rule determines might render the company's surplus as regards policyholders unreasonable in relation to the company's outstanding liabilities and inadequate to its financial needs or may otherwise adversely affect the interests of the company's policyholders or shareholders.Nothing herein contained shall be deemed to authorize or permit any
transactions that, in the case of a company not a member of the same holding
company system, would be otherwise contrary to law.(b) Any transaction or contract otherwise described in paragraph (a) of this
subsection that is between a domestic company and any person that is not its
affiliate and that precedes or follows within 180 days or is concurrent with a
similar transaction between that nonaffiliate and an affiliate of the domestic
company and that involves amounts that are equal to or exceed the lesser of 3%
of the domestic company's admitted assets or 25% of its surplus as regards
policyholders at the end of the prior year may not be entered into unless the
company has notified the Director in writing of its intention to enter into the
transaction at least 30 days prior thereto or such shorter period as the
Director may permit, and the Director has not disapproved it within such
period.(c) A company may not enter into transactions which are part of
a plan
or series of like transactions with any person within the holding company
system if the purpose of those separate transactions is to avoid the
statutory threshold amount and thus avoid the review that would occur
otherwise.  If the Director determines that such separate transactions were
entered into for such purpose, he may
exercise his authority under subsection (2) of Section 131.24.(d) The Director, in reviewing transactions pursuant to paragraph (a),
shall consider whether the transactions comply with the standards set forth in
Section 131.20 and whether they may adversely affect the interests of
policyholders.(e) The Director shall be notified within 30 days of any investment of the
domestic company in any one corporation if the total investment in that
corporation by the insurance holding company system exceeds 10% of that
corporation's voting securities.(f) Except for those transactions subject to approval
under other
Sections
of this Code,
any such transaction or agreements which are not disapproved by the
Director may be effective as of the date set forth in the notice required
under this Section.(g) If a domestic company enters into a transaction described in this
subsection without having given the required notification, the Director, using the notice and hearing procedure in subsection (2) of Section 403A of this Code, may
cause the company to pay a civil forfeiture of not more than $250,000.  Each
transaction so entered shall be considered a separate offense.(2) No domestic company subject to registration under Section 131.13 may
pay any extraordinary dividend or make any other extraordinary distribution
to its shareholders until: (a) 30 days after the Director has received
notice of the declaration thereof and has not within such period
disapproved the payment, or (b) the Director approves such payment within
the 30-day period.  For purposes of this subsection, an extraordinary
dividend or distribution is any dividend or distribution of cash or other
property whose fair market value, together with that of other dividends or
distributions, made within the period of 12 consecutive months ending on the
date on which the proposed dividend is scheduled for payment or
distribution exceeds the greater of: (a) 10% of the company's
surplus as regards policyholders as of the 31st day of December next
preceding, or (b) the net income of the company for the 12-month period ending the 31st day
of December next preceding, but does not include pro rata distributions of
any class of the company's own securities.Notwithstanding any other provision of law, the company may declare an
extraordinary dividend or distribution which is conditional upon the
Director's approval, and such a declaration confers no rights upon
security holders until: (a) the Director has approved the payment of the
dividend or distribution, or (b) the Director has not disapproved the
payment within the 30-day period referred to above.
(Source: P.A. 98-609, eff. 1-1-14; 98-910, eff. 7-1-15.) (215 ILCS 5/131.20b)Sec. 131.20b. Controlled companies; management; directors.(1) Notwithstanding the control of a domestic company by any person, the
officers and directors of the company shall not thereby be relieved of any
obligation or liability to which they would otherwise be subject by law, and
the company shall be managed so as to assure its separate operating identity
consistent with this Article.(2) Nothing in this Section shall preclude a domestic company from having or
sharing a common management or a cooperative or joint use of personnel,
property,
or services with one or more affiliated persons under arrangements meeting the
standards and requirements of Sections 131.20 and 131.20a.(3) Not less than one-third of the directors of a
domestic company, and not less than one-third of the members of each committee of the board of directors of any domestic company, that is a member of an insurance holding company system shall
be persons who are not officers or employees of the company or of any entity
controlling, controlled by, or under common control with the company and who
are not beneficial owners of a controlling interest in the voting stock of the
company or any such entity.  At least one such person shall be included in any
quorum for the transaction of business at any meeting of the board of directors
or any committee thereof.(3.5) The board of directors of a domestic company or ultimate controlling company shall establish one or more committees comprised solely of directors who are not officers or employees of the company or of any entity controlling, controlled by, or under common control with the company and who are not beneficial owners of a controlling interest in the voting stock of the company or any such entity.  The committee or committees shall have responsibility for nominating candidates for director for election by shareholders or policyholders, evaluating the performance of officers deemed to be principal officers of the company, and recommending to the board of directors the selection and compensation of the principal officers.(4) Subsections (3) and (3.5) of this Section do not apply to a  domestic company if
the ultimate controlling company or the person controlling the company, such as a company, a mutual insurance holding company, or a publicly held corporation, has a board of directors and committees thereof that meet the requirements of subsections (3) and (3.5) with respect to such controlling entity or are subject to and meet the
requirements of the corporate governance rules of a national securities exchange, such as the New
York Stock Exchange, or an inter-dealer quotation system, such as the National Association of
Securities Dealers Automatic Quotation.(5) (Blank).(6) A company may make application to the Director for a waiver from the requirements of this Section, if the company's annual direct written and assumed premium, excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, is less than $300,000,000.  A company may also make application to the Director for a waiver from the requirements of this Section based upon unique circumstances.  The Director may consider various factors, including, but not limited to, the type of business entity, volume of business written, availability of qualified board members, or the ownership or organizational structure of the entity. (Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.20c)Sec. 131.20c. Supervisory colleges.(a) With respect to any company registered under Section 131.13 of this Code, and in accordance with subsection  (c)  of this Section, the Director shall also have the power to participate in a supervisory college for any domestic company that is part of an insurance holding company system with international operations in order to determine compliance by the company with this Article. The powers of the Director with respect to supervisory colleges include, but are not limited to:(1) initiating the establishment of a supervisory     college;(2) clarifying the membership and participation of     other supervisors in the supervisory college;(3) clarifying the functions of the supervisory     college and the role of other regulators, including the establishment of a group-wide supervisor;(4) coordinating the ongoing activities of the     supervisory college, including planning meetings, supervisory activities, and processes for information sharing; and(5) establishing a crisis management plan.(b) Each registered company subject to this Section shall be liable for and shall pay the reasonable expenses of the Director's participation in a supervisory college in accordance with subsection (c) of this Section, including reasonable travel expenses. For purposes of this Section, a supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with the supervision of the company or its affiliates, and the Director may establish a regular assessment to the company for the payment of these expenses.(c) In order to assess the business strategy, financial position, legal and regulatory position, risk exposure, risk management, and governance processes, and as part of the examination of individual companies in accordance with Section 131.21 of this Code, the Director may participate in a supervisory college with other regulators charged with supervision of the company or its affiliates, including other state, federal, and international regulatory agencies. The Director may enter into agreements in accordance with Section 131.22 of this Code providing the basis for cooperation between the Director and the other regulatory agencies and the activities of the supervisory college. Nothing in this Section shall delegate to the supervisory college the authority of the Director to regulate or supervise the company or its affiliates within its jurisdiction.
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.20d)Sec. 131.20d. Group-wide supervision of internationally active insurance groups.(a)   The Director is authorized to act as the group-wide supervisor for any internationally active insurance group in accordance with the provisions of this Section.(b)   The Director may otherwise acknowledge another regulatory official as the group-wide supervisor where the internationally active insurance group:(1)   does not have substantial insurance operations     in the United States;(2)   has substantial insurance operations in the     United States, but not in this State; or(3)   has substantial insurance operations in the     United States and this State, but the Director has determined pursuant to the factors set forth in subsections (d) and (h) that the other regulatory official is the appropriate group-wide supervisor.(c)   An insurance holding company system that does not otherwise qualify as an internationally active insurance group may request that the Director make a determination or acknowledgment as to a group-wide supervisor pursuant to this Section.(d)   In cooperation with other state, federal, and international regulatory agencies, the Director will identify a single group-wide supervisor for an internationally active insurance group. The Director may determine that the Director is the appropriate group-wide supervisor for an internationally active insurance group that conducts substantial insurance operations concentrated in this State. However, the Director may acknowledge that a regulatory official from another jurisdiction is the appropriate group-wide supervisor for the internationally active insurance group. A regulatory official identified under this Section as the group-wide supervisor may determine that it is appropriate to acknowledge another supervisor to serve as the group-wide supervisor. The acknowledgment of the group-wide supervisor shall be made after consideration of the factors listed in paragraphs (1) through (5) of this subsection, and shall be made in cooperation with and subject to the acknowledgment of other regulatory officials involved with supervision of members of the internationally active insurance group, and in consultation with the internationally active insurance group. The Director shall consider the following factors when making a determination or acknowledgment under this subsection:(1)      the place of domicile of the insurance     companies within the internationally active insurance group that hold the largest share of the group's written premiums, assets, or liabilities;(2)   the place of domicile of the top-tiered     insurance company or companies in the insurance holding company system of the internationally active insurance group;(3)   the location of the executive offices or     largest operational offices of the internationally active insurance group;(4)   whether another regulatory official is acting     or is seeking to act as the group-wide supervisor under a regulatory system that the Director determines to be:(A)  substantially similar to the system of         regulation provided under the laws of this State; or(B)  otherwise sufficient in terms of providing         for group-wide supervision, enterprise risk analysis, and cooperation with other regulatory officials; and(5) whether another regulatory official acting or     seeking to act as the group-wide supervisor provides the Director with reasonably reciprocal recognition and cooperation.(e)   Notwithstanding any other provision of law, when another regulatory official is acting as the group-wide supervisor of an internationally active insurance group, the Director shall acknowledge that regulatory official as the group-wide supervisor. However, in the event of a material change in the internationally active insurance group that results in:(1)   the internationally active insurance group's     insurance companies domiciled in this State holding the largest share of the group's premiums, assets, or liabilities; or(2)   this State being the place of domicile of the     top-tiered insurance company or companies in the insurance holding company system of the internationally active insurance group, the Director shall make a determination or acknowledgment as to the appropriate group-wide supervisor for such an internationally active insurance group pursuant to subsection (d).(f)   The Director is authorized to collect from any company registered pursuant to Section 131.13 all information necessary to determine whether the Director may act as the group-wide supervisor of an internationally active insurance group or if the Director may acknowledge another regulatory official to act as the group-wide supervisor. Before issuing a determination that an internationally active insurance group is subject to group-wide supervision by the Director, the Director shall notify the company registered pursuant to Section 131.13 and the ultimate controlling person within the internationally active insurance group. The internationally active insurance group shall have not less than 30 days to provide the Director with additional information pertinent to the pending determination. The Department shall publish on its Internet website the identity of internationally active insurance groups that the Director has determined are subject to group-wide supervision by the Director.(g)   If the Director is the group-wide supervisor for an internationally active insurance group, the Director is authorized to engage in any of the following group-wide supervision activities:(1) assess the enterprise risks within the     internationally active insurance group to ensure that:(A)   the material financial condition and         liquidity risks to the members of the internationally active insurance group that are engaged in the business of insurance are identified by management; and(B)   reasonable and effective mitigation         measures are in place;(2) request, from any member of an internationally     active insurance group subject to the Director's supervision, information necessary and appropriate to assess enterprise risk, including, but not limited to, information about the members of the internationally active insurance group regarding:(A)   governance, risk assessment, and management;(B)   capital adequacy; and(C)   material intercompany transactions;(3) coordinate and, through the authority of the     regulatory officials of the jurisdictions where members of the internationally active insurance group are domiciled, compel development and implementation of reasonable measures designed to ensure that the internationally active insurance group is able to timely recognize and mitigate enterprise risks to members of such internationally active insurance group that are engaged in the business of insurance;(4) communicate with other state, federal, and     international regulatory agencies for members within the internationally active insurance group and share relevant information subject to the confidentiality provisions of Section 131.22, through supervisory colleges as set forth in Section 131.20c or otherwise;(5) enter into agreements with or obtain     documentation from any company registered under Section 131.13, any member of the internationally active insurance group, and any other state, federal, and international regulatory agencies for members of the internationally active insurance group, providing the basis for or otherwise clarifying the Director's role as group-wide supervisor, including provisions for resolving disputes with other regulatory officials. Such agreements or documentation shall not serve as evidence in any proceeding that any company or person within an insurance holding company system not domiciled or incorporated in this State is doing business in this State or is otherwise subject to jurisdiction in this State; and(6) other group-wide supervision activities,     consistent with the authorities and purposes enumerated above, as considered necessary by the Director.(h)   If the Director acknowledges that another regulatory official from a jurisdiction that is not accredited by the NAIC is the group-wide supervisor, the Director is authorized to reasonably cooperate, through supervisory colleges or otherwise, with group-wide supervision undertaken by the group-wide supervisor, provided that:(1) the Director's cooperation is in compliance with     the laws of this State; and(2) the regulatory official acknowledged as the     group-wide supervisor also recognizes and cooperates with the Director's activities as a group-wide supervisor for other internationally active insurance groups where applicable. Where such recognition and cooperation is not reasonably reciprocal, the Director is authorized to refuse recognition and cooperation.(i)   The Director is authorized to enter into agreements with or obtain documentation from any company registered under Section 131.13, any affiliate of the company, and other state, federal, and international regulatory agencies for members of the internationally active insurance group that provide the basis for or otherwise clarify a regulatory official's role as group-wide supervisor.(j)   The Department may adopt regulations necessary for the administration of this Section.(k)   A registered company subject to this Section shall be liable for and shall pay the reasonable expenses of the Director's participation in the administration of this Section, including the engagement of attorneys, actuaries, and any other professionals and all reasonable travel expenses.
(Source: P.A. 102-394, eff. 8-16-21.) (215 ILCS 5/131.21) (from Ch. 73, par. 743.21)Sec. 131.21. Examination.(1)  Subject to the limitation contained in this section and in addition
to the powers which the Director has under Sections 132 through 132.7 and
401 through 403
of this Code relating to the examination of companies, the Director shall have the power to examine any company registered under Section 131.13 of this Code and its affiliates to ascertain the financial condition of the company, including the enterprise risk to the company by the ultimate controlling party, or by any entity or combination of entities within the insurance holding company system, or by the insurance holding company system on a consolidated basis.(1.5) The Director may order any company registered under Section 131.13 of this Code to produce such records, books, or other information papers in the possession of the company or its affiliates as are reasonably necessary to determine compliance with this Article.  To determine compliance with this Article, the Director may order any company registered under Section 131.13 of this Code to produce information not in the possession of the company if  the company can obtain access to such information pursuant to contractual relationships, statutory obligations, or other methods. In the event the company cannot obtain the information requested by the Director, the company shall provide the Director a detailed explanation of the reason that the company cannot obtain the information and the identity of the holder of the information. Whenever the Director determines that the detailed explanation is without merit, the Director may require, after notice and hearing, the company to pay a penalty of up to $1,000 for each day's delay, or may suspend or revoke the company's license.(2) The Director may retain at the registered company's expense any
attorneys, actuaries, accountants and other experts not otherwise a part of
the Director's staff as may be reasonably necessary to assist in the
conduct of the examination under subsection (1). Any
persons so retained are
under the direction and control of the Director and may act in a purely
advisory capacity.(3) Each registered company producing for examination records, books and
papers under subsection (1.5) is liable for and must pay
the expense of the
examination in accordance with Section 408 of this Code.(4) The Director may retain at the registered company's expense any attorneys, actuaries,
accountants, and other experts not otherwise a part of the Director's staff as may be reasonably
necessary to assist in the conduct of the examination under subsection (1) of this Section. Any persons so
retained are under the direction and control of the Director and may act in a purely advisory
capacity.(5)  In the event the company fails to comply with an order, the Director shall have the power to examine the affiliates to obtain the information. The Director shall also have the power to issue subpoenas, to administer oaths, and to examine under oath any person for purposes of determining compliance with this Section. Upon the failure or refusal of any person to obey a subpoena, the Director may petition a court of competent jurisdiction and, upon proper showing, the court may enter an order compelling the witness to appear and testify or produce documentary evidence. Failure to obey the court order shall be punishable as contempt of court. Every person shall be obliged to attend as a witness at the place specified in the subpoena, when subpoenaed, anywhere within the State. He or she shall be entitled to the same fees and mileage, if claimed, as a witness in the Circuit Court, which fees, mileage, and actual expense, if any, necessarily incurred in securing the attendance of witnesses, and their testimony, shall be itemized and charged against, and be paid by, the company being examined. (Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.22)Sec. 131.22. Confidential treatment.(a) Documents, materials, or other information in the possession or control of the Department that are obtained by or disclosed to the Director or any other person in the course of an examination or investigation made pursuant to this Article and all information reported or provided to the Department pursuant to paragraphs (12) and (13) of Section 131.5 and Sections 131.13 through 131.21 are recognized by this State as being proprietary and to contain trade secrets, and  shall be confidential by law and privileged, shall not be subject to the Illinois Freedom of Information Act, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. However, the Director is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the Director's official duties. The Director shall not otherwise make the documents, materials, or other information public without the prior written consent of the company to which it pertains unless the Director, after giving the company and its affiliates who would be affected thereby prior written notice and an opportunity to be heard, determines that the interest of policyholders, shareholders, or the public shall be served by the publication thereof, in which event the Director may publish all or any part in such manner as may be deemed appropriate.(b) Neither the Director nor any person who received documents, materials, or other information while acting under the authority of the Director or with whom such documents, materials, or other information are shared pursuant to this Article shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subsection (a) of this Section.(c) In order to assist in the performance of the Director's duties, the Director:(1) may share documents, materials, or other     information, including the confidential and privileged documents, materials, or information subject to subsection (a) of this Section, including proprietary and trade secret documents and materials, with other state, federal, and international regulatory agencies, with the NAIC and its affiliates and subsidiaries, with third-party consultants, and with state, federal, and international law enforcement authorities and regulatory agencies, including members of any supervisory college allowed by this Article, provided that the recipient agrees in writing to maintain the confidentiality and privileged status of the document, material, or other information, and has verified in writing the legal authority to maintain confidentiality;(1.5) notwithstanding paragraph (1) of this     subsection (c), may only share confidential and privileged documents, material, or information reported pursuant to subsection (a) of Section 131.14b with commissioners of states having statutes or regulations substantially similar to subsection (a) of this Section and who have agreed in writing not to disclose such information;(1.7) notwithstanding paragraph (1) of this     subsection (c), may only share confidential and privileged documents, material, or information reported pursuant to Section 131.14b with the Illinois Insurance Guaranty Fund regarding any member company defined in Section 534.5 if the member company has an authorized control level event as defined in Section 35A-25; the Director may disclose the information described in this subsection so long as the Fund agrees in writing to hold that information confidential, in a manner consistent with this Code, and uses that information to prepare for the possible liquidation of the member company; access to the information disclosed by the Director to the Fund shall be limited to the Fund's staff and its counsel; the board of directors of the Fund may have access to the information disclosed by the Director to the Fund once the member company is subject to a delinquency proceeding under Article XIII subject to any terms and conditions established by the Director; and(2) may receive documents, materials, or information,     including otherwise confidential and privileged documents, materials, or information, including proprietary and trade secret information, from the NAIC and its affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; any such documents, materials, or information, while in the Director's possession, shall not be subject to the Illinois Freedom of Information Act and shall not be subject to subpoena.(c-5) Written agreements with the NAIC or third-party consultants governing sharing and use of information provided pursuant to this Article consistent with subsection (c) shall:(1) specify procedures and protocols regarding the     confidentiality and security of information shared with the NAIC and its affiliates and subsidiaries or third-party consultants pursuant to this Article, including procedures and protocols for sharing by the NAIC with other state, federal, or international regulators; the agreement shall provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the documents, materials, or other information and has verified in writing the legal authority to maintain such confidentiality;(2) specify that ownership of information shared with     the NAIC and its affiliates and subsidiaries or third-party consultants pursuant to this Article remains with the Director and the NAIC's or third-party consultant's use of the information is subject to the direction of the Director;(3) require prompt notice to be given to a company     whose confidential information in the possession of the NAIC or third-party consultant pursuant to this Article is subject to a request or subpoena for disclosure or production;(4) require the NAIC and its affiliates and     subsidiaries or third-party consultants to consent to intervention by a company in any judicial or administrative action in which the NAIC and its affiliates and subsidiaries or third-party consultants may be required to disclose confidential information about the company shared with the NAIC and its affiliates and subsidiaries or third-party consultants pursuant to this Article; and(5)    excluding documents, material, or information       reported pursuant to subsection (c) of Section 131.14b, prohibit the NAIC or third-party consultant from storing the information shared pursuant to this Code in a permanent database after the underlying analysis is completed.(d) The sharing of documents, materials, or information by the Director pursuant to this Article shall not constitute a delegation of regulatory authority or rulemaking, and the Director is solely responsible for the administration, execution, and enforcement of the provisions of this Article.(e) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the Director under this Section or as a result of sharing as authorized in subsection (c) of this Section.(f) Documents, materials, or other information in the possession or control of the NAIC or third-party consultant pursuant to this Article shall be confidential by law and privileged, shall not be subject to the Illinois Freedom of Information Act, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action.

(Source: P.A. 102-394, eff. 8-16-21; 102-578, eff. 7-1-22 (See Section 5 of P.A. 102-672 for effective date of P.A. 102-578); 102-813, eff. 5-13-22; 102-929, eff. 5-27-22.) (215 ILCS 5/131.22a)Sec. 131.22a. Restrictions on insurer publishing. The group capital calculation and resulting group capital ratio required under subsection (b) of Section 131.14b and the liquidity stress test along with its results and supporting disclosures required under subsection (c) of Section 131.14b are regulatory tools for assessing group risks and capital adequacy and group liquidity risks, respectively, and are not intended as a means to rank insurers or insurance holding company systems generally. Therefore, except as otherwise may be required under the provisions of this Code, the making, publishing, disseminating, circulating, or placing before the public, or causing directly or indirectly to be made, published, disseminated, circulated, or placed before the public in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio or television station or any electronic means of communication available to the public, or in any other way as an advertisement, announcement, or statement containing a representation or statement with regard to the group capital calculation, group capital ratio, the liquidity stress test results, or supporting disclosures for the liquidity stress test of any insurer or any insurer group, or of any component derived in the calculation by any insurer, broker, or other person engaged in any manner in the insurance business would be misleading and is therefore prohibited; however, if any materially false statement with respect to the group capital calculation, resulting group capital ratio, an inappropriate comparison of any amount to an insurer's or insurance group's group capital calculation or resulting group capital ratio, liquidity stress test result, supporting disclosures for the liquidity stress test, or an inappropriate comparison of any amount to an insurer's or insurance group's liquidity stress test result or supporting disclosures is published in any written publication and the insurer is able to demonstrate to the Director with substantial proof the falsity of such statement or the inappropriateness, as the case may be, then the insurer may publish announcements in a written publication if the sole purpose of the announcement is to rebut the materially false statement.
(Source: P.A. 102-578, eff. 7-1-22 (See Section 5 of P.A. 102-672 for effective date of P.A. 102-578).) (215 ILCS 5/131.23) (from Ch. 73, par. 743.23)Sec. 131.23. Injunctions; prohibitions against voting securities; sequestration of
voting securities.(1) Whenever it appears to the Director that any company or any
director, officer, employee or agent thereof has committed or is about to
commit a violation of this Article or of any rule, regulation, or order
issued by the Director hereunder, the Director may apply to the Circuit
Court for the county in which the principal office of the company is
located or to the Circuit Court for Sangamon County for an order enjoining
the company or the director, officer, employee or agent thereof from
violating or continuing to violate this Article or any rule, regulation or
order, and for any other equitable relief as the nature of the case and the
interests of the company's policyholders, creditors or the
public may require. In any proceeding, the validity of the rule, regulation
or order alleged to have been violated may be determined by the Court.(2) No security or shareholder's or policyholder's proxy which is the subject of any agreement or arrangement
regarding acquisition, or which is acquired or to be acquired, in
contravention of this Article or of any rule, regulation or order issued by
the Director hereunder may be voted at any shareholders' meeting, or may be
counted for quorum purposes, and any action of shareholders requiring the
affirmative vote of a percentage of securities shall be taken as though such
securities (including securities that may be voted pursuant to such proxies) were not issued and outstanding; but no action taken at any such
meeting may be invalidated by the voting of such securities or proxies, unless the
action would materially affect control of the company or unless any court
of this State has so ordered. If the Director has reason to
believe that any security or shareholder's or policyholder's proxy of the company has been or is about to be
acquired in contravention of this Article or of any rule, regulation or
order issued by the Director hereunder the company or the Director may
apply to the Circuit Court for Sangamon County or to the Circuit Court for
the county in which the company has its principal place of business (a) to
enjoin the further pursuit or use of any offer, request, invitation,
agreement or acquisition made in contravention of Sections 131.4 through
131.12 or any rule, regulation, or order issued by the Director thereunder;
(b) to enjoin the voting of any security or proxy so acquired; (c) to void any vote
of such security or proxy already cast at any meeting of shareholders; and (d) for
any other equitable relief as the nature of the case and the interests of
the company's policyholders, creditors, or the public may
require.(3) In any case where a person has acquired or is proposing to acquire
any voting securities or shareholder's or policyholder's proxy in violation of this Article or any rule, regulation
or order issued by the Director hereunder, the Circuit Court for Sangamon
County or the Circuit Court for the county in which the company has its
principal place of business may, on such notice as the court deems
appropriate, upon the application of the company or the Director seize or
sequester any voting securities or shareholder's or policyholder's proxy of the company owned directly or indirectly
by such person, and issue any orders with respect thereto as may be
appropriate to effectuate this Article. Notwithstanding any other
provisions of law, for the purposes of this Article, the situs of the
ownership of the securities of domestic companies is deemed to be in this
State.(4) If the Director has reason to believe that any shareholders' or policyholders' proxies
have been or are about to be acquired in contravention of this Article or
of any rule, regulations or order issued by the Director hereunder, the
Director may apply to the Circuit Court for Sangamon County or to the Circuit
Court for the county in which the company has its principal place of business
(a) to enjoin further pursuit or use of any offer, request, invitation,
agreement or acquisition made in contravention of Section 131.4 through
131.12 and (b) for any other equitable relief as the nature of the case
and the interests of the company's policyholders, creditors or the public may require.
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.24) (from Ch. 73, par. 743.24)Sec. 131.24. Sanctions.(1) Every director or officer of an insurance
holding company system who knowingly violates, participates in, or assents
to, or who knowingly permits any of the officers or agents of the
company to engage in transactions or make investments which have not been
properly filed or approved or which violate this Article, shall pay, in
their individual capacity, a civil forfeiture of not more than $100,000
per violation, after notice and hearing before the Director.  In determining
the amount of the civil forfeiture, the Director shall take into account the
appropriateness of the forfeiture with respect to the gravity of the
violation, the history of previous violations, and such other matters as
justice may require.(2) Whenever the Director determines that any company subject to this
Article or any director, officer, employee or agent thereof has engaged in
any transaction or entered into a contract which is subject to Section
131.20, and any one of Sections 131.16, 131.20a, 141, 141.1, or 174 of this
Code and which would not have been approved had such
approval been requested or would have been disapproved had required notice
been given, the Director may order the company to cease and
desist immediately any further activity under that transaction or contract.
After notice and hearing the Director may also order (a) the company to void
any such contracts and restore the status quo if such action is in the best
interest of the policyholders or the public, and (b) any affiliate of the
company, which has received from the company dividends, distributions,
assets, loans, extensions of credit, guarantees, or investments in
violation of any such Section, to immediately repay, refund or restore to
the company such dividends, distributions, assets, extensions of credit,
guarantees or investments.(3) Whenever the Director determines that any company or any
director, officer, employee or agent thereof has committed a willful
violation of this Article, the Director may cause criminal proceedings to
be instituted in the Circuit Court for the county in which the principal
office of the company is located or in the Circuit Court of Sangamon or
Cook County against such company or the responsible director, officer,
employee or agent thereof.  Any company which willfully violates this
Article commits a business offense and may be fined up to $500,000.  Any individual
who willfully
violates this Article commits a Class 4 felony and may be fined in his
individual capacity not more than
$500,000 or be imprisoned for not less than one year nor more
than
3 years, or both.(4) Any officer, director, or employee of an insurance holding company
system who willfully and knowingly subscribes to or makes or causes to be
made any false statements or false reports or false filings with the intent
to deceive the Director in the performance of his duties under this
Article, commits a Class 3 felony and upon conviction thereof, shall be
imprisoned for not less than 2 years nor  more than
5 years or fined $500,000 or both.  Any fines imposed shall be
paid by
the officer, Director, or employee
in his individual capacity.(5) Whenever the Director determines that any person has committed a violation of Section 131.14b of this Code which prevents the full understanding of the enterprise risk to the company by affiliates or by the insurance holding company system, the violation may serve as an independent basis, after an opportunity for a hearing,  for disapproving dividends or distributions and for placing the company under an order of supervision in accordance with Article XII 1/2 of this Code. (Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.25) (from Ch. 73, par. 743.25)Sec. 131.25. 
		Receivership. 
		Whenever it appears to the Director that any person has committed a
violation of this Article which so impairs the financial condition of a
domestic company as to threaten insolvency or make the further transaction
of business by it hazardous to its policyholders, creditors
or the public, then the Director may proceed against the company under
Article XIII of this Code.
		(Source: P.A. 83-749.) (215 ILCS 5/131.25a) (from Ch. 73, par. 743.25a)Sec. 131.25a. 
		
		Recovery upon order of liquidation or rehabilitation of
domestic insurer.(a) If an order for liquidation or rehabilitation of a domestic insurer
has been entered, the receiver shall have the right subject to the
limitations set forth in subsections (b) and (c) of this Section to recover
on behalf of the insurer any or all of the following made during the 3
years before the filing of the petition for liquidation, conservation, or
rehabilitation:(1) From any parent corporation, holding company,     person, or affiliate who otherwise controlled the insurer, the amount of distributions, other than distributions of shares of the same class, paid by the insurer on its capital stock.(2) From any director, officer, or employee, the     amount of any payment in the form of a bonus, termination settlement, or extraordinary lump sum salary adjustment made by the insurer or a subsidiary.(b) No distribution shall be recoverable if the parent or affiliate
shows that the distribution or payment was lawful and reasonable
when paid and that the insurer did not know and reasonably could not have known that
the distribution might adversely affect the ability of the insurer to
fulfill its contractual obligations.(c) The maximum amount recoverable under this Section shall be the
amount in excess of all other available assets of the impaired or insolvent
insurer needed to pay the contractual obligations of that insurer and
reimburse any guaranty funds.(d) Any person who was a parent corporation, holding company, or who
otherwise controlled the insurer or affiliate at the time the distributions
were paid shall be liable up to the amount of distributions the person
received.  Any person who otherwise controlled the insurer at the time the
distributions were declared shall be liable up to the amount of
distributions the person would have received had the distributions been
paid immediately.  If 2 or more persons are liable with respect to the same
distributions, they shall be jointly and severally liable.(e) To the extent any person liable under subsection (d) is insolvent or
otherwise fails to pay claims due, its parent corporations, holding
company, or person who otherwise controlled it at the time the distribution
was paid shall be jointly and severally liable for any resulting deficiency
in the amount recovered.
		(Source: P.A. 87-1090.) (215 ILCS 5/131.26) (from Ch. 73, par. 743.26)Sec. 131.26. Revocation, suspension, or non-renewal of company's license. Whenever the Director determines that any person has committed a
violation of this Article which makes the continued operation of a company
contrary to the interests of policyholders or the public, the Director may,
after notice and hearing suspend, revoke or refuse to renew the company's
license or authority to do business in this State for such period as the Director finds
is required for the protection of policyholders or the public. Any such
determination must be accompanied by specific findings of fact and
conclusions of law.
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.27) (from Ch. 73, par. 743.27)Sec. 131.27. Judicial review.(1) Any order or decision made,
issued or executed by the Director under this Article whereby any person
or company is aggrieved is subject to review
by the Circuit Court of
Sangamon County or the Circuit Court of Cook County.The Administrative Review Law, as now or hereafter amended, and the rules
adopted pursuant
thereto, applies to and governs all proceedings for review of final
administrative decisions of the Director provided for in this Section. The
term "administrative decision" is defined as in Section 3-101 of the Code
of Civil Procedure.(2) The filing of an appeal pursuant to this Section shall stay the application of any rule, regulation, order, or other action of the Director to the appealing party unless the court, after giving the party notice and an opportunity to be heard, determines that a stay would be detrimental to the interest of policyholders, shareholders, creditors, or the public.(3) Any person aggrieved by any failure of the Director to act or make a determination required by this Article may petition the circuit courts of Sangamon County or Cook County for a writ in the nature of a mandamus or a peremptory mandamus directing the Director to act or make a determination. (Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.28) (from Ch. 73, par. 743.28)Sec. 131.28. 
		Separability of provisions.If any provisions of this Article or the application thereof to any
person or circumstances is held invalid, the invalidity does not affect
other provisions or applications of this Article which can be given effect
without the invalid provision or application, and for this purpose the
provisions of this Article are separable.
		(Source: P.A. 77-673.) (215 ILCS 5/131.29)Sec. 131.29. Rulemaking power.
    The Director may adopt such administrative rules as are necessary to implement the provisions of this Article.
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/131.30)Sec. 131.30. Conflict with other laws.
    This Article supersedes all laws and parts of laws of this State inconsistent with this Code with respect to matters covered by this Code.
(Source: P.A. 98-609, eff. 1-1-14.)
(215 ILCS 5/Art. VIII.33 heading) ARTICLE VIII 1/3.  CORPORATE GOVERNANCE ANNUAL DISCLOSURE LAW
(Source: P.A. 101-600, eff. 12-6-19.) (215 ILCS 5/130.1)Sec. 130.1. Short title. This Article may be cited as the Corporate Governance Annual Disclosure Law. 
(Source: P.A. 101-600, eff. 12-6-19.) (215 ILCS 5/130.2)Sec. 130.2. Purpose and scope.  The purpose of this Article is to:(1) provide the Director a summary of an insurer's or     insurance group's corporate governance structure, policies, and practices to permit the Director to gain and maintain an understanding of the insurer's corporate governance framework;(2) outline the requirements for completing a     corporate governance annual disclosure with the Director;(3) provide for the confidential treatment of the     corporate governance annual disclosure and related information that will contain confidential and sensitive information related to an insurer's or insurance group's internal operations and proprietary and trade-secret information that, if made public, could potentially cause the insurer or insurance group competitive harm or disadvantage.Nothing in this Article shall be construed to prescribe or impose corporate governance standards and internal procedures beyond that which is required under applicable State corporate law. Notwithstanding the foregoing, nothing in this Article shall be construed to limit the Director's authority or the rights or obligations of third parties under Sections 131.21, 132 through 132.7, and 401 through 403.
The requirements of this Article apply to all insurers domiciled in this State.
(Source: P.A. 101-600, eff. 12-6-19.) (215 ILCS 5/130.3)Sec. 130.3. Definitions. As used in this Article:"Director" means the Director of Insurance."Corporate governance annual disclosure" means a confidential report filed by the insurer or insurance group made in accordance with the requirements of this Article."Insurance group" means those insurers and affiliates included within an insurance holding company system as defined in Section 131.1."Insurer" has the same meaning given to "company" in Section 2, except that it does not include agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state."ORSA summary report" means the own risk and solvency assessment report filed in accordance with Article VIII 1/4.
(Source: P.A. 101-600, eff. 12-6-19.) (215 ILCS 5/130.4)Sec. 130.4. Disclosure requirement.(a)     An insurer, or the insurance group of which the insurer is a member, shall, no later than June 1 of each calendar year, submit to the Director a corporate governance annual disclosure that contains the information described in subsection (b) of Section 130.5. Notwithstanding any request from the Director made pursuant to subsection (c), if the insurer is a member of an insurance group, the insurer shall submit the report required by this Section to the Director of the lead state for the insurance group, in accordance with the laws of the lead state, as determined by the procedures outlined in the most recent Financial Analysis Handbook adopted by the National Association of Insurance Commissioners.(b)    The corporate governance annual disclosure must include a signature of the insurer's or insurance group's chief executive officer or corporate secretary attesting to the best of that individual's belief and knowledge that the insurer has implemented the corporate governance practices and that a copy of the disclosure has been provided to the insurer's board of directors or the appropriate committee thereof.(c)    An insurer not required to submit a corporate governance annual disclosure under this Section shall do so upon the Director's request.(d)    For purposes of completing the corporate governance annual disclosure, the insurer or insurance group may provide information regarding corporate governance at the ultimate controlling parent level, an intermediate holding company level, or the individual legal entity level, depending upon how the insurer or insurance group has structured its system of corporate governance. The insurer or insurance group is encouraged to make the corporate governance annual disclosure at the level at which the insurer's or insurance group's risk appetite is determined, the level at which the earnings, capital, liquidity, operations, and reputation of the insurer are overseen collectively and at which the supervision of those factors is coordinated and exercised, or the level at which legal liability for failure of general corporate governance duties would be placed. If the insurer or insurance group determines the level of reporting based on these criteria, it shall indicate which of the 3 criteria was used to determine the level of reporting and explain any subsequent changes in the level of reporting.(e)    The review of the corporate governance annual disclosure and any additional requests for information shall be made through the lead state as determined by the procedures within the most recent Financial Analysis Handbook adopted by the National Association of Insurance Commissioners.(f)    Insurers providing information substantially similar to the information required by this Article in other documents provided to the Director, including proxy statements filed in conjunction with the requirements of Section 131.13 or other State or federal filings provided to the Department, are not required to duplicate that information in the corporate governance annual disclosure but are only required to cross-reference the document in which the information is included.
(Source: P.A. 101-600, eff. 12-6-19; 102-135, eff. 7-23-21.) (215 ILCS 5/130.5)Sec. 130.5. Contents of corporate governance annual disclosure.(a)    The insurer or insurance group has discretion over the responses to the corporate governance annual disclosure inquiries if the corporate governance annual disclosure contains the material information necessary to permit the Director to gain an understanding of the insurer's or insurance group's corporate governance structure, policies, and practices. The Director may request additional information that he or she deems material and necessary to provide the Director with a clear understanding of the corporate governance policies, the reporting or information system, or controls implementing those policies.(b)    Notwithstanding subsection (a), the corporate governance annual disclosure shall be prepared in a manner consistent with rules adopted by the Director. Documentation and supporting information shall be maintained and made available upon examination or upon the request of the Director.(c)    The Director may retain, at the insurer's expense, third-party consultants, including attorneys, actuaries, accountants, and other experts not otherwise a part of the Director's staff, as may be reasonably necessary to assist the Director in reviewing the corporate governance annual disclosure and related information or the insurer's compliance with this Article.  Any persons retained shall be under the direction and control of the Director and shall act only in an advisory capacity.
(Source: P.A. 101-600, eff. 12-6-19.) (215 ILCS 5/130.6)Sec. 130.6. Confidentiality.(a)    Documents, materials, or other information, including the corporate governance annual disclosure, in the possession or control of the Department that are obtained by, created by, or disclosed to the Director or any other person under this Article are recognized by this State as being proprietary and to contain trade secrets. All such documents, materials, or other information shall be confidential by law and privileged, shall not be subject to the Freedom of Information Act, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. However, the Director is authorized to use the documents, materials, or other information in furtherance of any regulatory or legal action brought as a part of the Director's official duties. The Director shall not otherwise make the documents, materials, or other information public without the prior written consent of the insurer.(b)    Neither the Director nor any person who received documents, materials, or other corporate governance annual disclosure-related information through examination or otherwise, while acting under the authority of the Director or with whom such documents, materials, or other information are shared pursuant to this Article, shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subsection (a).(c)    In order to assist in the performance of the Director's regulatory duties, the Director may:(1)    upon request, share documents, materials, or     other corporate governance annual disclosure-related information, including the confidential and privileged documents, materials, and information subject to subsection (a), including proprietary and trade-secret documents and materials with other state, federal, and international financial regulatory agencies, including members of any supervisory college as defined in subsection (c) of Section 131.20, with the National Association of Insurance Commissioners, and with third-party consultants, if the recipient agrees in writing to maintain the confidentiality and privileged status of the corporate governance annual disclosure-related documents, materials, or other information and has verified in writing the legal authority to maintain confidentiality; and(2)    receive documents, materials, or other     corporate governance annual disclosure-related information, including otherwise confidential and privileged documents, materials, and information, including proprietary and trade-secret information and documents from regulatory officials of other state, federal, and international financial regulatory agencies, including members of any supervisory college as defined in subsection (c) of Section 131.20, and from the National Association of Insurance Commissioners, and shall maintain as confidential or privileged any documents, materials, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information.(d)    A written agreement with the National Association of Insurance Commissioners or a third-party consultant governing sharing and use of information provided pursuant to this Article shall:(1)    include specific procedures and protocols for     maintaining the confidentiality and security of corporate governance annual disclosure-related information shared with the National Association of Insurance Commissioners or a third-party consultant pursuant to this Article, including procedures and protocols for sharing by the National Association of Insurance Commissioners only with other state regulators from states in which the insurance group has domiciled insurers; the agreement shall provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the corporate governance annual disclosure-related documents, materials, or other information and has verified in writing the legal authority to maintain confidentiality;(2)   specify that ownership of the corporate     governance annual disclosure-related information shared with the National Association of Insurance Commissioners or a third-party consultant remains with the Director and that the National Association of Insurance Commissioners' or third-party consultant's use of the information is subject to the direction of the Director;(3)   prohibit the National Association of Insurance     Commissioners or a third-party consultant from storing the information shared pursuant to this Article in a permanent database after the underlying analysis is completed;(4)   require the National Association of Insurance     Commissioners or a third-party consultant to provide prompt notice to the Director and to the insurer or insurance group regarding any subpoena, request for disclosure, or request for production of the insurer's or insurance group's corporate governance annual disclosure-related information;(5)   require the National Association of Insurance     Commissioners or a third-party consultant to consent to intervention by an insurer in any judicial or administrative action in which the National Association of Insurance Commissioners or a third-party consultant may be required to disclose confidential information about the insurer shared with the National Association of Insurance Commissioners or a third-party consultant pursuant to this Article; and(6)   require the National Association of Insurance     Commissioners or a third-party consultant to obtain written consent of the insurer before making any of the insurer's corporate governance annual disclosure-related information public.(e)    The sharing of information and documents by the Director pursuant to this Article shall not constitute a delegation of regulatory authority or rulemaking, and the Director is solely responsible for the administration, execution, and enforcement of this Article.(f)    No waiver of any applicable privilege or claim of confidentiality in the documents, proprietary and trade-secret materials, or other corporate governance annual disclosure-related information shall occur as a result of disclosure of such information or documents to the Director under this Section or as a result of sharing as authorized in this Article.(g)   Documents, materials, or other information in the possession or control of the National Association of Insurance Commissioners or any third-party consultants pursuant to this Article shall be confidential by law and privileged, shall not be subject to the Freedom of Information Act, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action.
(Source: P.A. 101-600, eff. 12-6-19.) (215 ILCS 5/130.7)Sec. 130.7. Sanctions.  Any insurer failing, without just cause, to timely file the corporate governance annual disclosure as required in this Article shall be required, after notice and a hearing, to pay a penalty of $200 for each day's delay, to be recovered by the Director. Any penalty recovered shall be paid into the General Revenue Fund. The Director may reduce the penalty if the insurer demonstrates to the Director that the imposition of the penalty would constitute a financial hardship to the insurer.
(Source: P.A. 101-600, eff. 12-6-19.)
(215 ILCS 5/Art. VIII.25 heading) ARTICLE VIII 1/4.  RISK MANAGEMENT ANDOWN RISK AND SOLVENCY ASSESSMENT 
(Source: P.A. 98-910, eff. 7-1-15.) (215 ILCS 5/129)Sec. 129. Short title. This Article may be cited as the Risk Management and Own Risk and Solvency Assessment Law.
(Source: P.A. 98-910, eff. 7-1-15.) (215 ILCS 5/129.1)Sec. 129.1. Purpose and scope. The purpose of this Article is to provide the requirements for maintaining a risk management framework and completing an own risk and solvency assessment (ORSA) and provide guidance and instructions for filing an ORSA summary report with the Director.The requirements of this Article shall apply to all insurers domiciled in this State unless exempt pursuant to Section 129.7.The General Assembly finds and declares that an ORSA summary report will contain confidential and sensitive information related to an insurer or insurance group's identification of risks material and relevant to the insurer or insurance group filing the report. This information will include proprietary and trade secret information that has the potential for harm and competitive disadvantage to the insurer or insurance group if the information is made public. It is the intent of this General Assembly that the ORSA summary report shall be a confidential document filed with the Director, that the ORSA summary report shall be shared only as stated herein and to assist the Director in the performance of his or her duties, and that in no event shall an ORSA summary report be subject to public disclosure.
(Source: P.A. 98-910, eff. 7-1-15.) (215 ILCS 5/129.2)Sec. 129.2. Definitions. In this Article:"Insurance group", for the purpose of conducting an ORSA, means those insurers and affiliates included within an insurance holding company system as defined in Section 131.1 of this Code."Insurer" has the same meaning as set forth in Section 2 of this Code, except that it shall not include agencies, authorities, or instrumentalities of the United States or its possessions or territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state."Own risk and solvency assessment" or "ORSA" means a confidential internal assessment, appropriate to the nature, scale, and complexity of an insurer or insurance group, conducted by that insurer or insurance group of the material and relevant risks associated with the insurer or insurance group's current business plan, and the sufficiency of capital resources to support those risks."ORSA Guidance Manual" means the current version of the Own Risk and Solvency Assessment Guidance Manual developed and adopted by the National Association of Insurance Commissioners (NAIC) and as amended from time to time. A change in the ORSA Guidance Manual shall be effective on the January 1 following the calendar year in which the changes have been adopted by the NAIC."ORSA summary report" means a confidential high-level summary of an insurer or insurance group's ORSA.
(Source: P.A. 98-910, eff. 7-1-15.) (215 ILCS 5/129.3)Sec. 129.3. Risk management framework. An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. The requirement of this Section may be satisfied if the insurance group of which the insurer is a member maintains a risk management framework applicable to the operations of the insurer.
(Source: P.A. 98-910, eff. 7-1-15.) (215 ILCS 5/129.4)Sec. 129.4. ORSA requirement. Subject to Section 129.7 of this Code, an insurer, or the insurance group of which the insurer is a member, shall regularly conduct an ORSA consistent with a process comparable to the ORSA Guidance Manual. The ORSA shall be conducted no less than annually but also at any time when there are significant changes to the risk profile of the insurer or the insurance group of which the insurer is a member.
(Source: P.A. 98-910, eff. 7-1-15.) (215 ILCS 5/129.5)Sec. 129.5. ORSA summary report.(a) Upon the Director's request, and no more than once each year, an insurer shall submit to the Director an ORSA summary report or any combination of reports that together contain the information described in the ORSA Guidance Manual, applicable to the insurer and the insurance group of which it is a member. Notwithstanding any request from the Director, if the insurer is a member of an insurance group, the insurer shall submit the report or reports required by this subsection (a) if the Director is the lead state commissioner of the insurance group as determined by the procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners.(b) The report or reports shall include a signature of the insurer or insurance group's chief risk officer or other executive having responsibility for the oversight of the insurer's enterprise risk management process attesting to the best of his or her belief and knowledge that the insurer applies the enterprise risk management process described in the ORSA summary report and that a copy of the report has been provided to the insurer's board of directors or the appropriate committee thereof.(c) An insurer may comply with subsection (a) of this Section by providing the most recent and substantially similar report or reports provided by the insurer or another member of an insurance group of which the insurer is a member to the commissioner of another state or to a supervisor or regulator of a foreign jurisdiction, if that report provides information that is comparable to the information described in the ORSA Guidance Manual. Any such report in a language other than English must be accompanied by a translation of that report into the English language.(d) The first filing of the ORSA summary report shall be in 2015. 
(Source: P.A. 98-910, eff. 7-1-15.) (215 ILCS 5/129.6)Sec. 129.6. Contents of ORSA summary report.(a) The ORSA summary report shall be prepared consistent with the ORSA Guidance Manual, subject to the requirements of subsection (b) of this Section. Documentation and supporting information shall be maintained and made available upon examination or upon the request of the Director.(b) The review of the ORSA summary report, and any additional requests for information, shall be made using similar procedures currently used in the analysis and examination of multi-state or global insurers and insurance groups.
(Source: P.A. 98-910, eff. 7-1-15.) (215 ILCS 5/129.7)Sec. 129.7. Exemption.(a) An insurer shall be exempt from the requirements of this Article if:(1) the insurer has annual direct written and     unaffiliated assumed premium, including international direct and assumed premium, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $500,000,000; and(2) the insurance group of which the insurer is a     member has annual direct written and unaffiliated assumed premium, including international direct and assumed premium, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $1,000,000,000.(b) If an insurer qualifies for exemption pursuant to item (1) of subsection (a) of this Section, but the insurance group of which the insurer is a member does not qualify for exemption pursuant to item (2) of subsection (a) of this Section, then the ORSA summary report that may be required pursuant to Section 129.5 of this Code shall include every insurer within the insurance group. This requirement may be satisfied by the submission of more than one ORSA summary report for any combination of insurers, provided any combination of reports includes every insurer within the insurance group.(c) If an insurer does not qualify for exemption pursuant to item (1) of subsection (a)  of this Section, but the insurance group of which it is a member qualifies for exemption pursuant to item (2) of subsection (a) of this Section, then the only ORSA summary report that may be required pursuant to Section 129.5 shall be the report applicable to that insurer.(d) An insurer that does not qualify for exemption pursuant to subsection (a) of this Section may apply to the Director for a waiver from the requirements of this Article based upon unique circumstances. In deciding whether to grant the insurer's request for waiver, the Director may consider the type and volume of business written, ownership and organizational structure, and any other factor the Director considers relevant to the insurer or insurance group of which the insurer is a member. If the insurer is part of an insurance group with insurers domiciled in more than one state, the  Director shall coordinate with the lead state commissioner and with the other domiciliary commissioners in considering whether to grant the insurer's request for a waiver.(e) Notwithstanding the exemptions stated in this Section,

the following provisions shall apply:(1) The Director may require that an insurer maintain     a risk management framework, conduct an ORSA, and file an ORSA summary report based on unique circumstances, including, but not limited to, the type and volume of business written, ownership and organizational structure, federal agency requests, and international supervisor requests.(2) The Director may require that an insurer maintain     a risk management framework, conduct an ORSA, and file an ORSA summary report if the insurer has risk-based capital for a company action level event as set forth in Section 35A-15 of this Code, meets one or more of the standards of an insurer deemed to be in hazardous financial condition as defined in Section 186.1 of this Code, or otherwise exhibits qualities of a troubled insurer as determined by the Director.(f) If an insurer that qualifies for an exemption pursuant to subsection (a) of this Section subsequently no longer qualifies for that exemption due to changes in premium as reflected in the insurer's most recent annual statement or in the most recent annual statements of the insurers within the insurance group of which the insurer is a member, the insurer shall have one year following the year the threshold is exceeded to comply with the requirements of this Article.
(Source: P.A. 98-910, eff. 7-1-15.) (215 ILCS 5/129.8)Sec. 129.8. Confidentiality.(a) Documents, materials, or other information, including the ORSA summary report, in the possession or control of the Department that are obtained by, created by, or disclosed to the Director or any other person under this Article, is recognized by this State as being proprietary and to contain trade secrets. All such documents, materials, or other information shall be confidential by law and privileged, shall not be subject to the Freedom of Information Act, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. However, the Director is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the Director's official duties. The Director shall not otherwise make the documents, materials, or other information public without the prior written consent of the insurer.(b) Neither the Director nor any person who received documents, materials, or other ORSA-related information, through examination or otherwise, while acting under the authority of the Director or with whom such documents, materials, or other information are shared pursuant to this Article shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subsection (a) of this Section.(c) In order to assist in the performance of regulatory duties, the Director may:(1) upon request, share documents, materials, or     other ORSA-related information, including the confidential and privileged documents, materials, or information subject to subsection (a) of this Section, including proprietary and trade secret documents and materials with other state, federal, and international financial regulatory agencies, including members of any supervisory college as defined in the Section 131.20c of this Code, with the NAIC, and with any third-party consultants designated by the Director, provided that the recipient agrees in writing to maintain the confidentiality and privileged status of the ORSA-related documents, materials, or other information and has verified in writing the legal authority to maintain confidentiality; and(2) receive documents, materials, or other     ORSA-related information, including otherwise confidential and privileged documents, materials, or information, including proprietary and trade-secret information or documents, from regulatory officials of other foreign or domestic jurisdictions, including members of any supervisory college as defined in the Section 131.20c of this Code, and from the NAIC, and shall maintain as confidential or privileged any documents, materials, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information.(d) The Director shall enter into a written agreement with the NAIC or a third-party consultant governing sharing and use of information provided pursuant to this Article, consistent with this Section that shall:(1) specify procedures and protocols regarding the     confidentiality and security of information shared with the NAIC or a third-party consultant pursuant to this Article, including procedures and protocols for sharing by the NAIC with other state regulators from states in which the insurance group has domiciled insurers; the agreement shall provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the ORSA-related documents, materials, or other information and has verified in writing the legal authority to maintain confidentiality;(2) specify that ownership of information shared with     the NAIC or a third-party consultant pursuant to this Article remains with the Director and the NAIC's or a third-party consultant's use of the information is subject to the direction of the Director;(3) prohibit the NAIC or third-party consultant from     storing the information shared pursuant to this Article in a permanent database after the underlying analysis is completed;(4) require prompt notice to be given to an insurer     whose confidential information in the possession of the NAIC or a third-party consultant pursuant to this Article is subject to a request or subpoena to the NAIC or a third-party consultant for disclosure or production;(5) require the NAIC or a third-party consultant to     consent to intervention by an insurer in any judicial or administrative action in which the NAIC or a third-party consultant may be required to disclose confidential information about the insurer shared with the NAIC or a third-party consultant pursuant to this Article; and(6) in the case of an agreement involving a     third-party consultant, provide for the insurer's written consent.(e) The sharing of information and documents by the Director pursuant to this Article shall not constitute a delegation of regulatory authority or rulemaking, and the Director is solely responsible for the administration, execution, and enforcement of the provisions of this Article.(f) No waiver of any applicable privilege or claim of confidentiality in the documents, proprietary and trade-secret materials, or other ORSA-related information shall occur as a result of disclosure of such ORSA-related information or documents to the Director under this Section or as a result of sharing as authorized in this Article.(g) Documents, materials, or other information in the possession or control of the NAIC or any third-party consultants pursuant to this Article shall be confidential by law and privileged, shall not be subject to the Freedom of Information Act, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action.
(Source: P.A. 98-910, eff. 7-1-15.) (215 ILCS 5/129.9)Sec. 129.9. Sanctions. Any insurer failing, without just cause, to timely file the ORSA summary report as required in this Article shall be required, after notice and hearing, to pay a penalty of $200 for each day's delay, to be recovered by the Director, and the penalty so recovered shall be paid into the General Revenue Fund of this State. The Director may reduce the penalty if the insurer demonstrates to the Director that the imposition of the penalty would constitute a financial hardship to the insurer.
(Source: P.A. 98-910, eff. 7-1-15.)
(215 ILCS 5/Art. VIII heading) ARTICLE VIII.  
		INVESTMENTS OF DOMESTIC COMPANIES (215 ILCS 5/124) (from Ch. 73, par. 736)Sec. 124. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/124.1) (from Ch. 73, par. 736.1)Sec. 124.1. 
		(Repealed). 
		(Source: P.A. 86-1156. Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/124.2) (from Ch. 73, par. 736.2)Sec. 124.2. 
		(Repealed). 
		(Source: P.A. 89-97, eff. 7-7-95.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/124.3) (from Ch. 73, par. 736.3)Sec. 124.3. 
		(Repealed). 
		(Source: P.A. 87-757.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/124.4) (from Ch. 73, par. 736.4)Sec. 124.4. 
		(Repealed). 
		(Source: Laws 1963, p. 3139.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/124.5) (from Ch. 73, par. 736.5)Sec. 124.5. 
		(Repealed). 
		(Source: Laws 1963, p. 3139.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/124.6) (from Ch. 73, par. 736.6)Sec. 124.6. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/124.7) (from Ch. 73, par. 736.7)Sec. 124.7. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/124.7a) (from Ch. 73, par. 736.7a)Sec. 124.7a. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/124.7b) (from Ch. 73, par. 736.7b)Sec. 124.7b. 
		(Repealed). 
		(Source: P.A. 85-1186. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.7c) (from Ch. 73, par. 736.7c)Sec. 124.7c. 
		(Repealed). 
		(Source: P.A. 83-695. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.8) (from Ch. 73, par. 736.8)Sec. 124.8. 
		(Repealed). 
		(Source: P.A. 83-695. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.9) (from Ch. 73, par. 736.9)Sec. 124.9. 
		(Repealed). 
		(Source: Laws 1963, p. 3139. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.9a) (from Ch. 73, par. 736.9a)Sec. 124.9a. 
		(Repealed). 
		(Source: P.A. 83-695. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.10) (from Ch. 73, par. 736.10)Sec. 124.10. 
		(Repealed). 
		(Source: P.A. 86-1156. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.10a) (from Ch. 73, par. 736.10a)Sec. 124.10a. 
		(Repealed). 
		(Source: P.A. 86-1156. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.10b) (from Ch. 73, par. 736.10b)Sec. 124.10b. 
		(Repealed). 
		(Source: P.A. 83-695. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.11) (from Ch. 73, par. 736.11)Sec. 124.11. 
		(Repealed). 
		(Source: P.A. 83-695. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.12) (from Ch. 73, par. 736.12)Sec. 124.12. 
		(Repealed). 
		(Source: Laws 1963, p. 3139. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.13) (from Ch. 73, par. 736.13)Sec. 124.13. 
		(Repealed). 
		(Source: Laws 1963, p. 3139. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.13a) (from Ch. 73, par. 736.13a)Sec. 124.13a. 
		(Repealed). 
		(Source: P.A. 83-695. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.13b) (from Ch. 73, par. 736.13b)Sec. 124.13b. 
		(Repealed). 
		(Source: P.A. 83-695. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.13c) (from Ch. 73, par. 736.13c)Sec. 124.13c. 
		(Repealed). 
		(Source: P.A. 83-695. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.13d) (from Ch. 73, par. 736.13d)Sec. 124.13d. 
		(Repealed). 
		(Source: P.A. 83-695. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.13e) (from Ch. 73, par. 736.13e)Sec. 124.13e. 
		(Repealed). 
		(Source: P.A. 83-695. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.14) (from Ch. 73, par. 736.14)Sec. 124.14. 
		(Repealed). 
		(Source: Laws 1963, p. 3139. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.15) (from Ch. 73, par. 736.15)Sec. 124.15. 
		(Repealed). 
		(Source: P.A. 83-695. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/124.17) (from Ch. 73, par. 736.17)Sec. 124.17. 
		(Repealed). 
		(Source: P.A. 83-695. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/125a) (from Ch. 73, par. 737a)Sec. 125a. 
		(Repealed). 
		(Source: P.A. 84-805. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/125b) (from Ch. 73, par. 737b)Sec. 125b. 
		(Repealed). 
		(Source: P.A. 86-1156. Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/125.1a) (from Ch. 73, par. 737.1a)Sec. 125.1a. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.2a) (from Ch. 73, par. 737.2a)Sec. 125.2a. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.2b) (from Ch. 73, par. 737.2b)Sec. 125.2b. 
		(Repealed). 
		(Source: Laws 1963, p. 3139.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.2c) (from Ch. 73, par. 737.2c)Sec. 125.2c. 
		(Repealed). 
		(Source: Laws 1963, p. 3139.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.2d) (from Ch. 73, par. 737.2d)Sec. 125.2d. 
		(Repealed). 
		(Source: P.A. 76-710.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.2e) (from Ch. 73, par. 737.2e)Sec. 125.2e. 
		(Repealed). 
		(Source: P.A. 77-34.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.2f) (from Ch. 73, par. 737.2f)Sec. 125.2f. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.2g) (from Ch. 73, par. 737.2g)Sec. 125.2g. 
		(Repealed). 
		(Source: P.A. 87-575.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.3a) (from Ch. 73, par. 737.3a)Sec. 125.3a. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.4a) (from Ch. 73, par. 737.4a)Sec. 125.4a. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.4b) (from Ch. 73, par. 737.4b)Sec. 125.4b. 
		(Repealed). 
		(Source: P.A. 86-1156.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.5b) (from Ch. 73, par. 737.5b)Sec. 125.5b. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.6a) (from Ch. 73, par. 737.6a)Sec. 125.6a. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.9a) (from Ch. 73, par. 737.9a)Sec. 125.9a. 
		(Repealed). 
		(Source: P.A. 87-1090.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.9b) (from Ch. 73, par. 737.9b)Sec. 125.9b. 
		(Repealed). 
		(Source: P.A. 87-108.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.9c)Sec. 125.9c. 
		(Repealed). 
		(Source: P.A. 89-97, eff. 7-7-95.  Repealed by 90-418, eff. 8-15-97.) (215 ILCS 5/125.10a) (from Ch. 73, par. 737.10a)Sec. 125.10a. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.10c) (from Ch. 73, par. 737.10c)Sec. 125.10c. 
		(Repealed). 
		
		
		(Source: P.A. 86-1156.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.10d) (from Ch. 73, par. 737.10d)Sec. 125.10d. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.11a) (from Ch. 73, par. 737.11a)Sec. 125.11a. 
		(Repealed). 
		(Source: P.A. 86-1156.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.12a) (from Ch. 73, par. 737.12a)Sec. 125.12a. 
		(Repealed). 
		(Source: P.A. 86-1156.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.12b) (from Ch. 73, par. 737.12b)Sec. 125.12b. 
		(Repealed). 
		
		
		(Source: P.A. 86-1475.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.12c) (from Ch. 73, par. 737.12c)Sec. 125.12c. 
		(Repealed). 
		(Source: P.A. 86-1156.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.14a) (from Ch. 73, par. 737.14a)Sec. 125.14a. 
		(Repealed). 
		(Source: P.A. 86-1475.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.15a) (from Ch. 73, par. 737.15a)Sec. 125.15a. 
		(Repealed). 
		(Source: P.A. 89-97, eff. 7-7-95.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.15b) (from Ch. 73, par. 737.15b)Sec. 125.15b. 
		(Repealed). 
		(Source: P.A. 86-1156.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.16a) (from Ch. 73, par. 737.16a)Sec. 125.16a. 
		(Repealed).
		(Source: P.A. 86-1156.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.17a) (from Ch. 73, par. 737.17a)Sec. 125.17a. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.18a) (from Ch. 73, par. 737.18a)Sec. 125.18a. 
		(Repealed). 
		(Source: P.A. 86-1156.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.18b) (from Ch. 73, par. 737.18b)Sec. 125.18b. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.19a) (from Ch. 73, par. 737.19a)Sec. 125.19a. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.20a) (from Ch. 73, par. 737.20a)Sec. 125.20a. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.21a) (from Ch. 73, par. 737.21a)Sec. 125.21a. 
		(Repealed). 
		(Source: P.A. 85-1186.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.22a) (from Ch. 73, par. 737.22a)Sec. 125.22a. 
		(Repealed). 
		(Source: P.A. 86-1156.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.23a) (from Ch. 73, par. 737.23a)Sec. 125.23a. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/125.24a) (from Ch. 73, par. 737.24a)Sec. 125.24a. 
		(Repealed). 
		(Source: P.A. 83-695.  Repealed by P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/Art. VIII Pt. 1 heading) 1.  
		GENERAL PROVISIONS (215 ILCS 5/126.1)Sec. 126.1. 
		Purpose and scope.A. Purpose.
The purpose of this Article is to protect the interests of insureds by
promoting
insurer solvency and financial strength. This will be accomplished through the
application of investment standards that facilitate a reasonable balance of the
following objectives:(1) To preserve principal;(2) To assure reasonable diversification as to type     of investment, issuer and credit quality; and(3) To allow insurers to allocate investments in a     manner consistent with principles of prudent investment management to achieve an adequate return so that obligations to insureds are adequately met and financial strength is sufficient to cover reasonably foreseeable contingencies.B. Scope.
This Article shall apply only to investments and investment practices of
domestic insurers and United States branches of alien insurers entered through
this State. This Article shall not apply to separate accounts of an insurer
except to the extent that the provisions of Article XIV 1/2 so provide.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.2)Sec. 126.2. 
		Definitions. 
		For purposes of this Article:A. "Acceptable collateral" means:(1) As to securities lending transactions, and for     the purpose of calculating counterparty exposure amount, cash, cash equivalents, letters of credit, direct obligations of, or securities that are fully guaranteed as to principal and interest by, the government of the United States or any agency of the United States, or by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, and as to lending foreign securities, sovereign debt rated 1 by the SVO;(2) As to repurchase transactions, cash, cash     equivalents and direct obligations of, or securities that are fully guaranteed as to principal and interest by, the government of the United States or an agency of the United States, or by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; and(3) As to reverse repurchase transactions, cash and     cash equivalents.B. "Acceptable private mortgage insurance" means insurance written by a
private insurer protecting a mortgage lender against loss occasioned by a
mortgage loan default and issued by a licensed mortgage insurance company, with
an SVO 1 designation or a rating issued by a nationally recognized statistical
rating organization equivalent to an SVO 1 designation, that covers losses to
an 80% loan-to-value ratio.C. "Accident and health insurance" means protection which provides payment
of benefits for covered sickness or accidental injury, excluding credit
insurance, disability insurance, accidental death and dismemberment insurance
and long-term care insurance.D. "Accident and health insurer" means a licensed life or health insurer or
health service corporation whose insurance premiums and required statutory
reserves for accident and health insurance constitute at least
95% of total premium considerations or total statutory required
reserves, respectively.E. "Admitted assets" means assets defined by Section 3.1 of this Code
permitted to be reported as admitted assets on the statutory financial
statement of the insurer most recently required to be filed with the Director,
but excluding assets of separate accounts, the investments of which are not
subject to the provisions of this Article except to the extent that the
provisions of Article XIV 1/2 so provide.F. "Affiliate" means, as to any person, another person that, directly or
indirectly through one or more intermediaries, controls, is controlled by, or
is under common control with the person.G. "Asset-backed security" means a security or other instrument, excluding
shares in a mutual fund, evidencing an interest in, or the right to receive
payments from, or payable from distributions on, an asset, a pool of assets or
specifically divisible cash flows which are legally transferred to a trust or
another special purpose bankruptcy-remote business entity, on the following
conditions:(1) The trust or other business entity is established     solely for the purpose of acquiring specific types of assets or rights to cash flows, issuing securities and other instruments representing an interest in or right to receive cash flows from those assets or rights, and engaging in activities required to service the assets or rights and any credit enhancement or support features held by the trust or other business entity; and(2) The assets of the trust or other business entity     consist solely of interest bearing obligations or other contractual obligations representing the right to receive payment from the cash flows from the assets or rights. However, the existence of credit enhancements, such as letters of credit or guarantees, or support features such as swap agreements, shall not cause a security or other instrument to be ineligible as an asset-backed security.H. "Business entity" includes a sole proprietorship, corporation, limited
liability company, association, partnership, joint stock company, joint
venture, mutual fund, trust, joint tenancy or other similar form of business
organization, whether organized for profit or not for profit.I. "Cap" means an agreement obligating the seller to make payments to the
buyer, with each payment based on the amount by which a reference price or
level or the performance or value of one or more underlying interests exceeds a
predetermined number, sometimes called the strike rate or strike price.J. "Capital and surplus" means the sum of the capital and surplus of the
insurer required to be shown on the statutory financial statement of the
insurer most recently required to be filed with the Director.K. "Cash equivalents" means short-term, highly rated and highly liquid
investments
or securities readily convertible to known amounts of cash without penalty and
so near maturity that they present insignificant risk of change in value. Cash
equivalents include government money market mutual funds and class one money
market mutual funds. For purposes of this definition:(1) "Short-term" means investments with a remaining     term to maturity of 90 days or less; and(2) "Highly rated" means an investment rated "P-1" by     Moody's Investors Service, Inc., or "A-1" by Standard and Poor's division of The McGraw Hill Companies, Inc. or its equivalent rating by a nationally recognized statistical rating organization recognized by the SVO.L. "Class one bond mutual fund" means a mutual fund that at all times
qualifies for investment using the bond class one reserve factor under the
Purposes and Procedures of the Securities Valuation Office or any successor
publication.M. "Class one money market mutual fund" means a money market mutual fund
that at all times qualifies for investment using the bond class one reserve
factor under the Purposes and Procedures of the Securities Valuation Office or
any successor publication.N. "Code" means the Illinois Insurance Code.O. "Collar" means an agreement to receive payments as the buyer of an
option, cap or floor and to make payments as the seller of a different option,
cap or floor.P. "Commercial mortgage loan" means a mortgage loan, other than a
residential mortgage loan.Q. "Construction loan" means a loan of less than 3 years in term,
made for financing the cost of construction of a building or other improvement
to real estate, that is secured by the real estate.R. "Control" means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a person,
whether through the ownership of voting securities, by contract (other than a
commercial contract for goods or nonmanagement services), or otherwise, unless
the power is the result of an official position with or corporate office held
by the person. Control shall be presumed to exist if a person, directly or
indirectly, owns, controls, holds with the power to vote or holds proxies
representing 10% or more of the voting securities of another
person. This presumption may be rebutted by a showing that control does not
exist in fact. The Director may determine, after furnishing all interested
persons notice and an opportunity to be heard and making specific findings of
fact to support the determination, that control exists in fact, notwithstanding
the absence of a presumption to that effect.S. "Counterparty exposure amount" means:(1) The amount of credit risk attributable to a     derivative instrument entered into with a business entity other than through a qualified exchange, qualified foreign exchange, or cleared through a qualified clearinghouse ("over-the-counter derivative instrument"). The amount of credit risk equals:(a) The market value of the over-the-counter         derivative instrument if the liquidation of the derivative instrument would result in a final cash payment to the insurer; or(b) Zero if the liquidation of the derivative         instrument would not result in a final cash payment to the insurer.(2) If over-the-counter derivative instruments are     entered into under a written master agreement which provides for netting of payments owed by the respective parties, and the domicile of the counterparty is either within the United States or if not within the United States, within a foreign jurisdiction listed in the Purposes and Procedures of the Securities Valuation Office as eligible for netting, the net amount of credit risk shall be the greater of zero or the net sum of:(a) The market value of the over-the-counter         derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment to the insurer; and(b) The market value of the over-the-counter         derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment by the insurer to the business entity.(3) For open transactions, market value shall be     determined at the end of the most recent quarter of the insurer's fiscal year and shall be reduced by the market value of acceptable collateral held by the insurer or placed in escrow by one or both parties.T. "Covered" means that an insurer owns or can immediately acquire, through
the exercise of options, warrants or conversion rights already owned, the
underlying interest in order to fulfill or secure its obligations under a call
option, cap or floor it has written, or has set aside, pursuant to a custodial
or escrow agreement, cash or cash equivalents with a market value equal to the
amount required to fulfill its obligations under a put option it has written,
in an income generation transaction.U. "Credit tenant loan" means a mortgage loan which is made primarily in
reliance on the credit standing of a major tenant, structured with an
assignment of the rental payments to the lender with real estate pledged as
collateral in the form of a first lien.V. (1) "Derivative instrument" means an agreement,     option, instrument or a series or combination thereof:(a) To make or take delivery of, or assume or         relinquish, a specified amount of one or more underlying interests, or to make a cash settlement in lieu thereof; or(b) That has a price, performance, value or cash         flow based primarily upon the actual or expected price, level, performance, value or cash flow of one or more underlying interests.(2) Derivative instruments include options, warrants     used in a hedging transaction and not attached to another financial instrument, caps, floors, collars, swaps, forwards, futures and any other agreements, options or instruments substantially similar thereto or any series or combination thereof and any agreements, options or instruments permitted under rules adopted under Section 126.8.  Derivative instruments shall not include an investment authorized by Sections 126.11 through 126.17, 126.19 and 126.24 through 126.30.W. "Derivative transaction" means a transaction involving the use of one or
more derivative instruments.X. "Direct" or "directly," when used in connection with an obligation, means
the designated obligor is primarily liable on the instrument representing the
obligation.Y. "Dollar roll transaction" means 2 simultaneous transactions with
settlement dates no more than 96 days apart, so that in one
transaction an insurer sells to a business entity, and in the other transaction
the insurer is obligated to purchase from the same business entity,
substantially similar securities of the following types:(1) Asset-backed securities issued, assumed or     guaranteed by the Government National Mortgage Association, the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation or their respective successors; and(2) Other asset-backed securities referred to in     Section 106 of Title I of the Secondary Mortgage Market Enhancement Act of 1984 (15 U.S.C.  77r1), as amended.Z. "Domestic jurisdiction" means the United States, Canada, any state, any
province of Canada or any political subdivision of any of the foregoing.AA. "Equity interest" means any of the following that are not rated credit
instruments: common stock; preferred stock; trust certificate; equity
investment in an investment company other than a money market mutual fund or a
class one bond
mutual fund; investment in a common trust fund of a bank regulated by a federal
or state agency; an ownership interest in minerals, oil or gas, the rights to
which have been separated from the underlying fee interest in the real estate
where the minerals, oil or gas are located; instruments which are mandatorily,
or at the option of the issuer, convertible to equity; limited partnership
interests and those general partnership interests authorized under Section
126.5(D); member interests in limited liability companies; warrants or other
rights to
acquire equity interests that are created by the person that owns or would
issue the equity to be acquired; or instruments that would be rated credit
instruments except for the provisions of subsection RRR(2) of this Section.BB. "Equivalent securities" means:(1) In a securities lending transaction, securities     that are identical to the loaned securities in all features including the amount of the loaned securities, except as to certificate number if held in physical form, but if any different security shall be exchanged for a loaned security by recapitalization, merger, consolidation or other corporate action, the different security shall be deemed to be the loaned security;(2) In a repurchase transaction, securities that are     identical to the purchased securities in all features including the amount of the purchased securities, except as to the certificate number if held in physical form; or(3) In a reverse repurchase transaction, securities     that are identical to the sold securities in all features including the amount of the sold securities, except as to the certificate number if held in physical form.CC. "Floor" means an agreement obligating the seller to make payments to the
buyer in which each payment is based on the amount by which a predetermined
number, sometimes called the floor rate or price, exceeds a reference price, a
level, or the performance or value of one or more underlying interests.DD. "Foreign currency" means a currency other than that of a domestic
jurisdiction.EE.  (1) "Foreign investment" means an investment in a     foreign jurisdiction, or an investment in a person, real estate or asset domiciled in a foreign jurisdiction, that is substantially of the same type as those eligible for investment under this Article, other than under Sections 126.17 and 126.30.  An investment shall not be deemed to be foreign if the issuing person, qualified primary credit source or qualified guarantor is a domestic jurisdiction or a person domiciled in a domestic jurisdiction, unless:(a) The issuing person is a shell business         entity; and(b) The investment is not assumed, accepted,         guaranteed, or insured or otherwise backed by a domestic jurisdiction or a person, that is not a shell business entity, domiciled in a domestic jurisdiction.(2) For purposes of this definition:(a) "Shell business entity" means a business         entity having no economic substance, except as a vehicle for owning interests in assets issued, owned or previously owned by a person domiciled in a foreign jurisdiction;(b) "Qualified guarantor" means a guarantor         against which an insurer has a direct claim for full and timely payment, evidenced by a contractual right for which an enforcement action can be brought in a domestic jurisdiction; and(c) "Qualified primary credit source" means the         credit source to which an insurer looks for payment as to an investment and against which an insurer has a direct claim for full and timely payment, evidenced by a contractual right for which an enforcement action can be brought in a domestic jurisdiction.FF. "Foreign jurisdiction" means a jurisdiction other than a domestic
jurisdiction.GG. "Forward" means an agreement (other than a future) to make or take
delivery of, or effect a cash settlement based on the actual or expected price,
level, performance or value of, one or more underlying interests.HH. "Future" means an agreement, traded on a qualified exchange or qualified
foreign exchange, to make or take delivery of, or effect a cash settlement
based on the actual or expected price, level, performance or value of, one or
more underlying
interests and includes an insurance future.II. "Government money market mutual fund" means a money market mutual fund
that at all times:(1) Invests only in obligations issued, guaranteed,     or insured by the federal government of the United States or collateralized repurchase agreements composed of these obligations; and(2) Qualifies for investment without a reserve under     the Purposes and Procedures of the Securities Valuation Office or any successor publication.JJ. "Government sponsored enterprise" means a:(1) Governmental agency; or(2) Corporation, limited liability company,     association, partnership, joint stock company, joint venture, trust or other entity or instrumentality organized under the laws of any domestic jurisdiction to accomplish a public policy or other governmental purpose.KK. "Guaranteed or insured," when used in connection with an obligation
acquired under this Article, means the guarantor or insurer has agreed to:(1) Perform or insure the obligation of the obligor     or purchase the obligation; or(2) Be unconditionally obligated until the obligation     is repaid to maintain in the obligor a minimum net worth, fixed charge coverage, stockholders' equity or sufficient liquidity to enable the obligor to pay the obligation in full.LL. "Hedging transaction" means:(1) A derivative transaction that is entered into and     maintained to reduce:(a) the risk of a change in the value, yield,         price, cash flow, or quantity of assets or liabilities that the insurer has acquired or incurred or anticipates acquiring or incurring; or(b) the currency exchange rate risk or the degree         of exposure as to assets or liabilities that the insurer has acquired or incurred or anticipates acquiring or incurring; or(2) Such other derivative transactions as may be     specified to constitute hedging transactions in rules adopted pursuant to Section 126.8.MM. "High grade investment" means a rated credit instrument; rated 1, 2, P1,
P2, PSF1 or PSF2 by the SVO.NN. "Income" means, as to a security, interest, accrual of discount,
dividends or other distributions, such as rights, tax or assessment credits,
warrants and distributions in kind.OO. "Income generation transaction" means (1) a derivative transaction
involving the writing of covered call options, covered put options, covered
caps or covered floors that is intended to generate income or enhance return,
or (2) such other derivative transactions as may be specified to constitute
income generation transactions in rules adopted pursuant to Section
126.8.PP. "Initial margin" means the amount of cash, securities or other
consideration initially required to be deposited to establish a futures
position.QQ. "Insurance future" means a future relating to an index or pool that is
based on insurance-related items.RR. "Insurance futures option" means an option on an insurance future.SS. "Investment company" means an investment company as defined in Section
3(a) of the Investment Company Act of 1940 (15 U.S.C.  80a-1 et seq.), as
amended, and a person described in Section 3(c) of that Act.TT. "Investment company series" means an investment portfolio of an
investment company that is organized as a series company and to which assets of
the investment company have been specifically allocated.UU. "Investment practices" means transactions of the types described in
Section 126.16, 126.18, 126.29 or 126.31.VV. "Investment subsidiary" means a subsidiary of an insurer engaged or
organized to engage exclusively in the ownership and management of assets
authorized as investments for the insurer if such subsidiary agrees to limit
its investment in any asset so that its investments will not cause the amount
of the total investment of the insurer to exceed any of the investment
limitations or avoid any other provisions of this Article applicable to the
insurer. As used in this subsection, the total investment of the insurer shall
include:(1) Direct investment by the insurer in an asset; and(2) The insurer's proportionate share of an     investment in an asset by an investment subsidiary of the insurer, which shall be calculated by multiplying the amount of the subsidiary's investment by the percentage of the insurer's ownership interest in the subsidiary.WW. "Investment strategy" means the techniques and methods used by an
insurer to meet its investment objectives, such as active bond portfolio
management, passive bond portfolio management, interest rate anticipation,
growth investing and value investing.XX. "Letter of credit" means a clean, irrevocable and unconditional letter
of credit issued or confirmed by, and payable and presentable at, a financial
institution on the list of financial institutions meeting the standards for
issuing letters of credit under the Purposes and Procedures of the Securities
Valuation Office or any successor publication. To constitute acceptable
collateral for the purposes of Sections 126.16 and 126.29, a letter of credit
must have
an expiration date beyond the term of the subject transaction.YY. "Limited liability company" means a business organization, excluding
partnerships and ordinary business corporations, organized or operating under
the laws of the United States or any state thereof that limits the personal
liability of investors to the equity investment of the investor in the business
entity.ZZ. "Lower grade investment" means a rated credit instrument rated 4, 5, 6,
P4, P5, P6, PSF4, PSF5, or PSF6 by the SVO.AAA. "Market value" means:(1) As to cash and letters of credit, the amounts     thereof; and(2) As to a security as of any date, the price for     the security on that date obtained from a generally recognized source or the most recent quotation from such a source or, to the extent no generally recognized source exists, the price for the security as determined in good faith by the insurer, plus accrued but unpaid income thereon to the extent not included in the price as of that date.BBB. "Medium grade investment" means a rated credit instrument rated 3, P3,
or PSF 3 by the SVO.CCC. "Money market mutual fund" means a mutual fund that meets the
conditions of 17 Code of Federal Regulations Par. 270.2a-7, under the
Investment Company Act of 1940 (15 U.S.C.  80a-1 et seq.), as amended or
renumbered.DDD. "Mortgage loan" means an obligation secured by a mortgage, deed of
trust, trust deed or other consensual lien on real estate.EEE. "Multilateral development bank" means an international development
organization of which the United States is a member.FFF. "Mutual fund" means an investment company or, in the case of an
investment company that is organized as a series company, an investment company
series, that, in either case, is registered with the United States Securities
and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C.
80a-1 et
seq.), as amended.GGG. "NAIC" means the National Association of Insurance Commissioners.HHH. "Obligation" means a bond, note, debenture, trust certificate including
an equipment trust certificate, production payment, negotiable bank certificate
of deposit, bankers' acceptance, credit tenant loan, loan secured by financing
net leases and other evidence of indebtedness for the payment of money (or
participations, certificates or other evidences of an interest in any of the
foregoing), whether constituting a general obligation of the issuer or payable
only out of certain revenues or certain funds pledged or otherwise dedicated
for payment.III. "Option" means an agreement giving the buyer the right to buy or
receive (a "call option"), sell or deliver (a "put option"), enter into, extend
or terminate or effect a cash settlement based on the actual or expected price,
level, performance or value of one or more underlying interests and includes an
insurance futures option.JJJ. "Person" means an individual, a business entity, a multilateral
development bank or a government or quasi governmental body, such as a
political subdivision or a government sponsored enterprise.KKK. "Potential exposure" means the amount determined in accordance with the
NAIC Annual Statement Instructions.LLL. "Preferred stock" means preferred, preference or guaranteed stock of a
business entity authorized to issue the stock, that has a preference in
liquidation over the common stock of the business entity.MMM. "Qualified bank" means:(1) A national bank, state bank or trust company that     at all times is no less than adequately capitalized as determined by standards adopted by United States banking regulators and that either is regulated by state banking laws or is a member of the Federal Reserve System; or(2) A bank or trust company incorporated or organized     under the laws of a country other than the United States that is regulated as a bank or trust company by that country's government or an agency thereof and that at all times is no less than adequately capitalized as determined by the standards adopted by international banking authorities.NNN. "Qualified business entity" means a business entity that is:(1) An issuer of obligations or preferred stock that     are rated 1 or 2 by the SVO or an issuer of obligations, preferred stock or derivative instruments that are rated the equivalent of 1 or 2 by the SVO or by a nationally recognized statistical rating organization recognized by the SVO;(2) A primary dealer in United States government     securities, recognized by the Federal Reserve Bank of New York; or(3) With respect to securities lending arrangements     under Sections 126.16 and 126.29, an affiliate of an entity that is a qualified business entity pursuant to paragraph (1) or (2) of this subsection NNN, whose arrangement with the insurer is guaranteed by the affiliated entity that is a qualified business entity under paragraph (1) or (2).OOO. "Qualified clearinghouse" means a clearinghouse for, and subject to the
rules of, a
qualified exchange or a qualified foreign exchange, which provides clearing
services, including acting as a counterparty to each of the parties to a
transaction
such that the parties no longer have credit risk as to each other.PPP. "Qualified exchange" means:(1) A securities exchange registered as a national     securities exchange, or a securities market regulated under the Securities Exchange Act of 1934 (15 U.S.C.  78 et seq.), as amended;(2) A board of trade or commodities exchange     designated as a contract market by the Commodity Futures Trading Commission or any successor thereof;(3) Private Offerings, Resales and Trading through     Automated Linkages (PORTAL);(4) A designated offshore securities market as     defined in Securities Exchange Commission Regulation S, 17 C.F.R. Part 230, as amended; or(5) A qualified foreign exchange.QQQ. "Qualified foreign exchange" means a foreign exchange, board of trade
or contract market located outside the United States, its territories or
possessions:(1) That has received regulatory comparability relief     under Commodity Futures Trading Commission (CFTC) Rule 30.10 (as set forth in Appendix C to Part 30 of the CFTC's Regulations, 17 C.F.R. Part 30);(2) That is, or its members are, subject to the     jurisdiction of a foreign futures authority that has received regulatory comparability relief under CFTC Rule 30.10 (as set forth in Appendix C to Part 30 of the CFTC's Regulations, 17 C.F.R. Part 30) as to futures transactions in the jurisdiction where the exchange, board of trade or contract market is located; or(3) Upon which foreign stock index futures contracts     are listed that are the subject of no-action relief issued by the CFTC's Office of General Counsel, provided that an exchange, board of trade or contract market that qualifies as a "qualified foreign exchange" only under this subsection shall only be a "qualified foreign exchange" as to foreign stock index futures contracts that are the subject of no-action relief.RRR.  (1) "Rated credit instrument" means an obligation     or other instrument which gives its holder a contractual right to receive cash or another rated credit instrument from another entity, if the instrument:(a) Is rated or required to be rated by the SVO;(b) In the case of an instrument with a maturity         of 397 days or less, is issued, guaranteed, or insured by an entity that is rated by, or another instrument of such entity is rated by, the SVO or by a nationally recognized statistical rating organization recognized by the SVO;(c) In the case of an instrument with a maturity         of 90 days or less, the instrument has been issued, assumed, accepted, guaranteed, or insured by a qualified bank;(d) Is a share of a class one bond mutual fund; or(e) Is a share of a money market mutual fund.(2) However, "rated credit instrument" does not mean:(a) An instrument that is mandatorily, or at the         option of the issuer, convertible to an equity interest; or(b) A security that has a par value and whose         terms provide that the issuer's net obligation to repay all or part of the security's par value is determined by reference to the performance of an equity, a commodity, a foreign currency or an index of equities, commodities, foreign currencies or combinations thereof.SSS. "Real estate" means:(1)  (a) Real property;(b) Interests in real property, such as         leaseholds, minerals and oil and gas that have not been separated from the underlying fee interest;(c) Improvements and fixtures located on or in         real property; and(d) The seller's equity in a contract providing         for a deed of real estate.(2) As to a mortgage on a leasehold estate, real     estate shall include the leasehold estate only if it has an unexpired term (including renewal options exercisable at the option of the lessee) extending beyond the scheduled maturity date of the obligation that is secured by a mortgage on the leasehold estate by a period equal to at least 20% of the original term of the obligation or 10 years, whichever is greater.TTT. "Replication transaction" means a derivative transaction that is
intended to replicate the performance of one or more assets that an insurer is
authorized to acquire under this Article. A derivative transaction that is
entered into as a hedging transaction shall not be considered a replication
transaction.UUU. "Repurchase transaction" means a transaction in which an insurer
purchases securities from a business entity that is obligated to repurchase the
purchased securities or equivalent securities from the insurer at a specified
price, either
within a specified period of time or upon demand.VVV. "Required liabilities" means total liabilities required to be reported
on the
statutory financial statement of the insurer most recently required to be filed
with the Director.WWW. "Residential mortgage loan" means a loan primarily secured by a
mortgage on real estate improved with a one to four family residence.XXX. "Reverse repurchase transaction" means a transaction in which an
insurer sells securities to a business entity and is obligated to repurchase
the sold securities or equivalent securities from the business entity at a
specified price, either within a specified period of time or upon demand.YYY. "Secured location" means the contiguous real estate owned by one
person.ZZZ. "Securities lending transaction" means a transaction in which
securities are loaned by an insurer to a business entity that is obligated to
return the loaned securities or equivalent securities to the insurer, either
within a specified period of time or upon demand.AAAA. "Series company" means an investment company that is organized as a
series company, as defined in Rule 18f-2(a) adopted under the Investment
Company Act of 1940 (15 U.S.C.  80a-1 et seq.), as amended.BBBB. "Sinking fund stock" means preferred stock that:(1) Is subject to a mandatory sinking fund or similar     arrangement that will provide for the redemption (or open market purchase) of the entire issue over a period not longer than 40 years from the date of acquisition; and(2) Provides for mandatory sinking fund installments     (or open market purchases) commencing not more than 10.5 years from the date of issue, with the sinking fund installments providing for the purchase or redemption, on a cumulative basis commencing 10 years from the date of issue, of at least 2.5% per year of the original number of shares of that issue of preferred stock.CCCC. "Special rated credit instrument" means a rated credit instrument that
is:(1) An instrument that is structured so that, if it     is held until retired by or on behalf of the issuer, its rate of return, based on its purchase cost and any cash flow stream possible under the structure of the transaction, may become negative due to reasons other than the credit risk associated with the issuer of the instrument; however, a rated credit instrument shall not be a special rated credit instrument under this subsection if it is:(a) A share in a class one bond mutual fund;(b) An instrument, other than an asset-backed         security, with payments of par value fixed as to amount and timing, or callable but in any event payable only at par or greater, and interest or dividend cash flows that are based on either a fixed or variable rate determined by reference to a specified rate or index;(c) An instrument, other than an asset-backed         security, that has a par value and is purchased at a price no greater than 110% of par;(d) An instrument, including an asset-backed         security, whose rate of return would become negative only as a result of a prepayment due to casualty, condemnation or economic obsolescence of collateral or change of law;(e) An asset-backed security that relies on         collateral that meets the requirements of subparagraph (b) of this paragraph, the par value of which collateral:(i) Is not permitted to be paid sooner than             one half of the remaining term to maturity from the date of acquisition;(ii) Is permitted to be paid prior to             maturity only at a premium sufficient to provide a yield to maturity for the investment, considering the amount prepaid and reinvestment rates at the time of early repayment, at least equal to the yield to maturity of the initial investment; or(iii) Is permitted to be paid prior to             maturity at a premium at least equal to the yield of a treasury issue of comparable remaining life; or(f) An asset-backed security that relies on cash         flows from assets that are not prepayable at any time at par, but is not otherwise governed by subparagraph (e) of this paragraph, if the asset-backed security has a par value reflecting principal payments to be received if held until retired by or on behalf of the issuer and is purchased at a price no greater than 105% of such par amount.(2) An asset-backed security that:(a) Relies on cash flows from assets that are         prepayable at par at any time;(b) Does not make payments of par that are fixed         as to amount and timing; and(c) Has a negative rate of return at the time of         acquisition if a prepayment threshold assumption is used with such prepayment threshold assumption defined as either:(i) Two (2) times the prepayment expectation             reported by a recognized, publicly available source as being the median of expectations contributed by broker dealers or other entities, except insurers, engaged in the business of selling or evaluating such securities or assets. The prepayment expectation used in this calculation shall be, at the insurer's election, the prepayment expectation for pass-through securities of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association, or for other assets of the same type as the assets that underlie the asset- backed security, in either case with a gross weighted average coupon comparable to the gross weighted average coupon of the assets that underlie the asset-backed security; or(ii) Another prepayment threshold assumption             specified by the Director by rule promulgated under Section 126.8.(3) For purposes of subparagraph 2 of this     subsection, if the asset-backed security is purchased in combination with one or more other asset-backed securities that are supported by identical underlying collateral, the insurer may calculate the rate of return for these specific combined asset-backed securities in combination. The insurer must maintain documentation demonstrating that such securities were acquired and are continuing to be held in combination.DDDD. "State" means a state, territory or possession of the United States of
America, the District of Columbia or the Commonwealth of Puerto Rico.EEEE. "Substantially similar securities" means securities that meet all
criteria for substantially similar
securities
specified in the NAIC Accounting Practices
and Procedures
Manual, as amended, and in an amount that constitutes good delivery form as
determined from time to time by the PSA The Bond Market Trade Association.FFFF. "Subsidiary" means, as to any person, an affiliate controlled by such
person, directly or indirectly through one or more intermediaries.GGGG. "SVO" means the Securities Valuation Office of the NAIC or any
successor office established by the NAIC.HHHH. "Swap" means an agreement to exchange or to net payments at one or
more times based on the actual or expected price, level, performance or value
of one or more underlying interests.IIII. "Underlying interest" means the assets, liabilities, other interests
or a combination thereof underlying a derivative instrument, such as any one or
more securities, currencies, rates, indices, commodities or derivative
instruments.JJJJ. "Unrestricted surplus" means the amount by which total admitted assets
exceed 125% of the insurer's required liabilities.KKKK. "Warrant" means an instrument that gives the holder the right to
purchase an underlying financial instrument at a given price and time or at a
series of prices and times outlined in the warrant agreement. Warrants may be
issued alone or in connection with the sale of other securities, for example,
as part of a merger or recapitalization agreement, or to facilitate divestiture
of the securities of another business entity.
		(Source: P.A. 90-418, eff. 8-15-97; 90-794, eff. 8-14-98.) (215 ILCS 5/126.3)Sec. 126.3. 
		General investment qualifications.A. Insurers may acquire, hold or invest in investments or engage in
investment practices as set forth in this Article.  Insurers may also acquire,
hold or invest in investments not conforming to the requirements of this
Article that are not otherwise prohibited by this Code.  Investments not
conforming to this Article shall not be admitted assets unless they are
acquired under other authority of this Code.B. Subject to subsection C of this Section, an insurer shall not acquire or
hold an
investment as an admitted asset unless at the time of acquisition it is:(1) Eligible for the payment or accrual of interest     or discount (whether in cash or other forms of income or securities), eligible to receive dividends or other distributions or is otherwise income producing; or(2) Acquired under Section 126.15B, 126.15C, 126.16,     126.18, 126.20, 126.28C, 126.29, 126.31, or 126.32 or under the authority of Sections of the Code other than this Article.C. An insurer may acquire or hold as admitted assets investments that do not
otherwise qualify as provided in this Article if the insurer has not acquired
them for the purpose of circumventing any limitations contained in this
Article, if the insurer acquires the investments in the following circumstances
and the insurer complies with the provisions of Sections 126.5 and 126.7 as to
the investments:(1) As payment on account of existing indebtedness or     in connection with the refinancing, restructuring or workout of existing indebtedness, if taken to protect the insurer's interest in that investment;(2) As realization on collateral for indebtedness;(3) In connection with an otherwise qualified     investment or investment practice, as interest on or a dividend or other distribution related to the investment or investment practice or in connection with the refinancing of the investment, in each case for no additional or only nominal consideration;(4) Under a lawful and bona fide agreement of     recapitalization or voluntary or involuntary reorganization in connection with an investment held by the insurer; or(5) Under a bulk reinsurance, merger or consolidation     transaction approved by the Director if the assets constitute admissible investments for the ceding, merged or consolidated companies.D. An investment or portion of an investment acquired by an insurer under
subsection C of this Section shall become a nonadmitted asset 3 years
(or 5 years in the case of mortgage loans and real estate) from the date of
its acquisition, unless within that period the investment has become a
qualified investment under a Section of this Article other than subsection C of
this Section, but an investment acquired under an agreement of bulk
reinsurance, merger or consolidation may be qualified for a longer period if so
provided in the plan for reinsurance, merger or consolidation as approved by
the Director. Upon application by the insurer and a showing that the
nonadmission of an asset held under subsection C of this Section would injure
the interests of the insurer, the Director may extend the period for
admissibility for an additional reasonable period of time.E. Except as provided in subsections F and H of this Section, an investment
shall qualify under this Article if, on the date the insurer committed to
acquire the investment or on the date of its acquisition, it would have
qualified under this Article. For the purposes of determining limitations
contained in this Article, an insurer shall give appropriate recognition to any
commitments to acquire investments.F.  (1) An investment held as an admitted asset by an     insurer on the effective date of this amendatory Act of 1997 which  qualified  immediately prior to  the  effective  date of this amendatory Act of 1997 shall remain qualified as an admitted asset under this Article.(2) Each specific transaction constituting an     investment practice of the type described in this Article immediately prior to the effective date of this amendatory Act of 1997 that was lawfully entered into by an insurer and was in effect on the effective date of this amendatory Act of 1997 shall continue to be permitted under this Article until its expiration or termination under its terms.G. Unless otherwise specified, an investment limitation computed on the
basis of an
insurer's admitted assets or capital and surplus shall relate to the amount
required to be shown on the statutory balance sheet of the insurer most
recently required to be filed (annual or last quarter) with the Director.
Solely for purposes of
computing any limitation under this Article based upon admitted assets, the
insurer shall deduct from the amount of its admitted assets the amount of the
liability recorded on such statutory balance sheet for:(1) The return of acceptable collateral received in a     reverse repurchase transaction or a securities lending transaction;(2) Cash received in a dollar roll transaction; and(3) The amount reported as borrowed money in such     statutory balance sheet to the extent not included in paragraphs (1) and (2) of this subsection.H. An investment qualified, in whole or in part, for acquisition or holding
as an admitted asset may be qualified or requalified at the time of acquisition
or a later date, in whole or in part, under any other Section, if the relevant
conditions contained in the other Section are satisfied at the time of
qualification or requalification.I. An insurer shall maintain documentation demonstrating that investments
were acquired in accordance with this Article, and specifying the Section of
this Article under which they were acquired.J. An insurer shall not enter into an agreement to purchase securities in
advance of their issuance for resale to the public as part of a distribution of
the securities by
the issuer or otherwise guarantee the distribution, except that an insurer may
acquire privately placed securities with registration rights.K. Notwithstanding the provisions of this Article, the Director, for good
cause, may
order an insurer to nonadmit, limit, dispose of, withdraw from or discontinue
an investment or investment practice in accordance with Article XXIV. The
authority of the Director under this subsection is in addition to any other
authority of the Director.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.4)Sec. 126.4. 
		Authorization of investments by the board of directors.A. Within 3 months after the effective date of this amendatory Act of 1997,
an insurer's board of directors shall adopt a written plan for acquiring
and holding investments and for engaging in investment practices that specifies
guidelines as to the quality, maturity and diversification of investments and
other specifications including investment strategies intended to assure that
the investments and investment practices are appropriate for the business
conducted by the insurer, its liquidity needs and its capital and surplus. The
board shall review and assess the insurer's technical investment and
administrative capabilities and expertise before
adopting a written plan concerning an investment strategy or investment
practice.B. Investments acquired and held under this Article shall be acquired and
held under the supervision and direction of the board of directors of the
insurer. The board of directors shall evidence by formal resolution, at least
annually, that it has determined whether all investments have been made in
accordance with delegations, standards, limitations and investment objectives
prescribed by the board or a committee of the board charged with the
responsibility to direct its investments.C. On no less than a quarterly basis, and more often if deemed appropriate,
an insurer's board of directors or committee of the board of directors shall:(1) Receive and review a summary report on the     insurer's investment portfolio, its investment activities and investment practices engaged in under delegated authority, in order to determine whether the investment activity of the insurer is consistent with its written plan; and(2) Review and revise, as appropriate, the written     plan.D. In discharging its duties under this Section, the board of directors
shall require that records of any authorizations or approvals, other
documentation as the board may require and reports of any action taken under
authority delegated under the plan referred to in subsection A of this Section
shall be made available on a regular basis to the board of directors.E. In discharging their duties under this Section, the directors of an
insurer shall perform their duties in good faith and with that degree of care
that ordinarily prudent individuals in like positions would use under similar
circumstances.F. If an insurer does not have a board of directors, all references to the
board of directors in this Article shall be deemed to be references to the
governing body of the insurer having authority equivalent to that of a board of
directors.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.5)Sec. 126.5. 
		Prohibited investments. 
		An insurer shall not, directly or indirectly:A. Invest in an obligation or security or make a guarantee for the benefit
of or in favor of an officer or director of the insurer, except as provided in
Section 126.6;B. Invest in an obligation or security, make a guarantee for the benefit of
or in favor of, or make other investments in a business entity of which 10% or
more of the voting securities or equity interests are owned
directly or indirectly by
or for the benefit of one or more officers or directors of the insurer, except
pursuant to a transaction entered into in compliance with Section 131.20a of
this Code or provided in Section 126.6;C. Engage on its own behalf or through one or more affiliates in a
transaction or
series of transactions designed to evade the prohibitions of this Article;D.  (1) Invest in a partnership as a general partner,     except that an insurer may make an investment as a general partner:(a) If all other partners in the partnership are         subsidiaries of the insurer or other insurance company affiliates of the insurer;(b) For the purpose of:(i) Meeting cash calls committed to prior to             the effective date of this amendatory Act of 1997;(ii) Completing those specific projects or             activities of the partnership in which the insurer was a general partner as of the effective date of this amendatory Act of 1997 that had been undertaken as of that date; or(iii) Making capital improvements to property             owned by the partnership on the effective date of this amendatory Act of 1997 if the insurer was a general partner as of that date; or(c) In accordance with Section 126.3C;(2) This subsection shall not prohibit a subsidiary     or other affiliate of the insurer from becoming a general partner; orE. Invest in or lend its funds upon the security of shares of its own stock,
except as authorized by other provisions of this Code.  However, no such shares
shall be admitted assets of the insurer.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.6)Sec. 126.6. 
		Loans to officers and directors.A.  (1) Except as provided in Section 126.6B, an insurer shall not directly
or indirectly, unless it has notified the Director in writing of its intention
to enter into the transaction at least 30 days prior thereto, or any shorter
period as the Director may permit, and the Director has not disapproved it
within that period:(a) Make a loan to or other investment in an officer     or director of the insurer or a person in which the officer or director has any direct or indirect financial interest;(b) Make a guarantee for the benefit of or in favor     of an officer or director of the insurer or a person in which the officer or director has any direct or indirect financial interest; or(c) Enter into an agreement for the purchase or sale     of property from or to an officer or director of the insurer or a person in which the officer or director has any direct or indirect financial interest.(2) For purposes of this Section, an officer or director shall not be
deemed to have a financial interest by reason of an interest that is held
directly or indirectly through the ownership of equity interests representing
less than 2% of all outstanding equity interests issued by a person that is a
party to the transaction, or solely by reason of that individual's position as
a director or officer of a person that is a party to the transaction.(3) This subsection does not permit an investment that is prohibited by
Section 126.5.(4) This subsection does not apply to a transaction between an insurer and
any of its subsidiaries or affiliates that is entered into in compliance with
Section 131.20a of this Code, other than a transaction between an insurer
and its officer or director.B. An insurer may make, without the prior written approval of the Director:(1) Policy loans in accordance with the terms of the     policy or contract and Section 126.19;(2) Advances to officers or directors for expenses     reasonably expected to be incurred in the ordinary course of the insurer's business or guarantees associated with credit or charge cards issued or credit extended for the purpose of financing these expenses;(3) Loans secured by the principal residence of an     existing or new officer of the insurer made in connection with the officer's relocation at the insurer's request, if the loans comply with the requirements of Section 126.15 or 126.28 and the terms and conditions otherwise are the same as those generally available from unaffiliated third parties;(4) Secured loans to an existing or new officer of     the insurer made in connection with the officer's relocation at the insurer's request, if the loans:(a) Do not have a term exceeding 2 years;(b) Are required to finance mortgage loans         outstanding at the same time on the prior and new residences of the officer;(c) Do not exceed an amount equal to the equity         of the officer in the prior residence; and(d) Are required to be fully repaid upon the         earlier of the end of the 2 year period or the sale of the prior residence; and(5) Loans and advances to officers or directors made     in compliance with state or federal law specifically related to the loans and advances by a regulated non-insurance subsidiary or affiliate of the insurer in the ordinary course of business and on terms no more favorable than available to other customers of the entity.		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.7)Sec. 126.7. 
		Valuation of investments. 
		For the purposes of this Article, the value or amount of an investment acquired
or held, or an investment practice engaged in, under this Article, unless
otherwise specified in this Code, shall be the value at which assets of an
insurer are required to be reported for statutory accounting purposes as
determined in accordance with procedures prescribed in published accounting and
valuation standards of the NAIC, including the Purposes and Procedures of the
Securities
Valuation Office, the Valuation of Securities manual, the Accounting Practices
and Procedures
manual, the Annual Statement Instructions or any successor valuation procedures
officially adopted by the
NAIC.  The Director shall promulgate rules for determining and calculating
values to be used in financial statements submitted to the Department for
investments not subject to published National Association of Insurance
Commissioners valuation standards.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.8)Sec. 126.8. 
		Rules. 
		The Director may, in accordance with Section 401 of this Code, promulgate
rules implementing the provisions of this Article.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/Art. VIII Pt. 2 heading) 2.  
		LIFE AND HEALTH INSURERS (215 ILCS 5/126.9)Sec. 126.9. 
		Applicability. 
		This Part shall apply to the investments and investment practices of
companies authorized to transact business under Class 1 of Section 4 of this
Code and other companies whose investments and investment practices are
regulated as life insurers under this Code, subject to the provisions of
Section 126.1B.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.10)Sec. 126.10. 
		
		General 3% diversification, medium and lower grade
investments, and Canadian investments.A. General 3% diversification.(1) Except as otherwise specified in this Article, an     insurer shall not acquire, directly or indirectly through an investment subsidiary, an investment under this Article if, as a result of and after giving effect to the investment, the insurer would hold more than 3% of its admitted assets in investments of all kinds issued, assumed, accepted, guaranteed, or insured by a single person.(2) This 3% limitation shall not apply to the     aggregate amounts insured by a single financial guaranty insurer with the highest generic rating issued by a nationally recognized statistical rating organization.(3) Asset-backed securities shall not be subject to     the limitations of paragraph (1) of this subsection, however, except as permitted by subsection A(4) of this Section, an insurer shall not acquire an asset-backed security if, as a result of and after giving effect to the investment, the aggregate amount of asset-backed securities secured by or evidencing an interest in a single asset or single pool of assets held by a trust or other business entity, then held by the insurer would exceed 3% of its admitted assets.(4) A company's investments in mortgage related     securities, as defined by the Secondary Mortgage Market Enhancement Act of 1984 (United States Public Law 98-440) [12 U.S.C. 24, 1451, 1454 et seq.], that are backed by any single pool of mortgages and made pursuant to the authority of that Act, shall not exceed 5% of its admitted assets.B. Medium and lower grade investments.(1) An insurer shall not acquire, directly or     indirectly through an investment subsidiary, an investment under Sections 126.11, 126.14, and 126.17 or counterparty exposure under Section 126.18D if, as a result of and after giving effect to the investment:(a) The aggregate amount of medium and lower         grade investments then held by the insurer would exceed 20% of its admitted assets;(b) The aggregate amount of lower grade         investments then held by the insurer would exceed 10% of its admitted assets;(c) The aggregate amount of investments rated 5         or 6 by the SVO then held by the insurer would exceed 3% of its admitted assets;(d) The aggregate amount of investments rated 6         by the SVO then held by the insurer would exceed 1% of its admitted assets; or(e) The aggregate amount of lower grade         investments then held by the insurer that receive as cash income less than the equivalent yield for Treasury issues with a comparative average life, would exceed 1% of its admitted assets.(2) An insurer shall not acquire, directly or     indirectly through an investment subsidiary, an investment under Sections 126.11, 126.14, and 126.17 or counterparty exposure under Section 126.18D if, as a result of and after giving effect to the investment:(a) The aggregate amount of medium and lower         grade investments issued, assumed, accepted, guaranteed, or insured by any one person or, as to asset-backed securities secured by or evidencing an interest in a single asset or pool of assets, then held by the insurer would exceed 1% of its admitted assets; or(b) The aggregate amount of lower grade         investments issued, assumed, accepted, guaranteed, or insured by any one person or, as to asset-backed securities secured by or evidencing an interest in a single asset or pool of assets, then held by the insurer would exceed 0.5% of its admitted assets.(3) If an insurer attains or exceeds the limit of any     one rating category referred to in this subsection, the insurer shall not thereby be precluded from acquiring investments in other rating categories subject to the specific and multi-category limits applicable to those investments.C. Canadian investments.(1) An insurer shall not acquire, directly or     indirectly through an investment subsidiary, a Canadian investment authorized by this Article, if as a result of and after giving effect to the investment, the aggregate amount of these investments then held by the insurer would exceed 40% of its admitted assets, or if the aggregate amount of Canadian investments not acquired under Section 126.11B then held by the insurer would exceed 25% of its admitted assets.(2) However, as to an insurer that is authorized to     do business in Canada or that has outstanding insurance, annuity or reinsurance contracts on lives or risks resident or located in Canada and denominated in Canadian currency, the limitations of paragraph (1) of this subsection shall be increased by the greater of:(a) The amount the insurer is required by         Canadian law to invest in Canada or to be denominated in Canadian currency; or(b) 115% of the amount of its reserves and other         obligations under contracts on lives or risks resident or located in Canada.		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.11)Sec. 126.11. 
		Rated credit instruments. 
		Subject to the limitations of subsection F of this Section, an insurer may
acquire rated credit instruments:A. Subject to the limitations of Section 126.10B, but not to the limitations
of Section 126.10A, except for that of subsection (4) of Section 126.10A, an
insurer may acquire rated credit instruments issued, assumed, guaranteed, or
insured by:(1) The United States; or(2) A government sponsored enterprise of the United     States, if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by the United States or are otherwise backed or supported by the full faith and credit of the United States.B.  (1) Subject to the limitations of Section 126.10B,     but not to the limitations of Section 126.10A, an insurer may acquire rated credit instruments issued, assumed, guaranteed, or insured by:(a) Canada; or(b) A government sponsored enterprise of Canada,         if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by Canada or are otherwise backed or supported by the full faith and credit of Canada;(2) However, an insurer shall not acquire an     instrument under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer under this subsection would exceed 40% of its admitted assets.C.  (1) Subject to the limitations of Section 126.10B,     but not to the limitations of Section 126.10A, an insurer may acquire rated credit instruments, excluding asset-backed securities:(a) Issued by a government money market mutual         fund, a class one money market mutual fund or a class one bond mutual fund;(b) Issued, assumed, guaranteed, or insured by a         government sponsored enterprise of the United States other than those eligible under subsection A of this Section;(c) Issued, assumed, guaranteed, or insured by a         state, if the instruments are general obligations of the state; or(d) Issued by a multilateral development bank;(2) However, an insurer shall not acquire an     instrument of any one fund, any one enterprise or entity or any one state under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer in any one fund, enterprise, entity, or state under this subsection would exceed 10% of its admitted assets.D. Subject to the limitations of Section 126.10, an insurer may acquire
preferred stocks that are not foreign investments and that meet the
requirements of rated credit instruments if, as a result of and after giving
effect to the investment:(1) The aggregate amount of preferred stocks then     held by the insurer under this subsection does not exceed 33 1/3% of its admitted assets; and(2) The aggregate amount of preferred stocks then     held by the insurer under this subsection which are not sinking fund stocks or rated P1 or P2 by the SVO does not exceed 15% of its admitted assets.E. Subject to the limitations of Section 126.10, in addition to those
investments eligible under subsections A, B, C and D of this Section, an
insurer may acquire rated credit instruments that are not foreign investments.F. An insurer shall not acquire special rated credit instruments under this
Section if, as a result of and after giving effect to the investment, the
aggregate amount of special rated credit instruments then held by the insurer
would exceed 5% of its admitted assets.  The Director may, by
rule, identify certain special rated credit instruments that will be
exempt from the limitation imposed by this subsection.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.12)Sec. 126.12. Insurer investment pools.A. An insurer may acquire investments in investment pools that:(1) Invest only in:(a) Obligations that are rated 1 or 2 by the SVO         or have an equivalent of an SVO 1 or 2 rating (or, in the absence of a 1 or 2 rating or equivalent rating, the issuer has outstanding obligations with an SVO 1 or 2 or equivalent rating) by a nationally recognized statistical rating organization recognized by the SVO and have:(i) A remaining maturity of 397 days or less             or a put that entitles the holder to receive the principal amount of the obligation which put may be exercised through maturity at specified intervals not exceeding 397 days; or(ii) A remaining maturity of 3 years or less             and a floating interest rate that resets no less frequently than quarterly on the basis of a current short-term index (federal funds, prime rate, treasury bills, London InterBank Offered Rate (LIBOR) or commercial paper) and is subject to no maximum limit, if the obligations do not have an interest rate that varies inversely to market interest rate changes;(b) Government money market mutual funds or class         one money market mutual funds; or(c) Securities lending, repurchase, and reverse         repurchase transactions that meet all the requirements of Section 126.16, except the quantitative limitations of Section 126.16D; or(2) Invest only in investments which an insurer may     acquire under this Article, if the insurer's proportionate interest in the amount invested in these investments when combined with amount of such investments made directly or indirectly through an investment subsidiary or other insurer investment pool permitted under this subsection A(2) does not exceed the applicable limits of this Article for such investments.B. For an investment in an investment pool to be qualified under this
Article, the investment pool shall not:(1) Acquire securities issued, assumed, guaranteed or     insured by the insurer or an affiliate of the insurer;(2) Borrow or incur any indebtedness for borrowed     money, except for securities lending and reverse repurchase transactions that meet the requirements of Section 126.16 except the quantitative limitations of Section 126.16D; or(3) Acquire an investment if, as a result of such     transaction, the aggregate value of securities then loaned or sold to, purchased from or invested in any one business entity under this Section would exceed 10% of the total assets of the investment pool.C. The limitations of Section 126.10A shall not apply to an insurer's
investment in an investment pool, however an insurer shall not acquire an
investment in an investment pool under this Section if, as a result of and
after giving effect to the investment, the aggregate amount of investments then
held by the insurer under this Section:(1) In all investment pools investing in investments     permitted under subsection A(2) of this Section would exceed 25% of its admitted assets; or(2) In all investment pools would exceed 35% of its     admitted assets.D. For an investment in an investment pool to be qualified under this
Article, the manager of the investment pool shall:(1) Be organized under the laws of the United States     or a state and designated as the pool manager in a pooling agreement;(2) Be the insurer, an affiliated insurer or a     business entity affiliated with the insurer, a qualified bank, a business entity registered under the Investment Advisers  Act of 1940 (15 U.S.C.  80a-1 et seq.), as amended or, in the case of a reciprocal insurer or interinsurance exchange, its attorney-in-fact, or in the case of a United States branch of an alien insurer, its United States manager or an affiliate or subsidiary of its United States manager;(3) Be responsible for the compilation and     maintenance of detailed accounting records setting forth:(a) The cash receipts and disbursements         reflecting each participant's proportionate investment in the investment pool;(b) A complete description of all underlying         assets of the investment pool (including amount, interest rate, maturity date (if any) and other appropriate designations); and(c) Other records which, on a daily basis, allow         third parties to verify each participant's investment in the investment pool; and(4) Maintain the assets of the investment pool in one     or more accounts, in the name of or on behalf of the investment pool, under a custody agreement with a qualified bank. The custody agreement shall:(a) State and recognize the claims and rights of         each participant;(b) Acknowledge that the underlying assets of the         investment pool are held solely for the benefit of each participant in proportion to the aggregate amount of its investments in the investment pool; and(c) Contain an agreement that the underlying         assets of the investment pool shall not be commingled with the general assets of the custodian qualified bank or any other person.E. The pooling agreement for each investment pool shall be in writing and
shall provide that:(1) An insurer and its affiliated insurers or, in the     case of an investment pool investing solely in investments permitted under subsection A(1) of this Section, the insurer and its subsidiaries, affiliates or any pension or profit sharing plan of the insurer, its subsidiaries and affiliates or, in the case of a United States branch of an alien insurer, affiliates or subsidiaries of its United States manager, shall, at all times, hold 100% of the interests in the investment pool;(2) The underlying assets of the investment pool     shall not be commingled with the general assets of the pool manager or any other person;(3) In proportion to the aggregate amount of each     pool participant's interest in the investment pool:(a) Each participant owns an undivided interest         in the underlying assets of the investment pool; and(b) The underlying assets of the investment pool         are held solely for the benefit of each participant;(4) A participant, or in the event of the     participant's insolvency, bankruptcy or receivership, its trustee, receiver or other successor-in-interest, may withdraw all or any portion of its investment from the investment pool under the terms of the pooling agreement;(5) Withdrawals may be made on demand without penalty     or other assessment on any business day, but settlement of funds shall occur within a reasonable and customary period thereafter not to exceed 10 business days. Distributions under this paragraph shall be calculated in each case net of all then applicable fees and expenses of the investment pool. The pooling agreement shall provide that the pool manager shall distribute to a participant, at the discretion of the pool manager:(a) In cash, the then fair market value of the         participant's pro rata share of each underlying asset of the investment pool;(b) In kind, a pro rata share of each underlying         asset; or(c) In a combination of cash and in kind         distributions, a pro rata share in each underlying asset; and(6) The pool manager shall make the records of the     investment pool available for inspection by the Director.F. Except for
the
formation of the investment pool, transactions and
between a domestic insurer and an affiliated insurer
investment pool shall not be subject to the requirements of Section
131.20a of this Code.
(Source: P.A. 100-201, eff. 8-18-17.) (215 ILCS 5/126.13)Sec. 126.13. 
		Equity interests.A. Subject to the limitations of Section 126.10, an insurer may acquire
directly
or indirectly through an investment subsidiary, equity interests in business
entities organized under the laws of any domestic jurisdiction.B. An insurer shall not acquire directly or indirectly through an investment
subsidiary an investment under this Section if, as a result of and after giving
effect
to the investment, the aggregate amount of investments then held by the insurer
under this Section would exceed 20% of its admitted assets or, except for
mutual
funds, the amount of equity interests then held by the insurer that are not
listed on
a qualified exchange would exceed 5% of its admitted assets. An
accident and health insurer shall not be subject to this Section but shall be
subject to the same aggregate limitation on equity interests as a property and
casualty insurer under Section 126.26 and also to the provisions of Section
126.22 of this Article.C. An insurer shall not acquire under this Section any investments that the
insurer may acquire under Section 126.15.D. An insurer shall not short sell equity interests unless the insurer
covers the short sale by owning the equity interest or an unrestricted right to
the equity interest exercisable within 6 months of the short sale.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.14)Sec. 126.14. 
		Tangible personal property under lease.A.  (1) Subject to the limitations of Section 126.10, an insurer may acquire
tangible personal property or
equity interests therein located or used wholly or in part within a domestic
jurisdiction either directly or indirectly through limited partnership
interests and general partnership interests not otherwise prohibited by
Section 126.5D, joint ventures, stock of an investment subsidiary or
membership interests in a limited liability company, trust certificates, or
other similar instruments.(2) Investments acquired under paragraph (1) of this subsection shall be
eligible only if:(a) The property is subject to a lease or other     agreement with a person whose rated credit instruments in the amount of the purchase price of the personal property the insurer could then acquire under Section 126.11; and(b) The lease or other agreement provides the insurer     the right to receive rental, purchase or other fixed payments for the use or purchase of the property, and the aggregate value of the payments, together with the estimated residual value of the property at the end of its useful life and the estimated tax benefits to the insurer resulting from ownership of the property, shall be adequate to return the cost of the insurer's investment in the property, plus a return deemed adequate by the insurer.B. The insurer shall compute the amount of each investment under this
Section on the basis of the out of pocket purchase price and applicable related
expenses paid by the insurer for the investment, net of each borrowing made to
finance the purchase price and expenses, to the extent the borrowing is without
recourse to the insurer.C. An insurer shall not acquire directly or indirectly through an investment
subsidiary an investment under this Section if, as a result of and after giving
effect to the investment, the aggregate amount of all investments then held by
the insurer under this Section would exceed:(1) 2% of its admitted assets; or(2) 0.5% of its admitted assets as to any single item     of tangible personal property.D. For purposes of determining compliance with the limitations of Section
126.10, investments acquired by an insurer under this Section shall be
aggregated with those acquired under Section 126.11, and each lessee of the
property under a lease referred to in this Section shall be deemed the issuer
of an obligation in the amount of the investment of the insurer in the property
determined as provided in subsection B of this Section.E. Nothing in this Section is applicable to tangible personal property lease
arrangements between an insurer and its subsidiaries and affiliates under a
cost sharing arrangement or agreement permitted under Section
131.20a(1)(a)(iv).
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.15)Sec. 126.15. 
		Mortgage loans and real estate.A. Mortgage loans.(1) Subject to the limitations of Section 126.10, an     insurer may acquire, either directly or indirectly through limited partnership interests and general partnership interests not otherwise prohibited by Section 126.5D, joint ventures, stock of an investment subsidiary or membership interests in a limited liability company, trust certificates, or other similar instruments, obligations secured by mortgages on real estate situated within a domestic jurisdiction, but a mortgage loan which is secured by other than a first lien shall not be acquired under this subsection (1) unless the insurer is the holder of the first lien. The obligations held by the insurer and any obligations with an equal lien priority, shall not, at the time of acquisition of the obligation, exceed:(a) 90% of the fair market value of the real         estate, if the mortgage loan is secured by a purchase money mortgage or like security received by the insurer upon disposition of the real estate;(b) 80% of the fair market value of the real         estate, if the mortgage loan requires immediate scheduled payment in periodic installments of principal and interest, has an amortization period of 30 years or less and periodic payments made no less frequently than annually. Each periodic payment shall be sufficient to assure that at all times the outstanding principal balance of the mortgage loan shall be not greater than the outstanding principal balance that would be outstanding under a mortgage loan with the same original principal balance, with the same interest rate and requiring equal payments of principal and interest with the same frequency over the same amortization period. Mortgage loans permitted under this subsection are permitted notwithstanding the fact that they provide for a payment of the principal balance prior to the end of the period of amortization of the loan. For residential mortgage loans, the 80% limitation may be increased to 97% if acceptable private mortgage insurance has been obtained; or(c) 75% of the fair market value of the real         estate for mortgage loans that do not meet the requirements of subparagraph (a) or (b) of this paragraph.(2) For purposes of paragraph (1) of this subsection,     the amount of an obligation required to be included in the calculation of the loan-to-value ratio may be reduced to the extent the obligation is insured by the Federal Housing Administration or guaranteed by the Administrator of Veterans Affairs, or their successors.(3) Subject to the limitations of Section 126.10, an     insurer may acquire, either directly or indirectly through limited partnership interests and general partnership interests not otherwise prohibited by Section 126.5D, joint ventures, stock of an investment subsidiary or membership interests in a limited liability company, trust certificates, or other similar instruments, obligations secured by a second mortgage on real estate situated within a domestic jurisdiction, other than as authorized in subsection (1) of this Section 126.15.  The obligation held by the insurer shall be the sole second lien priority obligation and shall not, at the time of acquisition of the obligation, exceed 70% of the amount by which the fair market value of the real estate exceeds the amount outstanding under the first mortgage.(4) A mortgage loan that is held by an insurer under     Section 126.3F or acquired under this Section and is restructured in a manner that meets the requirements of a restructured mortgage loan in accordance with the NAIC Accounting Practices and Procedures Manual or successor publication shall continue to qualify as a mortgage loan under this Article.(5) Subject to the limitations of Section 126.10,     credit lease transactions that do not qualify for investment under Section 126.11 with the following characteristics shall be exempt from the provisions of paragraph (1) of this subsection:(a) The loan amortizes over the initial fixed         lease term at least in an amount sufficient so that the loan balance at the end of the lease term does not exceed the original appraised value of the real estate;(b) The lease payments cover or exceed the total         debt service over the life of the loan;(c) A tenant or its affiliated entity, whose         rated credit instruments have a SVO 1 or 2 designation or a comparable rating from a nationally recognized statistical rating organization recognized by the SVO, has a full faith and credit obligation to make the lease payments;(d) The insurer holds or is the beneficial holder         of a first lien mortgage on the real estate;(e) The expenses of the real estate are passed         through to the tenant, excluding exterior, structural, parking and heating, ventilation and air conditioning replacement expenses, unless annual escrow contributions, from cash flows derived from the lease payments, cover the expense shortfall; and(f) There is a perfected assignment of the rents         due pursuant to the lease to, or for the benefit of, the insurer.B. Income producing real estate.(1) An insurer may acquire, manage and dispose of     real estate situated in a domestic jurisdiction either directly or indirectly through limited partnership interests and general partnership interests not otherwise prohibited by Section 126.5D, joint ventures, stock of an investment subsidiary or membership interests in a limited liability company, trust certificates, or other similar instruments. The real estate shall be income producing or intended for improvement or development for investment purposes under an existing program (in which case the real estate shall be deemed to be income producing).(2) The real estate may be subject to mortgages,     liens or other encumbrances, the amount of which shall, to the extent that the obligations secured by the mortgages, liens or encumbrances are without recourse to the insurer, be deducted from the amount of the investment of the insurer in the real estate for purposes of determining compliance with subsections D(2) and D(3) of this Section.C. Real estate for the accommodation of business.An insurer may acquire, manage, and dispose of real estate for the convenient
accommodation of the insurer's (which may include its affiliates) business
operations, including home office, branch office and field office operations.(1)  Real estate acquired under this subsection may     include excess space for rent to others, if the excess space, valued at its fair market value, would otherwise be a permitted investment under subsection B of this Section and is so qualified by the insurer;(2) The real estate acquired under this subsection     may be subject to one or more mortgages, liens or other encumbrances, the amount of which shall, to the extent that the obligations secured by the mortgages, liens or encumbrances are without recourse to the insurer, be deducted from the amount of the investment of the insurer in the real estate for purposes of determining compliance with subsection D(4) of this Section; and(3) For purposes of this subsection, business     operations shall not include that portion of real estate used for the direct provision of health care services by an accident and health insurer for its insureds. An insurer may acquire real estate used for these purposes under subsection B of this Section.D. Quantitative limitations.(1) An insurer shall not acquire an investment under     subsection A of this Section if, as a result of and after giving effect to the investment, the aggregate amount of all investments then held by the insurer under subsection A of this Section would exceed:(a) 1% of its admitted assets in mortgage loans         covering any one secured location;(b) 0.25% of its admitted assets in construction         loans covering any one secured location; or(c) 2% of its admitted assets in construction         loans in the aggregate.(2) An insurer shall not acquire an investment under     subsection B of this Section if, as a result of and after giving effect to the investment and any outstanding guarantees made by the insurer in connection with the investment, the aggregate amount of investments then held by the insurer under subsection B of this Section plus the guarantees then outstanding would exceed:(a) 1% of its admitted assets in one parcel or         group of contiguous parcels of real estate, except that this limitation shall not apply to that portion of real estate used for the direct provision of health care services by an accident and health insurer for its insureds, such as hospitals, medical clinics, medical professional buildings or other health facilities used for the purpose of providing health services; or(b) 15% of its admitted assets in the aggregate,         but not more than 5% of its admitted assets in real estate to be improved or developed.(3) An insurer shall not acquire an investment under     subsections A or B of this Section if, as a result of and after giving effect to the investment and any guarantees made by the insurer in connection with the investment, the aggregate amount of all investments then held by the insurer under subsections A and B of this Section plus the guarantees then outstanding would exceed 45% of its admitted assets.  However, an insurer may exceed this limitation by no more than 30% of its admitted assets if:(a) This increased amount is invested only in         residential mortgage loans;(b) The insurer has no more than 10% of its         admitted assets invested in mortgage loans other than residential mortgage loans;(c) The loan-to-value ratio of each residential         mortgage loan does not exceed 60% at the time the mortgage loan is qualified under this increased authority, and the fair market value is supported by an appraisal no more than 2 years old, prepared by an independent appraiser;(d) A single mortgage loan qualified under this         increased authority shall not exceed 0.5% of its admitted assets;(e) The insurer files with the Director, and         receives approval from the Director for, a plan that is designed to result in a portfolio of residential mortgage loans that is sufficiently geographically diversified; and(f) The insurer agrees to file annually with the         Director records that demonstrate that its portfolio of residential mortgage loans is geographically diversified in accordance with the plan.(4) The limitations of Section 126.10 shall not apply     to an insurer's acquisition of real estate under subsection C of this Section. An insurer shall not acquire real estate under subsection C of this Section if, as a result of and after giving effect to the acquisition, the aggregate amount of real estate then held by the insurer under subsection C of this Section would exceed 10% of its admitted assets. With the permission of the Director, additional amounts of real estate may be acquired under subsection C of this Section.		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.16)Sec. 126.16. 
		
		Securities lending and repurchase, reverse repurchase, and
dollar roll transactions.
An insurer may enter into securities lending, repurchase, reverse repurchase,
and dollar roll transactions with business entities, subject to the following
requirements:A. The insurer's board of directors shall adopt a written plan that is
consistent with
the requirements of the written plan in Section 126.4A that specifies
guidelines and objectives to be followed, such as:(1) A description of how cash received will be     invested or used for general corporate purposes of the insurer;(2) Operational procedures to manage interest rate     risk, counterparty default risk, the conditions under which proceeds from reverse repurchase transactions may be used in the ordinary course of business and the use of acceptable collateral in a manner that reflects the liquidity needs of the transaction; and(3) The extent to which the insurer may engage in     these transactions.B. The insurer shall enter into a written agreement for all transactions
authorized in this Section other than dollar roll transactions. The written
agreement shall require that each transaction terminate no more than one year
from its inception or upon
the earlier demand of the insurer. The agreement shall be with the business
entity counterparty, but for securities lending transactions, the agreement may
be with an agent acting on behalf of the insurer, if the agent is a qualified
business entity, and if the agreement:(1) Requires the agent to enter into separate     agreements with each counterparty that are consistent with the requirements of this Section; and(2) Prohibits securities lending transactions     pursuant to the agreement with the agent or its affiliates.C. Cash received in a transaction under this Section shall be invested in
accordance with this Article and in a manner that recognizes the liquidity
needs of the transaction or used by the insurer for its general corporate
purposes. For so long as the transaction remains outstanding, the insurer, its
agent or custodian shall
maintain, as to acceptable collateral received in a transaction under this
Section, either physically or through the book entry systems of the Federal
Reserve, Depository Trust Company, Participants Trust Company or other
securities depositories approved by the Director:(1) Possession of the acceptable collateral;(2) A perfected security interest in the acceptable     collateral; or(3) In the case of a jurisdiction outside of the     United States, title to, or rights of a secured creditor to, the acceptable collateral.D. The limitations of Sections 126.10 and 126.17 shall not apply to the
business entity counterparty exposure created by transactions under this
Section. For purposes of calculations made to determine compliance with this
subsection, no effect will be
given to the insurer's future obligation to resell securities, in the case of a
repurchase transaction, or to repurchase securities, in the case of a reverse
repurchase transaction. An insurer shall not enter into a transaction under
this Section if, as a result of and after giving effect to the transaction:(1) The aggregate amount of securities then loaned or     sold to, or purchased from, any one business entity counterparty under this Section would exceed 5% of its admitted assets. In calculating the amount sold to or purchased from a business entity counterparty under repurchase or reverse repurchase transactions, effect may be given to netting provisions under a master written agreement; or(2) The aggregate amount of all securities then     loaned, sold to or purchased from all business entities under this Section would exceed 40% of its admitted assets.E. In a dollar roll transaction, the insurer shall receive cash in an amount
at least equal to the market value of the securities transferred by the insurer
in the transaction as of the transaction date.F. The Director may promulgate reasonable rules for investments
and transactions under this Section including, but not limited to, rules
which impose financial solvency standards, valuation standards, and
reporting requirements.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.17)Sec. 126.17. 
		Foreign investments and foreign currency exposure.A. Subject to the limitations of Section 126.10, an insurer may acquire
directly or indirectly through an investment subsidiary, foreign investments,
or engage in investment practices with persons of or in foreign jurisdictions,
of substantially the same types as those that an insurer is permitted to
acquire under this Article, other than of the type permitted under Section
126.12, if, as a result and after giving effect to the investment:(1) The aggregate amount of foreign investments then     held by the insurer under this subsection does not exceed 20% of its admitted assets; and(2) The aggregate amount of foreign investments then     held by the insurer under this subsection in a single foreign jurisdiction does not exceed 10% of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 or 3% of its admitted assets as to any other foreign jurisdiction.B. Subject to the limitations of Section 126.10, an insurer may acquire
investments, or engage in investment practices denominated in foreign
currencies, whether or not they are foreign investments acquired under
subsection A of this Section, or additional foreign currency exposure as a
result of the termination or expiration of a hedging transaction with respect
to investments denominated in a foreign currency, if, as a result of and after
giving effect to the transaction:(1) The aggregate amount of investments then held by     the insurer under this subsection denominated in foreign currencies does not exceed 10% of its admitted assets; and(2) The aggregate amount of investments then held by     the insurer under this subsection denominated in the foreign currency of a single foreign jurisdiction does not exceed 10% of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 or 3% of its admitted assets as to any other foreign jurisdiction.(3) However, an investment shall not be considered     denominated in a foreign currency if the acquiring insurer enters into one or more contracts in transactions permitted under Section 126.18 in which the business entity counterparty agrees to exchange, or grants to the insurer the option to exchange, all payments made on the foreign currency denominated investment (or amounts equivalent to the payments that are or will be due to the insurer in accordance with the terms of such investment) for United States currency during the period the contract or contracts are in effect to insulate the insurer against loss caused by diminution of the value of payments owed to the insurer due to future changes in currency exchange rates.C. In addition to investments permitted under subsections A and B of this
Section, an insurer that is authorized to do business in a foreign
jurisdiction, and that has outstanding insurance, annuity or reinsurance
contracts on lives or risks resident or located in that foreign jurisdiction
and denominated in foreign currency of that jurisdiction, may acquire foreign
investments respecting that foreign jurisdiction, and may acquire investments
denominated in the currency of that jurisdiction, subject to the limitations of
Section 126.10.  However, investments made under this subsection in obligations
of foreign governments, their political subdivisions and government sponsored
enterprises shall not be subject to the limitations of Section 126.10 if those
investments carry an SVO rating of 1 or 2. The aggregate amount of investments
acquired by the insurer under this subsection shall not exceed the
greater of:(1) The amount the insurer is required by the law of     the foreign jurisdiction to invest in the foreign jurisdiction; or(2) 115% of the amount of its reserves, net of     reinsurance, and other obligations under the contracts on lives or risks resident or located in the foreign jurisdiction.D. In addition to investments permitted under subsections A and B of this
Section, an insurer that is not authorized to do business in a foreign
jurisdiction, but which has outstanding insurance, annuity or reinsurance
contracts on lives or risks resident or located in that foreign jurisdiction
and denominated in foreign currency of that jurisdiction, may acquire foreign
investments respecting that foreign jurisdiction, and may acquire investments
denominated in the currency of that jurisdiction subject to the limitations of
Section 126.10.  However, investments made under this subsection in obligations
of foreign governments, their political subdivisions and government sponsored
enterprises shall not be subject to the limitations of Section 126.10 if those
investments carry an SVO rating of 1 or 2.  The
aggregate amount of investments acquired by the insurer under this subsection
shall not exceed 105% of the amount of its reserves, net of reinsurance,
and other obligations under the contracts on lives or risks resident or located
in the foreign jurisdiction.E. Investments acquired under this Section shall be aggregated with
investments of
the same types made under all other Sections of this Article, and in a similar
manner, for purposes of determining compliance with the limitations, if any,
contained in the other Sections. Investments in obligations of foreign
governments, their political subdivisions and government sponsored enterprises
of these persons, except for those exempted under subsections C and D of this
Section, shall be subject to the limitations of Section 126.10.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.18)Sec. 126.18. 
		Derivative transactions. 
		An insurer may, directly or
indirectly through an investment subsidiary, engage in derivative transactions
under this Section under the following conditions:A. General conditions.(1) An insurer may use derivative instruments under     this Section to engage in hedging transactions and income generation transactions.(2) An insurer may use derivative instruments for     replication transactions only after the Director promulgates reasonable rules that set forth methods of disclosure, reserving for risk-based capital, and determining the asset valuation reserve for these investments.  Any asset being replicated is subject to all the provisions and limitations on the making thereof specified in this Article with respect to investments by the insurer as if the transaction constituted a direct investment by the insurer in the replicated asset.(3) With respect to all hedging transactions, an     insurer shall be able to demonstrate to the Director the intended hedging characteristics and the ongoing effectiveness of the derivative transaction or combination of the transactions through cash flow testing or other appropriate analyses.(4) The Director may promulgate reasonable rules for     investments and transactions under this Section including, but not limited to, rules which impose financial solvency standards, valuation standards, and reporting requirements.B. Limitations on hedging transactions.An insurer may enter into hedging transactions under this Section if, as a
result of and after giving effect to the transaction:(1) The aggregate statement value of options, caps,     floors and warrants not attached to another financial instrument purchased and used in hedging transactions then engaged in by the insurer does not exceed 7.5% of its admitted assets;(2) The aggregate statement value of options, caps     and floors written in hedging transactions then engaged in by the insurer does not exceed 3% of its admitted assets; and(3) The aggregate potential exposure of collars,     swaps, forwards and futures used in hedging transactions then engaged in by the insurer does not exceed 6.5% of its admitted assets.C. Limitations on income generation transactions.An insurer may enter into the following types of income generation
transactions subject to the quantitative limits of subsection C(5):(1) Sales of covered call options on noncallable     fixed income securities, callable fixed income securities if the option expires by its terms prior to the end of the noncallable period or derivative instruments based on fixed income securities;(2) Sales of covered call options on equity     securities, if the insurer holds in its portfolio, or can immediately acquire through the exercise of options, warrants or conversion rights already owned, the equity securities subject to call during the complete term of the call option sold;(3) Sales of covered puts on investments that the     insurer is permitted to acquire under this Article, if the insurer has escrowed, or entered into a custodian agreement segregating, cash or cash equivalents with a market value equal to the amount of its purchase obligations under the put during the complete term of the put option sold; or(4) Sales of covered caps or floors, if the insurer     holds in its portfolio the investments generating the cash flow to make the required payments under the caps or floors during the complete term that the cap or floor is outstanding.(5) If as a result of and after giving effect to the     transactions, the aggregate statement value of the fixed income assets that are subject to call or that generate the cash flows for payments under the caps or floors, plus the face value of fixed income securities underlying a derivative instrument subject to call, plus the amount of the purchase obligations under the puts, does not exceed 10% of its admitted assets.D. Counterparty exposure.
An insurer shall include all counterparty exposure amounts in determining
compliance with the limitations of Section 126.10.E. Additional transactions.
Pursuant to rules promulgated under Section 126.8, the Director may approve
additional transactions involving the use of derivative instruments in excess
of the limits of subsection B of this Section or for other risk management
purposes.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.19)Sec. 126.19. 
		Policy loans. 
		A life insurer may lend to a policyholder on the security of the cash
surrender value of the
policyholder's policy a sum not exceeding the legal reserve that the insurer is
required to
maintain on the policy.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.20)Sec. 126.20. 
		Additional investment authority.A. Solely for the purpose of acquiring investments that exceed the
quantitative limitations of Sections 126.10 through 126.17, an insurer may
acquire under this subsection an investment, or engage in investment practices
described in Section 126.16, but an insurer shall not acquire an investment, or
engage in investment practices described in Section 126.16, under this
subsection if, as a result of and after giving effect to the transaction:(1) The aggregate amount of investments then held by     an insurer under this subsection would exceed 3% of its admitted assets; or(2) The aggregate amount of investments as to one     limitation in Sections 126.10 through 126.17 then held by the insurer under this subsection would exceed 1% of its admitted assets.B.  (1) In addition to the authority provided under     subsection A of this Section, an insurer may acquire under this subsection an investment of any kind, or engage in investment practices described in Section 126.16, that are not specifically prohibited by this Article, without regard to the categories, conditions, standards or other limitations of Sections 126.10 through 126.17 if, as a result of and after giving effect to the transaction, the aggregate amount of investments then held under this subsection would not exceed the lesser of:(a) 10% of its admitted assets; or(b) 75% of its capital and surplus.(2) However, an insurer shall not acquire any     investment or engage in any investment practice under this subsection if, as a result of and after giving effect to the transaction, the aggregate amount of all investments in any one person then held by the insurer under this subsection would exceed 3% of its admitted assets.C. In addition to the investments acquired under subsections A and B of this
Section, an insurer may acquire under this subsection an investment of any
kind, or engage in investment practices described in Section 126.16, that are
not specifically prohibited by this Article without regard to any limitations
of Sections 126.10 through 126.17 if:(1) The Director grants prior approval;(2) The insurer demonstrates that its investments are     being made in a prudent manner and that the additional amounts will be invested in a prudent manner; and(3) As a result of and after giving effect to the     transaction the aggregate amount of investments then held by the insurer under this subsection does not exceed the greater of:(a) 25% of its capital and surplus; or(b) 100% of capital and surplus less 10% of its         admitted assets.D. Under this Section, an insurer shall not acquire or engage in an
investment practice prohibited under Section 126.5 or an investment that is a
derivative transaction.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/Art. VIII Pt. 3 heading) 3.  
		PROPERTY AND CASUALTY INSURERS (215 ILCS 5/126.21)Sec. 126.21. 
		Applicability. 
		This Part 3 shall apply to the investments and investment practices of
property and
casualty insurers authorized to transact the kinds of insurance in either or
both Class 2 or Class 3
of Section 4 of this Code, subject to the provisions of Section 126.1B.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.22)Sec. 126.22. 
		Reserve requirements.A. Reserve requirements.(1) Subject to all  other limitations and      requirements of this  Article, a property  and casualty insurer shall maintain an amount at least equal to the lesser of $250,000,000 or 100% of  adjusted loss  reserves and  loss adjustment expense reserves, 100% of adjusted unearned premium reserves and 100% of statutorily required policy and contract reserves in:(a) Cash and cash equivalents;(b) High and medium grade investments that         qualify under Sections 126.24 or 126.25;(c) Equity interests that qualify under Section         126.26 and that are traded on a qualified exchange;(d) Investments of the type set forth in Section         126.30 if the investments are rated in the highest generic rating category by a nationally recognized statistical rating organization recognized by the SVO for rating foreign jurisdictions and if any foreign currency exposure is effectively hedged through the maturity date of the investments;(e) Qualifying investments of the type set forth         in subparagraphs (b), (c) or (d) of this paragraph that are acquired under Section 126.32;(f) Interest and dividends receivable on         qualifying investments of the type set forth in subparagraphs (a) through (e) of this subsection; or(g) Reinsurance recoverable on paid losses.(2) Reserve Requirement Amount:(a) For purposes of determining the amount of         assets to be maintained under this subsection, the calculation of adjusted loss reserves and loss adjustment expense reserves, adjusted unearned premium reserves and statutorily required policy and contract reserves shall be based on the amounts reported as of the most recent annual or quarterly statement date.(b) Adjusted loss reserves and loss adjustment         expense reserves shall be equal to the sum of the amounts derived from the following calculations:(i) The result of each amount reported by the             insurer as losses and loss adjustment expenses unpaid for each accident year for each individual line of business; multiplied by(ii) The discount factor that is applicable             to the line of business and accident year published by the Internal Revenue Service under Internal Revenue Code Section 846 (26 U.S.C.  846), as amended, for the calendar year that corresponds to the most recent annual statement of the insurer; minus(iii) Accrued retrospective premiums             discounted by an average discount factor. The discount factor shall be calculated by dividing the losses and loss adjustment expenses unpaid after discounting (the product of Items (i) and (ii) in this subparagraph) by loss and loss adjustment expense reserves before discounting Item (i) of this subparagraph.(iv) For purposes of these calculations, the             losses and loss adjustment expenses unpaid shall be determined net of anticipated salvage and subrogation, and gross of any discount for the time value of money or tabular discount.(c) Adjusted unearned premium reserves shall be         equal to the result of the following calculation:(i) The amount reported by the insurer as             unearned premium reserves; minus(ii) The admitted asset amounts reported by             the insurer as:(I) Premiums in and agents' balances in                 the course of collection, accident and health premiums due and unpaid and uncollected premiums for accident and health premiums;(II) Premiums, agents' balances and                 installments booked but deferred and not yet due;(III) Bills receivable, taken for                 premium; and(IV) Equities and deposits in pools and                 associations.(d) Statutorily required policy and contract         reserves shall also include contingency reserves required for mortgage guaranty insurers, municipal bond insurers, and other financial guaranty insurers.B. Monitoring and reporting.
A property and casualty insurer shall supplement its annual statement with a
reconciliation and summary of its assets and reserve requirements as required
in subsection A of this Section. A reconciliation and summary showing that an
insurer's assets as required in subsection A of this Section are greater than
or equal to its undiscounted reserves referred to in subsection A of this
Section shall be sufficient to satisfy this requirement. Upon prior
notification, the Director
may
require an insurer to submit such a reconciliation and summary with any
quarterly
statement filed during the calendar year.C. Notification requirements and mandatory safeguards.
If a property and casualty insurer's assets and reserves do not comply with
subsection A of this Section, the insurer shall notify the Director immediately
of the amount by which the reserve requirements exceed the annual statement
value of the qualifying assets, explain why the deficiency exists and within 30
days of the date of the notice propose a plan of action to remedy the
deficiency.D. Authority of the Director.(1) If the Director determines that an insurer is not     in compliance with subsection A of this Section, the Director shall require the insurer to eliminate the condition causing the noncompliance within a specified time from the date the notice of the Director's requirement is mailed or delivered to the insurer.(2) If an insurer fails to comply with the Director's     requirement under paragraph (1) of this subsection, the insurer is deemed to be in hazardous financial condition, and the Director shall take one or more of the actions authorized by law as to insurers in hazardous financial condition.E. An insurer subject to this Section must comply with the requirements of
this Section after December 31, 1997.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.23)Sec. 126.23. 
		
		General 5% diversification, medium and lower grade
investments, and Canadian investments.A. General 5% diversification.(1) Except as otherwise specified in this Article, an     insurer shall not acquire directly or indirectly through an investment subsidiary an investment under this Article if, as a result of and after giving effect to the investment, the insurer would hold more than 5% of its admitted assets in investments of all kinds issued, assumed, accepted, guaranteed, or insured by a single person.(2) This 5% limitation shall not apply to the     aggregate amounts insured by a single financial guaranty insurer with the highest generic rating issued by a nationally recognized statistical rating organization.(3) Asset-backed securities shall not be subject to     the limitations of paragraph (1) of this subsection, however, except as permitted by subsection A(4) of this Section, an insurer shall not acquire an asset-backed security if, as a result of and after giving effect to the investment, the aggregate amount of asset-backed securities secured by or evidencing an interest in a single asset or single pool of assets held by a trust or other business entity, then held by the insurer would exceed 5% of its admitted assets.(4) A company's investments in mortgage related     securities, as defined by the Secondary Mortgage Market Enhancement Act of 1984 (United States Public Law 98-440, 12 U.S.C. 24, 1451, 1454 et seq.), that are backed by any single pool of mortgages and made pursuant to the authority of that Act, shall not exceed 5% of its admitted assets.B. Medium and lower grade investments.(1) An insurer shall not acquire, directly or     indirectly through an investment subsidiary, an investment under Sections 126.24, 126.27, and 126.30 or counterparty exposure under Section 126.31D if, as a result of and after giving effect to the investment:(a) The aggregate amount of all medium and lower         grade investments then held by the insurer would exceed 20% of its admitted assets;(b) The aggregate amount of lower grade         investments then held by the insurer would exceed 10% of its admitted assets;(c) The aggregate amount of investments rated 5         or 6 by the SVO then held by the insurer would exceed 5% of its admitted assets;(d) The aggregate amount of investments rated 6         by the SVO then held by the insurer would exceed 1% of its admitted assets; or(e) The aggregate amount of lower grade         investments then held by the insurer that receive as cash income less than the equivalent yield for Treasury issues with a comparative average life, would exceed 1% of its admitted assets.(2) An insurer shall not acquire, directly or     indirectly through an investment subsidiary, an investment under Sections 126.24, 126.27, and 126.30 or counterparty exposure under Section 126.31D if, as a result of and after giving effect to the investment:(a) The aggregate amount of medium and lower         grade investments issued, assumed, accepted, guaranteed, or insured by any one person or, as to asset-backed securities secured by or evidencing an interest in a single asset or pool of assets, then held by the insurer would exceed 1% of its admitted assets; or(b) The aggregate amount of lower grade         investments issued, assumed, accepted, guaranteed, or insured by any one person or, as to asset-backed securities secured by or evidencing an interest in a single asset or pool of assets, then held by the insurer would exceed 0.5% of its admitted assets.(3) If an insurer attains or exceeds the limit of any     one rating category referred to in this subsection, the insurer shall not thereby be precluded from acquiring investments in other rating categories subject to the specific and multi-category limits applicable to those investments.C. Canadian investments.(1) An insurer shall not acquire, directly or         indirectly through an investment subsidiary, any Canadian investments authorized by this Article, if as a result of and after giving effect to the investment, the aggregate amount of these investments then held by the insurer would exceed 40% of its admitted assets, or if the aggregate amount of Canadian investments not acquired under Section 126.24B then held by the insurer would exceed 25% of its admitted assets.(2) However, as to an insurer that is authorized         to do business in Canada or that has outstanding insurance, annuity or reinsurance contracts on lives or risks resident or located in Canada and denominated in Canadian currency, the limitations of paragraph (1) of this subsection shall be increased by the greater of:(a) The amount the insurer is required by             Canadian law to invest in Canada or to be denominated in Canadian currency; or(b) 125% of the amount of its reserves and             other obligations under contracts on risks resident or located in Canada.		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.24)Sec. 126.24. 
		Rated credit instruments. 
		Subject to the limitations of subsection F of this Section, an insurer may
acquire rated credit instruments:A. Subject to the limitations of Section 126.23B, but not to the limitations
of Section 126.23A except for the limitation of subsection (4) of Section
126.23A, an insurer may acquire rated credit instruments issued, assumed,
guaranteed, or insured by:(1) The United States; or(2) A government sponsored enterprise of the United     States, if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by the United States or are otherwise backed or supported by the full faith and credit of the United States.B.  (1) Subject to the limitations of Section     126.23B, but not to the limitations of Section 126.23A, an insurer may acquire rated credit instruments issued, assumed, guaranteed, or insured by:(a) Canada; or(b) A government sponsored enterprise of Canada,         if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by Canada or are otherwise backed or supported by the full faith and credit of Canada;(2) However, an insurer shall not acquire an     instrument under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer under this subsection would exceed 40% of its admitted assets.C.  (1) Subject to the limitations of Section     126.23B, but not to the limitations of Section 126.23A, an insurer may acquire rated credit instruments, excluding asset-backed securities:(a) Issued by a government money market mutual         fund, a class one money market mutual fund or a class one bond mutual fund;(b) Issued, assumed, guaranteed, or insured by a         government sponsored enterprise of the United States other than those eligible under subsection A of this Section;(c) Issued, assumed, guaranteed, or insured by a         state, if the instruments are general obligations of the state; or(d) Issued by a multilateral development bank.(2) However, an insurer shall not acquire an     instrument of any one fund, any one enterprise or entity, or any one state under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer in any one fund, enterprise, entity, or state under this subsection would exceed 10% of its admitted assets.D. Subject to the limitations of Section 126.23, an insurer may acquire
preferred stocks that are not foreign investments and that meet the
requirements of rated credit instruments if, as a result of and after giving
effect to the investment:(1) The aggregate amount of preferred stocks then     held by the insurer under this subsection does not exceed 33 1/3% of its admitted assets; and(2) The aggregate amount of preferred stocks then     held by the insurer under this subsection which are not sinking fund stocks or rated P1 or P2 by the SVO does not exceed 15% of its admitted assets.E. Subject to the limitations of Section 126.23 in addition to those
investments eligible under subsections A, B, C and D of this Section, an
insurer may acquire rated credit instruments that are not foreign investments.F. An insurer shall not acquire special rated credit instruments under this
Section if, as a result of and after giving effect to the investment, the
aggregate amount of special rated credit instruments then held by the insurer
would exceed 5% of its admitted assets.  The Director may, by rule, identify
certain special rated credit instruments that are exempt from the limitation
imposed by this subsection.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.25)Sec. 126.25. Insurer investment pools.A. An insurer may acquire investments in investment pools that:(1) Invest only in:(a) Obligations that are rated 1 or 2 by the SVO         or have an equivalent of an SVO 1 or 2 rating (or, in the absence of a 1 or 2 rating or equivalent rating, the issuer has outstanding obligations with an SVO 1 or 2 or equivalent rating) by a nationally recognized statistical rating organization recognized by the SVO and have:(i) A remaining maturity of 397 days or less             or a put that entitles the holder to receive the principal amount of the obligation which put may be exercised through maturity at specified intervals not exceeding 397 days; or(ii) A remaining maturity of 3 years or less             and a floating interest rate that resets no less frequently than quarterly on the basis of a current short-term index (federal funds, prime rate, treasury bills, London InterBank Offered Rate (LIBOR) or commercial paper) and is subject to no maximum limit, if the obligations do not have an interest rate that varies inversely to market interest rate changes;(b) Government money market mutual funds or class         one money market mutual funds; or(c) Securities lending, repurchase, and reverse         repurchase, transactions that meet all the requirements of Section 126.29, except the quantitative limitations of Section 126.29D; or(2) Invest only in investments which an insurer may     acquire under this Article, if the insurer's proportionate interest in the amount invested in these investments when combined with amounts of such investments made directly or indirectly through an investment subsidiary or other insurer investment pool permitted under this subsection A(2) does not exceed the applicable limits of this Article for such investments.B. For an investment in an investment pool to be qualified under this
Article, the investment pool shall not:(1) Acquire securities issued, assumed, guaranteed,     or insured by the insurer or an affiliate of the insurer;(2) Borrow or incur any indebtedness for borrowed     money, except for securities lending and reverse repurchase transactions that meet the requirements of Section 126.29 except the quantitative limitations of Section 126.29D; or(3) Acquire an investment if, as a result of such     transaction, the aggregate value of securities then loaned or sold to, purchased from or invested in any one business entity under this Section would exceed 10% of the total assets of the investment pool.C. The limitations of Section 126.23A shall not apply to an insurer's
investment in an investment pool, however an insurer shall not acquire an
investment in an investment pool under this Section if, as a result of and
after giving effect to the investment, the aggregate amount of investments then
held by the insurer under this Section:(1) In all investment pools investing in investments     permitted under subsection A(2) of this Section would exceed 25% of its admitted assets; or(2) In all investment pools would exceed 40% of its     admitted assets.D. For an investment in an investment pool to be qualified under this
Article, the manager of the investment pool shall:(1) Be organized under the laws of the United States     or a state and designated as the pool manager in a pooling agreement;(2) Be the insurer, an affiliated insurer or a     business entity affiliated with the insurer, a qualified bank, a business entity registered under the Investment Advisers  Act of 1940 (15 U.S.C.  80a-1 et seq.), as amended or, in the case of a reciprocal insurer or interinsurance exchange, its attorney-in-fact, or in the case of a United States branch of an alien insurer, its United States manager or an affiliate or subsidiary of its United States manager;(3) Be responsible for the compilation and     maintenance of detailed accounting records setting forth:(a) The cash receipts and disbursements         reflecting each participant's proportionate investment in the investment pool;(b) A complete description of all underlying         assets of the investment pool (including amount, interest rate, maturity date (if any) and other appropriate designations); and(c) Other records which, on a daily basis, allow         third parties to verify each participant's investment in the investment pool; and(4) Maintain the assets of the investment pool in one     or more accounts, in the name of or on behalf of the investment pool, under a custody agreement with a qualified bank. The custody agreement shall:(a) State and recognize the claims and rights of         each participant;(b) Acknowledge that the underlying assets of the         investment pool are held solely for the benefit of each participant in proportion to the aggregate amount of its investments in the investment pool; and(c) Contain an agreement that the underlying         assets of the investment pool shall not be commingled with the general assets of the custodian qualified bank or any other person.E. The pooling agreement for each investment pool shall be in writing and
shall provide that:(1) An insurer and its affiliated insurers or, in the     case of an investment pool investing solely in investments permitted under subsection A(1) of this Section, the insurer and its subsidiaries, affiliates or any pension or profit sharing plan of the insurer, its subsidiaries and affiliates or, in the case of a United States branch of an alien insurer, affiliates or subsidiaries of its United States manager, shall, at all times, hold 100% of the interests in the investment pool;(2) The underlying assets of the investment pool     shall not be commingled with the general assets of the pool manager or any other person;(3) In proportion to the aggregate amount of each     pool participant's interest in the investment pool:(a) Each participant owns an undivided interest         in the underlying assets of the investment pool; and(b) The underlying assets of the investment pool         are held solely for the benefit of each participant;(4) A participant, or in the event of the     participant's insolvency, bankruptcy or receivership, its trustee, receiver or other successor-in-interest, may withdraw all or any portion of its investment from the investment pool under the terms of the pooling agreement;(5) Withdrawals may be made on demand without penalty     or other assessment on any business day, but settlement of funds shall occur within a reasonable and customary period thereafter not to exceed 10 business days. Distributions under this paragraph shall be calculated in each case net of all then applicable fees and expenses of the investment pool. The pooling agreement shall provide that the pool manager shall distribute to a participant, at the discretion of the pool manager:(a) In cash, the then fair market value of the         participant's pro rata share of each underlying asset of the investment pool;(b) In kind, a pro rata share of each underlying         asset; or(c) In a combination of cash and in kind         distributions, a pro rata share in each underlying asset; and(6) The pool manager shall make the records of the     investment pool available for inspection by the Director.F. Except for the formation of the investment pool, transactions between a
domestic insurer and an affiliated insurer
investment pool shall not be subject to the requirements of Section
131.20a of this Code.
(Source: P.A. 100-201, eff. 8-18-17.) (215 ILCS 5/126.26)Sec. 126.26. 
		Equity Interests.A. Subject to the limitations of Section 126.23, an insurer may acquire
directly, or indirectly through an investment subsidiary, equity interests in
business entities organized under the laws of any domestic jurisdiction.B. An insurer shall not acquire directly, or indirectly through an
investment
subsidiary, an investment under this Section if, as a result of and after
giving effect
to the investment, the aggregate amount of investments then held by the insurer
under this Section would exceed the greater of 25% of its
admitted assets or 100% of its surplus as regards
policyholders.C. An insurer shall not acquire under this Section any investments that the
insurer
may acquire under Section 126.28.D. An insurer shall not short sell equity interests unless the insurer
covers the short
sale by owning the equity interest or an unrestricted right to the equity
interest
exercisable within 6 months of the short sale.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.27)Sec. 126.27. 
		Tangible personal property under lease.A.  (1) Subject to the limitations of Section 126.23, an
insurer may acquire tangible personal property or
equity interests therein located or used wholly or in part within a domestic
jurisdiction either directly or indirectly through limited partnership
interests and general partnership interests not otherwise prohibited by
Section 126.5D, joint ventures, stock of an investment subsidiary or
membership interests in a limited liability company, trust certificates, or
other similar instruments.(2) Investments acquired under paragraph (1) of this     subsection shall be eligible only if:(a) The property is subject to a lease or other         agreement with a person whose rated credit instruments in the amount of the purchase price of the personal property the insurer could then acquire under Section 126.24; and(b) The lease or other agreement provides the         insurer the right to receive rental, purchase or other fixed payments for the use or purchase of the property, and the aggregate value of the payments, together with the estimated residual value of the property at the end of its useful life and the estimated tax benefits to the insurer resulting from ownership of the property, shall be adequate to return the cost of the insurer's investment in the property, plus a return deemed adequate by the insurer.B. The insurer shall compute the amount of each investment under this
Section on the
basis of the out of pocket purchase price and applicable related expenses paid
by the insurer for the investment, net of each borrowing made to finance the
purchase price and expenses, to the extent the borrowing is without recourse to
the insurer.C. An insurer shall not acquire directly or indirectly through an investment
subsidiary an investment under this Section if, as a result of and after giving
effect to the investment, the aggregate amount of all investments then held by
the insurer under this Section would exceed:(1) 2% of its admitted assets; or(2) 0.5% of its admitted assets as to any single item     of tangible personal property.D. For purposes of determining compliance with the limitations of Section
126.23, investments acquired by an insurer under this Section shall be
aggregated with those acquired under Section 126.24, and each lessee of the
property under a lease referred to in this Section shall be deemed the issuer
of an obligation in the amount of the investment of the insurer in the property
determined as provided in subsection B of this Section.E. Nothing in this Section is applicable to tangible personal property lease
arrangements between an insurer and its subsidiaries and affiliates under a
cost sharing arrangement or agreement permitted under Section 131.20a(1)(a)(iv)
of this Code.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.28)Sec. 126.28. 
		Mortgage loans and real estate.A. Mortgage loans.(1) Subject to the limitations of Section 126.23, an insurer may acquire,
either directly or indirectly through limited partnership interests and general
partnership interests not otherwise prohibited by Section 126.5D, joint
ventures, stock of an investment subsidiary or membership interests in a
limited liability company, trust certificates, or other similar instruments,
obligations secured by mortgages on real estate situated within a domestic
jurisdiction, but a mortgage loan which is secured by other than a first lien
shall not be acquired under this subsection (1) unless the insurer is the
holder of the first lien. The obligations held by the insurer and any
obligations with an equal lien priority, shall not, at the time of acquisition
of the obligation, exceed:(a) 90% of the fair market value of the real         estate, if the mortgage loan is secured by a purchase money mortgage or like security received by the insurer upon disposition of the real estate;(b) 80% of the fair market value of the real         estate, if the mortgage loan requires immediate scheduled payment in periodic installments of principal and interest, has an amortization period of 30 years or less and periodic payments made no less frequently than annually. Each periodic payment shall be sufficient to assure that at all times the outstanding principal balance of the mortgage loan shall be not greater than the outstanding principal balance which would be outstanding under a mortgage loan with the same original principal balance, with the same interest rate and requiring equal payments of principal and interest with the same frequency over the same amortization period. Mortgage loans permitted under this subsection are permitted notwithstanding the fact that they provide for a payment of the principal balance prior to the end of the period of amortization of the loan. For residential mortgage loans, the 80% limitation may be increased to 97% if acceptable private mortgage insurance has been obtained; or(c) 75% of the fair market value of the real         estate for mortgage loans that do not meet the requirements of subparagraph (a) or (b) of this paragraph.(2) For purposes of paragraph (1) of this subsection,     the amount of an obligation required to be included in the calculation of the loan-to-value ratio may be reduced to the extent the obligation is insured by the Federal Housing Administration or guaranteed by the Administrator of Veterans Affairs, or their successors.(3) Subject to the limitations of Section 126.23, an     insurer may acquire, either directly or indirectly through limited partnership interests and general partnership interests not otherwise prohibited by Section 126.5D, joint ventures, stock of an investment subsidiary or membership interests in a limited liability company, trust certificates, or other similar instruments, obligations secured by a second mortgage on real estate situated within a domestic jurisdiction, other than as authorized in subsection (1) of this Section 126.28. The obligation held by the insurer shall be the sole second lien priority obligation and shall not, at the time of acquisition of the obligation, exceed 70% of the amount by which the fair market value of the real estate exceeds the amount outstanding under the first mortgage.(4) A mortgage loan that is held by an insurer under     Section 126.3F or acquired under this Section and is restructured in a manner that meets the requirements of a restructured mortgage loan in accordance with the NAIC Accounting Practices and Procedures Manual or successor publication shall continue to qualify as a mortgage loan under this Article.(5) Subject to the limitations of Section 126.23,     credit lease transactions that do not qualify for investment under Section 126.24 with the following characteristics shall be exempt from the provisions of paragraph (1) of this subsection:(a) The loan amortizes over the initial fixed         lease term at least in an amount sufficient so that the loan balance at the end of the lease term does not exceed the original appraised value of the real estate;(b) The lease payments cover or exceed the total         debt service over the life of the loan;(c) A tenant or its affiliated entity, whose         rated credit instruments have a SVO 1 or 2 designation or a comparable rating from a nationally recognized statistical rating organization recognized by the SVO, has a full faith and credit obligation to make the lease payments;(d) The insurer holds or is the beneficial holder         of a first lien mortgage on the real estate;(e) The expenses of the real estate are passed         through to the tenant, excluding exterior, structural, parking and heating, ventilation and air conditioning replacement expenses, unless annual escrow contributions, from cash flows derived from the lease payments, cover the expense shortfall; and(f) There is a perfected assignment of the rents         due pursuant to the lease to, or for the benefit of, the insurer.B. Income producing real estate.(1) An insurer may acquire, manage and dispose of     real estate situated in a domestic jurisdiction either directly or indirectly through limited partnership interests and general partnership interests not otherwise prohibited by Section 126.5D, joint ventures, stock of an investment subsidiary or membership interests in a limited liability company, trust certificates, or other similar instruments. The real estate shall be income producing or intended for improvement or development for investment purposes under an existing program (in which case the real estate shall be deemed to be income producing).(2) The real estate may be subject to mortgages,     liens or other encumbrances, the amount of which shall, to the extent that the obligations secured by the mortgages, liens or encumbrances are without recourse to the insurer, be deducted from the amount of the investment of the insurer in the real estate for purposes of determining compliance with subsections D(2) and D(3) of this Section.C. Real estate for the accommodation of business.An insurer may acquire, manage, and dispose of real estate for the convenient
accommodation of the insurer's (which may include its affiliates) business
operations, including home office, branch office and field office operations.(1) Real estate acquired under this subsection may     include excess space for rent to others, if the excess space, valued at its fair market value, would otherwise be a permitted investment under subsection B of this Section and is so qualified by the insurer;(2) The real estate acquired under this subsection     may be subject to one or more mortgages, liens or other encumbrances, the amount of which shall, to the extent that the obligations secured by the mortgages, liens or encumbrances are without recourse to the insurer, be deducted from the amount of the investment of the insurer in the real estate for purposes of determining compliance with subsection D(4) of this Section; and(3) For purposes of this subsection, business     operations shall not include that portion of real estate used for the direct provision of health care services by an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95% of total premium considerations or total statutory required reserves, respectively. An insurer may acquire real estate used for these purposes under subsection B of this Section.D. Quantitative limitations.(1) An insurer shall not acquire an investment under     subsection A of this Section if, as a result of and after giving effect to the investment, the aggregate amount of all investments then held by the insurer under subsection A of this Section would exceed:(a) 1% of its admitted assets in mortgage loans         covering any one secured location;(b) 0.25% of its admitted assets in construction         loans covering any one secured location; or(c) 1% of its admitted assets in construction         loans in the aggregate.(2) An insurer shall not acquire an investment under     subsection B of this Section if, as a result of and after giving effect to the investment and any outstanding guarantees made by the insurer in connection with the investment, the aggregate amount of investments then held by the insurer under subsection B of this Section plus the guarantees then outstanding would exceed:(a) 1% of its admitted assets in any one parcel         or group of contiguous parcels of real estate, except that this limitation shall not apply to that portion of real estate used for the direct provision of health care services by an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95% of total premium considerations or total statutory required reserves, respectively, such as hospitals, medical clinics, medical professional buildings or other health facilities used for the purpose of providing health services; or(b) The lesser of 10% of its admitted assets or         40% of its surplus as regards policyholders in the aggregate, except for an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95% of total premium considerations or total statutory required reserves, respectively, this limitation shall be increased to 15% of its admitted assets in the aggregate.(3) An insurer shall not acquire an investment under     subsection A or B of this Section if, as a result of and after giving effect to the investment and any guarantees it has made in connection with the investment, the aggregate amount of all investments then held by the insurer under subsections A and B of this Section plus the guarantees then outstanding would exceed 25% of its admitted assets.(4) The limitations of Section 126.23 shall not apply     to an insurer's acquisition of real estate under subsection C of this Section. An insurer shall not acquire real estate under subsection C of this Section if, as a result of and after giving effect to the acquisition, the aggregate amount of all real estate then held by the insurer under subsection C of this Section would exceed 10% of its admitted assets. With the permission of the Director, additional amounts of real estate may be acquired under subsection C of this Section.		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.29)Sec. 126.29. 
		
		Securities lending and repurchase, reverse repurchase, and
dollar roll transactions.  An insurer may enter into securities lending,
repurchase, reverse repurchase, and dollar roll transactions with business
entities, subject to the following requirements:A. The insurer's board of directors shall adopt a written plan that is
consistent with the requirements of the written plan in Section 126.4A that
specifies guidelines and objectives to be followed, such as:(1) A description of how cash received will be     invested or used for general corporate purposes of the insurer;(2) Operational procedures to manage interest rate     risk, counterparty default risk, the conditions under which proceeds from reverse repurchase transactions may be used in the ordinary course of business and the use of acceptable collateral in a manner that reflects the liquidity needs of the transaction; and(3) The extent to which the insurer may engage in     these transactions.B. The insurer shall enter into a written agreement for all transactions
authorized in this Section other than dollar roll transactions. The written
agreement shall require that each transaction terminate no more than one year
from its inception or upon the earlier demand of the insurer. The agreement
shall be with the business entity counterparty, but for securities lending
transactions, the agreement may be with an agent acting on behalf of the
insurer, if the agent is a qualified business entity, and if the agreement:(1) Requires the agent to enter into separate     agreements with each counterparty that are consistent with the requirements of this Section; and(2) Prohibits securities lending transactions     pursuant to the agreement with the agent or its affiliates.C. Cash received in a transaction under this Section shall be invested in
accordance with this Article and in a manner that recognizes the liquidity
needs of the transaction or used by the insurer for its general corporate
purposes. For so long as the transaction remains outstanding, the insurer, its
agent or custodian shall maintain, as to acceptable collateral received in a
transaction under this Section, either physically or through the book entry
systems of the Federal Reserve, Depository Trust Company, Participants Trust
Company or other securities depositories approved by the Director:(1) Possession of the acceptable collateral;(2) A perfected security interest in the acceptable     collateral; or(3) In the case of a jurisdiction outside of the     United States, title to, or rights of a secured creditor to, the acceptable collateral.D. The limitations of Sections 126.23 and 126.30 shall not apply to the
business entity
counterparty exposure created by transactions under this Section. For purposes
of calculations made to determine compliance with this subsection, no effect
will
be given to the insurer's future obligation to resell securities, in the case
of a repurchase transaction, or to repurchase securities, in the case of a
reverse repurchase transaction. An insurer shall not enter into a transaction
under this Section if, as a result of and after giving effect to the
transaction:(1) The aggregate amount of securities then loaned or     sold to, or purchased from, any one business entity counterparty under this Section would exceed 5% of its admitted assets. In calculating the amount sold to or purchased from a business entity counterparty under repurchase or reverse repurchase transactions, effect may be given to netting provisions under a master written agreement; or(2) The aggregate amount of all securities then     loaned, sold to or purchased from all business entities under this Section would exceed 40% of its admitted assets but the limitation of this subsection shall not apply to reverse repurchase transactions for so long as the borrowing is used to meet operational liquidity requirements resulting from an officially declared catastrophe and subject to a plan approved by the Director.E. In a dollar roll transaction, the insurer shall receive cash in an amount
at least equal to the market value of the securities transferred by the insurer
in the transaction as of the transaction date.F. The Director may promulgate reasonable rules for investments
and transactions under this Section including, but not limited to, rules
which impose financial solvency standards, valuation standards, and
reporting requirements.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.30)Sec. 126.30. 
		Foreign investments and foreign currency exposure.A. Subject to the limitations of Section 126.23, an insurer may acquire
directly or indirectly through an investment subsidiary, foreign investments,
or engage in investment practices with persons of or in foreign jurisdictions,
of substantially the same types as those that an insurer is permitted to
acquire under this Article, other than of the type permitted under Section
126.25, if, as a result and after giving effect to the investment:(1) the aggregate amount of foreign investments then     held by the insurer under this subsection does not exceed 20% of its admitted assets; and(2) the aggregate amount of foreign investments then     held by the insurer under this subsection in a single foreign jurisdiction does not exceed 10% of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 or 5% of its admitted assets as to any other foreign jurisdiction.B. Subject to the limitations of Section 126.23, an insurer may acquire
investments, or engage in investment practices denominated in foreign
currencies, whether or not they are foreign investments acquired under
subsection A of this Section, or additional foreign currency exposure as a
result of the termination or expiration of a hedging transaction with respect
to investments denominated in a foreign currency, if, as a result of and after
giving effect to the transaction:(1) the aggregate amount of investments then held by     the insurer under this subsection denominated in foreign currencies does not exceed 15% of its admitted assets; and(2) the aggregate amount of investments then held by     the insurer under this subsection denominated in the foreign currency of a single foreign jurisdiction does not exceed 10% of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 or 5% of its admitted assets as to any other foreign jurisdiction.However, an investment shall not be considered denominated in a
foreign currency if the acquiring insurer enters into one or more contracts in
transactions permitted under Section 126.31 in which the business entity
counterparty agrees to exchange, or grants to the insurer the option to
exchange, all payments made on the foreign currency denominated
investment (or amounts equivalent to the payments that are or will be due
to the insurer in accordance with the terms of such investment) for United
States currency during the period the contract or contracts are in effect to
insulate the insurer against loss caused by diminution of the value of
payments owed to the insurer due to future changes in currency exchange
rates.C. In addition to investments permitted under subsections A and B of this
Section, an insurer that is authorized to do business in a foreign
jurisdiction, and that has outstanding insurance, annuity or reinsurance
contracts on lives or risks resident or located in that foreign jurisdiction
and denominated in foreign currency of that jurisdiction, may acquire foreign
investments respecting that foreign jurisdiction, and may acquire investments
denominated in the currency of that jurisdiction, subject to the limitations of
Section 126.23.  However, investments made under this subsection in obligations
of foreign governments, their political subdivisions and government sponsored
enterprises shall not be subject to the limitations of Section 126.23 if those
investments carry an SVO rating of 1 or 2. The aggregate amount of investments
acquired by the insurer under this subsection shall not exceed the
greater of:(1) the amount the insurer is required by law to     invest in the foreign jurisdiction; or(2) 125% of the amount of its reserves, net of     reinsurance, and other obligations under the contracts.D. In addition to investments permitted under subsections A and B of this
Section, an insurer that is not authorized to do business in a foreign
jurisdiction but which has outstanding insurance, annuity or reinsurance
contracts on lives or risks resident or located in a foreign jurisdiction and
denominated in foreign currency of that jurisdiction, may acquire foreign
investments respecting that foreign jurisdiction, and may acquire investments
denominated in the currency of that jurisdiction subject to the limitations set
forth of Section 126.24. However, investments made under this subsection in
obligations of foreign governments, their political subdivisions and government
sponsored enterprises shall not be subject to the limitations of Section 126.23
if those investments carry an SVO rating of 1 or 2.  The aggregate amount of
investments acquired by the insurer under this subsection shall not exceed 105%
of the amount of its reserves, net of reinsurance, and other obligations under
the contracts on risks resident or located in the foreign
jurisdiction.E. Investments acquired under this Section shall be aggregated with
investments of the same types made under all other Sections of this Article,
and in a similar manner, for purposes of determining compliance with the
limitations, if any, contained in the other Sections. Investments in
obligations of foreign governments, their political subdivisions and government
sponsored enterprises of these persons, except for those exempted under
subsections C and D of this Section, shall be subject to the limitations of
Section 126.23.
		(Source: P.A. 90-418, eff. 8-15-97; 91-357, eff. 7-29-99.) (215 ILCS 5/126.31)Sec. 126.31. 
		Derivative transactions. 
		An insurer may, directly or indirectly through an investment subsidiary,
engage in derivative transactions under this Section under the following
conditions:A. General conditions.(1) An insurer may use derivative instruments under     this Section to engage in hedging transactions and income generation transactions.(2) An insurer may use derivative instruments for     replication transactions only after the Director promulgates reasonable rules that set forth methods of disclosure, reserving for risk-based capital, and determining the asset valuation reserve for these investments.  Any asset being replicated is subject to all the provisions and limitations on the making thereof specified in this Article with respect to investments by the insurer as if the transaction constituted a direct investment by the insurer in the replicated asset.(3) With respect to all hedging transactions, an     insurer shall be able to demonstrate to the Director the intended hedging characteristics and the ongoing effectiveness of the derivative transaction or combination of transactions through cash flow testing or other appropriate analyses.(4) The Director may promulgate reasonable rules for     investments and transactions under this Section including, but not limited to, rules which impose financial solvency standards, valuation standards, and reporting requirements.B. Limitations on hedging transactions.
An insurer may enter into hedging transactions under this Section if, as a
result of and after giving effect to the transaction:(1) The aggregate statement value of options, caps,     floors and warrants not attached to another financial instrument purchased and used in hedging transactions then engaged in by the insurer does not exceed 7.5% of its admitted assets;(2) The aggregate statement value of options, caps     and floors written in hedging transactions then engaged in by the insurer does not exceed 3% of its admitted assets; and(3) The aggregate potential exposure of collars,     swaps, forwards and futures used in hedging transactions then engaged in by the insurer does not exceed 6.5% of its admitted assets.C. Limitations on income generation transactions.
An insurer may enter into the following types of income generation
transactions subject to the quantitative limits of subsection C(4):(1) Sales of covered call options on noncallable     fixed income securities, callable fixed income securities if the option expires by its terms prior to the end of the noncallable period or derivative instruments based on fixed income securities;(2) Sales of covered call options on equity     securities, if the insurer holds in its portfolio, or can immediately acquire through the exercise of options, warrants or conversion rights already owned, the equity securities subject to call during the complete term of the call option sold; or(3) Sales of covered puts on investments that the     insurer is permitted to acquire under this Article, if the insurer has escrowed, or entered into a custodian agreement segregating, cash or cash equivalents with a market value equal to the amount of its purchase obligations under the put during the complete term of the put option sold.(4) If as a result of and after giving effect to the     transactions, the aggregate statement value of the fixed income assets that are subject to call plus the face value of fixed income securities underlying a derivative instrument subject to call, plus the amount of the purchase obligations under the puts, does not exceed 10% of its admitted assets.D. Counterparty exposure.
An insurer shall include all counterparty exposure amounts in determining
compliance with the limitations of Section 126.23.E. Additional transactions.
Pursuant to rules promulgated under Section 126.8, the Director may
approve additional transactions involving the use of derivative instruments in
excess of the limits of subsection B of this Section or for other risk
management purposes.
		(Source: P.A. 90-418, eff. 8-15-97.) (215 ILCS 5/126.32)Sec. 126.32. 
		Additional investment authority.A. Under this Section, an insurer may acquire investments or engage in
investment practices of any kind that are not specifically prohibited by
Section 126.5 and are not derivative instruments without regard to any
limitation in Sections 126.23 through 126.30, but an insurer shall not acquire
an investment or engage in an investment practice under this Section if, as a
result of and after giving effect to the transaction, the aggregate amount of
the investments then held by the insurer under this Section would exceed the
greater of:(1) Its unrestricted surplus; or(2) The lesser of:(a) 10% of its admitted assets; or(b) 50% of its surplus as regards policyholders.B. An insurer shall not acquire any investment or engage in any investment
practice under subsection A(2) of this Section if, as a result of and after
giving effect to the transaction the aggregate amount of all investments in any
one person then held by the insurer under that subsection would exceed 5% of
its admitted assets.
		(Source: P.A. 90-418, eff. 8-15-97.)
(215 ILCS 5/Art. X heading) ARTICLE X.  
		MERGER, CONSOLIDATION OR PLANS OF EXCHANGE (215 ILCS 5/156) (from Ch. 73, par. 768)Sec. 156. Merger and
consolidation permitted.(a) Upon complying with the provisions of this article, any domestic
company, except a Lloyds, is hereby authorized and empowered to merge or
consolidate with any domestic company or with any foreign or alien company,
except a Lloyds if the surviving company meets the requirements for
authorization to engage in the insurance business in this state and, if
such merger or consolidation is authorized by the laws of the state or
country under which such foreign or alien company is incorporated or
organized.(b) The Director may permit the formation of a domestic stock company that is established for the sole purpose of merging or consolidating with an existing stock company simultaneously with the effectiveness of a division authorized by this Code. Upon request of the dividing company, the Director may waive the requirements of Section 131.8 of this Code. Each domestic stock company formed under this subsection shall be deemed to exist before a merger and division under this Section becomes effective, but solely for the purpose of being a party to such merger and division. The Director shall not require that such domestic stock company be licensed to transact insurance business in this state before such merger and division. All insurance policies, annuities, or reinsurance agreements allocated to such domestic stock company shall become the obligation of the domestic stock company that survives the merger simultaneously with the effectiveness of the merger and division. The plan of merger or consolidation shall be deemed to have been authorized and approved by such domestic stock company if the dividing company authorized and approved such plan. The certificate of merger shall state that it was approved by the domestic stock company formed under this subsection. 
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/156.1) (from Ch. 73, par. 768.1)Sec. 156.1. 
		Acquisition by exchange of stock permitted. 
		Any domestic stock insurance company may adopt a plan of exchange of the
outstanding stock of its stockholders for the consideration herein
designated to be paid or provided by a corporation which acquires such
stock, in the manner provided in this Article.The plan of exchange may provide that the acquiring corporation, as
consideration for the stock of the domestic corporation, (1) transfer
shares of its stock, or (2) transfer other securities issued by it, or (3)
pay cash therefor, or (4) pay or provide other consideration, or (5) pay or
provide any combination of the foregoing types of consideration."Acquiring corporation", as used in this Article, means any stock
insurance corporation incorporated under this Code or under prior laws of
this State relating to the incorporation of domestic insurance
corporations; any stock corporation incorporated under the "Business
Corporation Act of 1983" or under prior laws of this State authorizing the
establishment of business corporations; and any foreign or alien stock
corporation qualified to do business in Illinois and registered by the
corporation department; and any foreign or alien stock insurance company
authorized to do business in Illinois.
		(Source: P.A. 83-1362.) (215 ILCS 5/157) (from Ch. 73, par. 769)Sec. 157. 
		
		Powers of
company not enlarged.Nothing in this article contained shall be construed to authorize any
company to engage in any kind of insurance business not authorized by its
articles of incorporation nor to authorize any foreign or alien company to
engage in any kind of insurance business in this State not covered by its
certificate of authority to do business in this State.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/158) (from Ch. 73, par. 770)Sec. 158. 
		Resolutions for merger or consolidation or adoption of a plan of exchange.The Board of Directors, Trustees or other governing body of each
domestic company desiring to merge or consolidate or to adopt a plan of
exchange shall, by resolution, approve an agreement of merger or
consolidation or plan of exchange, as the case may be, setting forth:(a) the names of the companies proposing to merge or consolidate or to
adopt a plan of exchange, and the names of the states or countries under
which each of the companies is incorporated or organized;(b) in the case of a merger, the name of the company into which they
propose to merge, hereafter designated as the surviving company; in the
case of a consolidation, the name of the company into which they propose to
consolidate, hereafter designated as the new company, and the name of the
state or country under the laws of which the new company is to be
incorporated or organized;(c) the terms and conditions of the proposed merger or consolidation or
plan of exchange, and the mode of carrying the same into effect;(d) the manner and basis of converting the shares of stock, if any, of
each merging or consolidating company into shares, securities and
obligations, if any are to be issued, of the surviving or new company as
the case may be;(e) in the case of a merger, a statement of any changes in the articles
of incorporation of the surviving company; in the case of consolidation,
all the statements with respect to the new company required to be set forth
in original articles of incorporation for a similar company formed under
this Code; and(f) such other provisions with respect to the merger or consolidation or
plan of exchange as are deemed necessary or advisable.
		(Source: Laws 1967, p. 2406.) (215 ILCS 5/159) (from Ch. 73, par. 771)Sec. 159. 
		
		Vote of
shareholders and policyholders.(1) The agreement of merger or consolidation shall be submitted to a
vote at a meeting of the shareholders, if any, of each domestic company and
at a meeting of such policyholders of each domestic company, other than a
fraternal benefit society, as are entitled to vote. The plan of exchange
shall be submitted to a vote at a meeting of the shareholders of the
company to be acquired. The meetings may be either annual, periodic or
special. Written or printed notice shall be given not less than 20 days
before each such meeting, either personally or by mail, to each shareholder
of record and to each policyholder entitled to vote. If mailed, such notice
is deemed to be delivered when deposited in the United States mail, with
postage prepaid, addressed to the shareholder or policyholder, at his
address as it appears on the records of the company. However, a domestic
mutual company licensed in 2 or more States may give notice by publication
in a newspaper of general circulation in the county in which the company
has its principal office and in either of the two largest cities in each
State in which the company shall be licensed to do business except as
provided in paragraph (3). If the domestic mutual company is licensed in
Illinois only, then such notice may be given by publication in a newspaper
of general circulation in the 10 counties that have the largest
concentration of its policyholders. Notice by publication as approved by
the Director shall be published once weekly on 3 successive weeks, the last
publication to be at least 20 days before such meeting and not more than 40
days before such meeting. Such notice, whether the meeting is annual,
periodic or special, shall state the place, day, hour and purpose of the
meeting. A copy or a summary of the agreement of merger or consolidation,
or plan of exchange, as the case may be, shall be included in or enclosed
with such notice. The shareholders or policyholders may vote in person or
by proxy. Each shareholder entitled to vote at such meeting shall have one
vote for each share of stock held by him. In the case of domestic companies
other than fraternal benefit societies the affirmative vote of two-thirds
of all outstanding shares, if any, and if policyholders are entitled to
vote, two-thirds of the votes cast by such policyholders of each such
company, as are represented at the meeting in person or by proxy, is
necessary for the approval of any such agreement or plan.(2) In the event that a domestic fraternal benefit society is a party to
the agreement of merger or consolidation, the board of managers, directors
or trustees of such society shall submit the agreement to the supreme
legislative and governing body of such society at any regular or special
meeting thereof, provided a copy or summary of such agreement shall have
been included in or enclosed with the notice of such meeting. Such notice
shall be given as provided in the laws of the society for the convening of
such supreme legislative and governing body in regular or special session,
as the case may be. The affirmative votes of two-thirds of all members of
such supreme legislative and governing body is necessary for the approval
of the agreement.(3) The provisions of paragraph (1) relating to notice by publication
shall not apply to a merger or consolidation between a mutual company and a
stock company if the agreement provides that the stock company is the
surviving company. In such case, notice either mailed or personal as
provided by paragraph (1) shall be given to each shareholder of record and
to each policyholder entitled to vote.
		(Source: Laws 1968, p. 276.) (215 ILCS 5/160) (from Ch. 73, par. 772)Sec. 160. 
		
		Execution
of agreement or plan of exchange by domestic company.Upon such approval of an agreement of merger or consolidation or plan of
exchange it shall be executed by any domestic company party thereto by its
president or a vice-president and secretary or an assistant secretary, or
the executive officers corresponding thereto.
		(Source: Laws 1967, p. 2406.) (215 ILCS 5/161) (from Ch. 73, par. 773)Sec. 161. 
		
		Approval
and execution of agreement or plan of exchange by foreign or alien
company.In the event that a foreign or alien company is a party to the agreement
of merger or consolidation or plan of exchange, the agreement or plan shall
be executed by the proper officers of such foreign or alien company when
they are duly authorized thereto by such action on the part of the
directors, shareholders, members, or policyholders of such foreign or alien
company as may be required by the laws of the domiciliary state or country
of such foreign or alien company.
		(Source: Laws 1967, p. 2406.) (215 ILCS 5/162) (from Ch. 73, par. 774)Sec. 162. 
		
		Certificate of Merger or Consolidation or Plan of Exchange
and Certificate of Approval.(1) Upon the execution of an agreement of
merger or consolidation or plan of exchange, there shall be delivered to
the Director:(a) two duplicate originals of the agreement or plan;(b) affidavits of officers of each of the companies     setting forth the facts necessary to show that all requirements of law with respect to notices to persons entitled to vote have been complied with;(c) certificates of the secretaries or assistant     secretaries or corresponding officers of each of the companies, in case of a merger or consolidation, or of the company to be acquired in case of a plan of exchange, certifying to the number of shares, if any, outstanding, the number of shares voted for and against such agreement or plan, and further in the case of a merger or consolidation (1) the number of policyholders represented at the meeting at which the agreement was considered, and (2) the number of votes cast by policyholders for and against such agreement or (3) in the case of a fraternal benefit society, the number of delegates of the supreme legislative or governing body, and the number of votes cast by the delegates for and against the agreement;(d) the certificates required by Section 171;(e) if the surviving or new company is a domestic     company and any foreign or alien company is a party to the merger or consolidation and the laws of the state or country under which such foreign or alien company is incorporated require approval of the merger or consolidation by an official of such state or country, a certificate of approval of such official; and(f) in case of consolidation where the new company is     a foreign or alien company, an instrument appointing the Director and his or her successor or successors in office, the attorney of such company for service of process, containing the same provisions and having the same effect as the instrument required of a foreign or alien company in order to be admitted to transact business in this State.In addition, the Director shall be provided, in substantially the same
form, the information required under Article VIII 1/2 of this Code.(2) In case the surviving or new company is a domestic company, if
the Director finds that:(a) the agreement of merger or consolidation is in     accordance with the provisions of this Article and not inconsistent with the laws and the Constitutions of this State and the United States;(b) the surviving or new company has complied with     all applicable provisions of this Code;(c) no reasonable objection exists to such merger or     consolidation; and(d) the standards established under Article VIII 1/2     are satisfied;
		he or she shall approve the agreement.  The provisions of any law with
reference to age limits and medical examination shall be inoperative in
so far as agreements of merger or consolidation are concerned.  If the
agreement of merger or consolidation be approved by the Director, he or she
shall file the affidavits and certificates and one of the duplicate
originals of the agreement in his or her office, endorse upon the other
duplicate original his or her approval thereof, and deliver it, together
with a
certificate of merger or consolidation, as the case may be, to the
surviving or new company.  In the case of a consolidation, the Director
shall also issue a certificate of authority to the new company.(3) In case the surviving or new company is a foreign or alien
company, if the Director finds that:(a) the agreement of merger or consolidation is in     accordance with the provisions of this Article and not inconsistent with the laws and the Constitutions of this State and the United States;(b) the agreement of merger or consolidation provides     for the assumption by the new or surviving company of all the liabilities and obligations of the companies parties to the merger or consolidation and otherwise affords proper protection for creditors and policyholders and that such provisions are not inconsistent with the laws of the state or country of incorporation of such new or surviving company;(c) the surviving or new company has complied with     all applicable provisions of this Code;(d) no reasonable objection exists to such merger or     consolidation; and(e) the standards established under Article VIII 1/2     are satisfied;
		he or she
shall approve the agreement.  If the agreement be approved by the
Director, he or she shall file the affidavits and certificates and one of
the
duplicate originals of the agreement in his or her office, endorse upon the
other duplicate original his or her approval thereof, and deliver it,
together
with a certificate of approval of the merger or consolidation, as the
case may be, to the surviving or new company.(4) In the case of a plan of exchange, if the Director finds that the
parties
to the exchange have established that:(a) the plan, if effective, will not tend adversely     to affect the financial stability or management of any domestic company which is a party thereto or the general capacity or intention to continue the safe and prudent transaction of the insurance business of such domestic company or companies;(b) the interests of the policyholders and     shareholders of each domestic insurance company which is a party to the plan are protected;(c) the competence, experience and integrity of those     persons who would control the operation of the domestic company are such as to be in the best interests of the policyholders of such company to permit such exchange;(d) the terms and conditions of the plan are fair and     reasonable; and(e) the standards established under Article VIII 1/2     are satisfied;
		he or she
shall approve the plan of exchange. If the plan of exchange be approved
by the Director, he or she shall file the affidavits and certificates and
one of
the duplicate originals of the plan of exchange in his or her office,
endorse upon
the other duplicate original his or her approval thereof, and deliver it,
together
with a certificate of approval of the plan of exchange to the domestic company.(5) If the Director refuses to approve the agreement of merger or
consolidation, or plan of exchange, notice of such refusal, assigning
the reasons therefor,
shall be given in writing by the Director to each of the companies party
thereto, within 60 days from the date of the delivery of such agreements
or plan to him or her, and he or she shall grant any of such companies
a hearing
upon
request. The hearing shall be held within 30 days of the Director's receipt
of request for hearing. All persons to whom it is proposed to issue securities
in such agreements or exchange shall have a right to appear.
Within 30 days after the close of the hearing the Director shall approve
or disapprove or place conditions precedent upon his or her approval of the
merger or consolidation or plan by issuing a written order stating his or
her
determination and the reasons therefor.
		(Source: P.A. 90-381, eff. 8-14-97.) (215 ILCS 5/163) (from Ch. 73, par. 775)Sec. 163. 
		
		Date
merger or consolidation or plan of exchange effected.(1) If the surviving or new company is a domestic company, the merger or
consolidation is effected upon the issuance of the certificate of merger or
the certificate of consolidation, as the case may be.(2) If the surviving or new company is a foreign or alien company and
the Director has issued a certificate of approval of the merger or
consolidation, the date upon which the merger or consolidation is effected
shall be determined by the laws of the state or country of incorporation or
organization of the surviving or new company. However, the merger or
consolidation shall in no event become effective in this State until a
certificate of merger or consolidation, as the case may be, or other
evidence that the merger or consolidation is effected is issued by the
proper official of the state or country of incorporation or organization of
the surviving or new company and is filed with and approved by the
Director.(3) Notice of adoption of the plan and the approval thereof by the
Director shall be delivered or mailed to each shareholder of record of the
domestic insurance company to be acquired who was entitled to vote thereon
and an affidavit of the secretary or assistant secretary of such company or
of an officer of the company's transfer agent that such notice was given
shall be filed with the Director. The plan shall become effective 10 days
after receipt of the affidavit by the Director. A plan of exchange may be
abandoned pursuant to any provisions for abandonment contained therein at
any time, provided that notice of such abandonment shall be delivered or
mailed to each such stockholder and filed with the Director prior to the
termination of such 10 day period.
		(Source: Laws 1967, p. 2406.) (215 ILCS 5/164) (from Ch. 73, par. 776)Sec. 164. 
		
		Removal of
property of domestic, merged or consolidated company from this State.(1) If the surviving or new company shall be a foreign or alien company,
no property of the domestic merged or consolidated company shall be removed
from this State by reason of such merger or consolidation, prior to, nor
shall title to such property vest in the surviving or new company until,
the merger or consolidation shall become effective in this State as
provided in section 163.(2) Any director or officer of any domestic company removing or
permitting the removal of any property of company from this State in
violation of this section, shall be guilty of a Class A misdemeanor.
		(Source: P.A. 77-2699.) (215 ILCS 5/165) (from Ch. 73, par. 777)Sec. 165. 
		Recording of certificate of merger or consolidation. 
		Within 15 days after such merger or consolidation has become
effective, the surviving or new company shall file for record with the recorder
of the county in which the principal office of any of the
companies parties to the agreement is located in this State, the agreement
of merger or consolidation, or copy thereof, certified by the Director, any
certificate of approval issued by the Director, or copy thereof, certified
by him and a certificate of merger or consolidation, as the case may be, or
a copy thereof, certified by the Director, or by the official of the state
or country that issued such certificate. The certificate of merger or
consolidation, or a copy thereof so certified, shall also be recorded with
the recorder of each other county in this State in which any of the
companies parties to the agreement, shall have real property at the time of
such merger or consolidation, the title to which will be transferred by the
merger or consolidation.
		(Source: P.A. 83-358.) (215 ILCS 5/166) (from Ch. 73, par. 778)Sec. 166. 
		
		Effect of
merger or consolidation.(1) If the surviving or new company is a domestic company, when such
merger or consolidation has been effected(a) the several companies parties to the agreement of merger or
consolidation shall be a single company, which, in the case of a merger,
shall be that company designated in the agreement of merger as the
surviving company, and in the case of a consolidation, shall be the new
company provided for in the agreement of consolidation;(b) the separate existence of all of the companies parties to the
agreement of merger or consolidation, except the surviving company in the
case of a merger, shall cease;(c) such surviving or new company shall have all of the rights,
privileges, immunities and powers and shall be subject to all of the duties
and liabilities granted or imposed by this Code;(d) such surviving or new company shall thereupon and thereafter possess
all the rights, privileges, immunities, powers and franchises of a public
as well as of a private nature, of each of the companies so merged or
consolidated; and all property, real, personal and mixed, and all debts due
on whatever account, including subscriptions to shares, assessments payable
from members or policyholders, and all other choses in action and all and
every other interest of, or belonging to or due to, each of the companies
so merged or consolidated shall be deemed to be transferred to and vested
in such surviving or new company without further act or deed; and the title
to any real estate, or any interest therein, under the laws of this State
vested in any of such companies shall not revert or be in any way impaired
by reason of such merger or consolidation;(e) such surviving or new company shall thenceforth be responsible and
liable for all the liabilities and obligations of each of the companies so
merged or consolidated; any claim existing or action or proceeding pending
by or against any of such companies may be prosecuted to judgment as if
such merger or consolidation had not taken place, or such surviving or new
company may be substituted in its place; neither the rights of creditors
nor any liens upon the property of any of such companies shall be impaired
by such merger or consolidation, but such liens shall be limited to the
property upon which they were liens immediately prior to the time of such
merger or consolidation, unless otherwise provided in the agreement of
merger or consolidation; and(f) in case of a merger, the articles of incorporation of the surviving
company shall be supplanted and superseded to the extent, if any, that any
provision or provisions of such articles shall be restated in the agreement
of merger as provided in section 158, and such articles of incorporation,
shall be deemed to be thereby and to that extent amended; in case of a
consolidation, the statements set forth in the agreement of consolidation
as provided in section 158 shall be deemed to be articles of incorporation
of the new company formed by such consolidation.(2) If the surviving or new company is a foreign or alien company, when
such merger or consolidation has become effective in this State(a) the effect of the merger or consolidation shall be determined by the
law of the state of incorporation or organization of such company;(b) the separate existence of all domestic companies parties to the plan
of merger or consolidation shall cease;(c) all property, real, personal, and mixed, and all debts due on
whatever account including subscriptions to shares, assessments payable
from members or policyholders and all other choses in action and all and
every other interest of or belonging to and due to each of the companies so
merged or consolidated shall be taken and deemed to be transferred to and
vested in such surviving or new company without further act or deed, and
the title to any real estate, or any interest therein, shall not revert or
be in any way impaired by reason of such merger or consolidation.(3) In the event of a merger or consolidation under this article, the
surviving company or the consolidated company shall be considered as having
the age of the oldest company which is a party to such merger or
consolidation for the purpose of complying with requirements of the laws
relating to age of company.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/167) (from Ch. 73, par. 779)Sec. 167. 
		
		Rights of
dissenting shareholders of domestic company.(1) If a shareholder entitled to vote of (a) a domestic company which is
a party to a merger or consolidation or (b) a domestic insurance company to
be acquired under a plan of exchange files with such company, prior to or
at the meeting of shareholders at which the agreement of merger or
consolidation or plan of exchange is submitted to a vote, a written
objection to such agreement or plan, and does not vote in favor thereof,
and such shareholder, within 20 days after the merger or consolidation or
plan of exchange has become effective in this State makes written demand on
the surviving or new company or on the domestic insurance company to be
acquired under a plan of exchange for payment of the fair value of his
shares as of the day prior to the date on which the vote of shareholders
was taken approving the merger or consolidation or plan of exchange, such
surviving or new company or domestic insurance company shall pay to such
shareholder upon surrender of his certificate or certificates representing
such shares, the fair value thereof. Any shareholder who makes such
objection and demand shall cease to be a shareholder and shall have no
rights with respect to such shares except the right to receive payment
therefor. If within 30 days after the effective date, the value of such
shares is agreed upon between the shareholder and the surviving or new
company or the domestic insurance company to be acquired under a plan of
exchange, as the case may be, and such agreement is approved in writing by
the Director, payment therefor shall be made within 90 days after the
effective date. If within 30 days after the effective date the surviving or
new company or the domestic insurance company to be acquired under a plan
of exchange, as the case may be, and the shareholders do not so agree, or
any agreement as to value is not approved in writing by the Director,
either such company or the shareholder may, within 90 days after the
effective date, petition the circuit court of the county in which the
principal office of the surviving or new company or domestic insurance
company is located, to appraise the value of such shares. In the event the
surviving or new company has no office in this State, then such petition
may be filed in the circuit court of the county in which the principal
office of the company in which such shareholder holds shares was located,
immediately prior to such merger or consolidation. A copy of the petition
shall be delivered or mailed by registered mail to the Director within 5
days after the filing thereof and proof of such delivery or mailing shall
be filed with the court. The Director has the right to appear through the
Attorney General and be heard upon all questions and issues in the
proceeding. The practice, procedure and judgment in the circuit court upon
such petition shall be the same, so far as practicable, as that under the
eminent domain laws in this State.(2) Payment of the appraised value of such shares shall be made within
60 days after the entry of the judgment or order finding such appraised
value and the judgment shall be payable only upon and simultaneously with
the surrender to the surviving or new company or the domestic insurance
company to be acquired under a plan of exchange of the certificate or
certificates representing such shares. The right of a dissenting
shareholder to be paid the fair value of his shares as herein provided
shall cease if and when the Director revokes the approval to the merger or
consolidation, as provided in Section 168, or if the merger or
consolidation or plan of exchange be abandoned.(3) Every shareholder who did not vote in favor of such merger or
consolidation or plan of exchange and who does not object in writing and
demand payment of the value of his shares at the time and in the manner
aforesaid, or does not file a petition within the time herein limited, is
conclusively presumed to have assented to such merger or consolidation or
plan of exchange and shall be bound by the terms thereof.(4) All shares of dissenting shareholders so acquired by a domestic
insurance company party to a plan of exchange shall be cancelled by the
board of directors of such company upon the plan of exchange becoming
effective or at any time thereafter, and the capital stock of the company
shall be decreased in accordance with Section 33.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/168) (from Ch. 73, par. 780)Sec. 168. 
		
		Rights of
dissenting policyholder of domestic company.(1) If not less than five per centum of all the policyholders in any
domestic company who were entitled to vote with respect to any merger or
consolidation and who did not vote in favor of such merger or consolidation
at the meeting at which the agreement of merger or consolidation was
adopted by the policyholders of such company, or if not less than five per
centum of the members of any domestic fraternal benefit society party to a
merger or consolidation shall file, at any time within thirty days after
the agreement of merger or consolidation is effected, a petition with the
Director for a hearing upon such agreement of merger or consolidation, the
Director shall order a hearing upon said petition, fix the time and place
of such hearing, and give written notice to the companies that are parties
to the merger or consolidation, at least fifteen days before the date of
such hearing. Any member or policyholder so petitioning may appear before
the Director at such hearing, either in person or by an attorney, and be
heard with reference to said agreement. If, upon such hearing being had,
the Director finds that the interests of the members or policyholders, as
the case may be, of such company are not properly protected, or if he finds
that any reasonable objection exists to such agreement, he shall enter an
order revoking the approval already given, and the agreement of merger or
consolidation shall, thereupon, become null and void.(2) The Director shall have like power to revoke any approval of any
such agreement if any officer, director or employee of any company party to
such agreement shall, after reasonable notice, fail or refuse without
reasonable cause to attend and testify at such hearing, or to produce any
books or papers called for by said Director.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/169) (from Ch. 73, par. 781)Sec. 169. 
		
		Rights of
dissenting shareholders and policyholders of foreign or alien company.The rights of any dissenting shareholder, member or policyholder of any
foreign or alien company party to a merger or consolidation, shall be those
afforded to such shareholder, member, or policyholder by the laws of the
domiciliary state or country of such foreign or alien company.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/169.1) (from Ch. 73, par. 781.1)Sec. 169.1. 
		
		Effect
of exchange under plan of exchange.(1) Upon a plan of exchange becoming effective, the exchange provided
for therein is considered to have been consummated and each shareholder of
the domestic stock insurance company acquired ceases to be a shareholder of
such company. The ownership of all shares of the issued and outstanding
stock of such company, except shares payment of the value of which is
required to be made by such company under Section 167, vests in the
acquiring corporation automatically without any physical transfer or
deposit of certificates representing such shares. All shares payment of the
value of which is required to be made by such company under Section 167 are
considered no longer outstanding shares of such company. The acquiring
corporation thereupon becomes the sole shareholder of such domestic stock
insurance company and has all the rights, privileges, immunities and powers
and, except as otherwise provided herein, is subject to all of the duties
and liabilities to the extent provided by law of a shareholder of an
insurance company organized under the laws of this State.(2) Certificates representing shares of the domestic insurance company
to be acquired prior to the plan of exchange becoming effective, except
certificates representing shares payment of the value of which is required
under Section 167, shall after the plan of exchange becomes effective,
represent (a) shares of the issued and outstanding capital stock or other
securities issued by the acquiring corporations and (b) the right, if any,
to receive cash or other consideration upon such terms as are specified in
the plan of exchange. However, the plan of exchange may specify that all
such certificates shall after the plan of exchange becomes effective
represent only the right to receive shares of stock or other securities
issued by the acquiring corporation, or cash or other consideration or any
combination thereof upon such terms as are specified in the plan of
exchange.
		(Source: Laws 1967, p. 2406.) (215 ILCS 5/169.2) (from Ch. 73, par. 781.2)Sec. 169.2. 
		
		Acquiring and acquired corporations under a plan of exchange to be
separate.The domestic stock insurance company acquired under a plan of exchange
and the acquiring corporation are in all respects separate and distinct
corporations, with neither corporation having any liability to the
creditors or policyholders, if any, or shareholders of the other, for any
acts or omissions of the officers, directors or shareholders of either or
both of such corporations.
		(Source: Laws 1967, p. 2406.) (215 ILCS 5/170) (from Ch. 73, par. 782)Sec. 170. 
		
		Transfer
of deposits.(1) If the surviving or new company shall be a foreign or alien company
and the laws of the state or country under which such surviving or new
company is incorporated or organized shall require the maintenance with any
official of such State or country of a deposit of the legal reserve on any
policies, then the Director is authorized to deliver to the proper
custodian of such deposits of such state or country any deposits
theretofore made with the Director pertaining to policies of any of the
merged or consolidated companies. If the surviving or new company shall be
a domestic company into which has been merged or consolidated a foreign or
alien company incorporated or organized in a state or country the laws of
which require the maintenance with an official of a deposit of the legal
reserve on any policies, then the Director is hereby authorized to receive
from such official any deposit theretofore made with such official
pertaining to the policies of any of the merged or consolidated companies.(2) Any surviving or new company shall, within 60 days after the
transfer of such deposit, notify the holder of every policy secured by such
transferred deposit, that the transfer has been made. The president or
vice-president and secretary or assistant secretary of such company, or the
executive officers corresponding thereto, shall within 30 days thereafter,
file with the Director an affidavit of the fact that due notice to
policyholders, as provided for herein, has been given. If a surviving or
new company shall be a foreign or alien company, the Director shall require
from such company, before transferring any deposit to any official of the
state or country under the laws of which such foreign or alien company is
incorporated or organized, a written agreement that notice of such transfer
will be given to policyholders and that an affidavit with regard to such
notice will be furnished to the Director as in this section provided.(3) In the event any deposit is to be maintained in this State by reason
of this section, the amount thereof from time to time for each such policy
shall be at least equal to the amount which would be required in the state
where such deposit was theretofore maintained under the provisions of the
law of such state in effect on the date the merger or consolidation was
effected. The deposits so maintained in this State shall consist of
securities of the kinds authorized for investment by Article VIII of this
Code.
		(Source: Laws 1959, p. 1431.) (215 ILCS 5/171) (from Ch. 73, par. 783)Sec. 171. 
		Certificates of fees and commissions paid.Whenever agreements of merger or consolidation or plans of exchange are
filed with the Director, there shall also be filed a certificate executed
by the president or a vice-president and attested by the secretary or an
assistant secretary, or the executive officers corresponding thereto, and
under the corporate seal of each of the companies party to the agreement of
merger or consolidation or plan of exchange, verified by the affidavits of
such officers, setting forth all fees, commissions or other compensations,
or valuable considerations paid or to be paid, directly or indirectly, to
any person in any manner securing, aiding, promoting or assisting in any
such merger or consolidation or plan of exchange.
		(Source: Laws 1967, p. 2406.) (215 ILCS 5/172) (from Ch. 73, par. 784)Sec. 172. 
		
		Payment of
fees to officer or director prohibited.(1) No director or officer of any company party to a merger or
consolidation or plan of exchange, except as fully expressed in the
agreement of merger or consolidation or plan of exchange shall receive any
fee, commission, other compensation or valuable consideration whatever,
directly or indirectly for in any manner aiding, promoting or assisting in
such merger or consolidation or plan of exchange.(2) Any person violating the provisions of this Section shall be guilty
of a Class A misdemeanor.
		(Source: P.A. 77-2699.)
(215 ILCS 5/Art. XI.5 heading) ARTICLE XI 1/2.  
		
		PROTECTED CELL COMPANIES (215 ILCS 5/179A-1)Sec. 179A-1. 
		Short title. 
		This Article may be cited as the Protected Cell
Company
Law.
		(Source: P.A. 91-278, eff. 7-23-99.) (215 ILCS 5/179A-5)Sec. 179A-5. 
		Purpose. 
		This Article is adopted to provide a basis for the
creation of protected cells by a domestic insurer
as one means of accessing alternative sources of capital and achieving the
benefits of insurance securitization.  Investors in fully funded insurance
securitization transactions provide funds that are available to pay the
insurer's insurance obligations or to repay the investors or both.  The
creation of protected cells is intended to be a means to achieve more
efficiencies in conducting insurance securitizations.Under the
terms of the typical debt instrument underlying an insurance securitization
transaction, prepaid
principal is repaid to the investor on a specified maturity date with interest,
unless a trigger event
occurs.  The insurance securitization proceeds secure both the protected
cell company's insurance obligations if a trigger event occurs,
as well as the
protected cell company's obligation to repay the insurance
securitization investors if a trigger event
does not occur. Insurance securitization transactions have
been performed
through alien companies
in order to utilize efficiencies available to alien companies that are not
currently available to
domestic companies.  This Article is adopted in order  to  create more
efficiency in conducting
insurance securitization,
to allow domestic companies easier access   to alternative sources of capital,
and to promote the
benefits of insurance securitization generally.
		(Source: P.A. 91-278, eff. 7-23-99; 92-74, eff. 7-12-01.) (215 ILCS 5/179A-10)Sec. 179A-10. 
		Definitions."Domestic company" means an insurance company domiciled in the State of
Illinois."Fully funded" means that, with respect to any exposure attributed to a
protected cell, the market value of the protected cell assets, on the date on
which the insurance securitization is effected, equals or exceeds the maximum
possible exposure attributable to the protected cell with respect to those
exposures."General account" means the assets and liabilities of a protected cell
company
other than
protected cell assets and protected cell liabilities."Indemnity trigger" means a transaction term by which relief of
the issuer's
obligation to repay
investors is triggered by its incurring a specified level of
losses under its insurance or
reinsurance contracts."Market value" has the meaning given that term in Article VIII of
this Code
(Investments of Domestic Companies)."Non-indemnity trigger" means a transaction term by which relief of the
issuer's obligation to repay investors is triggered solely by some event or
condition other than the individual protected cell company incurring a
specified level of losses under its insurance or reinsurance contracts."Protected cell" means an identified pool of assets and liabilities of a
domestic company
segregated and insulated by means of this Article from the remainder of the
company's assets
and liabilities."Protected cell account" means a specifically identified bank or custodial
account established by
a protected cell company for the purpose of segregating the
protected cell assets of
one protected cell from the protected cell assets of other protected cells and
from the assets of the
protected cell company's general account."Protected cell assets" means all assets, contract rights, and general
intangibles identified with and attributable to
a
specific protected cell
of a protected cell company."Protected cell company" means a domestic company that has one or more
protected cells."Protected cell company insurance securitization"
means the issuance of debt instruments, the proceeds from which support the
exposures attributed to the protected cell, by a protected cell company where
repayment of principal or interest, or both, to investors pursuant to the
transaction terms is contingent upon the occurrence or nonoccurrence of an
event with respect to which the protected cell company is exposed to loss under
insurance or reinsurance contracts it has issued."Protected cell liabilities" means all liabilities and other obligations
identified with and
attributable to a specific
protected cell of a protected cell company. 
		(Source: P.A. 91-278, eff. 7-23-99; 92-74, eff. 7-12-01.) (215 ILCS 5/179A-15)Sec. 179A-15. 
		Establishment of protected cells.(a) A domestic company may,
with the prior written approval by the Director of a
plan of operation
submitted by the domestic company with respect to each protected cell,
establish one or more
protected cells in connection with an insurance securitization. Upon the
written approval by the Director of the plan of
operation, which shall
include, but not be limited to, the specific business and investment
guidelines
of the protected
cell, the protected cell company may, in accordance with the approved plan
of operation,
attribute to the
protected cell insurance obligations with
respect to
its insurance
business and obligations relating to the insurance securitization and
assets to fund those obligations. A protected cell shall have
its own distinct name
or designation, which shall include the words "protected cell". The protected
cell company
shall transfer all
assets attributable to a protected cell to one or more separately established
and identified
protected cell accounts bearing the name or designation of that protected cell.
 Protected cell
assets shall be held in the protected cell accounts for the purpose of
satisfying the obligations of
that protected cell.(b) All attributions of assets and
liabilities between a protected
cell and the general account shall be in accordance
with the
plan
of operation approved by the Director. No
other
attribution of assets or
liabilities may be made by a protected cell company
between the
protected cell company's general account and its
protected cells.
Any attribution of assets and
liabilities between the general account and a protected cell
or from investors in the form of principal on a debt instrument
issued by a
protected cell company shall be in cash or in readily marketable securities
with
established market values.(c) The creation of a protected cell does not create, in respect of that
protected cell, a legal person
separate from the protected cell company. Amounts attributed to a protected
cell under this
Article, including
assets transferred to a protected cell account, are owned by the protected
cell company and
the protected cell company may
not be, nor hold itself out to be, a trustee with respect to those protected
cell assets of that
protected cell account. Notwithstanding the foregoing, the company may allow
for a security
interest to attach to protected cell assets or a protected cell account when in
favor of a creditor of
the protected cell and otherwise allowed under applicable law.(d) This Article shall not be construed to prohibit the protected cell
company from
contracting with or
arranging for an investment advisor, commodity trading advisor, or other third
party to manage
the protected cell assets of a protected cell, provided that all remuneration,
expenses, and other
compensation of the third party advisor or manager are payable from the
protected cell assets of
that protected cell and not from the protected cell assets of other protected
cells or the assets of
the protected cell company's general account.(e) A protected cell company shall
establish
administrative and
accounting procedures necessary to properly identify the one or more
protected cells of the
protected cell company and the protected cell assets and protected cell
liabilities
attributable to the protected cells.  It shall be
the duty of the directors of a protected cell company to:(1) keep protected cell assets and protected cell     liabilities separate and separately identifiable from the assets and liabilities of the protected cell company's general account; and(2) keep protected cell assets and protected cell     liabilities attributable to one protected cell separate and separately identifiable from protected cell assets and protected cell liabilities attributable to other protected cells.If this Section is violated,
the remedy of tracing shall
be
applicable to protected cell assets when commingled with protected cell assets
of other protected
cells or the assets of the protected cell company's general account.
The remedy of tracing shall not be construed as an exclusive remedy.(f) The protected cell company shall, when
establishing a protected cell, attribute to the protected cell assets with a
value at least equal to the reserves and other insurance liabilities attributed
to that protected cell.
		(Source: P.A. 91-278, eff. 7-23-99; 92-74, eff. 7-12-01.) (215 ILCS 5/179A-20)Sec. 179A-20. 
		Use and operation of protected cells.(a) The protected cell
assets of any protected
cell may not be charged with liabilities arising out of any other business the
protected cell company may
conduct.  All contracts or other documentation reflecting protected cell
liabilities shall clearly indicate that only the
protected cell assets are available
for the satisfaction of those protected cell
liabilities.(b) The income, gains, and losses, realized or unrealized, from
protected cell
assets and protected cell
liabilities must be credited to or charged against the protected
cell without
regard to other
income, gains, or losses of the protected cell company, including income,
gains, or losses of
other protected
cells.  Amounts attributed to a protected cell and accumulations thereon may
be invested and
reinvested without regard to any requirements or limitations of Article VIII of
this Code
(Investments of Domestic Companies), and
the investments in a
protected cell or cells may not be taken into account in applying
the
investment limitations
otherwise applicable to the investments of the protected cell company.(c) Assets
attributed to a
protected
cell must be valued at
their market value on the date of valuation, or if there is no readily
available market, then as
provided in the contract or the rules or other written documentation applicable
to
the protected cell.(d) A protected cell company shall, in respect of any of its protected
cells,
engage in fully funded
indemnity-triggered insurance securitization to support in full the protected
cell exposures attributable to that protected cell. A
protected cell company
insurance securitization that is not
indemnity-triggered may qualify as an insurance securitization under the
terms of this Article only after the Director
adopts rules addressing the methods of:(i) funding of the portion of the risk
that is not indemnity based, (ii) accounting, and
disclosure, (iii) risk-based capital treatment, and (iv) assessing risk
associated with
such securitizations.  A protected cell company
insurance securitization that is not fully funded, whether
indemnity triggered or non-indemnity triggered, is prohibited.
 Protected cell assets may be used to pay interest
or other
consideration on any outstanding debt or other obligation attributable to that
protected cell, and
nothing in this subsection shall be construed or interpreted to prevent a
protected cell company from
entering into a swap agreement or other transaction for the account of the
protected cell that has the effect of
guaranteeing such
interest or other consideration.(e) In all protected cell company
insurance
securitizations,
the
contracts or other documentation
effecting such transaction shall contain provisions identifying the protected
cell to which the
transaction will be attributed.  In addition, the contracts or other
documentation shall
clearly disclose that the
assets of that  protected cell, and only those assets, are available to pay the
obligations of
that  protected cell.
Notwithstanding the foregoing, and subject to the provisions of this Article
and any other
applicable law or rule, the failure to include such language in the contracts
or other documentation shall not
be used as the sole basis by creditors, reinsurers, or other claimants to
circumvent the provisions
of this Article.(f) A protected cell company may attribute to a
protected cell account only the insurance obligations relating to the protected
cell
company's general account.  A protected cell
may not issue insurance or reinsurance contracts directly to
policyholders or reinsureds or have any obligation to the policyholders or
reinsureds of the protected cell company's general account.(g) At the cessation of business of a protected cell, the
protected cell
company
shall voluntarily close out the protected cell account in accordance with a plan approved by the
Director.
		(Source: P.A. 91-278, eff. 7-23-99; 92-74, eff. 7-12-01.) (215 ILCS 5/179A-25)Sec. 179A-25. 
		Reach of creditors and other claimants.(a) Protected cell assets are available only to
the
creditors of the protected cell company
who are creditors in
respect of that protected cell and entitled, in conformity
with the provisions of
this Article, to have recourse to the protected cell assets attributable to
that protected cell. Protected cell assets
shall be absolutely protected from the creditors of the protected cell
company who are not
creditors in respect
of that protected cell and who, accordingly, are not
entitled
to have
recourse to the protected
cell assets attributable to that protected cell.  Creditors with respect to a  protected
cell shall not be entitled to
have recourse against the protected cell assets of other protected cells or the
assets of the
protected cell company's general account.Protected cell assets are available only to creditors of a
protected cell company after all protected cell liabilities have been
extinguished or otherwise provided for in accordance with the plan of operation
relating to that protected cell.(b) When an obligation of a protected cell company to a person arises from a
transaction, or is otherwise imposed, in
respect of a  protected cell:(1) that obligation of the protected cell company     shall extend only to the protected cell assets attributable to that protected cell, and the person shall, in respect of that obligation, be entitled to have recourse only to the protected cell assets attributable to that protected cell; and(2) that obligation of the protected cell company     shall not extend to the protected cell assets of any other protected cell or the assets of the company's general account, and that person shall not, in respect of that obligation, be entitled to have recourse to the protected cell assets of any other protected cell or the assets of the company's general account.(c) When an obligation of a protected cell company relates solely to the
general
account,  the
obligation of the protected cell company shall extend only to, and that
creditor shall, in
respect of that
obligation, be entitled to have recourse only to, the assets of the protected
cell company's general
account.(d) The activities, assets, and obligations relating to a protected cell are not
subject to the provisions
of Article XXXIII1/2 (Illinois Life and Health Guaranty Association Law) or
Article XXXIV
(Illinois
Insurance Guaranty Fund), and neither a protected cell nor a protected cell
company shall be assessed by or
otherwise be required to
contribute to any guaranty fund or guaranty association in this State with
respect to the activities, assets, or obligations of a protected cell.
Nothing
in this subsection
shall affect the activities or obligations of a company's general account.(e) In no event shall the establishment of one or more protected cells alone
constitute or be deemed
to be a fraudulent conveyance, an intent by the protected cell company to
defraud creditors,
or
the carrying out
of business by the protected cell company for any other fraudulent purpose.
		(Source: P.A. 91-278, eff. 7-23-99; 92-74, eff. 7-12-01.) (215 ILCS 5/179A-30)Sec. 179A-30. 
		
		Rehabilitation and liquidation of
protected cell companies.(a) Notwithstanding any contrary
provision in this Code, the rules promulgated
under this Code, or any
other applicable law or rule, upon any order of rehabilitation, conservation,
or
liquidation of a protected cell company, the receiver shall be
bound
to deal with the
protected cell company's assets and liabilities, including protected cell
assets and protected
cell liabilities, in
accordance with the requirements set forth in this Article.(b) With respect to amounts recoverable under a protected cell company insurance securitization, the amount
recoverable by the
receiver shall not be reduced or diminished as a result of the entry of an
order of rehabilitation,
conservation, or
liquidation with respect to the protected cell company notwithstanding any
provisions to the
contrary in the contracts or other documentation governing the protected cell company
insurance securitization.
		(Source: P.A. 91-278, eff. 7-23-99; 92-74, eff. 7-12-01.) (215 ILCS 5/179A-35)Sec. 179A-35. 
		No transaction of an insurance business. 
		A protected cell insurance securitization shall not
be deemed to be an
insurance or reinsurance contract.  An investor in a protected cell company
insurance securitization shall not, by
sole means of such investment, be deemed to be transacting an insurance
business in this State.  The underwriters or selling agents (and their
partners, directors, officers, members, managers, employees, agents,
representatives, and advisors) involved in a protected cell company insurance
securitization shall not be deemed to be conducting an insurance or reinsurance
agency, brokerage, intermediary, advisory, or consulting business by virtue of
their activities in connection therewith.
		(Source: P.A. 91-278, eff. 7-23-99; 92-74, eff. 7-12-01.) (215 ILCS 5/179A-40)Sec. 179A-40. 
		Rules. 
		The Director may promulgate
reasonable rules as may be necessary to effectuate the purposes of this
Article.
		(Source: P.A. 91-278, eff. 7-23-99.)
(215 ILCS 5/Art. XI heading) ARTICLE XI.  
		REINSURANCE (215 ILCS 5/173) (from Ch. 73, par. 785)Sec. 173. 
		Reinsurance authorized.(a) Subject to the provisions of this Article, any domestic company may,
by a reinsurance agreement, accept any part or all of any risks of the
kind which it is authorized to insure and it may cede all or any part of
its risks to another solvent company having the power to make such
reinsurance. It may take credit for the reserves on such ceded risks to
the extent reinsured subject to the exceptions provided in Sections
173.1 through 173.5.(b) The purpose of this Article is to protect the interest of insureds,
claimants, ceding insurers, assuming insurers, and the public generally.  The
legislature hereby declares its intent is to ensure adequate regulation of
insurers and reinsurers and adequate protection for those to whom they owe
obligations.  In furtherance of that State interest, the legislature hereby
provides a mandate that upon the insolvency of a non-U.S. insurer or reinsurer
that provides security to fund its U.S. obligations in accordance with this
Article, the assets representing the security shall be maintained in the United
States and claims shall be filed and valued by the state insurance
official with regulatory oversight, and the assets shall be distributed in
accordance  with the insurance laws of the state in which the trust is
domiciled that are applicable to the liquidation of domestic U.S. insurance
companies.  The legislature declares that the matters contained in this Article
are fundamental to the business of insurance in accordance with 15 U.S.C
Sections 1011 through 1012.
		(Source: P.A. 90-381, eff. 8-14-97.) (215 ILCS 5/173.1) (from Ch. 73, par. 785.1)Sec. 173.1. Credit allowed a domestic ceding insurer.(1) Except as otherwise provided under Article VIII 1/2 of this Code and
related provisions of the Illinois Administrative Code, credit for
reinsurance shall be allowed a domestic ceding insurer as
either an admitted asset or a deduction from liability on account of
reinsurance ceded only when the reinsurer meets the requirements of paragraph (A), (B), (B-5), (C), (C-5), (C-10), or (D) of this subsection (1).
Credit shall be allowed under paragraph (A), (B), or (B-5) of this subsection (1) only as respects
cessions of those kinds or classes of business in which the assuming insurer is
licensed or otherwise permitted to write or assume in its state of domicile, or
in the case of a U.S. branch of an alien assuming insurer, in the state through
which it is entered and licensed to transact insurance or reinsurance.  Credit
shall be allowed under paragraph (B-5) or (C) of this subsection (1) only
if the applicable requirements of paragraph (E) of this subsection (1)
 have been
satisfied.(A) Credit shall be allowed when the reinsurance is     ceded to an assuming insurer that is authorized in this State to transact the types of insurance ceded and has at least $5,000,000 in capital and surplus.(B) Credit shall be allowed when the reinsurance is     ceded to an assuming insurer that is accredited as a reinsurer in this State.  An accredited reinsurer is one that:(1) files with the Director evidence of its         submission to this State's jurisdiction;(2) submits to this State's authority to examine         its books and records;(3) is licensed to transact insurance or         reinsurance in at least one state, or in the case of a U.S. branch of an alien assuming insurer is entered through and licensed to transact insurance or reinsurance in at least one state;(4) files annually with the Director a copy of         its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement; and(5) maintains a surplus as regards policyholders         in an amount that is not less than $20,000,000 and whose accreditation has been approved by the Director.(B-5)(1) Credit shall be allowed when the reinsurance     is ceded to an assuming insurer that is domiciled in, or in the case of a U.S. branch of an alien assuming insurer is entered through, a state that employs standards regarding credit for reinsurance substantially similar to those applicable under this Code and the assuming insurer or U.S. branch of an alien assuming insurer:(a) maintains a surplus as regards policyholders         in an amount not less than $20,000,000; and(b) submits to the authority of this State to         examine its books and records.(2) The requirement of item (a) of subparagraph (1)     of paragraph (B-5) of this subsection (1) does not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system.(C)(1) Credit shall be allowed when the reinsurance     is ceded to an assuming insurer that maintains a trust fund in a qualified United States financial institution, as defined in paragraph (B) of subsection (3) of this Section, for the payment of the valid claims of its United States policyholders and ceding insurers, their assigns and successors in interest.  The assuming insurer shall report to the Director information substantially the same as that required to be reported on the NAIC annual and quarterly financial statement by authorized insurers and any other financial information that the Director deems necessary to determine the financial condition of the assuming insurer and the sufficiency of the trust fund. The assuming insurer shall provide or make the information available to the ceding insurer. The assuming insurer may decline to release trade secrets or commercially sensitive information that would qualify as exempt from disclosure under the Freedom of Information Act. The Director shall also make the information publicly available, subject only to such reasonable objections as might be raised to a request pursuant to the Freedom of Information Act, as determined by the Director. The assuming insurer shall submit to examination of its books and records by the Director and bear the expense of examination.(2)(a) Credit for reinsurance shall not be granted     under this subsection unless the form of the trust and any amendments to the trust have been approved by:(i) the regulatory official of the state where         the trust is domiciled; or(ii) the regulatory official of another state         who, pursuant to the terms of the trust instrument, has accepted principal regulatory oversight of the trust.(b) The form of the trust and any trust amendments     also shall be filed with the regulatory official of every state in which the ceding insurer beneficiaries of the trust are domiciled.  The trust instrument shall provide that contested claims shall be valid and enforceable upon the final order of any court of competent jurisdiction in the United States.  The trust shall vest legal title to its assets in its trustees for the benefit of the assuming insurer's United States policyholders and ceding insurees and their assigns and successors in interest.  The trust and the assuming insurer shall be subject to examination as determined by the Director.(c) The trust shall remain in effect for as long as     the assuming insurer has outstanding obligations due under the reinsurance agreements subject to the trust.  No later than February 28 of each year the trustee of the trust shall report to the Director in writing the balance of the trust and a list of the trust's investments at the preceding year-end and shall certify the date of termination of the trust, if so planned, or certify that the trust will not expire prior to the next following December 31.No later than February 28 of each year, the assuming     insurer's chief executive officer or chief financial officer shall certify to the Director that the trust fund contains funds in an amount not less than the assuming insurer's liabilities (as reported to the assuming insurer by its cedent) attributable to reinsurance ceded by U.S. ceding insurers, and in addition, a trusteed surplus of no less than $20,000,000.  In the event that item (a-5)  of subparagraph (3) of this paragraph (C) applies to the trust, the assuming insurer's chief executive officer or chief financial officer shall then certify to the Director that the trust fund contains funds in an amount not less than the assuming insurer's liabilities (as reported to the assuming insurer by its cedent) attributable to reinsurance ceded by U.S. ceding insurers and, in addition, a reduced trusteed surplus of not less than the amount that has been authorized by the regulatory authority having principal regulatory oversight of the trust.(d) No later than February 28 of each year, an     assuming insurer that maintains a trust fund in accordance with this paragraph (C) shall provide or make available, if requested by a beneficiary under the trust fund, the following information to the assuming insurer's U.S. ceding insurers or their assigns and successors in interest:(i)   a copy of the form of the trust agreement         and any trust amendments to the trust agreement pertaining to the trust fund;(ii)   a copy of the annual and quarterly         financial information, and its most recent audited financial statement provided to the Director by the assuming insurer, including any exhibits and schedules thereto;(iii)  any financial information provided to the         Director by the assuming insurer that the Director has deemed necessary to determine the financial condition of the assuming insurer and the sufficiency of the trust fund;(iv)  a copy of any annual and quarterly         financial information provided to the Director by the trustee of the trust fund maintained by the assuming insurer, including any exhibits and schedules thereto;(v)   a copy of the information required to be         reported by the trustee of the trust to the Director under the provisions of this paragraph (C); and(vi)    a written certification that the trust         fund consists of funds in trust in an amount not less than the assuming insurer's liabilities attributable to reinsurance liabilities (as reported to the assuming insurer by its cedent) attributable to reinsurance ceded by U.S. ceding insurers and, in addition, a trusteed surplus of not less than $20,000,000.(3) The following requirements apply to the following     categories of assuming insurer:(a) The trust fund for a single assuming insurer         shall consist of funds in trust in an amount not less than the assuming insurer's liabilities attributable to reinsurance ceded by U.S. ceding insurers, and in addition, the assuming insurer shall maintain a trusteed surplus of not less than $20,000,000, except as provided in item (a-5) of this subparagraph (3).(a-5) At any time after the assuming insurer has         permanently discontinued underwriting new business secured by the trust for at least 3 full years, the Director with principal regulatory oversight of the trust may authorize a reduction in the required trusteed surplus, but only after a finding, based on an assessment of the risk, that the new required surplus level is adequate for the protection of U.S. ceding insurers, policyholders, and claimants in light of reasonably foreseeable adverse loss development. The risk assessment may involve an actuarial review, including an independent analysis of reserves and cash flows, and shall consider all material risk factors, including, when applicable, the lines of business involved, the stability of the incurred loss estimates, and the effect of the surplus requirements on the assuming insurer's liquidity or solvency. The minimum required trusteed surplus may not be reduced to an amount less than 30% of the assuming insurer's liabilities attributable to reinsurance ceded by U.S. ceding insurers covered by the trust.(b)(i) In the case of a group including         incorporated and individual unincorporated underwriters:(I) for reinsurance ceded under reinsurance             agreements with an inception, amendment, or renewal date on or after January 1, 1993, the trust shall consist of a trusteed account in an amount not less than the respective underwriters' several liabilities attributable to business ceded by U.S. domiciled ceding insurers to any member of the group;(II) for reinsurance ceded under reinsurance             agreements with an inception date on or before December 31, 1992 and not amended or renewed after that date, notwithstanding the other provisions of this Act, the trust shall consist of a trusteed account in an amount not less than the group's several insurance and reinsurance liabilities attributable to business written in the United States; and(III) in addition to these trusts, the group             shall maintain in trust a trusteed surplus of which not less than $100,000,000 shall be held jointly for the benefit of the U.S. domiciled ceding insurers of any member of the group for all years of account.(ii) The incorporated members of the group shall         not be engaged in any business other than underwriting as a member of the group and shall be subject to the same level of solvency regulation and control by the group's domiciliary regulator as are the unincorporated members.(iii) Within 90 days after its financial         statements are due to be filed with the group's domiciliary regulator, the group shall provide to the Director an annual certification by the group's domiciliary regulator of the solvency of each underwriter member, or if a certification is unavailable, financial statements prepared by independent public accountants of each underwriter member of the group.(c) In the case of a group of incorporated         insurers under common administration, the group shall:(i) have continuously transacted an insurance             business outside the United States for at least 3 years immediately before making application for accreditation;(ii) maintain aggregate policyholders'             surplus of not less than $10,000,000,000;(iii) maintain a trust in an amount not less             than the group's several liabilities attributable to business ceded by United States domiciled ceding insurers to any member of the group pursuant to reinsurance contracts issued in the name of the group;(iv) in addition, maintain a joint trusteed             surplus of which not less than $100,000,000 shall be held jointly for the benefit of the United States ceding insurers of any member of the group as additional security for these liabilities; and(v) within 90 days after its financial             statements are due to be filed with the group's domiciliary regulator, make available to the Director an annual certification of each underwriter member's solvency by the member's domiciliary regulator and financial statements of each underwriter member of the group prepared by its independent public accountant.(C-5) Credit shall be allowed when the reinsurance is     ceded to an assuming insurer that has been certified by the Director as a reinsurer in this State and secures its obligations in accordance with the requirements of this paragraph (C-5).(1) In order to be eligible for certification,         the assuming insurer shall meet the following requirements:(a) the assuming insurer must be domiciled             and licensed to transact insurance or reinsurance in a qualified jurisdiction, as determined by the Director pursuant to subparagraph (3) of this paragraph (C-5);(b) the assuming insurer must maintain             minimum capital and surplus, or its equivalent, in an amount not less than $250,000,000 or such greater amount as determined by the Director pursuant to regulation; this requirement may also be satisfied by an association, including incorporated and individual unincorporated underwriters, having minimum capital and surplus equivalents (net of liabilities) of at least $250,000,000 and a central fund containing a balance of at least $250,000,000;(c) the assuming insurer must maintain             financial strength ratings from 2 or more rating agencies deemed acceptable by the Director; these ratings shall be based on interactive communication between the rating agency and the assuming insurer and shall not be based solely on publicly available information; each certified reinsurer shall be rated on a legal entity basis, with due consideration being given to the group rating where appropriate, except that an association, including incorporated and individual unincorporated underwriters, that has been approved to do business as a single certified reinsurer may be evaluated on the basis of its group rating; these financial strength ratings shall be one factor used by the Director in determining the rating that is assigned to the assuming insurer; acceptable rating agencies include the following:(i) Standard & Poor's;(ii) Moody's Investors Service;(iii) Fitch Ratings;(iv) A.M. Best Company; or(v) any other nationally recognized                 statistical rating organization;(d) the assuming insurer must agree to submit             to the jurisdiction of this State, appoint the Director as its agent for service of process in this State, and agree to provide security for 100% of the assuming insurer's liabilities attributable to reinsurance ceded by U.S. ceding insurers if it resists enforcement of a final U.S. judgment; and(e) the assuming insurer must agree to meet             applicable information filing requirements as determined by the Director, both with respect to an initial application for certification and on an ongoing basis.(2) An association, including incorporated and         individual unincorporated underwriters, may be a certified reinsurer. In order to be eligible for certification, in addition to satisfying the requirements of subparagraph (1) of this paragraph (C-5):(a) the association shall satisfy its minimum             capital and surplus requirements through the capital and surplus equivalents (net of liabilities) of the association and its members, which shall include a joint central fund that may be applied to any unsatisfied obligation of the association or any of its members, in the amounts specified in item (b) of subparagraph (1) of this paragraph (C-5);(b) the incorporated members of the             association shall not be engaged in any business other than underwriting as a member of the association and shall be subject to the same level of regulation and solvency control by the association's domiciliary regulator as are the unincorporated members; and(c) within 90 days after its financial             statements are due to be filed with the association's domiciliary regulator, the association shall provide to the Director an annual certification by the association's domiciliary regulator of the solvency of each underwriter member; or if a certification is unavailable, financial statements, prepared by independent public accountants, of each underwriter member of the association.(3) The Director shall create and publish a list         of qualified jurisdictions, under which an assuming insurer licensed and domiciled in such jurisdiction is eligible to be considered for certification by the Director as a certified reinsurer.(a) In order  to determine whether the             domiciliary jurisdiction of a non-U.S. assuming insurer is eligible to be recognized as a qualified jurisdiction, the Director shall evaluate the appropriateness and effectiveness of the reinsurance supervisory system of the jurisdiction, both initially and on an ongoing basis, and consider the rights, benefits, and extent of reciprocal recognition afforded by the non-U.S. jurisdiction to reinsurers licensed and domiciled in the U.S. A qualified jurisdiction must agree in writing to share information and cooperate with the Director with respect to all certified reinsurers domiciled within that jurisdiction. A jurisdiction may not be recognized as a qualified jurisdiction if the Director has determined that the jurisdiction does not adequately and promptly enforce final U.S. judgments and arbitration awards. The costs and expenses associated with the Director's review and evaluation of the domiciliary jurisdictions of non-U.S. assuming insurers shall be borne by the certified reinsurer or reinsurers domiciled in such jurisdiction.(b) Additional factors to be considered in             determining whether to recognize a qualified jurisdiction include, but are not limited to, the following:(i) the framework under which the                 assuming insurer is regulated;(ii) the structure and authority of the                 domiciliary regulator with regard to solvency regulation requirements and financial surveillance;(iii) the substance of financial and                 operating standards for assuming insurers in the domiciliary jurisdiction;(iv) the form and substance of financial                 reports required to be filed or made publicly available by reinsurers in the domiciliary jurisdiction and the accounting principles used;(v) the domiciliary regulator's                 willingness to cooperate with U.S. regulators in general and the Director in particular;(vi) the history of performance by                 assuming insurers in the domiciliary jurisdiction;(vii) any documented evidence of                 substantial problems with the enforcement of final U.S. judgments in the domiciliary jurisdiction; and(viii) any relevant international                 standards or guidance with respect to mutual recognition of reinsurance supervision adopted by the International Association of Insurance Supervisors or its successor organization.(c) If, upon conducting an evaluation under             this paragraph with respect to the reinsurance supervisory system of any non-U.S. assuming insurer, the Director determines that the jurisdiction qualifies to be recognized as a qualified jurisdiction, the Director shall publish notice and evidence of such recognition in an appropriate manner. The Director may establish a procedure to withdraw recognition of those jurisdictions that are no longer qualified.(d) The Director shall consider the list of             qualified jurisdictions through the NAIC committee process in determining qualified jurisdictions. If the Director approves a jurisdiction as qualified that does not appear on the list of qualified jurisdictions, then the Director shall provide thoroughly documented justification in accordance with criteria to be developed under regulations.(e) U.S. jurisdictions that meet the             requirement for accreditation under the NAIC financial standards and accreditation program shall be recognized as qualified jurisdictions.(f) If a certified reinsurer's domiciliary             jurisdiction ceases to be a qualified jurisdiction, then the Director may suspend the reinsurer's certification indefinitely, in lieu of revocation.(4) If an applicant for certification has been         certified as a reinsurer in an NAIC accredited jurisdiction, then the Director may defer to that jurisdiction's certification and to the rating assigned by that jurisdiction if the assuming insurer submits a properly executed Form CR-1 and such additional information as the Director requires. Such assuming insurer shall be considered to be a certified reinsurer in this State but only upon the Director's assignment of an Illinois rating, which shall be made based on the requirements of subparagraph (5) of this paragraph (C-5). The following shall apply:(a) Any change in the certified reinsurer's             status or rating in the other jurisdiction shall apply automatically in Illinois as of the date it takes effect in the other jurisdiction. The certified reinsurer shall notify the Director of any change in its status or rating within 10 days after receiving notice of the change.(b) The Director may withdraw recognition of             the other jurisdiction's rating at any time and assign a new rating in accordance with subparagraph (5) of this paragraph (C-5).(c) The Director may withdraw recognition of             the other jurisdiction's certification at any time with written notice to the certified reinsurer. Unless the Director suspends or revokes the certified reinsurer's certification in accordance with item (c) of subparagraph (9) of this paragraph (C-5), the certified reinsurer's certification shall remain in good standing in Illinois for a period of 3 months, which shall be extended if additional time is necessary to consider the assuming insurer's application for certification in Illinois.(5) The Director shall assign a rating to each         certified reinsurer pursuant to rules adopted by the Department. Factors that shall be considered as part of the evaluation process include the following:(a) The certified reinsurer's financial             strength rating from an acceptable rating agency. Financial strength ratings shall be classified according to the following ratings categories:(i) Ratings Category "Secure - 1"                 corresponds to the highest level of rating given by a rating agency, including, but not limited to, A.M. Best Company rating A++; Standard & Poor's rating AAA; Moody's Investors Service rating Aaa; and Fitch Ratings rating AAA.(ii) Ratings Category "Secure - 2"                 corresponds to the second-highest level of rating or group of ratings given by a rating agency, including, but not limited to, A.M. Best Company rating A+; Standard & Poor's rating AA+, AA, or AA-; Moody's Investors Service ratings Aa1, Aa2, or Aa3; and Fitch Ratings ratings AA+, AA, or AA-.(iii) Ratings Category "Secure - 3"                 corresponds to the third-highest level of rating or group of ratings given by a rating agency, including, but not limited to, A.M. Best Company rating A; Standard & Poor's ratings A+ or A; Moody's Investors Service ratings A1 or A2; and Fitch Ratings ratings A+ or A.(iv) Ratings Category "Secure - 4"                 corresponds to the fourth-highest level of rating or group of ratings given by a rating agency, including, but not limited to, A.M. Best Company rating A-; Standard & Poor's rating A-; Moody's Investors Service rating A3; and Fitch Ratings rating A-.(v) Ratings Category "Secure - 5"                 corresponds to the fifth-highest level of rating or group of ratings given by a rating agency, including, but not limited to, A.M. Best Company ratings B++ or B+; Standard & Poor's ratings BBB+, BBB, or BBB-; Moody's Investors Service ratings Baa1, Baa2, or Baa3; and Fitch Ratings ratings  BBB+, BBB, or BBB-.(vi) Ratings Category "Vulnerable - 6"                 corresponds to a level of rating given by a rating agency, other than those described in subitems (i) through (v) of this item (a), including, but not limited to, A.M. Best Company rating B, B-, C++, C+, C, C-, D, E, or F; Standard & Poor's ratings BB+, BB, BB-, B+, B, B-, CCC, CC, C, D, or R; Moody's Investors Service ratings Ba1, Ba2, Ba3, B1, B2, B3, Caa, Ca, or C; and Fitch Ratings ratings BB+, BB, BB-, B+, B, B-, CCC+, CCC, CCC-, or D.A  failure to obtain  or      maintain at             least 2 financial strength   ratings     from acceptable rating agencies shall result   in loss of eligibility for certification.(b) The business practices of the certified             reinsurer in dealing with its ceding insurers, including its record of compliance with reinsurance contractual terms and obligations.(c) For certified reinsurers domiciled in the             U.S., a review of the most recent applicable NAIC Annual Statement Blank, either Schedule F (for property and casualty reinsurers) or Schedule S (for life and health reinsurers).(d) For certified reinsurers not domiciled in             the U.S., a review annually of Form CR-F (for property and casualty reinsurers) or Form CR-S (for life and health reinsurers).(e) The reputation of the certified reinsurer             for prompt payment of claims under reinsurance agreements, based on an analysis of ceding insurers' Schedule F reporting of overdue reinsurance recoverables, including the proportion of obligations that are more than 90 days past due or are in dispute, with specific attention given to obligations payable to companies that are in administrative supervision or receivership.(f) Regulatory actions against the certified             reinsurer.(g) The report of the independent auditor on             the financial statements of the insurance enterprise, on the basis described in item (h) of this subparagraph (5).(h) For certified reinsurers not domiciled in             the U.S., audited financial statements (audited Generally Accepted Accounting Principles (U.S. GAAP) basis statement if available, audited International Financial Reporting Standards (IFRS) basis statements are allowed but must include an audited footnote reconciling equity and net income to U.S. GAAP basis or, with the permission of the Director, audited IFRS basis statements with reconciliation to U.S. GAAP basis certified by an officer of the company), regulatory filings, and actuarial opinion (as filed with the non-U.S. jurisdiction supervisor). Upon the initial application for certification, the Director shall consider the audited financial statements filed with its non-U.S. jurisdiction supervisor for the 3 years immediately preceding the date of the initial application for certification.(i) The liquidation priority of obligations             to a ceding insurer in the certified reinsurer's domiciliary jurisdiction in the context of an insolvency proceeding.(j) A certified reinsurer's participation in             any solvent scheme of arrangement, or similar procedure, that involves U.S. ceding insurers. The Director shall receive prior notice from a certified reinsurer that proposes participation by the certified reinsurer in a solvent scheme of arrangement.The maximum rating that a certified reinsurer may          be  assigned  shall correspond  to  its financial  strength rating, which shall be determined  according to subitems (i) through (vi) of item  (a) of this subparagraph (5). The Director shall use the lowest financial strength rating received from an acceptable rating  agency in establishing the maximum rating of a  certified  reinsurer.(6) Based on the analysis conducted under item         (e) of subparagraph (5) of this paragraph (C-5) of a certified reinsurer's reputation for prompt payment of claims, the Director may make appropriate adjustments in the security the certified reinsurer is required to post to protect its liabilities to U.S. ceding insurers, provided that the Director shall, at a minimum, increase the security the certified reinsurer is required to post by one rating level under item (a) of subparagraph (8) of this paragraph (C-5) if the Director finds that:(a) more than 15% of the certified             reinsurer's ceding insurance clients have overdue reinsurance recoverables on paid losses of 90 days or more that are not in dispute and that exceed $100,000 for each cedent; or(b) the aggregate amount of reinsurance             recoverables on paid losses that are not in dispute that are overdue by 90 days or more exceeds $50,000,000.(7) The Director shall post notice on the         Department's website promptly upon receipt of any application for certification, including instructions on how members of the public may respond to the application. The Director may not take final action on the application until at least 30 days after posting the notice required by this subparagraph. The Director shall publish a list of all certified reinsurers and their ratings.(8) A certified reinsurer shall secure         obligations assumed from U.S. ceding insurers under this subsection (1) at a level consistent with its rating.(a) The amount of security required in order             for full credit to be allowed shall correspond with the applicable ratings category:Secure - 1: 0%.Secure - 2: 10%.Secure - 3: 20%.Secure - 4: 50%.Secure - 5: 75%.Vulnerable - 6: 100%.(b) Nothing in this subparagraph (8) shall             prohibit the parties to a reinsurance agreement from agreeing to provisions establishing security requirements that exceed the minimum security requirements established for certified reinsurers under this Section.(c) In order for a domestic ceding insurer to             qualify for full financial statement credit for reinsurance ceded to a certified reinsurer, the certified reinsurer shall maintain security in a form acceptable to the Director and consistent with the provisions of subsection (2) of this Section, or in a multibeneficiary trust in accordance with paragraph (C) of this subsection (1), except as otherwise provided in this subparagraph (8).(d) If a certified reinsurer maintains a             trust to fully secure its obligations subject to paragraph (C) of this subsection (1), and chooses to secure its obligations incurred as a certified reinsurer in the form of a multibeneficiary trust, then the certified reinsurer shall maintain separate trust accounts for its obligations incurred under reinsurance agreements issued or renewed as a certified reinsurer with reduced security as permitted by this subsection or comparable laws of other U.S. jurisdictions and for its obligations subject to paragraph (C) of this subsection (1). It shall be a condition to the grant of certification under this paragraph (C-5) that the certified reinsurer shall have bound itself, by the language of the trust and agreement with the Director with principal regulatory oversight of each such trust account, to fund, upon termination of any such trust account, out of the remaining surplus of such trust any deficiency of any other such trust account. The certified reinsurer shall also provide or make available, if requested by a beneficiary under a trust, all the information that is required to be provided under the requirements of item (d) of subparagraph (2) of paragraph (C) of this subsection (1) to the certified reinsurer's U.S. ceding insurers or their assigns and successors in interest. The assuming insurer may decline to release trade secrets or commercially sensitive information that would qualify as exempt from disclosure under the Freedom of Information Act.(e) The minimum trusteed surplus requirements             provided in paragraph (C) of this subsection (1) are not applicable with respect to a multibeneficiary trust maintained by a certified reinsurer for the purpose of securing obligations incurred under this subsection, except that such trust shall maintain a minimum trusteed surplus of $10,000,000.(f) With respect to obligations incurred by a             certified reinsurer under this subsection (1), if the security is insufficient, then the Director may reduce the allowable credit by an amount proportionate to the deficiency and may impose further reductions in allowable credit upon finding that there is a material risk that the certified reinsurer's obligations will not be paid in full when due.(9)(a) In the case of a downgrade by a rating         agency or other disqualifying circumstance, the Director shall by written notice assign a new rating to the certified reinsurer in accordance with the requirements of subparagraph (5) of this paragraph (C-5).(b) If the rating of a certified reinsurer is         upgraded by the Director, then the certified reinsurer may meet the security requirements applicable to its new rating on a prospective basis, but the Director shall require the certified reinsurer to post security under the previously applicable security requirements as to all contracts in force on or before the effective date of the upgraded rating. If the rating of a certified reinsurer is downgraded by the Director, then the Director shall require the certified reinsurer to meet the security requirements applicable to its new rating for all business it has assumed as a certified reinsurer.(c) The Director may suspend, revoke, or         otherwise modify a certified reinsurer's certification at any time if the certified reinsurer fails to meet its obligations or security requirements under this Section or if other financial or operating results of the certified reinsurer, or documented significant delays in payment by the certified reinsurer, lead the Director to reconsider the certified reinsurer's ability or willingness to meet its contractual obligations. In seeking to suspend, revoke, or otherwise modify a certified reinsurer's certification, the Director shall follow the procedures provided in paragraph (G) of this subsection (1).(d) For purposes of this subsection (1), a         certified reinsurer whose certification has been terminated for any reason shall be treated as a certified reinsurer required to secure 100% of its obligations.(i) As used in this item (d), the term             "terminated" refers to revocation, suspension, voluntary surrender and inactive status.(ii) If the Director continues to assign a             higher rating as permitted by other provisions of this Section, then this requirement does not apply to a certified reinsurer in inactive status or to a reinsurer whose certification has been suspended.(e) Upon revocation of the certification of a         certified reinsurer by the Director, the assuming insurer shall be required to post security in accordance with subsection (2) of this Section in order for the ceding insurer to continue to take credit for reinsurance ceded to the assuming insurer. If funds continue to be held in trust, then the Director may allow additional credit equal to the ceding insurer's pro rata share of the funds, discounted to reflect the risk of uncollectibility and anticipated expenses of trust administration.(f) Notwithstanding the change of a certified         reinsurer's rating or revocation of its certification, a domestic insurer that has ceded reinsurance to that certified reinsurer may not be denied credit for reinsurance for a period of 3 months for all reinsurance ceded to that certified reinsurer, unless the reinsurance is found by the Director to be at high risk of uncollectibility.(10) A certified reinsurer that ceases to assume         new business in this State may request to maintain its certification in inactive status in order to continue to qualify for a reduction in security for its in-force business. An inactive certified reinsurer shall continue to comply with all applicable requirements of this subsection (1), and the Director shall assign a rating that takes into account, if relevant, the reasons why the reinsurer is not assuming new business.(11) Credit for reinsurance under this paragraph         (C-5)             shall apply only to reinsurance contracts entered             into or renewed on or after the effective date of             the certification of the assuming insurer.(12) The Director shall comply with all reporting         and notification requirements that may be established by the NAIC with respect to certified reinsurers and qualified jurisdictions.(C-10)(1)   Credit shall be allowed when the     reinsurance is ceded to an assuming insurer meeting each of the conditions set forth in this subparagraph.(a)   The assuming insurer must have its head         office in or be domiciled in, as applicable, and be licensed in a reciprocal jurisdiction. As used in this paragraph (C-10), "reciprocal jurisdiction" means a jurisdiction that meets one of the following:(i) a non-U.S. jurisdiction that is subject             to an in-force covered agreement with the United States, each within its legal authority, or, in the case of a covered agreement between the United States and European Union, is a member state of the European Union; as used in this subitem, "covered agreement" means an agreement entered into pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (31 U.S.C. 313 and 314) that is currently in effect or in a period of provisional application and addresses the elimination, under specified conditions, of collateral requirements as a condition for entering into any reinsurance agreement with a ceding insurer domiciled in this State or for allowing the ceding insurer to recognize credit for reinsurance;(ii) a U.S. jurisdiction that meets the             requirements for accreditation under the NAIC financial standards and accreditation program; or(iii) a qualified jurisdiction, as determined             by the Director pursuant to subparagraph (3) of paragraph (C-5) of subsection (1) of this Section, that is not otherwise described in subitem (i) or (ii) of this item and that meets certain additional requirements, consistent with the terms and conditions of in-force covered agreements, as specified by the Department by rule.(b)   The assuming insurer must have and         maintain, on an ongoing basis, minimum capital and surplus, or its equivalent, calculated according to the methodology of its domiciliary jurisdiction, in an amount to be set forth by rule. If the assuming insurer is an association, including incorporated and individual unincorporated underwriters, it must have and maintain, on an ongoing basis, minimum capital and surplus equivalents (net of liabilities) calculated according to the methodology applicable in its domiciliary jurisdiction and a central fund containing a balance in amounts to be set forth by rule.(c)   The assuming insurer must have and         maintain, on an ongoing basis, a minimum solvency or capital ratio, as applicable, that will be set forth by rule. If the assuming insurer is an association, including incorporated and individual unincorporated underwriters, it must have and maintain, on an ongoing basis, a minimum solvency or capital ratio in the reciprocal jurisdiction where the assuming insurer has its head office or is domiciled, as applicable, and is also licensed.(d)   The assuming insurer must provide adequate         assurance to the Director, in a form specified by the Department by rule, as follows:(i) the assuming insurer must provide prompt             written notice and explanation to the Director if it falls below the minimum requirements set forth in items (b) or (c) of this subparagraph or if any regulatory action is taken against it for serious noncompliance with applicable law;(ii) the assuming insurer must consent in             writing to the jurisdiction of the courts of this State and to the appointment of the Director as agent for service of process; the Director may require that consent for service of process be provided to the Director and included in each reinsurance agreement; nothing in this subitem (ii) shall limit or in any way alter the capacity of parties to a reinsurance agreement to agree to alternative dispute resolution mechanisms, except to the extent such agreements are unenforceable under applicable insolvency or delinquency laws;(iii) the assuming insurer must consent in             writing to pay all final judgments obtained by a ceding insurer or its legal successor, whenever enforcement is sought, that have been declared enforceable in the jurisdiction where the judgment was obtained;(iv) each reinsurance agreement must include             a provision requiring the assuming insurer to provide security in an amount equal to 100% of the assuming insurer's liabilities attributable to reinsurance ceded pursuant to that agreement if the assuming insurer resists enforcement of a final judgment that is enforceable under the law of the jurisdiction in which it was obtained or a properly enforceable arbitration award, whether obtained by the ceding insurer or by its legal successor on behalf of its resolution estate; and(v) the assuming insurer must confirm that it             is not presently participating in any solvent scheme of arrangement which involves this State's ceding insurers and agree to notify the ceding insurer and the Director and to provide security in an amount equal to 100% of the assuming insurer's liabilities to the ceding insurer if the assuming insurer enters into such a solvent scheme of arrangement; the security shall be in a form consistent with the provisions of paragraph (C-5) of subsection (1) and subsection (2) and as specified by the Department by rule.(e)   If requested by the Director, the assuming         insurer or its legal successor must provide, on behalf of itself and any legal predecessors, certain documentation to the Director, as specified by the Department by rule.(f)   The assuming insurer must maintain a         practice of prompt payment of claims under reinsurance agreements pursuant to criteria set forth by rule.(g)   The assuming insurer's supervisory         authority must confirm to the Director on an annual basis, as of the preceding December 31 or at the annual date otherwise statutorily reported to the reciprocal jurisdiction, that the assuming insurer complied with the requirements set forth in items (b) and (c) of this subparagraph.(h)   Nothing in this subparagraph precludes an         assuming insurer from providing the Director with information on a voluntary basis.(2)   The Director shall timely create and publish a     list of reciprocal jurisdictions.(a)   The Director's list shall include any         reciprocal jurisdiction as defined under subitems (i) and (ii) of item (a) of subparagraph (1) of this paragraph, and shall consider any other reciprocal jurisdiction included on the list of reciprocal jurisdictions published through the NAIC committee process. The Director may approve a jurisdiction that does not appear on the NAIC list of reciprocal jurisdictions in accordance with criteria to be developed by rules adopted by the Department.(b)   The Director may remove a jurisdiction from         the list of reciprocal jurisdictions upon a determination that the jurisdiction no longer meets the requirements of a reciprocal jurisdiction in accordance with a process set forth in rules adopted by the Department, except that the Director shall not remove from the list a reciprocal jurisdiction as defined under subitems (i) and (ii) of item (a) of subparagraph (1) of this paragraph. If otherwise allowed pursuant to this Section, credit for reinsurance ceded to an assuming insurer that has its home office or is domiciled in that jurisdiction shall be allowed upon removal of a reciprocal jurisdiction from this list.(3)     The Director shall timely create and publish     a list of assuming insurers that have satisfied the conditions set forth in this paragraph and to which cessions shall be granted credit in accordance with this paragraph. The Director may add an assuming insurer to the list if a NAIC-accredited jurisdiction has added the assuming insurer to a list of assuming insurers or if, upon initial eligibility, the assuming insurer submits the information to the Director as required under item (d) of subparagraph (1) of this paragraph and complies with any additional requirements that the Department may impose by rule except to the extent that they conflict with an applicable covered agreement.(4)     If the Director determines that an assuming     insurer no longer meets one or more of the requirements under this paragraph, the Director may revoke or suspend the eligibility of the assuming insurer for recognition under this paragraph in accordance with procedures set forth by rule.(a)   While an assuming insurer's eligibility is         suspended, no reinsurance agreement issued, amended, or renewed after the effective date of the suspension qualifies for credit except to the extent that the assuming insurer's obligations under the contract are secured in accordance with subsection (2).(b)   If an assuming insurer's eligibility is         revoked, no credit for reinsurance may be granted after the effective date of the revocation with respect to any reinsurance agreements entered into by the assuming insurer, including reinsurance agreements entered into before the date of revocation, except to the extent that the assuming insurer's obligations under the contract are secured in a form acceptable to the Director and consistent with the provisions of subsection (2).(5)   If subject to a legal process of     rehabilitation, liquidation, or conservation, as applicable, the ceding insurer or its representative may seek and, if determined appropriate by the court in which the proceedings are pending, may obtain an order requiring that the assuming insurer post security for all outstanding ceded liabilities.(6)   Nothing in this paragraph shall limit or in any     way alter the capacity of parties to a reinsurance agreement to agree on requirements for security or other terms in that reinsurance agreement except as expressly prohibited by this Section or other applicable law or regulation.(7)   Credit may be taken under this paragraph only     for reinsurance agreements entered into, amended, or renewed on or after the effective date of this amendatory Act of the 102nd General Assembly and only with respect to losses incurred and reserves reported on or after the later of:(i) the date on which the assuming insurer has         met all eligibility requirements pursuant to subparagraph (1) of this paragraph; and(ii) the effective date of the new reinsurance         agreement, amendment, or renewal.This subparagraph does not alter or impair a ceding     insurer's right to take credit for reinsurance, to the extent that credit is not available under this paragraph, as long as the reinsurance qualifies for credit under any other applicable provision of this Section.(8)   Nothing in this paragraph shall authorize an     assuming insurer to withdraw or reduce the security provided under any reinsurance agreement except as permitted by the terms of the agreement.(9)   Nothing in this paragraph shall limit or in any     way alter the capacity of parties to any reinsurance agreement to renegotiate the agreement.(D) Credit shall be allowed when the reinsurance is     ceded to an assuming insurer not meeting the requirements of paragraph (A), (B), (B-5), (C), (C-5), or (C-10) of this subsection (1) but only with respect to the insurance of risks located in jurisdictions where that reinsurance is required by applicable law or regulation of that jurisdiction.(E) If the assuming insurer is not licensed to     transact insurance in this State or an accredited or certified reinsurer in this State, the credit permitted by paragraphs (B-5) and (C) of this subsection (1) shall not be allowed unless the assuming insurer agrees in the reinsurance agreements:(1) that in the event of the failure of the         assuming insurer to perform its obligations under the terms of the reinsurance agreement, the assuming insurer, at the request of the ceding insurer, shall submit to the jurisdiction of any court of competent jurisdiction in any state of the United States, will comply with all requirements necessary to give the court jurisdiction, and will abide by the final decision of the court or of any appellate court in the event of an appeal; and(2) to designate the Director or a designated         attorney as its true and lawful attorney upon whom may be served any lawful process in any action, suit, or proceeding instituted by or on behalf of the ceding company.This provision is not intended to conflict with or     override the obligation of the parties to a reinsurance agreement to arbitrate their disputes, if an obligation to arbitrate is created in the agreement.(F) If the assuming insurer does not meet the     requirements of paragraph (A), (B), (B-5), or (C-10) of this subsection (1), the credit permitted by paragraph (C) or (C-5) of this subsection (1) shall not be allowed unless the assuming insurer agrees in the trust agreements to the following conditions:(1) Notwithstanding any other provisions in the         trust instrument, if the trust fund is inadequate because it contains an amount less than the amount required by subparagraph (3) of paragraph (C) of this subsection (1) or if the grantor of the trust has been declared insolvent or placed into receivership, rehabilitation, liquidation, or similar proceedings under the laws of its state or country of domicile, the trustee shall comply with an order of the state official with regulatory oversight over the trust or with an order of a court of competent jurisdiction directing the trustee to transfer to the state official with regulatory oversight all of the assets of the trust fund.(2) The assets shall be distributed by and claims         shall be filed with and valued by the state official with regulatory oversight in accordance with the laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic insurance companies.(3) If the state official with regulatory         oversight determines that the assets of the trust fund or any part thereof are not necessary to satisfy the claims of the U.S. ceding insurers of the grantor of the trust, the assets or part thereof shall be returned by the state official with regulatory oversight to the trustee for distribution in accordance with the trust agreement.(4) The grantor shall waive any rights otherwise         available to it under U.S. law that are inconsistent with the provision.(G) If an accredited or certified reinsurer ceases to     meet the requirements for accreditation or certification, then the Director may suspend or revoke the reinsurer's accreditation or certification.(1) The Director must give the reinsurer notice         and opportunity for hearing. The suspension or revocation may not take effect until after the Director's order on hearing, unless:(a) the reinsurer waives its right to hearing;(b) the Director's order is based on             regulatory action by the reinsurer's domiciliary jurisdiction or the voluntary surrender or termination of the reinsurer's eligibility to transact insurance or reinsurance business in its domiciliary jurisdiction or in the primary certifying state of the reinsurer under subparagraph (4) of paragraph (C-5) of this subsection (1); or(c) the Director finds that an emergency             requires immediate action and a court of competent jurisdiction has not stayed the Director's action.(2) While a reinsurer's accreditation or         certification is suspended, no reinsurance contract issued or renewed after the effective date of the suspension qualifies for credit except to the extent that the reinsurer's obligations under the contract are secured in accordance with subsection (2) of this Section. If a reinsurer's accreditation or certification is revoked, no credit for reinsurance may be granted after the effective date of the revocation, except to the extent that the reinsurer's obligations under the contract are secured in accordance with subsection (2) of this Section.(H) The following provisions shall apply concerning     concentration of risk:(1) A ceding insurer shall take steps to manage         its reinsurance recoverable proportionate to its own book of business. A domestic ceding insurer shall notify the Director within 30 days after reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, exceeds 50% of the domestic ceding insurer's last reported surplus to policyholders, or after it is determined that reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate that the exposure is safely managed by the domestic ceding insurer.(2) A ceding insurer shall take steps to         diversify its reinsurance program. A domestic ceding insurer shall notify the Director within 30 days after ceding to any single assuming insurer, or group of affiliated assuming insurers, more than 20% of the ceding insurer's gross written premium in the prior calendar year, or after it has determined that the reinsurance ceded to any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate that the exposure is safely managed by the domestic ceding insurer.(2) Credit for the reinsurance ceded by a
domestic
insurer to an assuming insurer not meeting the requirements of subsection
(1) of this Section shall be allowed in an amount not exceeding the assets or liabilities
carried by
the ceding insurer.  The credit shall not exceed the amount of funds held
by or held in trust for the ceding insurer under a reinsurance contract with the assuming insurer
as security for the payment of obligations thereunder, if the security is
held in the United States subject to withdrawal solely by, and under the
exclusive control of, the ceding insurer; or, in the case of a trust, held
in a qualified United States financial institution, as defined in paragraph (B) of
subsection (3) of this Section.  This security may be in the form of:(A) Cash.(B) Securities listed by the Securities Valuation     Office of the National Association of Insurance Commissioners, including those deemed exempt from filing as defined by the Purposes and Procedures Manual of the Securities Valuation Office that conform to the requirements of Article VIII of this Code that are not issued by an affiliate of either the assuming or ceding company.(C) Clean, irrevocable, unconditional, letters of     credit issued or confirmed by a qualified United States financial institution, as defined in paragraph (A) of subsection (3) of this Section.  The letters of credit shall be effective no later than December 31 of the year for which filing is being made, and in the possession of, or in trust for, the ceding company on or before the filing date of its annual statement.  Letters of credit meeting applicable standards of issuer acceptability as of the dates of their issuance (or confirmation) shall, notwithstanding the issuing (or confirming) institution's subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until their expiration, extension, renewal, modification, or amendment, whichever first occurs.(D) Any other form of security acceptable to the     Director.(3)(A) For purposes of paragraph (C) of subsection (2) of this Section, a "qualified United States
financial institution" means an institution that:(1) is organized or, in the case of a U.S. office of     a foreign banking organization, licensed under the laws of the United States or any state thereof;(2) is regulated, supervised, and examined by U.S.     federal or state authorities having regulatory authority over banks and trust companies;(3) has been designated by either the Director or the     Securities Valuation Office of the National Association of Insurance Commissioners as meeting such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the Director; and(4) is not affiliated with the assuming company.(B) A "qualified United States financial institution" means, for
purposes of those provisions of this law specifying those institutions that
are eligible to act as a fiduciary of a trust, an institution that:(1) is organized or, in the case of the U.S. branch     or agency office of a foreign banking organization, licensed under the laws of the United States or any state thereof and has been granted authority to operate with fiduciary powers;(2) is regulated, supervised, and examined by federal     or state authorities having regulatory authority over banks and trust companies; and(3) is not affiliated with the assuming company,     however, if the subject of the reinsurance contract is insurance written pursuant to Section 155.51 of this Code, the financial institution may be affiliated with the assuming company with the prior approval of the Director.(C) Except as set forth in subparagraph (11) of paragraph (C-5) of subsection (1) of this Section as to cessions by certified reinsurers, this amendatory Act of the 100th General Assembly shall apply to all cessions after the effective date of this amendatory Act of the 100th General Assembly under reinsurance agreements that have an inception, anniversary, or renewal date not less than 6 months after the effective date of this amendatory Act of the 100th General Assembly.(D) The Department shall adopt rules implementing the provisions of this Article.(Source: P.A. 102-578, eff. 7-1-22 (See Section 5 of P.A. 102-672 for effective date of P.A. 102-578).) (215 ILCS 5/173.2) (from Ch. 73, par. 785.2)Sec. 173.2. 
		Reserve  credit for liability assumed.No credit shall be allowed as an admitted asset or as a deduction from
liability, to any ceding company for reinsurance unless the reinsurance is
payable by the assuming company on the basis of the liability of the ceding
company under the contract or contracts reinsured without diminution
because of the insolvency of the ceding company.
		(Source: Laws 1965, p. 1077.) (215 ILCS 5/173.3) (from Ch. 73, par. 785.3)Sec. 173.3. 
		Payment  by assuming company.(1) No such credit shall be allowed for reinsurance unless the
reinsurance agreement provides that payments by the assuming company shall
be made directly to the ceding company or to its liquidator, receiver, or
statutory successor, except where the contract specifically provides
another payee of such reinsurance in the event of the insolvency of the
ceding company or where the assuming company with the consent of the direct
insured or insureds has assumed such policy obligations of the ceding
company to the payees under such policies and in substitution for the
obligations of the ceding company to such payees.(2) Except as provided in this Section, no assuming company may pay or
settle, or agree to pay or settle, any policy claim, or any portion
thereof, directly to or with a policyholder of any ceding company if an
Order of Rehabilitation or Liquidation has been entered against such ceding
company.
		(Source: P.A. 77-1329.) (215 ILCS 5/173.4) (from Ch. 73, par. 785.4)Sec. 173.4. 
		Assuming  company may defend claims for insolvent ceding company.Such reinsurance agreement may provide that the liquidator or receiver
of an insolvent ceding company shall give written notice of the pendency of
a claim against the insolvent ceding company on the policy or bond
reinsured within a reasonable time after such claim is filed in the
insolvency proceeding and that during the pendency of such claim any
assuming company may investigate such claim and interpose, at its own
expense, in the proceeding where such claim is to be adjudicated any
defense or defenses which it considers available to the ceding company or
its liquidator or receiver. The expense thus incurred by the assuming
company is chargeable against the insolvent ceding company as a part of the
expense of liquidation to the extent of a proportionate share of the
benefit which accrues to the ceding company solely as a result of the
defense undertaken by the assuming company.Where two or more assuming companies are involved in the same claim and
a majority in interest elect to interpose a defense to such claim, the
expense shall be apportioned in accordance with the terms of the
reinsurance agreement as though such expense had been incurred by the
ceding company.
		(Source: Laws 1965, p. 1077.) (215 ILCS 5/173.5) (from Ch. 73, par. 785.5)Sec. 173.5. 
		Crediting of commissions from cancellable reinsurance.Where the parties to a reinsurance contract cancel such contract within
90 days of its effective date without providing for a runoff of the
reinsurance in force at the date of cancellation, credit for commission
shall be allowed on the financial statement of the ceding company only for
that amount of such commission as is actually earned. In the case of any
cancellation of reinsurance contracts involving more than 20% of the ceding
company's premiums in force, the ceding company shall notify the Director
thereof in writing, stating the estimated amount of gross unearned premiums
and return commissions involved.
		(Source: Laws 1965, p. 1077.) (215 ILCS 5/174) (from Ch. 73, par. 786)Sec. 174. Kinds of
agreements requiring approval.(1) The following kinds of reinsurance agreements shall not be entered into
by any domestic company unless such agreements are approved in writing by
the Director:(a) Agreements of reinsurance of any such company     transacting the kind or kinds of business enumerated in Class 1 of Section 4, or as a Fraternal Benefit Society under Article XVII, a Mutual Benefit Association under Article XVIII, a Burial Society under Article XIX or an Assessment Accident and Assessment Accident and Health Company under Article XXI, cedes previously issued and outstanding risks to any company, or cedes any risks to a company not authorized to transact business in this State, or assumes any outstanding risks on which the aggregate reserves and claim liabilities exceed 20 percent of the aggregate reserves and claim liabilities of the assuming company, as reported in the preceding annual statement, for the business of either life or accident and health insurance.(b) Any agreement or agreements of reinsurance     whereby any company transacting the kind or kinds of business enumerated in either Class 2 or Class 3 of Section 4 cedes to any company or companies at one time, or during a period of six consecutive months more than twenty per centum of the total amount of its previously retained unearned premium reserve liability.(c) (Blank).(2) An agreement which is not disapproved by the Director within thirty
days after its submission shall be deemed approved.
(Source: P.A. 98-969, eff. 1-1-15.) (215 ILCS 5/174.1) (from Ch. 73, par. 786.1)Sec. 174.1. 
		Kinds of Agreements Prohibited. 
		No domestic stock company with
less than $5,000,000 capital and surplus nor domestic mutual or reciprocal company
with less than $5,000,000 surplus may assume as reinsurance any of the kind or
kinds of businesses enumerated in Class 2 or Class 3 of Section 4 of this
Code, except Class 2(a), and except for facultative reinsurance of specific
risks and assumption of risks from companies subject to "An Act
relating to local, mutual district, county and township insurance
companies", approved March 13, 1936, as amended.  If approval of the
Director is obtained prior to the reinsurance
assumption, this prohibition shall not apply to any company organized and
authorized to do business in Illinois between July 1, 1981, and June 30,
1983, until January 1, 1989.
		(Source: P.A. 84-671.) (215 ILCS 5/175) (from Ch. 73, par. 787)Sec. 175. 
		
		Conditions
for approval.Any reinsurance agreement requiring the written approval of the Director
under section 174 shall be approved by him if the terms thereof do not
injuriously affect the rights of policyholders of any of the companies
which are parties thereto. If the Director refuses to approve any such
agreement, he shall grant the company a hearing upon request.
		(Source: Laws 1965, p. 1077.) (215 ILCS 5/176) (from Ch. 73, par. 788)Sec. 176. 
		
		Pending
actions.Whenever a company agrees to assume and carry out directly with the
policyholder any of the policy obligations of the ceding company under a
reinsurance agreement, any claim existing or action or proceeding pending
arising out of such policy, by or against the ceding company with respect
to such obligations may be prosecuted to judgment as if such reinsurance
agreement had not been made, or the assuming company may be substituted in
place of the ceding company.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/177) (from Ch. 73, par. 789)Sec. 177. 
		
		Transfer
of deposits.The provisions of section 170 applicable to the transfer of deposits
of legal reserves on policies of merged or consolidated companies shall
apply to the transfer of deposits of such reserves of a ceding company in
the case of a reinsurance agreement, and for the purposes of determining
the conditions and requirements for such transfer the assuming company
shall be regarded as a surviving or new company and the ceding company
shall be regarded as a company that has been merged or consolidated.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/178)Sec. 178. (Repealed).
	 
	 (Source: Laws 1937, p. 696. Repealed by P.A. 98-692, eff. 7-1-14; 98-969, eff. 1-1-15.) (215 ILCS 5/179) (from Ch. 73, par. 791)Sec. 179. 
		
		Payment of
fees to officer or director prohibited.(1) No director or officer of any company, party to a reinsurance
agreement, except as fully expressed in the reinsurance agreement, shall
receive any fee, commission, other compensation or valuable consideration
whatever, directly or indirectly, for in any manner aiding, promoting or
assisting in the negotiation of such reinsurance agreement.(2) Any person violating the provisions of this section shall be guilty
of a Class A misdemeanor.
		(Source: P.A. 77-2699.) (215 ILCS 5/179a)Sec. 179a. 
		Managing general agent prohibition.(a) No managing general agent, as defined in Section 141a, shall receive any
compensation or remuneration for, or in any manner profit from, obtaining or
arranging reinsurance for a domestic company with respect to business
underwritten by that managing general agent.(b) Any person violating the provisions of this Section is guilty of a Class
A misdemeanor.
		(Source: P.A. 88-364.) (215 ILCS 5/179b)Sec. 179b. 
		Reinsurance committee. 
		Each domestic company that cedes any
reinsurance must establish and maintain a reinsurance committee with not fewer
than 3 members, at least one of which must be a member of the company's board
of directors.  The committee shall review and approve all treaty reinsurance
placements and review and approve guidelines for facultative placements for the
company, with the
exception of a reinsurance agreement in which the aggregate premium ceded in
any one year is
less than 1% of the company's annual gross written premium.
The committee shall give special attention to reinsurers' financial
strength and performance record.
		(Source: P.A. 88-364.)
(215 ILCS 5/Art. XIE heading) ARTICLE XIE.  
		Special Purpose Reinsurance Vehicle Law (215 ILCS 5/179E-1)Sec. 179E-1. 
		Short title. 
		This Article may be cited as the Special Purpose
Reinsurance Vehicle Law.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-5)Sec. 179E-5. 
		Purpose. 
		This Article is adopted to provide for the creation
of
Special
Purpose Reinsurance Vehicles ("SPRV") exclusively to facilitate the
securitization of one
or more ceding insurers' risk as a means of accessing alternative sources of
capital and
achieving the benefits of securitization.  Investors in fully funded insurance
securitization
transactions provide funds that are available to the SPRV to secure the
aggregate limit under
an SPRV contract that provides coverage against the occurrence of a triggering
event.  The
creation of SPRVs is intended to achieve greater efficiencies in conducting
insurance
securitizations, to diversify and broaden insurers' access to sources of risk
bearing capital,
and to make insurance securitization generally available on reasonable terms to
as many
U.S. insurers as possible.Under the terms of the typical securities underlying an insurance
securitization
transaction, proceeds from the issuance of securities are repaid to the
investor on a specified
maturity date with interest or dividends unless a triggering event occurs.  The
insurance
securitization proceeds are available to pay the SPRV's obligations to the
ceding insurer if
the triggering event occurs, as well as being available to satisfy the SPRV's
obligation to
repay the insurance securitization investors if a triggering event does not
occur.  Insurance
securitization transactions have been performed by alien companies to utilize
efficiencies
available to those alien companies that are not currently available to domestic
companies.
This Article is adopted to allow more efficiency in conducting insurance
securitizations, to
allow ceding insurers easier access to alternative sources of risk
bearing capital,
and to promote the benefits of insurance securitization to U.S. insurers.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-10)Sec. 179E-10. 
		Exemption from insurance laws within limitations.(a) An SPRV is subject to the following:(1) Articles I, XII 1/2, XXIV, XXV (Sections 408 and     412 only), and XXVIII (except for Sections 445, 445.1, 445.2, 445.3, 445.4, and 445.5) of this Code; and(2) Sections 132.1 through 134, 137 through 140,     155.01, 155.03, and 155.04 of this Code.(b) No other provisions of this Code apply to an SPRV organized under this
Article,
except as otherwise provided in this Article.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-15)Sec. 179E-15. 
		Definitions. 
		For purposes of this Article, the following
terms have the indicated meanings:"Aggregate limit" means the maximum sum payable to the ceding insurer under
an SPRV contract."Ceding insurer" means one or more insurers or reinsurers under common
control that enters into an SPRV contract with an SPRV."Control" (including the terms "controlling," "controlled by" and "under
common control with") means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a person,
whether through the ownership of voting securities, by contract other than a
commercial contract for goods or non-management services, or otherwise, unless
the power is the result of an official position with or corporate office held
by the person.  Control shall be presumed to exist if any person, directly or
indirectly, owns, controls, holds with the power to vote, or holds proxies
representing, 10% or more of the voting securities of any other person.  This
presumption may be rebutted by a showing that control does not, in fact, exist.
 Notwithstanding the foregoing, for purposes of this Article, the fact that an
SPRV exclusively provides reinsurance to a ceding insurer under an SPRV
contract shall not by itself be sufficient grounds for a finding that the SPRV
or the SPRV organizer or owner is controlled by or under common control with
the ceding insurer."Fair Value" means:(1) as to cash, the amount thereof; and(2) as to an asset other than cash:(A) the amount at which that asset could be         bought or sold in a current transaction between arms-length, willing parties;(B) quoted market price for the asset in active         markets should be used if available; and(C) if quoted market prices are not available, a         value determined using the best information available considering values of like assets and other valuation methods, such as present value of future cash flows, historical value of the same or similar assets or comparison to values of other asset classes the value of which have been historically related to the subject asset."Fully funded" means that, with respect to an SPRV contract, the fair value
of the assets held in trust by or on behalf of the SPRV under the SPRV contract
on the date on which the SPRV contract is effected, equals or exceeds the
aggregate limit as defined in this Article."Indemnity trigger" means a transaction term by which the SPRV's obligation
to pay the ceding insurer for losses covered by an SPRV contract is triggered
by the ceding insurer incurring a specified level of losses."Insolvency" or "insolvent" means that the SPRV is unable to pay its
obligations when they are due, unless those obligations are the subject of a
bona fide dispute."Non-indemnity trigger" means a transaction term by which the SPRV's
obligation to pay the ceding insurer under an SPRV contract arises from the
occurrence or existence of some event or condition other than the ceding
insurer incurring a specified level of losses under its insurance or
reinsurance contracts."Permitted investments" means those investments that meet the qualifications
set forth in Section 179E-85."Qualified U.S. financial institution" means, for purposes of meeting the
requirements of a  trustee under this Article, a financial institution that is
eligible to act as a fiduciary of a trust, and that is:(1) organized or, in the case of a U.S. branch or     agency office of a foreign banking organization, licensed, under the laws of the United States or any state of the United States; and(2) regulated, supervised, and examined by federal or     state authorities having regulatory authority over banks and trust companies."Special purpose reinsurance vehicle" or "SPRV" means an entity, domiciled in
and organized under the laws of this State, that has received a limited
certificate of authority from the Director under this Article exclusively for
the limited purpose of entering into and effectuating SPRV insurance
securitizations, SPRV contracts, and other related transactions permitted by
this Article."SPRV contract" means a contract between the SPRV and the ceding insurer
pursuant to which the SPRV agrees to pay the ceding insurer an agreed amount
upon the occurrence of a triggering event."SPRV insurance securitization" means a package of related risk transfer
instruments and facilitating administrative agreements by which proceeds are
obtained by an SPRV through the issuance of securities, which proceeds are held
in trust pursuant to the requirements of this Article to secure the obligations
of the SPRV under an SPRV contract with one or more ceding insurers, wherein
the SPRV's obligation to return the full initial investment to the holders of
those securities, pursuant to the transaction terms, is contingent upon those
funds not being used to pay the obligations of the SPRV to the ceding insurers
under the SPRV Contract."SPRV organizer" means one or more persons who have organized or intend to
organize an SPRV under authority obtained pursuant to Section 179E-20."SPRV securities" means the securities issued by an SPRV."Triggering event" means an event or condition that, if and when it occurs or
exists, obligates the SPRV to make a payment to the ceding insurer under the
provisions of an SPRV contract.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-20)Sec. 179E-20. 
		Limited certificate of authority.(a) Within 30 days after receipt by the Director of a complete filing by the
prospective SPRV organizer for authority to form or acquire an SPRV, which
SPRV shall exist and operate expressly for the limited purposes set forth in
this
Article, the application shall be deemed approved and a limited certificate of
authority shall be issued, unless before the expiration of the 30-day period
the
Director approves or disapproves the application in writing.
A limited certificate of authority may not be issued unless the country or
state
of domicile of each ceding insurer has notified the Director in writing that
they have not disapproved the transaction.
A complete filing
of the
application must include the following:(1) an affidavit verifying that each prospective SPRV     organizer the SPRV meets the requirements as set forth in this Article;(2) a representation that the prospective SPRV     organizer intends to form an SPRV to operate in accordance with the requirements set forth in this Article;(3) the proposed name of the subject SPRV;(4) biographical descriptions of each SPRV organizer     setting forth their legal names, any names under which they have or are conducting their affairs, and any affiliations with other persons as defined in Article VIII 1/2, together with such other biographical information as the Director may request;(5) the source and form of the minimum capital to be     contributed to the SPRV;(6) any persons with which the SPRV is or, upon     formation, will be affiliated as defined in Article VIII 1/2;(7) the names and biographical information of the     proposed members of the board of directors and principal officers of the SPRV, setting forth their legal names, any names under which they have or are conducting their affairs and any affiliations with other persons as defined in Article VIII 1/2, together with such other biographical information as the Director may request; and(8) a plan of operation, consisting of a description     of the contemplated insurance securitization, the SPRV contract, and related transactions, which plan of operation must include:(A) draft documentation or, at the discretion of         the Director, a written summary, of all material agreements that will be entered into to effectuate the insurance securitization and the related SPRV contract, including the names of the ceding insurers, the nature of the risks being assumed, and the maximum amounts, purpose, nature, and interrelationships of the various transactions required to effectuate the insurance securitization;(B) the investment strategy of the  SPRV and a         representation that (i) the investment strategy complies with the investment requirements set forth in this Article and (ii) includes investment practices or other provisions to preserve asset values that will facilitate attainment of full funding during the term of the securitization with assets that can be monetized in response to a triggering event without a substantial loss in value;(C) a description of the method by which losses         covered by the SPRV contract that may develop after the termination of the contract period are to be addressed under the provisions of the SPRV contract; and(D) a representation that the trust agreement and         the trusts holding assets that secure the obligations of the SPRV under the SPRV contract  and the SPRV contract with the ceding insurers in connection with the contemplated insurance securitization will be structured in accordance with the requirements set forth in this Article.(b) The Director may not approve the application or issue a limited
certificate
of authority until he or she has found that the proposed plan of operation
provides a
reasonable expectation of a successful operation, based on the proposed SPRV
organizer, directors, and officers being of known good character and that
there
is no good reason to believe that they are affiliated, directly or indirectly,
through
ownership, control, management, reinsurance transactions, or other insurance or
business relations with any person or persons known to have been involved in
the
improper manipulation of assets, accounts or reinsurance.(c) Upon approval by the Director of the application and the issuance of a
limited certificate of authority, the SPRV may be acquired or formed and, in
accordance with the approved plan of operation, the SPRV may enter into
contracts
and conduct other activities within the parameters set forth in the filed plan
of
operation.(d) The limited certificate of authority so issued shall state that the
SPRV's
authorization to be involved in the business of reinsurance is limited to only
the
reinsurance activities that the SPRV is allowed to conduct under this Article.(e) The SPRV organizer must provide a complete set of the documentation
of
the
insurance securitization to the Director upon  closing of the transactions
including, but not
limited to, an opinion of legal counsel with respect to compliance with this
and any other
applicable laws as of the effective date of the transaction. Any material
change of the
SPRV's plan of operation described in  items (1) through (8) of subsection (a)
including, but
not limited to, the issuance of new securities to continue the securitization
activities of the
SPRV under this Article after expiration and full satisfaction of the initial
securitization
transactions, requires prior approval of the Director, however, a change in the
counterparty
to swap transactions for an existing securitization as allowed under this
Article shall not be
deemed a material change. Any material change that is not disapproved by the
Director in
writing within 15 days after its submission shall be deemed approved.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-25)Sec. 179E-25. 
		Limited purpose of SPRV. 
		This Article authorizes SPRVs to be
created for the limited purpose of entering into insurance securitization
transactions with
investors and into related agreements to pay one or more ceding insurers agreed
upon
amounts under an SPRV contract upon the occurrence of triggering events related
to the
insurance business of the ceding insurer. An SPRV may not issue a contract for
assumption
of risk or indemnification of loss other than an SPRV contract as defined
herein.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-30)Sec. 179E-30. 
		Approved transactions and operation of SPRVs.(a) SPRVs authorized under this Article may at any given time enter into and
effectuate SPRV contracts with one or more ceding insurers, provided that the
SPRV
contracts obligate the SPRV to indemnify the ceding insurer for losses and that
contingent
obligations of the SPRV under the SPRV contracts are securitized in full
through a single
SPRV insurance securitization and are fully funded and secured with assets held
in trust in
accordance with the requirements of this Article pursuant to agreements
contemplated by
this Article and invested in a manner that meets the criteria set forth in
Section 179E-85 of
this Article.(b) An SPRV may enter into such agreements with third parties and conduct
such business as is necessary to fulfill its obligations and administrative
duties
incident to the insurance securitization and the SPRV contract.  The agreements
may include entering into swap agreements or other transactions that have the
objective of leveling timing differences in funding up-front or ongoing
transaction
expenses or managing credit or interest rate risk of the investments
in trust to
assure that the assets held in trust will be sufficient to satisfy
(i) payment or
repayment of the securities issued pursuant to an insurance securitization
transaction or (ii) the obligations of the SPRV under the SPRV contract.  In
fulfilling
its function, the SPRV shall adhere to the following requirements and shall, to
the
extent of its powers, ensure that contracts obligating other parties to perform
certain
functions incident to its operations are substantively and materially
consistent with
the following requirements and guidelines:(1) An SPRV shall have a distinct name, which shall     include the designation "SPRV".  The name of the SPRV may not be deceptively similar to, or likely to be confused with or mistaken for, any other existing business name registered in this State.(2) Unless otherwise provided in the plan of     operation, the principal place of business and office of any SPRV organized under this Article must be located in this State.(3) The assets of an SPRV must be preserved and     administered by or on behalf of the SPRV to satisfy the liabilities and obligations of the SPRV incident to the insurance securitization and other related agreements, including the SPRV contract.(4) Assets of the SPRV that are pledged to secure     obligations of the SPRV to a ceding insurer under an SPRV contract must be held in trust and administered by a qualified U.S. financial institution.  The qualified U.S. financial institution may not control, be controlled by, or be under common control with, the SPRV or the ceding insurers.(5) The agreement governing any  trust must create     one or more trust accounts into which all pledged assets must be deposited and held until distributed in accordance with the trust agreement.  The pledged assets must be held by the trustee at the trustee's office in the United States and may be held in certificated or electronic form.(6) The provisions for withdrawal by ceding insurers     of assets from the trust shall be clean and unconditional, subject only to the following requirements:(A) the ceding insurer shall have the right to         withdraw assets from the trust account at any time, without notice to the SPRV, subject only to written notice to the trustee from the ceding insurer that funds in the amount requested are due and payable by the SPRV;(B) no other statement or document need be         presented in order to withdraw assets, except the ceding insurer may be required to acknowledge receipt of withdrawn assets;(C) the trust agreement must indicate that it is         not subject to any conditions or qualifications outside of the trust agreement;(D) the trust agreement may not contain         references to any other agreements or documents; and(E) no reference may be made to the fact that the         funds may represent reinsurance premiums or that the funds have been deposited for any specific purpose.(7) The trust agreement must be established for the     sole use and benefit of the ceding insurer at least to the full extent of the SPRV's obligations to the ceding insurer under the SPRV contract. If there is more than one ceding insurer, a separate trust agreement must be entered with each ceding insurer and a separate trust account must be maintained for each ceding insurer.(8) The trust agreement must provide for the trustee     to:(A) receive assets and hold all assets in a safe         place;(B) determine that all assets are in a form so         that the ceding insurer or the trustee, upon direction by the ceding insurer may, whenever necessary, negotiate any the assets, without consent or signature from the SPRV or any other person or entity;(C) furnish to the SPRV, the Director, and the          ceding insurer a statement of all assets in the trust account reported at fair value upon its inception and at intervals no less frequent than the end of each calendar quarter;(D) notify the SPRV and the ceding insurer,         within 10 days, of any deposits to or withdrawals from the trust account;(E) upon written demand of the ceding insurer,         immediately take any and all steps necessary to transfer absolutely and unequivocally all right, title, and interest in the assets held in the trust account to the ceding insurer and deliver physical custody of the assets to the ceding insurer; and(F) allow no substitutions or withdrawals of         assets from the trust account, except on written instructions from the ceding insurer.(9) The trust agreement must provide that at least 30     days, but not more than 45 days, before termination of the trust account, written notification of termination shall be delivered by the trustee to the ceding insurer.(10) The trust agreement may be made subject to and     governed by the laws of any state, in addition to the requirements for the trust as provided in this Article, provided that the state is disclosed in the plan of operation filed with and approved, or deemed approved, by the Director under Section 179E-20.(11) The trust agreement must prohibit invasion of     the trust corpus for the purpose of paying compensation to, or reimbursing the expenses of, the trustee.(12) The trust agreement must provide that the     trustee shall be liable for its own negligence, willful misconduct, or lack of good faith.(13) Notwithstanding the provisions of items (6)(C),     (6)(D), and (6)(E) of this subsection or item (14)(E) of this subsection, when a trust agreement is established in conjunction with an SPRV contract, then the trust agreement may provide that the ceding insurer must undertake to use and apply any amounts drawn upon the trust account, without diminution because of the insolvency of the ceding insurer or the SPRV, for the following purposes:(A) to pay or reimburse the ceding insurer         amounts due to the ceding insurer under the specific SPRV contract including, but not limited to, unearned premiums due to the ceding insurer, if not otherwise paid by the SPRV in accordance with the terms of the agreement; or(B) when the ceding insurer has received         notification of termination of the trust account, and when the SPRV's entire "obligations" under the specific SPRV contract remain unliquidated and undischarged 10 days prior to the termination date, to withdraw amounts equal to those obligations and deposit those amounts in a separate account, in the name of the ceding insurer, in any qualified U.S. financial institution, apart from its general assets, in trust for those uses and purposes specified in item (13)(A) of this subsection as may remain executory after the withdrawal and for any period after the termination date.  "Obligations" within the meaning of this subsection may, without duplication, include:(i) losses and loss expenses paid by the             ceding insurer, but not recovered from the SPRV;(ii) reserves for losses reported and             outstanding;(iii) reserves for losses incurred but not             reported;(iv) reserves for  loss expenses;(v) reserves for unearned premiums; and(vi) any other amounts that, together with             (iv), represent the aggregate limit remaining under the SPRV contract if the period of coverage or the agreed upon period of loss development has yet to expire.The provisions to be included in the trust agreement     pursuant to this item (13) may, in lieu thereof, be included in the underlying SPRV contract.(14) An SPRV contract
must contain provisions
that:(A) require the SPRV to enter into a  trust         agreement specifying what recoverables or reserves, or both, the agreement is to cover and to establish a trust account for the benefit of the ceding insurer;(B) stipulate that assets deposited in the trust         account must be valued according to their current fair value, and may consist only of permitted investments;(C) require the SPRV, before depositing assets         with the trustee, to execute assignments, endorsements in blank, or transfer legal title to the trustee of all shares, obligations, or any other assets requiring assignments, in order that the ceding insurer, or the trustee upon the direction of the ceding insurer, may whenever necessary negotiate the assets without consent or signature from the SPRV or any other entity;(D) require that all settlements of account         between the ceding insurer and the SPRV be made in cash or its equivalent; and(E) stipulate that the SPRV and the ceding         insurer agree that the assets in the trust account, established under the provisions of the SPRV contract, may be withdrawn by the ceding insurer at any time, notwithstanding any other provisions in the SPRV contract, and shall be utilized and applied by the ceding insurer or any successor by operation of law of the ceding insurer, including (subject to the provisions of Section 179E-80), but without further limitation, any liquidator, rehabilitator, receiver, or conservator of the ceding insurer, without diminution because of insolvency on the part of the ceding insurer or the SPRV, only for the following purposes:(i) to transfer all of those assets into  the             trust account for the benefit of  the ceding insurer under the terms of the SPRV contract and in compliance with this Article; and(ii) to pay any other amounts the ceding             insurer claims are due under the SPRV contract.(15) The SPRV contract entered into by the SPRV may     contain provisions that give the SPRV the right to seek approval from the ceding insurer to withdraw from the trust all or part of the assets contained in it and transfer the assets to the SPRV, provided that:(A) at the time of the withdrawal, the SPRV         replaces the withdrawn assets with other qualified assets having a fair value equal to the fair value of the assets withdrawn and that meet the requirements of Section 179E-85; and(B) after the withdrawals and transfer, the fair         value of the assets in trust  securing the obligations of the SPRV under the SPRV contract is no less than an amount needed to satisfy the fully funded requirement of the SPRV contract. The ceding insurer shall be the sole judge as to the application of these provisions, but shall not unreasonably nor arbitrarily withhold its approval.(16) The investors in the SPRV must agree, and be     contractually obligated to so do, that any obligation to repay principal, interest, or dividends on the securities issued by the SPRV shall be reduced upon the occurrence of a triggering event, to the extent that the assets of the SPRV held in trust for the benefit of the ceding insurer are remitted to the ceding insurer in fulfillment of the obligations of the SPRV under the SPRV contract.(17) Assets held by an SPRV in trust must be valued     at their fair value.(18) The proceeds from the sale of securities by the     SPRV to investors must be deposited with the trustee as contemplated by this Article, and must be held or invested by the trustee in accordance with the requirements of Section 179E-85.(19) An SPRV organized under this Article, may engage     only in fully funded indemnity triggered SPRV contracts to support in full the ceding insurers' exposures assumed by the SPRV, except that an SPRV may engage in an SPRV contract that is non-indemnity triggered after the Director, in accordance with the authority granted under Section 179E-100 of this Article, adopts rules addressing the treatment of the portion of the risk that is not indemnity based, including accounting, disclosure, risk-based capital treatment, and the manner in which risks associated with the non-indemnity based SPRV contract may be evaluated and managed. An SPRV may not at any time enter into an SPRV contract that is not fully funded, whether indemnity triggered or non-indemnity triggered.  Assets of the SPRV may be used to pay interest or other consideration on any outstanding debt or other obligation of the SPRV, and nothing in this item shall be construed or interpreted to prevent an SPRV from entering into a swap agreement or other transaction that has the effect of guaranteeing interest or other consideration.(20) The contracts or other documentation relating to     an SPRV insurance securitization must contain provisions identifying the SPRV that will enter into the special purpose reinsurance securitization. The contracts or other documentation must clearly disclose that the assets of the SPRV, and only those assets, are available to pay the obligations of that SPRV. Notwithstanding the foregoing, and subject to the provisions of this Article and any other applicable law or rule, the failure to include this language in the contracts or other documentation may not be used as the sole basis by creditors, reinsurers, or other claimants to circumvent the provisions of this Article.(21) Under no circumstances may an SPRV be authorized     to:(A) issue or otherwise administer primary         insurance policies;(B) have any obligation to the policyholders or         reinsureds of the ceding insurer;(C) enter into an SPRV contract with a person         that is not licensed or otherwise authorized to conduct the business of insurance or reinsurance in at least its state or country of domicile; or(D) assume or retain exposure to insurance or         reinsurance losses for its own account that is not initially fully funded by proceeds from an SPRV securitization that meets the requirements of this Article.(22) At the cessation of business of an SPRV the     limited certificate of authority granted by the Director shall expire and the SPRV shall no longer be authorized to conduct activities under this Article unless and until a new certificate of authority is issued pursuant to a new filing in accordance with Section 179E-20.(23) It is unlawful for an SPRV to loan or otherwise     invest, or place any of its assets in custody, trust, or under management with, or to borrow money or receive a loan from (other than by issuance of the securities pursuant to an SPRV insurance securitization), or advance from, anyone convicted of a felony, anyone who is untrustworthy or of known bad character, or anyone convicted of a criminal offense involving the conversion or misappropriation of fiduciary funds or insurance accounts, theft, deceit, fraud, misrepresentation, or corruption.		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-35)Sec. 179E-35. 
		Powers.(a) An SPRV authorized under this Article shall have the necessary
powers to enter
into contracts and to conduct such other commercial activities as are necessary
to fulfill the
purposes of this Article.  Those activities may include, but are not limited
to, entering into
SPRV contracts, issuing securities of the SPRV and complying with the terms
thereof,
entering into trust, swap, and other agreements as may be necessary to
effectuate an
insurance securitization in compliance with the limitations and pursuant to the
authorities
granted to the SPRV under this Article or the plan of operation approved or
deemed
approved by the Director.(b) An SPRV organized or doing business under this Article shall, by the
name
adopted by the SPRV, in law, be capable of suing or being sued, and may make or
enforce
contracts in relation to the business of the SPRV; may have and use a common
seal, and in
the name of the SPRV or by a trustee chosen by the board of directors, shall,
in law, be
capable of taking, purchasing, holding and disposing of real and personal
property for
carrying into effect the purposes of its organization; and may by its board of
directors,
trustees, officers, or managers, make by-laws and amendments thereto not
inconsistent with
the laws or the constitution of this  State or of the United States, which
by-laws shall define
the manner of electing directors, trustees, or managers and officers of the
SPRV, together
with their qualifications and duties and fixing their term of office.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-40)Sec. 179E-40. 
		Affiliation. 
		Notwithstanding the provisions
of Article
VIII 1/2, the SPRV, the SPRV organizer, and subsequent debt or equity
investors in SPRV
securities shall not be deemed affiliates of the ceding insurer by virtue of
the SPRV contract
between the ceding insurer and the SPRV, the securities of the SPRV, or related
agreements
necessary to implement the SPRV insurance securitization.
An SPRV may not be controlled by, may not control, and may not be under common
control with any ceding insurer that is a party to an SPRV contract.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-45)Sec. 179E-45. 
		Capitalization. 
		An SPRV must have minimum initial capital of
not
less than $5,000.  All of the initial capital must be received by the SPRV in
cash.  The
minimum initial capital required and all other funds of the SPRV in excess of
its minimum
initial capital, including funds held in trust to secure the obligations of the
SPRV pursuant to
its obligations under the SPRV contracts, shall be invested as provided in
Section 179E-85.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-50)Sec. 179E-50. 
		Dividends. 
		An SPRV may not declare or pay dividends in any
form
to its owners unless the dividends do not decrease the capital of the SPRV
below $5,000,
and after giving effect to the dividends, the assets of the SPRV, including
assets held in trust
pursuant to the terms of the insurance securitization, are sufficient to meet
its obligations.
Dividends may be declared by the board of directors of the SPRV if the
declaration of
dividends would not violate the provisions of this Article or jeopardize the
fulfillment of the
obligations of the SPRV or the trustee pursuant to the SPRV insurance
securitization, the
SPRV contract or any related transaction.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-55)Sec. 179E-55. 
		Records and financial reports.(a) The records of the SPRV must be maintained in this State and must be
available
for examination by the Department.  The Director shall have the right to
examine the
records of an SPRV at any time.  No later than 5 months after the fiscal year
end of the
SPRV, the SPRV must file with the Director an audit by a certified public
accounting firm
of the financial statements of the SPRV and the trust accounts.(b) No later than March 1 of each year, an SPRV organized under this Article
must
file with the Director a statement of operations, including, but not limited
to, a statement of
income, a balance sheet, and a detailed listing of invested assets, including
identification of
assets held in trust to secure the SPRV's obligations under the SPRV contract,
for the year
ending the previous December 31.  The statements shall be prepared in
accordance with
Section 136 of this Code on such forms and shall reveal such information as
shall be
required by the Director.(c) An SPRV must keep its books and records in a manner so that its
financial
condition, affairs, and operations can be ascertained, its financial statements
filed with the
Director can be readily verified, and its compliance with the provisions of
this Article can be
determined. An SPRV may cause any or all of the books or records to be
photographed,
reproduced on film, or stored and reproduced electronically.(d) All original books, records, documents, accounts, and vouchers, or
reproductions
of those items, must be preserved and kept available in this State for the
purpose of
examination and until authority to destroy or otherwise dispose of the records
is secured
from the Director. The original records may, however, be kept and maintained
outside this
State if, according to a plan adopted by the SPRV's board of directors and
approved by the
Director, it maintains  other suitable records.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-60)Sec. 179E-60. 
		Officers and directors.(a) The directors of an SPRV shall elect such officers they deem necessary
to
carry
out the purposes of the SPRV pursuant to this Article.  The provisions of
Section 10 of this
Code relating to the indemnification of officers and directors apply to and
govern SPRVs
organized under this Article.(b) An SPRV authorized to do business in this State must notify the Director
of
the
appointment or election of any new officers or directors within 30 days after
the
appointment or election.(c) If, after notice and hearing afforded to the officer or director, and
after
a finding
that the officer or director is incompetent or untrustworthy or of known bad
character, the
Director shall order the removal of the person. If the SPRV does not comply
with a removal
order within 30 days, the Director may suspend that SPRV's limited certificate
of authority
until such time as the order is complied with.(d) An SPRV may not make loans to any SPRV organizer, owner, director,
officer, manager, or affiliate.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-65)Sec. 179E-65. 
		Fees and taxes. 
		The Director may charge fees to reimburse
the
Director for expenses and costs incurred by the Department incident to the
examination of
financial statements and review of the plan of operation and to reimburse other
such
activities of the Director related to the formation and ongoing operation of an
SPRV. An
SPRV is not be subject to State premium or other State taxes incidental to the
operation of
its business as long as the business remains within the limitations of this
Article.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-70)Sec. 179E-70. 
		Dissolution. 
		An SPRV operating under this Article may be
dissolved
by a vote of its board of directors at any time after the Director has approved
that action.  A
voluntary dissolution may not be effected or allowed until and unless all of
the obligations
of the SPRV pursuant to the insurance securitization have been fully and
finally satisfied
pursuant to their terms.  In the case of voluntary dissolution, the disposition
of the affairs of
the SPRV (including the settlement of all outstanding obligations) shall be
made by the
officers or directors of the SPRV, and when the liquidation has been completed
and a final
statement, in acceptable form, filed with and approved, or deemed approved, by
the
Director, the provisions for voluntary dissolution under the laws of this State
shall be
followed to dissolve the SPRV.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-75)Sec. 179E-75. 
		Conservation, rehabilitation, or liquidation.(a) The provisions of Articles XIII and XIII 1/2 apply to an SPRV, except
to
the
extent modified in this Section.(b) Notwithstanding the provisions of Section 188 of this Code, the Director
may
apply by petition to the Circuit Court of Cook County, the Circuit Court of
Sangamon
County, or the circuit court of the county in which an SPRV has or last had its
principal
office for an order authorizing the Director to conserve, rehabilitate or
liquidate an
SPRV domiciled in
this State solely on one or more of the following grounds:(1) there has been embezzlement, wrongful     sequestration, dissipation, or diversion of the assets of the SPRV intended to be used to pay amounts owed to the ceding insurer or the holders of SPRV securities; or(2) the SPRV is insolvent and the holders of a     majority in outstanding principal amount of each class of SPRV securities request or consent to conservation, rehabilitation, or liquidation under this Article.The court shall not grant relief under item (1) of this subsection
unless, after notice
and a hearing, the Director, who has the burden of proof, establishes by clear
and
convincing evidence that the relief should be granted.(c) Notwithstanding any contrary provision in this Code, the rules
promulgated
under this Code, or any other applicable law or rule, upon any order of
conservation,
rehabilitation, or liquidation of the SPRV, the receiver shall be bound to deal
with the
SPRV's assets and liabilities, in accordance with the requirements set forth in
this Article.(d) With respect to amounts recoverable under an SPRV contract, the amount
recoverable by the receiver may not be reduced or diminished as a result of the
entry of an
order of conservation, rehabilitation, or liquidation with respect to the
ceding insurer
notwithstanding any provisions to the contrary in the contracts or other
documentation
governing the SPRV insurance securitization.(e) Notwithstanding the provisions of Article XIII and XIII 1/2 of this
Code, any
application, petition, or temporary restraining order or injunction issued
under those
Articles, with respect to a ceding insurer shall not prohibit the transaction
of any business by
an SPRV, including any payment by an SPRV made pursuant to an SPRV security, or
any
action or proceeding against an SPRV or its assets.(f) Notwithstanding the provisions of Articles XIII and XIII 1/2 of this
Code, the
commencement of a summary proceeding or other interim proceeding commenced
before a
formal delinquency proceeding with respect to an SPRV, and any order issued by
the court
thereunder, shall not prohibit:(1) the payment by an SPRV made pursuant to an SPRV     security or SPRV contract; or(2) the SPRV from taking any action required to make     the payment.(g) Notwithstanding any other provision of Articles XIII and XIII 1/2 of
this Code or
other State law:(1) a receiver of a ceding insurer may not avoid a     non-fraudulent transfer by a ceding insurer to an SPRV of money or other property made pursuant to an SPRV contract; and(2) a receiver of an SPRV may not void a     non-fraudulent transfer by the SPRV of money or other property made to a ceding insurer pursuant to an SPRV contract or made to or for the benefit of any holder of an SPRV security on account of the SPRV security.(h) With the exception of the fulfillment of the obligations under an SPRV
contract,
and notwithstanding any other provisions of this Article or other law of this
State to the
contrary, the assets of an SPRV, including assets held in trust, may not be
consolidated with
or included in the estate of a ceding insurer in any delinquency proceeding
against the
ceding insurer under this Article for any purpose, including, without
limitation, distribution
to creditors of the ceding insurer.(i) Notwithstanding any other provision of this Article:(1) A domiciliary receiver of an SPRV domiciled in     another state shall be vested by operation of law with the title to all of the assets, property, contracts, and rights of action, and all of the books, accounts, and other records of the SPRV located in this State.  The domiciliary receiver shall have the immediate right to recover all of the vested property, assets, and causes of action of the SPRV located in this State.(2) An ancillary proceeding may not be commenced or     prosecuted in this State against an SPRV domiciled in another state.		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-80)Sec. 179E-80. 
		
		SPRV not subject to guaranty funds, residual market, or
similar
arrangements.(a) An SPRV or the activities, assets, and obligations relating to the SPRV
are
not
subject to the provisions of Articles XXXIII 1/2 and XXXIV of this Code, and
an SPRV may
not be assessed by or otherwise be required to contribute to any guaranty fund
or guaranty
association in this State with respect to the activities, assets, or
obligations of an SPRV or
the ceding insurer.(b) An SPRV may not be required to participate in residual market, FAIR
plan, or
other similar plans to provide insurance coverage, take out policies, assume
risks, make
capital contributions, pay or be otherwise obligated for assessments,
surcharges, or fees, or
otherwise support or participate in such plans or arrangements.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-85)Sec. 179E-85. 
		Asset and investment limitations.(a) Assets of the SPRV held in trust to secure obligations under the SPRV
contract
must at all times be held in:(1) cash and cash equivalents;(2) securities listed by the Securities Valuation     Office of the NAIC and qualifying as admitted assets under statutory accounting convention in its state of domicile; and(3) any other form of security acceptable to the     Director.(b) An SPRV may enter into swap agreements or other transactions that have
the
objective of leveling timing differences in funding of up-front or ongoing
transaction
expenses or managing credit or interest rate risk of the investments in the
trust to ensure that
the investments are sufficient to assure payment or repayment of:(1) the securities (and related interest or principal     payments) issued pursuant to an SPRV insurance securitization transaction; or(2) the SPRV's obligations under the SPRV contract.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-90)Sec. 179E-90. 
		Credit for reinsurance for the SPRV contract. 
		An SPRV contract meeting the requirements under this Article shall be
granted credit for reinsurance treatment or shall otherwise qualify as an asset
or a reduction
from liability for reinsurance ceded by a domestic insurer to an assuming
insurer under
Section 173.1 of this Code for the benefit of the ceding insurer, provided and
only to the
extent that (i) the fair value of the assets held in trust for the benefit of
the ceding insurer
equal or exceed the obligations due and payable to the ceding insurer by the
SPRV under the
SPRV contract, (ii) the assets are held in trust in accordance with the
requirements set forth
in this Article, (iii)  the assets are administered in the manner and pursuant
to arrangements
as set forth in this Article, and (iv) the assets are held or invested in one
or more of the
forms allowed in Section 179E-85.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-95)Sec. 179E-95. 
		
		Insurance securitization deemed not to be transaction of
insurance
business. The securities issued by the SPRV under an SPRV insurance
securitization shall
not be deemed to be insurance or reinsurance contracts. An investor in
securities issued
pursuant to an SPRV insurance securitization or any holder of those securities
shall not, by
sole means of the investment or holding, be deemed to be transacting an
insurance business
in this State. The underwriters or selling agents (and their partners,
directors, officers,
members, managers, employees, agents, representatives, and advisors) involved
in an SPRV
insurance securitization shall not be deemed to be conducting an insurance or
reinsurance
agency, brokerage, intermediary, advisory, or consulting business by virtue of
their activities
in connection therewith.
		(Source: P.A. 92-124, eff. 7-20-01.) (215 ILCS 5/179E-100)Sec. 179E-100. 
		Authority to adopt rules. 
		The Director may promulgate rules
necessary to effectuate the purposes of this Article.  Any rules so promulgated
will not
affect any existing SPRV insurance securitization in effect at the time of the
promulgation.
		(Source: P.A. 92-124, eff. 7-20-01.)
(215 ILCS 5/Art. XII.5 heading) ARTICLE XII 1/2.  
		CORRECTIVE ORDERS (215 ILCS 5/186.1) (from Ch. 73, par. 798.1)Sec. 186.1. 
		Supervision by the Director. 
		(1)If the Director
determines that any domestic insurance company is operating in a manner,
that could lead to, or is in, a financial condition, which if continued
would make it hazardous to the public, and its policyholders, the Director
may issue an order:(a) notifying the company and its Board of Directors of his
determination and setting forth the specific deficiencies leading to the determination;(b) setting forth the specific action required or prohibited to correct
the cited deficiencies; and(c) ordering the company to comply with the Director's order within such
reasonable time as the Director shall prescribe.(2) Operation or financial condition deficiencies supporting the
Director's determination under subsection (1) may include, but are not
limited to, the following:(a) The company has failed to maintain a relationship of policyholder
surplus to premium writings or policyholder surplus to claim and unearned
premium reserves which provides a reasonable margin of safety for the
policyholders considering the classes of insurance the company is writing.(b) The company's asset liquidity is not adequate to provide orderly
payment of its obligations.(c) The company's current or projected net income is inadequate to meet
its present or projected obligations.(d) The company has a history of claim reserve inadequacy which affects
the reliability of its financial statements.(e) The company has failed to maintain adequate books and records or has
otherwise conducted its insurance operation in a manner which impairs the
Director's ability to determine its true financial condition.(3) If a company fails to comply with the Director's order issued
pursuant to subsection (1) within the time prescribed for such compliance
the Director may institute proceedings for the conservation, rehabilitation
or liquidation of the company under Article XIII of this Code.(4)(a) The Director may require that the company prepare and file a plan
to correct the deficiencies cited by the Director in his order within such
time as the Director may prescribe.  A corrective order may require,
prohibit or permit certain acts subject to conditions including the
Director's prior approval.  The scope of a corrective order may relate to
but shall not be limited to:(i) the disposition, recovery or mix of assets;(ii) the assumption or cession of reinsurance, including reinsurance of
outstanding risks;(iii) lending and borrowing;(iv) investments;(v) restricting underwriting and marketing activities.(b) The Director may require that any company under such corrective
order direct any certified public accountants, consulting actuary or
financial consultant retained by the company to prepare for the Director
such reports, accounting data and such other reports as the Director may
reasonably require to assist in carrying out the responsibilities of the
Director under this Section.(5)(a) Any company subject to an order under subsections (1) or (4) may
request a hearing before the Director to review that order.  Such request
shall be made in writing within 10 days of the receipt of such order, shall
state the company's objections to the order, and shall be addressed to the
Director.  Such hearing shall be convened not less than 10 days nor more
than 20 days after receipt of the written request for hearing unless
otherwise agreed to by the company.  The Director shall make a final
determination within 10 days after the conclusion of the hearing.  The
Director shall hold all hearings under this subsection privately in
accordance with subsection (6) of this Section.  The pendency of a hearing
or pendency of the Director's final determination shall not stay the effect
of the Director's order.(b) After the Director's final determination pursuant to any hearing
under this subsection, any party to the proceedings whose interests are
affected by the Director's final determination shall be entitled to
judicial review of such final determination pursuant to the provisions of
the "Administrative Review Law".Notwithstanding the availability of administrative remedies or judicial
review under the "Administrative Review Law", a company which is subject to
an order of the Director under this Section shall be entitled to immediate
judicial review and injunctive relief in the Circuit Court of Cook County
or the Circuit Court of Sangamon County upon satisfying the court:(i) that accepting the facts set forth in the order as true, the order
is arbitrary or capricious;(ii) that the company's interests are substantially impaired by the order; and(iii) that the company will suffer permanent injury in the absence of
immediate injunctive relief.(6) All administrative and judicial proceedings arising under this Article
shall be held privately unless a public hearing is requested by the
company, and all records of the company, and all records of the Department
concerning the company, so far as they pertain to or are a
part of the record of the proceedings, shall be and remain confidential,
unless the company requests otherwise.  Such records shall not be subject
to public disclosure under "The Illinois Freedom of Information Act", certified
December 27, 1983, as amended, or otherwise, nor shall such records be
subject to subpoena by third parties, unless the company and Director
consent to such disclosure or release under subpoena.(7) The powers vested in the Director by this Section are additional to
any and all other powers and remedies vested in the Director by law, and
nothing herein contained shall prohibit the Director from proceeding under
any other applicable law or under this Section in conjunction with any other law.
		(Source: P.A. 84-715.) (215 ILCS 5/186.2) (from Ch. 73, par. 798.2)Sec. 186.2. 
		
		(1) Any officer, manager, director, trustee, owner,
employee, or agent of any insurer, or any other person with authority over
or in charge of any segment of the company's affairs, shall cooperate with
the Director in any proceeding under this Article or any investigation
preliminary to the proceeding.  The term "person" as used in this Section
shall include any person who exercises control directly or indirectly over
activities of the company through any holding company  or other affiliate
of the company.  To "cooperate" shall include, but shall not be limited to, the following:(a) to reply promptly in writing to any inquiry from the Director of
Insurance requesting such a reply; and(b) to make available to the Director any books, accounts, documents, or
other records or information or property of or pertaining to the company
and in such person's possession, custody or control.(2) No person shall obstruct or interfere with the Director in the
conduct of any proceeding under Sections 186.1 and 186.2 or any
investigation preliminary or incidental thereto.(3) This Section shall not be construed to abridge otherwise existing
legal rights, including the right to contest any order issued under this Code.(4) Any person who obstructs or interferes with the Director in the
conduct of any proceeding or investigation under this Article, or who
violates any valid order issued under this Article shall be subject to
civil forfeitures, fines or penalties pursuant to Sections 134, 149, 403A
and 505.1 of this Code.
		(Source: P.A. 84-715.)
(215 ILCS 5/Art. XII heading) ARTICLE XII.  
		DOMESTICATION OF
FOREIGN AND ALIEN COMPANIES (215 ILCS 5/180) (from Ch. 73, par. 792)Sec. 180. 
		Companies that may domesticate.(1) Any domestic, foreign, or alien stock company, mutual company,
assessment legal reserve company, reciprocal, or fraternal benefit
society, authorized or which may be authorized to do business in this
State, may reorganize under the laws of this State (including a
reorganization as a captive insurance company under the laws of this
State), by complying with the provisions of this Article.(2) As used in this Article: "reorganize" means reorganize, reincorporate,
or domesticate as an Illinois insurer; "reorganization" means reorganization,
reincorporation, or domestication as an Illinois insurer; "reorganized company"
means any company that has availed itself of the provisions of this Article,
and the reorganization of which has been effected as in this Article provided;
and "similar domestic company" means, in the case of an application for
reorganization as a domestic captive insurance company, a domestic captive
insurance company organized under Article VIIC.
		(Source: P.A. 87-1216.) (215 ILCS 5/181) (from Ch. 73, par. 793)Sec. 181. 
		Articles of reorganization. 
		(1) The board of directors, trustees or other governing body of any such
company desiring to reorganize under this Article shall comply with all
laws and requirements of its domiciliary state or country with reference to
reorganization under the laws of another state or country.(2) Such board of directors, trustees or other governing body shall
adopt a resolution approving articles of reorganization setting forth:(a) the name of the company; and if the name of the company upon
reorganization is to be changed, the proposed name of the reorganized
company;(b) the title of the act under which it was organized or incorporated;(c) the matters required to be set forth in original articles of
incorporation of a similar domestic company;(d) that it shall be bound by all the terms and provisions of this Code,
applicable to similar domestic companies organized or incorporated
thereunder; and(e) such other particulars as are deemed necessary or advisable.
		(Source: P.A. 86-632; 86-634; 86-1028.) (215 ILCS 5/182) (from Ch. 73, par. 794)Sec. 182. 
		
		Execution
of articles.The articles of reorganization shall be executed in duplicate by the
president or vice-president, and secretary or assistant secretary of the
company, or the executive officers corresponding thereto, and shall be
acknowledged and sworn to.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/183) (from Ch. 73, par. 795)Sec. 183. 
		Certificate of Reorganization - Date Reorganization Effected. 
		(1) Upon the execution of the articles of reorganization there shall be
delivered to the Director(a) two duplicate originals of the articles;(b) a copy of the resolution of the board of directors, trustees or
other governing body, adopting said articles, duly certified by the
secretary of the company or officer corresponding thereto;(c) information satisfactory to the Director that the company has
complied with all the laws
and requirements of the domiciliary state or country with
reference to the proposed reorganization and the protection of
policyholders; and(d) securities of the kind and amount, if any, required as a deposit of
a similar domestic company doing the same kind or kinds of business
proposed to be done by the reorganized company.(2) If the Director finds that the articles of reorganization are in
accordance with the provisions of this Article, and that the company has
complied with all provisions of this Code applicable to similar domestic
companies, he shall approve the articles of reorganization and shall forthwith file
one of the duplicate originals of the articles, together with the
resolution and certificate of reorganization and certificate of
authority, in his office, endorse upon the other duplicate
original, his approval thereof, and deliver it together with a certificate
of reorganization and a certificate of authority to the reorganized
company. Upon such filing, the reorganization of the company shall be effected.
		(Source: P.A. 85-131.) (215 ILCS 5/184) (from Ch. 73, par. 796)Sec. 184. 
		Recording Articles of Reorganization. 
		The articles of reorganization, approved by the Director and returned to
the reorganized company, shall be recorded in the office of the recorder
in the county where the principal office of the reorganized company
is to be located.
		(Source: P.A. 85-131.) (215 ILCS 5/185) (from Ch. 73, par. 797)Sec. 185. 
		
		Board of
directors, trustees, etc. to continue.The directors, trustees, or members of any other governing body of the
company so reorganized, shall become the directors, trustees or members of
the governing body of the reorganized company and shall hold office until
their successors are elected or chosen in the manner provided therefor by
the articles of reorganization.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/185.1) (from Ch. 73, par. 797.1)Sec. 185.1. 
		Effect of Reorganization.When the reorganization has been effected:(a) The articles of reorganization shall be the articles of
incorporation of the reorganized company and said company shall continue
in existence as, and thereafter
be, a company of this State.(b) The reorganized company shall make its reports in accordance with
the laws of this State and shall be subject to the exclusive regulation and
supervision by the Department of Insurance of this State and shall be subject
to regulation
and supervision by the Insurance Departments of other states and countries
as a foreign or alien company.(c) The reorganized company shall have all of the rights, privileges,
immunities and powers and shall be subject to all of the duties and
liabilities granted or imposed by this Code
(except in the case of a domestic captive insurance company, which
shall have all of the rights, privileges, immunities and powers and shall
be subject to all of the duties and liabilities granted or imposed by
Article VIIC of this Code).(d) The reorganized company shall thereupon and thereafter possess all
the rights, privileges, immunities, powers and franchises of a public as
well as a private nature, theretofore possessed by the company so
reorganized. Without limiting the generality of the foregoing, (i) the
agency appointments, licenses, certificates of authority and rates which
are in existence at the time of the reorganization of such reorganized
company takes effect shall continue in full force and effect;
(ii) all property, real, personal and mixed, and all debts due
on whatever account, including subscriptions to shares, assessments payable
from members or policyholders, and all other choses in action, and all and
every other interest of, or belonging to or due to the company so
reorganized, shall be deemed to be transferred to and vested in the
reorganized company without further act or deed; and (iii) the title to any
real estate or any interest therein theretofore vested in the company so
reorganized, shall not revert or be in any way impaired by reason of such
reorganization.(e) The reorganized company shall thenceforth be responsible and liable
for all the liabilities and obligations of the company so reorganized. Any
claim existing, or action or proceeding pending by or against the company
so reorganized, may be prosecuted to judgment as if such reorganization had
not taken place, or such reorganized company may be substituted in its
place. Neither the rights of creditors nor any liens upon the property of
the company so reorganized, shall be impaired by such reorganization, but
such liens shall be limited to the property upon which they were liens
immediately prior to the reorganization, unless otherwise provided in the
articles of reorganization.
		(Source: P.A. 85-131.) (215 ILCS 5/185.2) (from Ch. 73, par. 797.2)Sec. 185.2. 
		Conversion to Foreign Insurer. 
		Any domestic insurer may,
upon the approval of the Director, transfer its domicile to any other state
in which it is admitted to transact the business of insurance, and upon
such a transfer shall cease to be a domestic insurer.  The Director shall
approve any such proposed transfer unless he shall determine such transfer
is not in the interest of the policyholders of this State.
		(Source: P.A. 85-131.)
(215 ILCS 5/Art. XIII.5 heading) ARTICLE XIII 1/2.  
		UNIFORM PROVISIONS FOR LIQUIDATION (215 ILCS 5/221.1) (from Ch. 73, par. 833.1)Sec. 221.1. 
		Definitions.For the purposes of Sections 221.1 to 221.10, both inclusive, the
following terms have the following meanings;(1) "Reciprocal State" means a state wherein:(a) it is provided by law that the insurance supervisory or other
administrative agency of the state shall conduct or wind up the affairs of
delinquent companies under judicial supervision and shall be vested with
title to all of the assets of any domestic company against which a
delinquency proceeding has been commenced, and(b) in substance and effect the provisions of Sections 221.1 to 221.10,
both inclusive are in force.(2) "Insurer" means any person, firm, corporation, association, or
aggregation of persons doing or proposing to do an insurance business and
subject to the insurance supervisory authority of, or to liquidation,
rehabilitation, reorganization or conservation by, the commissioner of
insurance or equivalent insurance supervisory official of the state.(3) "Delinquency proceeding" means any proceeding commenced against an
insurer for the purpose of liquidating, rehabilitating, reorganizing or
conserving such insurer.(4) "Domiciliary state" means the state in which an insurer is
incorporated or organized or, in the case of an insurer incorporated or
organized in a foreign country, the state in which such insurer, having
become authorized to do business in such state has, at the commencement of
delinquency proceedings the largest amount of its trusteed assets and
deposits for the benefit of its policy holder or policy holders and
creditors in the United States; and "domiciliary insurer" means an insurer
in its domiciliary state.(5) "Ancillary state" means any state other than a domiciliary state.(6) "General Assets" means all property, real or personal, not
specifically mortgaged, pledged, deposited as security or otherwise
encumbered, and as to such specifically encumbered property the term
includes all in excess of the amount necessary to discharge the sum or sums
secured.(7) "Preferred claim" means any claim with respect to which the law of a
state or of the United States accords priority of payment from the general
assets of the insurer.(8) "Special deposit claim" means any claims secured generally by a
deposit of a fund or property or bond which deposit has been made to secure
the payment of all claims of a particular description or all claims of
persons resident in a particular state. The term does not include claims
which are secured by deposit for the benefit or protection of all claimants
against the insurer in the United States.(9) "Secured claim" means any claim secured individually by mortgage,
trust, deed, pledge, deposit as security, escrow or otherwise. The term
also includes claims which prior to the commencement of delinquency
proceedings in the state of the insurer's domicile have become liens upon
specific assets by reason of judicial process.(10) "State" means any state or territory of the United States, and the
District of Columbia.(11) "Foreign country" means territory outside of any state, as defined.(12) "Receiver" means receiver, liquidator, rehabilitator or conservator
as the context may require.In addition to and notwithstanding any other provisions of law, this
Article shall apply to the administration by the Director of the affairs of
delinquent domestic companies with respect to matters affecting or related
to reciprocal states, and shall also apply to matters affecting or related
to this State in the administration by the Director of the affairs of
delinquent companies domiciled in reciprocal states and authorized to
transact business in this State.
		(Source: Laws 1941, vol. 1, p. 832.) (215 ILCS 5/221.2) (from Ch. 73, par. 833.2)Sec. 221.2. 
		Ancillary delinquency proceedings.After the commencement of delinquency proceedings in a reciprocal state
against an insurer domiciliary in such state, a court of competent
jurisdiction in this State shall on the petition of the Director of
Insurance
of this State appoint such Director of Insurance as ancillary receiver in
this State of such insurer. The Director of Insurance shall file such
petition (a) if he finds that there are sufficient assets of such insurer
located in this State to justify the appointment of an ancillary receiver
or (b) if 10 or more persons resident in a state having claims
against
such insurer file a petition or petitions in writing with the Director
requesting the appointment of such ancillary receiver. As ancillary
receiver the Director shall have the right to sue for and reduce to
possession the assets of such insurer in this State, and, subject to the
rights of the domiciliary receiver, he shall have the same powers and be
subject to the same duties with respect to such assets, as are possessed by
a receiver of a domiciliary insurer under the laws of this State.  The
domiciliary receiver of an insurer domiciled in a reciprocal state shall,
except as to special deposits and security on secured claims pursuant to
Section 221.7, be vested by operation of law with the title to all of the
assets, property, contracts, agents' balances, and all of the books, accounts
and other records of the insurer located in this State; and shall have the
immediate right to recover balances due from resident agents and to obtain
possession of any books and records of the insurer found in this State.
		(Source: P.A. 89-206, eff. 7-21-95.) (215 ILCS 5/221.3) (from Ch. 73, par. 833.3)Sec. 221.3. 
		
		Filing  and proving of claims of non-residents against delinquent domiciliary
insurers.In any delinquency proceeding begun in this state against a domiciliary
insurer of this state, claimants residing in a reciprocal ancillary state
may file claims either with the ancillary receiver, if any, or with the
domiciliary receiver. All such claims must be filed on or before the last
date fixed for the filing of claims in the domiciliary delinquency
proceedings.In any such proceeding controverted claims belonging to claimants
residing in ancillary states may either (a) be proved in this state as
provided by law, or (b) if ancillary proceedings have been commenced in
such ancillary state, may be proved in such ancillary proceedings. In the
event a claimant elects to prove his claim in ancillary proceedings, and,
if notice of the claim and opportunity to appear and be heard is afforded
the domiciliary receiver of this state, such claim, when allowed by the
court in the ancillary state, shall be accepted in this state as final and
conclusive as to its amount, and shall also be accepted as final and
conclusive as to its priority, if any, as against special deposits or other
security located within the ancillary state.
		(Source: Laws 1941, vol. 1, p. 832.) (215 ILCS 5/221.4) (from Ch. 73, par. 833.4)Sec. 221.4. 
		
		Proof of
claims of residents in connection with delinquency proceedings in other
states.If a delinquency proceeding is commenced in a reciprocal state against
an insurer domiciliary in such state, claimants against such insurer who
reside within this State may file claims either with the ancillary
receiver, if any, appointed in this State or with the domiciliary receiver.
All such claims must be filed on or before the last date fixed for the
filing of claims in the domiciliary delinquency proceeding.In any such proceeding controverted claims belonging to claimants
residing in this State may either (a) be proved in the domiciliary state as
provided by the law of such state, or (b) if ancillary proceedings have
been commenced in this State, be proved in such ancillary proceedings. In
the event that any such claimant elects to prove his claim in this State,
he shall file his claim with the ancillary receiver in the manner provided
by the law of this State for the proving of claims against domiciliary
insurers, and he shall give, or cause to be given, at least 40 days prior to
the date of hearing, notice to the receiver
in the domiciliary state, either by mail or otherwise in writing that such
claim is being made to such ancillary receiver and the nature and the
amount thereof. The domiciliary receiver shall be entitled to appear or to
be represented in any proceeding in this State involving the adjudication
of the claim. The allowance of the claim by the courts of this State shall
be final and conclusive both as to its amount and also as to its priority,
if any, against special deposits or other security located within this
State.
		(Source: P.A. 89-206, eff. 7-21-95.) (215 ILCS 5/221.5) (from Ch. 73, par. 833.5)Sec. 221.5. 
		Priority  of preferred claims.In any delinquency proceeding against a domiciliary insurer of this
state, claims owing to residents of ancillary reciprocal states shall be
deemed preferred claims if, and only if, like claims are preferred under
the laws of this state. All such claims whether owing to residents or
non-residents shall be given equal priority of payment from general assets.
No law of an ancillary state providing for preferred claims against the
general assets of insurers shall be recognized as against the assets of
delinquent domiciliary insurers of this state regardless of where such
assets may be located.In any delinquency proceeding against an insurer domiciliary in a
reciprocal state, claims owing to residents of this state shall be
preferred if, and only if, like claims are preferred by the laws of such
other state.
		(Source: Laws 1941, vol. 1, p. 832.) (215 ILCS 5/221.6) (from Ch. 73, par. 833.6)Sec. 221.6. 
		Priority  of special deposit claims.The owners of special deposit claims against an insurer for which a
receiver has been appointed in a delinquency proceeding in this or any
reciprocal state shall be given priority against their several special
deposits in accordance with the provisions of the statutes requiring the
creation and maintenance of such special deposits. If there be a deficiency
in any such special deposit so that the claims secured thereby are not
fully discharged therefrom, the claimants may share in the general assets,
but such sharing shall be deferred until general creditors, and also
claimants against other special deposits who have received a small
percentage from their respective special deposits, have been paid
percentages of their claims equal to the percentage paid from such special
deposit, it being the purpose and intent of this provision to equalize to
this extent the advantage gained by the security provided by such special
deposits.
		(Source: Laws 1941, vol. 1, p. 832.) (215 ILCS 5/221.7) (from Ch. 73, par. 833.7)Sec. 221.7. 
		
		Priority
of secured claims.The owner of a secured claim against an insurer for which a receiver has
been appointed in a delinquency proceeding in this or any reciprocal state
may surrender his security and file his claim as a general creditor, or
such secured claim may be discharged by resort to the security, in which
case the deficiency, if any, shall be treated as a claim against the
general assets of the insurer on the same basis as claims of unsecured
creditors. If the amount of the deficiency has been adjudicated in ancillary
proceedings as provided in this Article, that amount shall be conclusive;
otherwise the amount of such deficiency shall be ascertained and determined in
the delinquency proceeding in the domiciliary state of such insurer.
		(Source: P.A. 89-206, eff. 7-21-95.) (215 ILCS 5/221.8) (from Ch. 73, par. 833.8)Sec. 221.8. 
		
		Right of
domiciliary receiver to residium of assets of insurers domiciled in
ancillary states.The ancillary receiver of assets in this State of insurers domiciliary
in reciprocal states and subject to delinquency proceedings therein shall,
as soon as practicable, arrange the liquidation or other disposition of
special deposit claims and secured claims proved in the ancillary
proceedings in this State, and all remaining assets, after payment of
expenses he shall promptly transfer to the domiciliary receiver.The domiciliary receiver of a reciprocal state may sue the ancillary
receiver of this State in the courts of this State for the purpose of
collecting or obtaining any assets of the insurer to which he or she may be
entitled under the laws of this State,
and, if no
ancillary receiver be appointed in this State, such domiciliary receiver
may collect or reduce to possession, in this State, and may sue in the
courts of this State to obtain, any assets of such delinquent insurer
located in this State, to which he or she may be entitled under the laws of
this State.
		(Source: P.A. 89-206, eff. 7-21-95.) (215 ILCS 5/221.9) (from Ch. 73, par. 833.9)Sec. 221.9. 
		Attachment and garnishment of assets.In the event of the commencement of delinquency proceedings in any
reciprocal state no action or proceeding in the nature of an attachment,
garnishment, execution or otherwise, shall be commenced in the courts of
this state against such delinquent insurer or its assets.
		(Source: Laws 1941, vol. 1, p. 832.) (215 ILCS 5/221.10) (from Ch. 73, par. 833.10)Sec. 221.10. 
		Declaration of purpose.The purpose of Sections 221.1 to 221.10, both inclusive is to promote
uniformity in the liquidation, rehabilitation, reorganization or
conservation of insurers doing business in more than one state. It is
intended that Sections 221.1 to 221.10, both inclusive shall be liberally
construed to the end that so far as possible the assets of such insurers
shall be equally and uniformly conserved in all states, and that claimants
against such insurers shall receive equal and uniform treatment
irrespective of residence or the place of the acts or contracts upon which
their claims are based. The provisions of Sections 221.1 to 221.10, both
inclusive shall be effective only with respect to this state and other
states in which (a) it is provided by law that only the Insurance
Commissioner or equivalent supervisory official of the State shall be
vested with title to the assets of, and shall wind up the affairs of,
delinquent insurers under judicial supervision; and (b) in substance and
effect the provisions of Sections 221.1 to 221.10, both inclusive, are in
force. The provisions of Sections 221.1 to 221.10, both inclusive, insofar
as applicable to any insurer incorporated or organized in a foreign
country, shall apply only to the assets, liabilities and business of such
insurer within the several states.
		(Source: Laws 1941, vol. 1, p. 832.) (215 ILCS 5/221.11) (from Ch. 73, par. 833.11)Sec. 221.11. 
		
		Proceedings governed by Civil Practice Law and
Supreme Court Rules.)
The rules of practice, the course and method of procedure in circuit
courts as established by the Civil Practice Law and Supreme
Court Rules and any
amendments thereto are adopted for the purposes of this Article except
where other procedures or rules are in this Article expressly provided.
Appeals may be taken as in other civil cases.
		(Source: P.A. 82-783.) (215 ILCS 5/221.12) (from Ch. 73, par. 833.12)Sec. 221.12. 
		
		Sections 211, 212, 213, 214, 215, 216, 217, 218, 219 and 220,  each inclusive, are repealed; provided, however, that every proceeding
heretofore commenced under such sections shall be continued as though such
sections had not been repealed.
		(Source: Laws 1941, vol. 1, p. 832.) (215 ILCS 5/221.13) (from Ch. 73, par. 833.13)Sec. 221.13. 
		Uniformity of interpretation.Sections 221.1 to 221.12 each inclusive, of this Article shall be so
interpreted and construed as to effectuate their general purpose to make
uniform the law of those states that enact the Uniform Reciprocal
Liquidation Act.
		(Source: Laws 1941, vol. 1, p. 832.)
(215 ILCS 5/Art. XIII heading) ARTICLE XIII.  
		REHABILITATION, LIQUIDATION, CONSERVATION AND DISSOLUTION OF
COMPANIES (215 ILCS 5/187) (from Ch. 73, par. 799)Sec. 187. Scope of Article.(1) This Article shall apply to every corporation, association, society,
order, firm, company, partnership, individual, and aggregation of
individuals to which any Article of this Code is applicable, or which is
subject to examination, visitation or supervision by the Director under any
provision of this Code or under any law of this State, or which is engaging
in or proposing or attempting to engage in or is representing that it is
doing an insurance or surety business, or is undertaking or proposing or
attempting to undertake to provide or arrange for health care services as a
health care plan as defined in subsection (7) of Section 1-2 of the Health
Maintenance Organization Act, including the exchanging of reciprocal or
inter-insurance contracts between individuals, partnerships and corporations in
this State, or which is in the process of organization for the purpose of doing
or attempting or intending to do such business, anything as to any such
corporation, association, society, order, firm, company, partnership,
individual or aggregation of individuals provided in this Code or elsewhere in
the laws of this State to the contrary notwithstanding.(2) The word "company" as used in this Article includes all of the
corporations, associations, societies, orders, firms, companies,
partnerships, and individuals specified in subsections
(1), (4), and (5) of this Section and
agents, managing general agents, brokers, premium finance companies,
insurance holding companies, and all other non-risk bearing entities or persons
engaged in any aspect of the business of insurance on behalf of an insurer
against which a receivership proceeding has been or is being filed under this
Article, including, but not limited to, entities or persons that provide
management, administrative, accounting, data processing, marketing,
underwriting, claims handling, or any other similar services to that insurer,
whether or not those entities are licensed to engage in the business of
insurance in Illinois, if the
entity or person is an affiliate of that insurer.(3) The word "court" shall mean the court before which the
conservation, rehabilitation, or liquidation proceeding of the company is
pending, or the judge presiding in such proceedings.(4) The word "affiliate" as used in this Article means a person that
directly, or indirectly through one or more intermediaries, controls, is
controlled by, or is under common control with, the person specified.(5) The word "person" as used in this Article means an individual, an
aggregation
of individuals, a partnership, or a corporation.(6) The word "assets" as used in this Article includes all deposits and
funds of a special or trust nature.(7) The words "receivership proceedings" mean any conservation,
rehabilitation, liquidation, or ancillary receivership.(8) "Netting agreement", as used in this Article, means (a) a contract or agreement (including terms and conditions incorporated by reference therein), including a master agreement (which master agreement, together with all schedules, confirmations, definitions, and addenda thereto and transactions under any thereof, shall be treated as one netting agreement), that documents one or more transactions between the parties to the agreement for or involving one or more qualified financial contracts and that provides for the netting, liquidation, setoff, termination, acceleration, or close out under or in connection with one or more qualified financial contracts or present or future payment or delivery obligations or payment or delivery entitlements thereunder (including liquidation or close-out values relating to such obligations or entitlements) among the parties to the netting agreement; (b) any master agreement or bridge agreement for one or more master agreements described in paragraph (a) of this subsection (8); or (c) any security agreement or arrangement or other credit enhancement or guarantee or reimbursement obligation related to any contract or agreement described in paragraph (a) or (b) of this subsection (8); provided that any contract or agreement described in paragraphs (a) or (b) of this subsection (8) relating to agreements or transactions that are not qualified financial contracts shall be deemed to be a netting agreement only with respect to those agreements or transactions that are qualified financial contracts.(9) "Qualified financial contract" means any commodity contract, forward contract, repurchase agreement, securities contract, swap agreement, or any similar agreement that the Director determines by regulation, resolution, or order to be a qualified financial contract for the purposes of this Act.(a) "Commodity contract" means:(1) a contract for the purchase or sale of a         commodity for future delivery on, or subject to the rules of, a board of trade or contract market under the federal Commodity Exchange Act or a board of trade outside the United States;(2) an agreement that is subject to regulation         under Section 19 of the federal Commodity Exchange Act and that is commonly known to the commodities trade as a margin account, margin contract, leverage account, or leverage contract;(3) an agreement or transaction that is subject         to regulation under Section 4c(b) of the federal Commodity Exchange Act and that is commonly known to the commodities trade as a commodity option;(4) any combination of the agreements or         transactions referred to in this paragraph (a); or(5) any option to enter into an agreement or         transaction referred to in this paragraph (a).(b) "Forward contract", "repurchase agreement",     "securities contract", and "swap agreement" shall have the meanings set forth in the Federal Deposit Insurance Act, 12 U.S.C.  1821(e)(8)(D), as amended from time to time. (Source: P.A. 96-1450, eff. 8-20-10.) (215 ILCS 5/188) (from Ch. 73, par. 800)Sec. 188. 
		
		Grounds for rehabilitation and liquidation of a domestic
company or an unauthorized foreign or alien company.  Whenever any
domestic company or any unauthorized foreign or alien company:1. is insolvent;2. has failed or refused to submit its books, papers,     accounts, records or affairs to the reasonable inspection or examination of the Director or his actuaries, supervisors, deputies, or examiners;3. has concealed, removed, altered, destroyed or     failed to establish and maintain books, records, documents, accounts, vouchers and other pertinent material adequate for the determination of its financial condition by examination under Sections 132 through 132.7 or has failed to properly administer claims and to maintain claims records which are adequate for the determination of its outstanding claims liability;4. has failed or refused to observe an order of the     Director to make good within the time prescribed by law any deficiency, whenever its capital and minimum required surplus, if a stock company, or its required surplus, if a company other than stock, has become impaired;5. has, by articles of consolidation, contract of     reinsurance or otherwise, transferred or attempted to transfer its entire property or business not in conformity with this Code, or entered into any transaction the effect of which is to merge substantially its entire property or business in any other company without having first obtained the written approval of the Director under this Code;6. is found to be in such condition that its further     transaction of business would be hazardous to its policyholders, or to its creditors, or to the public;7. has violated its charter or any law of this State     or has exceeded or is exceeding its corporate powers;8. has an officer who has refused upon reasonable     demand to be examined under oath touching its affairs;9. is found to be in such condition that it could not     meet the requirements for organization and authorization as required by law, except as to the amount of the original surplus required of a stock company in Section 13, and except as to the amount of the surplus required of a mutual company in excess of the minimum surplus required by this Code to be maintained, or either an authorized control level event or a mandatory control level event as set forth in Article IIA exists;10. has ceased for the period of one year to transact     insurance business;11. has commenced, or has attempted to commence, any     voluntary liquidation or dissolution proceeding, or any proceeding to procure the appointment of a receiver, liquidator, rehabilitator, sequestrator, or a similar officer for itself;12. is a party, whether plaintiff or defendant in any     proceeding in which an application is made for the appointment of a receiver, custodian, liquidator, rehabilitator, sequestrator, or similar officer for such company or its property, or a receiver, custodian, liquidator, rehabilitator, sequestrator or similar officer, for such company or its property is appointed by any court, or such appointment is imminent;13. consents by a majority of its directors,     stockholders or members;14. has not organized and obtained a certificate     authorizing it to commence the transaction of its business within the period of time prescribed by the sections of this Code under which it is or proposes to be organized; or15. has failed or refused to pay any valid final     judgment within 30 days after the rendition thereof, or whenever it appears to the Director that any person has committed a violation of Article VIII 1/2 with the result described in Section 131.26,
		sufficient grounds shall be deemed to exist for the commencement of
rehabilitation or liquidation proceedings.With respect to a domestic company, the Director must report, and with
respect to an unauthorized foreign or alien company, the Director may
report any such case to the Attorney General of this State whose duty it
shall be to apply forthwith by complaint on relation of the Director in the
name of the People of the State of Illinois, as plaintiff, to the Circuit
Court of Cook County, the Circuit Court of Sangamon County, or the circuit
court of the county in which such company has, or last had its principal
office, for an order to rehabilitate or liquidate the defendant company as
provided in this Article, and for such other relief as the nature of the
case and the interests of its policyholders, creditors, members,
stockholders or the public may require.When, upon investigation, the Director finds that
a company is engaged in any aspect of the business of insurance on behalf
of or in association with any domestic insurance company, against which a
receivership proceeding has been or is being filed under this Article, in a manner that appears to be detrimental to
policyholders, creditors, members, shareholders, or the
public, the Director may report such case to the Attorney
General of this State, 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, as plaintiff, to the court in which the
receivership proceeding is pending
for an order to appoint the Director as receiver to assume control of the
assets and operation of the company pending a complete investigation and
determination of the rights of the policyholders, creditors, members,
shareholders, and the
general public.
		(Source: P.A. 92-140, eff. 7-24-01.) (215 ILCS 5/188.1) (from Ch. 73, par. 800.1)Sec. 188.1. 
		
		Provisions for conservation of assets of a domestic,
foreign, or alien  company.(1) Upon the filing by the Director of a verified complaint alleging
(a) that with respect to a domestic, foreign, or alien company,
whether authorized or unauthorized, a condition exists that
would justify a court order for proceedings under Section 188, and
(b) that the interests of creditors, policyholders or the public will
probably be endangered by delay, then the circuit court of Sangamon or Cook
County or the circuit court of the county in which such company has or last
had its principal office shall enter forthwith without a hearing or
prior
notice an order
directing the director to take possession and control of the property,
business, books, records, and accounts of the company, and of the premises
occupied by it for the transaction of its business, or such part of each as
the complaint shall specify, and enjoining the company and its officers,
directors, agents, servants, and employees from disposition of its property
and from transaction of its business except with the concurrence of the
Director until the further order of the court.
Copies of the verified complaint and the seizure order shall be
served upon the company.(2) The order shall continue in force and effect for such time as the
court deems necessary for the Director to ascertain the condition and
situation of the company. On motion of either party or on its own motion,
the court may from time to time hold such hearings as it deems desirable,
and may extend, shorten, or modify the terms of, the seizure order. So far
as the court deems it possible, the parties shall be given adequate notice
of such hearings. As soon as practicable, the court shall vacate the
seizure order or terminate the conservation proceedings of the company,
either when the Director has failed to institute proceedings
under Section 188 having a reasonable opportunity to do so, or upon an
order of the court pursuant to such proceedings.(3) Entry of a seizure order under this section shall not constitute an
anticipatory breach of any contract of the company.(4) The court may hold all hearings in conservation proceedings
privately in chambers, and shall do so on request of any officer of the
company proceeded against.(5) In conservation proceedings and judicial reviews thereof, all
records of the company, other documents, and all insurance department files
and court records and papers, so far as they pertain to and are a part of
the record of the conservation proceedings, shall be and remain
confidential except as is necessary to obtain compliance therewith, unless
and until the court, after hearing arguments in chambers from the Director
and the company, shall decide otherwise, or unless the company requests
that the matter be made public.(6) Any person having possession of and refusing to deliver any of the
property, business, books, records or accounts of a company against which a
seizure order has been issued shall be guilty of a Class A misdemeanor.
		(Source: P.A. 89-206, eff. 7-21-95.) (215 ILCS 5/188.2)Sec. 188.2. Grounds for and provisions applicable to rehabilitation or liquidation
of a domestic company that is a covered financial company under the
federal Dodd-Frank Wall Street Reform and Consumer Protection Act.(a) The provisions of this Section apply in accordance with Title II of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act,
P.L. 111-203, with respect to an insurance company that is a covered financial company,
as that term is defined under 12 U.S.C. 5381.(b) The Director may file a complaint for an order of rehabilitation or liquidation pursuant to
Section 188 of this Code on any of the following grounds:(1) upon a determination and notification given by     the Secretary of the Treasury of the United States (in consultation with the President of the United States) that the insurance company is a financial company satisfying the requirements of 12 U.S.C.  5383(b), and the board of directors (or body performing similar functions) of the insurance company acquiesces or consents to the appointment of a receiver pursuant to 12 U.S.C.  5382(a)(1)(A)(i), with such consent to be considered as consent to an order of rehabilitation or liquidation;(2) upon an order of the United States District Court     for the District of Columbia under 12 U.S.C.  5382(a)(1)(A)(iv)(I) granting the petition of the Secretary of the Treasury of the United States concerning the insurance company under 12 U.S.C.  5382(a)(1)(A)(i); or(3) a petition by the Secretary of the Treasury of     the United States concerning the insurance company is granted by operation of law under 12 U.S.C.  5382(a)(1)(A)(v).(c) Notwithstanding any other provision in this Article, this Code, or any other law, after notice to the
insurance company, the receivership court may grant an order on the complaint for
rehabilitation or liquidation within 24 hours after the filing of a complaint pursuant to this
Section.(d) If the receivership court does not make a determination on a complaint for rehabilitation or liquidation
filed by the Director pursuant to this Section within 24 hours after its filing, then it shall be
deemed granted by operation of law upon the expiration of the 24-hour period. At the time
that an order is deemed granted under this Section, the provisions of Article XIII of this Code
shall be deemed to be in effect, and the Director shall be deemed to be affirmed as receiver and have all of the applicable powers provided by this Code, regardless of whether an order
has been entered. The receivership court shall expeditiously enter an order of rehabilitation
or liquidation that:(1) is effective as of the date that it is deemed     granted by operation of law; and(2) conforms to the provisions for rehabilitation or     liquidation contained in Article XIII of this Code, as applicable.(e) Any order of rehabilitation or liquidation made pursuant to this Section shall not be subject to
any stay or injunction pending appeal.(f) Nothing in this Section shall be construed to supersede or impair any other power or
authority of the Director or the court under this Article or Code.
(Source: P.A. 98-136, eff. 8-2-13.) (215 ILCS 5/189) (from Ch. 73, par. 801)Sec. 189. Injunction. The court shall have jurisdiction, upon, or at any time after the
filing
of the complaint to issue an injunction restraining such company and its
officers, agents, directors, employees and all other persons from
transacting any company business or disposing of its property until the
further order of the court. The court may also restrain all persons,
companies, and
entities from bringing or further prosecuting all actions and proceedings at
law or in equity or otherwise, whether in this State or elsewhere, against the
company or its assets or property or the Director except insofar as those
actions or proceedings arise in or are brought in the conservation,
rehabilitation, or liquidation proceeding. The court may issue such other
injunctions or
enter such other orders as may be deemed necessary to prevent interference
with the proceedings, or with the Director's possession and control or
title, rights or interests as herein provided or to prevent interference
with the conduct of the business by the Director, and may issue such other
injunctions or enter such other orders as may be deemed necessary to
prevent waste of assets or the obtaining, asserting, or enforcing of
preferences, judgments,
attachments, or other like liens, including common law retaining
liens, or
the making of any levy against such
company or its property and assets while in the possession and control of
the Director. The court may issue any other injunctions or enter any other
orders that are necessary to protect enrollees in accordance with subsection
(c) of Section 5-6 of the Health Maintenance Organization Act.  Any
injunction
issued under this article may be served and
enforced as in other civil proceedings, but no bond or other security shall
be required of the plaintiff, either for costs or for any injunction. The provisions of this Section are subject to the exclusion set forth in subsection (o) of Section 204 of this Article. 
(Source: P.A. 100-89, eff. 8-11-17.) (215 ILCS 5/190) (from Ch. 73, par. 802)Sec. 190. 
		Practice, hearing, order and appeal.(1) The defendant company shall appear within 10 days after the service
of the summons as in this Article provided, exclusive of the day of
service.  If, on the return day of the summons the defendant shall enter its
appearance in the action and apply for further time in which to answer, the
court shall, upon request of the defendant, extend the time for answering
for a period not to exceed 10 days from said return day.  If the defendant
fails to answer on the return day or within the time granted, or fails to
appear, the court shall proceed to hear and determine the cause as herein
provided.(2) The court, on the return day of the summons as originally fixed or
extended hereunder, shall set the cause for hearing on some day not
exceeding 20 days from the return day, or the extended return day as herein
provided.(3) No motions or other pleadings, whether to dissolve, modify or
continue any injunction or otherwise, shall be filed by, or permitted on
behalf of the defendant prior to the filing of an answer to the complaint.
All pleadings shall be filed within the time herein provided.(4) The pleadings and proceedings insofar as not otherwise regulated by
this Article, shall be as in other civil proceedings.(5) Upon the hearing, at which the complaint and any exhibits filed
therewith shall be received as prima facie evidence of the facts therein
recited, the court shall enter an order either dismissing the complaint or
finding that sufficient cause exists for rehabilitation or liquidation and
directing the Director to take possession of the property, business and
affairs of such company and to rehabilitate or liquidate the same as the
case may be.  The Director shall be responsible on his official bond for all
assets coming into his possession.(6) An appeal, if taken from such order, shall be prosecuted on an expedited
basis as provided for in such cases by Illinois Supreme Court Rule 307.(7) A claim for attorneys' fees incurred by the company in contesting its
conservation, rehabilitation, or liquidation may be filed in the proceedings,
and the claim may be allowed upon a showing that (i) the attorneys' fees
incurred are reasonable; (ii) the board of directors of the company incurred
such attorneys' fees based upon their best knowledge, information, and belief
formed after reasonable inquiry indicating such contention is well grounded in
fact and is warranted by existing law or a good faith argument of the
extension, modification, or reversal of existing law; and (iii) the contention
is not pursued for any improper purpose, including harassment, unnecessary
delay in the proceedings, or waste of estate
assets.  Such claims, if allowed, shall be accorded a priority of distribution
under paragraph (g) of subsection (1) of Section 205.  This
subsection (7)
applies to all liquidation, rehabilitation, or conservation proceedings that
are pending on the effective date of this amendatory Act of 1993 and to all
future liquidation, rehabilitation, or conservation proceedings.
		(Source: P.A. 88-297; 88-670, eff. 12-2-94; 89-206, eff. 7-21-95.) (215 ILCS 5/190.1) (from Ch. 73, par. 802.1)Sec. 190.1. Appeal of order directing liquidation - special claims procedure.(1) Within 5 days of the effective date of this amendatory Act of 1982,
or, if later, within 5 days after the filing of a notice of appeal of an
order of liquidation, which order has not been stayed, the Director shall
present for the circuit court's approval a plan for the continued performance
of the defendant company's policy claims obligations, including the duty
to defend insureds under liability insurance policies, during the pendency
of an appeal.  Such plan shall provide for the continued performance and
payment of policy claims obligations in the normal course of events, notwithstanding
the grounds alleged in support of the order of liquidation including the
ground of insolvency.  In the event the defendant company's financial condition
will not, in the judgment of the Director, support the full performance
of all policy claims obligations during the appeal pendency period, the
plan may prefer the claims of certain policyholders and claimants over creditors
and interested parties as well as other policyholders and claimants, as
the Director finds to be fair and equitable considering the relative circumstances
of such policyholders and claimants.  The circuit court shall examine the
plan submitted by the Director and if it finds the plan to be in the best
interests of the parties, the circuit court shall approve the plan.
No action shall lie against the Director or any of his deputies, agents,
clerks, assistants or attorneys by any party based on preference in an appeal
pendency plan approved by the circuit court.(2) The appeal pendency plan shall not supersede or affect the obligations
of any insurance guaranty fund which under its own state law is required
to pay covered claims obligations during the appeal pendency period.
(Source: P.A. 96-1000, eff. 7-2-10.) (215 ILCS 5/191) (from Ch. 73, par. 803)Sec. 191. 
		Title to property of company. 
		The Director and his successor and successors in office shall be vested
by operation of law with the title to all property, contracts, and rights
of
action of the company as of the date of the order directing rehabilitation
or liquidation. The Director is entitled to immediate possession and control
of all property, contracts, and rights of action of the company, and is further
authorized and directed to remove any and all records and property of the
company to the Director's possession and control or to such other place as may
be convenient for the purposes of efficient and orderly administration of the
rehabilitation or liquidation.  All persons, companies, and entities shall
immediately release their possession and control of any and all property,
contracts, and rights of action of the company to the Director including, but
not limited to, bank accounts and bank records, premium and related records,
and claim, underwriting, accounting, and litigation files.  The entry of an
order of rehabilitation or liquidation creates an estate that comprises all of
the liabilities and assets of the company.  The filing or recording of such
order in the office of the
recorder or the Registrar of Titles in any county of this State
shall impart the same notice that a deed, bill of sale or other evidence of
title duly filed for record by such company would have imparted.
		(Source: P.A. 89-206, eff. 7-21-95.) (215 ILCS 5/192) (from Ch. 73, par. 804)Sec. 192. 
		
		Duties of
Director as rehabilitator; termination.(1) Upon the entry of an order directing rehabilitation, the Director
shall immediately proceed to conduct the business of the company and take
such steps towards removal of the causes and conditions which have made
such proceedings necessary as may be expedient.(2) The Director is authorized to deal with the property and business of
the company in his name as Director, or, if the Court shall so order, in
the name of the company. The Director may, subject to the approval
of the Court, sell
or otherwise dispose of the real and personal property, or any part
thereof, and sell or compromise all doubtful or uncollectible debts or
claims owing to the company in any rehabilitation proceeding now
pending or hereafter instituted, except that whenever the value of any real
or personal property or the amount of any such debt owing to the company does
not exceed $25,000, the Director may sell, dispose of, compromise, or compound
the same upon such terms as the Director deems to be in the best interest of
the company without obtaining approval of the court unless otherwise directed
by the court.  The Director may solicit contracts whereby a solvent company
agrees to assume, in whole or in part, or upon a modified basis, the
liabilities of a company in rehabilitation in a manner consistent with
subsection (4) of Section 193 of this Code.(3) The Director may bring any action, claim, suit, or proceeding against
any director or officer of the company or against any other person with respect
to that person's dealings with the company including, but not limited to,
prosecuting any action, claim, suit, or proceeding on behalf of the creditors,
members, policyholders, or shareholders of the company.  Nothing in this
subsection shall be construed to affect the standing of the Illinois Insurance
Guaranty Fund, the Illinois Life and Health Insurance Guaranty Association, or
the Illinois Health Maintenance Organization Guaranty Association to sue or be
sued under applicable law.(4) If at any time the Director finds that it is in the best
interests
of policyholders, creditors and the company to effect a plan of
mutualization or rehabilitation, the Director may submit such plan
to the court for
its approval. Such plan, in addition to any other terms and provisions as
may by the Director be deemed necessary or advisable, may include a
provision imposing liens upon the net equities of policyholders of the
company, and in the case of life companies, a provision imposing a
moratorium upon the loan or cash surrender values of the policies, for such
period and to such an extent as may be necessary. Notice of the hearing
upon any such plan shall be given in the manner as may be fixed by the
court and upon such hearing the court may either approve or disapprove the
plan or modify it in such manner and to such extent as to the court shall
seem appropriate.(5) Where in such proceedings the Court has entered an order
for the
filing of claims and it subsequently appears that the total amount of all
allowable claims exceed the assets in the possession of the Rehabilitator,
the Court may upon the application of the Director authorize a distribution
of assets in accordance with the applicable provisions of Section 210.
The Director may at such time apply under this Section for an order
dissolving the company in accordance with the applicable provisions of
Section 196.(6) If at any time the Director finds that the causes and
conditions
which made such proceeding necessary have been removed he may petition the
court for an order terminating the conduct of the business by the Director
and permitting such company to resume possession of its property and the
conduct of its business and for a full discharge of all liability and
responsibility of the Director. No order for the return to such company of
its property and business shall be granted unless the court after a full
hearing determines that the purposes of the proceeding have been fully
accomplished.
		(Source: P.A. 89-206, eff. 7-21-95; 90-381, eff. 8-14-97.) (215 ILCS 5/193) (from Ch. 73, par. 805)Sec. 193. 
		
		Duties of
Director as liquidator; sales; reinsurance.(1) Upon the entry of an order directing liquidation, the Director shall
immediately proceed to liquidate the property, business, and affairs of the
company. The Director is hereby authorized to deal with the
property, business, and affairs of
the company in his name as Director, or, if the court shall so order, in
the name of the company.(2) The Director may, subject to the approval of the court, sell
or otherwise
dispose of the real and personal property, or any part thereof, and sell or
compromise all debts or claims owing to
the
company, except that
whenever the value of any real or personal property or the amount of any debt
owing to the
company does not exceed $25,000, the Director may sell, dispose
of,
compromise, or compound the
same upon such terms as the Director deems to
be in the best interest of the company
without obtaining approval of the court.(3) The Director may bring any action, claim, suit, or proceeding
against any director or officer of the company or against any other person
with respect to that person's dealings with the company including, but not
limited to, prosecuting any action, claim, suit, or proceeding on behalf of the
creditors, members, policyholders, or shareholders of
the company. Nothing in this subsection shall be construed to affect the
standing of the Illinois Insurance Guaranty Fund, the Illinois Life and Health
Insurance Guaranty Association, or the Illinois Health Maintenance Organization
Guaranty Association to sue or be sued under applicable law.(4) In order to preserve so far as possible the rights and interests of
the policyholders of the company whose contracts were cancelled by the
liquidation order and of such other creditors as may be possible, the
Director may solicit a contract or contracts whereby a solvent company or
companies will agree to assume in whole, or in part, or upon a modified
basis, the liabilities owing to said former policyholders or creditors. The
Director may, subject to Section 531.08(h) of this Code or Section 6-8 of
the Health Maintenance Organization Act, cede or reinsure
all or so much as may be necessary of the
in-force business to another company using assets of the liquidated company
to pay therefor in preference to satisfying other obligations or creditors.
The Director may assign any rights or interests of the company to receive
reinsurance proceeds for losses to the Illinois Life and Health Insurance
Guaranty Association, the Illinois Health Maintenance Organization Guaranty
Association or  any similar organization in any other state. If,
after a full hearing upon a petition filed by the Director, the court
shall find that the Director endeavored to obtain the best contract for the
benefit of said parties in interest, and if the said Director shall report
to the court that he is ready and willing to enter into a contract and
submit a copy thereof to the court, the court shall examine the procedure
and acts of the Director, and if the court shall find that the best
possible contract in the interests of said parties has been obtained and
that it is best for the interests of said parties that said contract be
entered into, the court shall by written order approve the acts of the
Director and authorize him to execute said contract.(5) In recognition of the rights of policyholders whose "claims
made" contracts were cancelled by the liquidation order, he may, in his
discretion, permit such policyholders to purchase an extended discovery
period which is subject to the limitations in this Article. The
policyholder shall pay to the liquidator a premium which is appropriate for
the rights purchased as determined by the liquidator and approved by the
court. No extended discovery period purchased before or after the entry of
the liquidation order shall extend the time to file claims as set by the
court pursuant to Section 208 of this Code. Claims accruing by virtue of
such extended discovery period shall be treated as any other claim under
Article XXXIV of this Code, and shall be subject to the limitations,
exclusions and conditions in the Illinois Insurance Guaranty Fund Act and
in the laws governing similar organizations in other states.(6) The Director is authorized to cancel policies, bonds, and contracts of
insurance subject to court approval.(7) All persons, companies, and entities shall immediately turn over to
the Director all unearned premium that has been collected by or on behalf of
the company and all earned premium owing the company unless otherwise directed
in writing by the Director or by court order.  Within 30 days of the date of a
written request of
the Director, those persons, companies, and entities shall
submit affidavits verifying amounts collected by, on behalf
of, or due and owing the company and further shall provide copies of all
premium fund trust account information and such other applicable documentation
as requested by the Director.  Nothing in this subsection shall be construed to
affect the rights of (i) the Illinois Life and Health Insurance Guaranty
Association to collect premium under item (6) of Section 531.08 of this Code or
(ii) the Illinois Health Maintenance Organization Guaranty Association to
collect premium under item (11) of Section 6-8 of the Health Maintenance
Organization Act.(8) The amount recoverable by the Director from a reinsurer shall not be
reduced or diminished as a result of the entry of an order of liquidation
notwithstanding any provision in the reinsurance contract or other such
agreement.  Payment made by a reinsurer to or on behalf of an insured of the
company shall not diminish the reinsurer's obligation to the company except
when the reinsurance agreement lawfully provides for payment to or on behalf of
the company's insured by the reinsurer.  All reinsurance contracts to which the
company is a party, which do
not contain the provisions required with respect to the obligation of a
reinsurer in the event of insolvency of the reinsured to obtain credit for
reinsurance or pursuant to other applicable statutes, shall contain or be
construed to contain all of the following provisions:(a) Upon the entry of an order of liquidation and     notwithstanding the Director's failure to pay all or a portion of a claim, the reinsurance obligation shall be due and owing to the Director on the basis of claims allowed in the liquidation proceeding.  The reinsurer shall submit the amounts due and owing directly to the company as ceding insurer or to the Director.(b) The Director shall give written notice or arrange     for the giving of written notice to reinsurers or their agents of the pendency of a claim against the company indicating the policy or bond reinsured within a reasonable time after the claim is filed.  The reinsurer may interpose, at its own expense, in the proceeding where the claim is to be adjudicated, any defenses that it may deem available to the company or the Director.		(Source: P.A. 88-297; 89-206, eff. 7-21-95.) (215 ILCS 5/194) (from Ch. 73, par. 806)Sec. 194. 
		
		Rights and
liabilities of creditors fixed upon liquidation.(a) The rights and liabilities of the company and of its creditors,
policyholders, stockholders or members and all other persons interested in
its assets, except persons entitled to file contingent claims, shall be
fixed as of the date of the entry of the Order directing liquidation or
rehabilitation unless otherwise provided by Order of the Court. The rights
of claimants entitled to file
contingent claims or to have their claims estimated shall be determined as
provided in Section 209.(b) The Director may,
within 2 years after the entry of an order for
rehabilitation or liquidation or within such further time as applicable law
permits, institute an action, claim, suit, or proceeding
upon any cause of action against which the period of limitation fixed
by applicable law has not expired at the time of filing of the complaint upon
which the order is entered.(c) The time between the
filing of a complaint for conservation, rehabilitation, or liquidation against
the company and the denial of the complaint shall not be considered to be a
part of the time within which any action may be commenced against the company.
Any action against the company that might have been commenced when the
complaint was filed may be commenced for at least 180 days after the complaint
is denied.
		(Source: P.A. 88-297; 89-206, eff. 7-21-95.) (215 ILCS 5/195) (from Ch. 73, par. 807)Sec. 195. 
		
		Borrowing
on the pledge of assets.For the purpose of facilitating the rehabilitation, liquidation,
conservation or dissolution provided for by this article, the Director may,
subject to the approval of the court, borrow money and execute, acknowledge
and deliver certificates of indebtedness upon such terms and entitled to
such liens and priorities as may be fixed by the court, or notes or other
evidence of indebtedness therefor and secure the repayment of the same by
the mortgage, pledge, assignment, transfer in trust or hypothecation or any
or all of the property whether real, personal or mixed of the company
against which a proceeding has been brought under this article. Subject to
the approval of the court, he shall also have power to take any and all
other action necessary and proper to consummate any such loans and to
provide for the repayment thereof. The Director shall incur no personal
liability by virtue of any loan made pursuant to this section.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/196) (from Ch. 73, par. 808)Sec. 196. 
		Order of dissolution. 
		If the company against whom the complaint
for liquidation is filed
is a
corporation and the complaint prays for dissolution of such company, the
court shall have jurisdiction either before or after final liquidation of
the property, business and affairs of such company, after service of
summons and complaint as above stated and a full hearing, to enter a judgment
dissolving such company, and if an order of liquidation has been entered
against a company, the court shall have jurisdiction, upon the petition of the
Director, to enter an order dissolving the company. The court may likewise,
regardless of whether an
order of liquidation is sought or has been obtained, upon proper complaint
or petition by the Director, order dissolution of a company where it has
failed to qualify for a certificate of authority authorizing it to commence
the transaction of its business, or where a company has no assets and no
means for payment of liabilities.
		(Source: P.A. 89-206, eff. 7-21-95.) (215 ILCS 5/197) (from Ch. 73, par. 809)Sec. 197. 
		Rights, powers, and duties ancillary to domiciliary proceeding.The rights, powers, and duties of the Director as conservator,
rehabilitator, or liquidator, with reference to the assets of a foreign or
alien company, whether authorized or unauthorized, shall be ancillary to
the rights, powers and duties imposed upon any receiver or other person, if
any, in charge of the property, business and affairs of such company in its
domiciliary state or country.
		(Source: P.A. 86-1154; 86-1156.) (215 ILCS 5/198) (from Ch. 73, par. 810)Sec. 198. 
		
		Service of
summons and return.(1) Upon the filing of a complaint, summons shall forthwith issue,
returnable in 3 days after its date, and a copy of the summons together
with the complaint in any proceeding under this article shall be served
upon the company named in such complaint by delivering the same to its
president, vice president, secretary, treasurer, director, or to its
managing agent, or if the company lack any of the aforesaid officers, or
they cannot be found within the State, to the officer performing
corresponding functions under another name; if it be a Lloyds, reciprocal
or inter-insurance exchange, by delivering such summons and copy of the
complaint to the duly designated attorney-in-fact.(2) When it is satisfactorily proved by the report of an examiner of the
department made in accordance with the provisions of this Code, or by
affidavit if anyone familiar with the facts, that the officers, directors,
trustees or managing agents or members of any company named in said
complaint upon whom service is required to be made as above provided, have,
or if a Lloyds, reciprocal or inter-insurance exchange be named in the
complaint, that the duly designated attorney-in-fact, has, departed from
the State or keep themselves or himself concealed therein, or if such of
the persons residing in this State and upon whom service is required to be
made as above provided have resigned from their offices, or that service
cannot be made immediately by the exercise of reasonable diligence, such
service may be had by the mailing of a copy of the complaint and summons to
the last known address of the company, or by publication in such form and
in such manner as the court shall order.
		(Source: Laws 1959, p. 1422.) (215 ILCS 5/199) (from Ch. 73, par. 811)Sec. 199. 
		
		Removal of
proceedings to Sangamon or Cook county.In the event an order is entered directing liquidation, rehabilitation
or conservation, the Director may remove the property and assets of the
company to the county of Sangamon or to the county of Cook. In the event of
such removal or contemplated removal the court shall upon proper petition
showing the necessity therefor, filed by the Director, order the clerk of
the court wherein such proceeding was commenced to make a full transcript
of the petition for removal and the order thereon and to transmit the same
together with all papers theretofore filed in the cause, to the Clerk of
the Circuit Court of the county of Sangamon or to the Clerk of the Circuit
Court of the county of Cook, as the case may be, and the proceeding shall
thereafter be conducted in the same manner as if it had been commenced in
the county to which the cause is transferred.
		(Source: Laws 1965, p. 3563.) (215 ILCS 5/200) (from Ch. 73, par. 812)Sec. 200. 
		Examinations. 
		The pendency of any proceeding under this Article shall in no way affect
the power and authority of the Director to conduct any examination provided
for in Sections 132 through 132.7, in connection with the
business, conduct or affairs
of the company sought to be liquidated, rehabilitated or conserved.An annual audit of any business having assets of more than $500,000 which
is under liquidation or rehabilitation pursuant to this Act shall be performed
by an independent outside certified public accountant, who is currently
engaged in the conduct of audits under the Illinois State Auditing Act.
The cost of this audit shall be paid by the Director out of the assets of
the business being liquidated or rehabilitated.An annual audit of any special deputy appointed under Section 202
shall be conducted by an independent, outside certified public accountant
performing the audits provided for in the preceding paragraph. The cost of
this audit shall be allocated among the estates of the companies in
conservation, rehabilitation, or liquidation
on the basis of allocation methods established by the Director. The
Illinois Auditor General may, at his option, participate in the audit of
any special deputy.Copies of all audits prepared under this Section shall be promptly provided
after completion to the Governor, to the Illinois Auditor General,
and to the majority and minority leaders of the Senate and the House of
Representatives.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/201) (from Ch. 73, par. 813)Sec. 201. 
		
		Who may apply for appointment of receiver or liquidator.)
No order or judgment enjoining, restraining or interfering with
the prosecution of the business of any company, or for the appointment
of a temporary or permanent receiver, rehabilitator or liquidator of a
domestic company, or receiver or conservator of a foreign or alien
company, shall be made or granted otherwise than upon the complaint of
the Director represented by the Attorney General as provided in this
article, except in an action by a judgment creditor or in proceedings
supplementary thereto after notice that a final judgment has been
entered and that the judgment creditor intends to file a complaint
praying for any of the relief in this section mentioned, has been served
upon the Director at least 30 days prior to the filing of such complaint
by such judgment creditor.
		(Source: P.A. 84-546.) (215 ILCS 5/202) (from Ch. 73, par. 814)Sec. 202. 
		
		Appointment of special deputies; employees and professional advisors;
contracts; qualified immunity.(a) For the purpose of assisting the Director in the performance of the
Director's duties under Articles VII, XIII, and XIII 1/2 of this Code, the
Director has authority to appoint one or more special deputies as
the Director's agent or agents, and clerks, assistants, attorneys, and other
personnel as the Director may deem necessary and to delegate to each such
person authority to assist the Director as the Director may consider
appropriate. The compensation of each special deputy, clerk,
assistant, attorney, and other designated personnel shall be fixed and paid
by the Director. The Director shall also have the authority to retain and
pay
attorneys, actuaries, accountants, consultants, and such other persons as
the Director may deem necessary and appropriate. The Director shall fix the
rate of compensation of these attorneys, actuaries, accountants, consultants,
and other persons subject to the approval of the court. The Director,
however, has the authority to fix, without the approval of the court, the rate
of compensation of attorneys, actuaries, accountants, consultants, and other
persons that he considers necessary and appropriate if the Director determines
that the projected expenditure for professional fees to each such person will
not exceed $20,000 per company in any calendar year.(b) The special deputies may enter into leases or contracts for the
procurement of real or personal property, and on such terms and conditions
as the Director may deem necessary or advisable for the purpose of
performing the Director's duties under Articles VII, XIII, and XIII 1/2 of
this Code. Any such lease or contract that requires an aggregate
expenditure in excess of $150,000 shall be subject to the approval of the
court before which is pending the delinquency proceeding of the estate of
the company on whose behalf the lease or contract is entered into. In the
event that the lease or contract is entered into on behalf of 2 or more
companies, the delinquency proceedings of the 2 or more companies shall be
consolidated for the sole purpose of obtaining approval of the lease or
contract from the court before which is pending the delinquency proceeding
of the estate of the company that, in the judgment of the Director at the
time of application for approval, is to bear the largest portion of the
amounts to be expended under the lease or contract under the allocation
methods established by the Director under subsection (c)(1) of this Section.(c) (1) The compensation of the persons appointed by the Director and
the attorneys, actuaries, accountants, consultants, and other persons
retained by the Director, the payments under the leases or contracts
described in subsection (b) of this Section, and all other expenses of taking possession
of the property and the administration of the company and its property
shall be paid (i) out of the funds or assets of the company on whose behalf
the compensation, payments, or expenses were incurred or (ii) in the event
that the compensation, payments, or expenses were, in the judgment of the
Director, incurred in behalf of 2 or more companies, out of the assets of
those companies on the basis of allocation methods established by the Director.(2) Notwithstanding the foregoing provisions of this subsection (c),
the salary of the special deputies, together with the salaries or fees of
those clerks, assistants, attorneys, actuaries, accountants, consultants,
or other persons appointed or retained by the Director under this Section,
and the other expenses of taking possession of the property and the
administration of the company and its property, may be paid out of
amounts appropriated to the Department of Insurance.  Any amounts paid
under this Section from appropriated funds shall be repaid to the State
treasury from any available funds or assets of the company on whose behalf
the expenses were incurred, subject to the approval of the court before
which is pending the delinquency proceeding of the company.(d) (1) For each calendar quarter or other period
as the court may determine, the Director shall file with the court before
which is pending the
delinquency proceeding of each company in liquidation or rehabilitation a
report for the period reflecting the company's (i) cash and invested assets
held by the Director at the beginning of the period, (ii) cash receipts,
(iii) cash  disbursements for payments of salaries, compensation,
professional fees, and all other expenses of administration of the company
and its property, (iv) all other cash disbursements, and (v) cash and
invested assets held by the Director at the end of the period; provided
that the report need not be filed more than once for each calendar year if
the cash and invested assets of the company are less than $250,000.
For each such period, the Director shall file with the court a similar report
for each company in conservation, except that this report shall reflect
only those cash disbursements for payments of salaries, compensation,
professional fees, and all other expenses of the administration of the
company and its property.(2) No party to the proceedings may object to any aspect of that
report unless the basis of the party's objection is set forth in a motion
filed with the court not later than 30 days after the filing of the report.
 In the event that objections to the report are filed, the Director shall
have 15 days to file a response to the objections, and a hearing on the
matter shall be held at the earliest possible date consistent with the
schedule of the court.  Any hearing on objections shall be limited solely to the
specific objections raised in the original motion.(e) (1) For purposes of this subsection (e):"Receiver" means the Director in his or her capacity
as the liquidator, rehabilitator, or conservator of a company in
liquidation, rehabilitation, or conservation."Director as trustee" means the Director when appointed as trustee under
this Article."Employees" means all present and former special deputies
appointed by the Director and all persons that the Director or special
deputies may appoint or employ or may have appointed or employed to assist
in the liquidation, rehabilitation, or conservation of a company.
"Employees" shall not include any attorneys, accountants, auditors, or
other professional persons or firms (or their employees) who are
retained as independent contractors by either the Director or by any
special deputy appointed under
this Section."Advisors" means all persons that the Director may appoint or
may have appointed under Section 202.1.(2) If a cause of action is commenced against the receiver,
the Director as trustee, employees, or advisors, either personally or in
their official
capacity, alleging property damage, property loss, personal injury, or other
civil liability arising out of any act, error, or omission of the receiver,
the Director as trustee, employees, or advisors committed within the scope
of their duties or
employment involving a company in liquidation, rehabilitation, or
conservation, the receiver, the Director as trustee, employees, or advisors
shall be indemnified out
of the assets of the company for all expenses, attorneys' fees, judgments,
settlements, decrees, fines, penalties, or amounts paid in satisfaction of
or incurred in the defense of the cause of action unless it is determined
upon a final adjudication on the merits that the act, error, or omission of
the receiver, the Director as trustee, employees, advisors, or the court
giving rise to the claim
was not within the scope of his or her duties or employment or was caused
by intentional, wilful, or wanton misconduct.  Any payments out of the
assets of the company under this subsection (e) shall be
subject to the prior approval of the court before which is pending the
delinquency proceeding of the company.The court shall be entitled to indemnification under Section 2 of
the Representation and Indemnification of State Employees Act.Attorneys' fees and expenses incurred in defending an action
against the receiver, the Director as trustee, employees, or advisors for
which indemnity is
available under this part (2) may, upon the approval of the
receiver and the court before which is pending the delinquency proceeding
of the company, be paid from the assets of the company's estate in advance
of the final disposition of the action upon receipt of an undertaking by or
on behalf of the receiver, the Director as trustee, employees, or advisors
to pay that amount, if it
shall ultimately be determined upon a final adjudication on the merits that
he or she is not entitled to be indemnified under this part (2).Any indemnification, expense payments, and attorneys' fees from the
company's assets for actions against the receiver, the Director as trustee,
employees, or advisors
under this part (2) shall be considered an administrative
expense of the estate.In the event of actual or threatened litigation against the
receiver, the Director as trustee, employees, or advisors for which
indemnity is available under this
part (2), a reasonable amount of funds, which in the judgment of
the Director may be needed to provide indemnity, may be segregated and
reserved from the assets of the company as security for the payment of
indemnity until all applicable statutes of limitations shall have run and
all actual or threatened actions against the receiver, the Director as
trustee, employees, or
advisors have been completely and finally resolved.(3) Nothing contained or implied in this subsection (e) shall
operate, or be construed or applied, to deprive the Director, receiver, the
Director as trustee, the
company's estate, any employee, any advisor or the court of any defense,
claim, or right of immunity
heretofore available.
		(Source: P.A. 88-297; 89-206, eff. 7-21-95.) (215 ILCS 5/202.1) (from Ch. 73, par. 814.1)Sec. 202.1. 
		
		The Director may, with the approval of the court, appoint
an Advisory Committee, consisting of policyholders, claimants, or other
creditors, including Guaranty Funds and Guaranty Associations, should the
Director deem it necessary to the proper performance of his
responsibilities under this Article and Article XIII 1/2.  The Committee
shall serve at the pleasure of the Director and shall serve without
compensation other than reimbursement for travel
and per diem living expenses incurred in attending committee meetings.  No
other committees of any nature shall be appointed by the Director or the
court in any proceeding conducted under this Article and Article XIII 1/2.
		(Source: P.A. 86-1155; 86-1156.) (215 ILCS 5/203) (from Ch. 73, par. 815)Sec. 203. 
		
		Exemption
from filing fees.The Director shall not be required to pay any fee to any public officer
for filing, recording or in any manner authenticating any paper or
instrument relating to any proceeding under this article, nor for services
rendered by any public officer for serving any process; but such fees and
costs may be taxed as costs against the defendant in the suit by order of
the court and paid to such public officer.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/204) (from Ch. 73, par. 816)Sec. 204. Prohibited and voidable transfers and liens.(a)(1) A preference is a transfer of any of the property of a company
to or for the benefit of a creditor, for or on account of an antecedent
debt, made or suffered by the company within 2 years before
the
filing of
a complaint under this Article, the effect of which may be to
enable the creditor to obtain a greater percentage of this debt than
another creditor of the same class would receive.(2) Any preference may be avoided by the Director as rehabilitator,
liquidator, or conservator if:(A) the company was insolvent at the time of the     transfer; and(B) the transfer was made within 4 months before the     filing of the complaint; or the creditor receiving it was (i) an officer, or any employee or attorney or other person who was in fact in a position of comparable influence in the company to an officer whether or not that person held such a position, (ii) any shareholder holding, directly or indirectly, more than 5% of any class of any equity security issued by the company, or (iii) any other person, firm, corporation, association, or aggregation of individuals with whom the company did not deal at arm's length.(3) Where the preference is voidable, the Director as rehabilitator,
liquidator, or conservator may recover the property or, if it has been
converted, its value from any person who has received or converted the
property; except where a bona fide purchaser or lienor has given less than
fair equivalent value, the purchaser or lienor shall have a lien upon the
property to the extent of the consideration actually given.  Where a
preference by way of lien or security title is voidable, the court may on
due notice order the lien or title to be preserved for the benefit of the
estate, in which event the lien or title shall pass to the Director as
rehabilitator or liquidator.(b)(1) A transfer of property other than real property shall be deemed
to be made or suffered when it becomes so far perfected that no subsequent
lien obtainable by legal or equitable proceedings on a simple contract
could become superior to the rights of the transferee.(2) A transfer of real property shall be deemed to be made or suffered
when it becomes so far perfected that no subsequent bona fide purchaser
from the company could obtain rights superior to the rights of the transferee.(3) A transfer that creates an equitable lien shall not be deemed to be
perfected if there are available means by which a legal lien could be created.(4) A transfer not perfected before the filing of a complaint shall
be deemed to be made immediately before the filing of the complaint.(5) The provisions of this subsection apply whether or not there are or
were creditors who might have obtained liens or persons who might have
become bona fide purchasers.(c) For purposes of this Section:(1) A lien obtainable by legal or equitable     proceedings upon a simple contract is one arising in the ordinary course of the proceedings upon the entry or docketing of a judgment or decree, or upon attachment, garnishment, execution, or like process, whether before, upon, or after judgment or decree and whether before or upon levy.  It does not include liens that, under applicable law, are given a special priority over other liens that are prior in time.(2) A lien obtainable by legal or equitable     proceedings could become superior to the rights of a transferee, or a purchaser could obtain rights superior to the rights of a transferee within the meaning of subsection (b) of this Section, if such consequences would follow only from the lien or purchase itself, or from the lien or purchase followed by any step wholly within the control of the respective lienholder or purchaser, with or without the aid of ministerial action by public officials.  A lien could not, however, become superior and a purchase could not create superior rights for the purpose of subsection (b) of this Section through any acts subsequent to an obtaining of the lien or subsequent to a purchase that requires the agreement or concurrence of any third party or that requires any further judicial action or ruling.(d) A transfer of property for or on account of a new and
contemporaneous consideration which is deemed under subsection (b) of this
Section to be made or suffered after the transfer because of delay in
perfecting it does not thereby become a transfer for or on account of an
antecedent debt if any acts required by the applicable law to be performed
in order to perfect the transfer as against liens or bona fide purchasers'
rights are performed within 21 days or any period expressly allowed
by the law, whichever is less.  A transfer to secure a future loan, if the
loan is actually made, or a transfer that becomes security for a future
loan, shall have the same effect as a transfer for or on account of a new
and contemporaneous consideration.(e) If any lien deemed voidable under part (2) of subsection
(a) of this Section has been dissolved by the furnishing of a bond or other
obligation, the surety on which has been indemnified directly or indirectly
by the transfer of or the creation of a lien upon any property of a company
before the filing of a complaint under this Article, the indemnifying
transfer or lien shall also be deemed voidable.(f) The property affected by any lien deemed voidable under subsections
(a) and (e) of this Section shall be discharged from the lien, and that
property and any of the indemnifying property transferred to or for the
benefit of a surety shall pass to the Director as rehabilitator or
liquidator, except that the court may, on due notice, order any such lien to
be preserved for the benefit of the estate and the court may direct that
such conveyance be executed as may be proper  or adequate to
evidence the title of the Director as
rehabilitator or liquidator.(g) The court shall have summary jurisdiction over any proceeding by the
Director as rehabilitator, liquidator, or conservator to hear and determine
the rights of any parties under this Section. Reasonable notice of any
hearings in the proceeding shall be given to all parties in interest,
including the obligee of a releasing bond or other life obligation. Where an
order is entered for the recovery of indemnifying property in kind
or for the avoidance of
an indemnifying lien, the court, upon application of any party in interest,
shall in the same proceeding ascertain the value of the property or lien,
and if the value is less than the amount for which the property is
indemnity or than the amount of the lien, the transferee or lienholder may
elect to retain the property or lien upon payment of its value, as
ascertained by the court, to the Director as rehabilitator, liquidator, or
conservator, within such reasonable times as the court shall fix.(h) The liability of the surety under the releasing bond or other similar
obligation shall be discharged to the extent of the value of the
indemnifying property recovered or the indemnifying lien nullified and
avoided by the Director as
rehabilitator, liquidator, or conservator.  Where the property is retained
under subsection (g) of this Section, the liability shall be discharged to
the extent of the amount paid to the
Director as rehabilitator, liquidator, or conservator.(i) If a creditor has been preferred and thereafter in good faith gives
the company further credit without security of any kind, for property which
becomes a part of the company's estate, the amount of the new credit
remaining unpaid at the time of the petition may be set off against the
preference which would otherwise be recoverable from the creditor.(j) If a company shall, directly or indirectly, within 4 months
before the filing of a complaint under this Article, or at any time in
contemplation of such a proceeding, pay money or transfer property to any
attorney for services rendered or to be rendered, the transactions may be
examined by the court on its own motion or shall be examined by the court
on petition of the
Director as rehabilitator, liquidator, or conservator and shall be held
valid only to the extent of a reasonable amount to be determined by the
court, and the excess may be recovered by the Director as rehabilitator,
liquidator, or conservator for the benefit of the estate provided that where
the attorney is in a position of influence in the company or an affiliate
thereof payment of any money or the transfer of any property to the
attorney for services rendered or to be rendered shall be governed by
item (B) of part (2) of subsection (a) of this Section.(k)(1) An officer, director, manager, employee,
shareholder,
member, subscriber,
attorney, or other person acting on behalf of the company who
knowingly
participates in giving any preference when that officer, director, manager,
employee,
shareholder, member, subscriber, attorney, or other person has reasonable
cause to believe the company is or is about to become insolvent at the time
of the preference shall be personally liable to the Director as
rehabilitator, liquidator, or conservator for the amount of the preference.
There is a reasonable cause to so believe
if the transfer was made within 4 months before the date of filing of the
complaint.(2) A person receiving any property from the company or the
benefit
thereof as a preference voidable under subsection (a) of this Section
shall be personally liable therefor and shall be bound to account to the
Director as rehabilitator, liquidator, or conservator.(3) Nothing in this Section shall prejudice any other claim by the
Director as rehabilitator, liquidator, or conservator against any person.(l) For purposes of this Section, the company is presumed to have been
insolvent on and during the 4 month period immediately preceding the date
of the filing of the complaint.(m) The Director as rehabilitator, liquidator, or conservator may not
avoid a transfer under this Section to the extent that the transfer was:(A) Intended by the company and the creditor to or     for whose benefit the transfer was made to be a contemporaneous exchange for new value given to the company, and was in fact a substantially contemporaneous exchange; or(B) In payment of a debt incurred by the company in     the ordinary course of business or financial affairs of the company and the transferee; made in the ordinary course of business or financial affairs of the company and the transferee; and made according to ordinary business terms;(C) In the case of a transfer by a company where the     Director has determined that an event described in Section 35A-25 or 35A-30 has occurred, specifically approved by the Director in writing pursuant to this subsection, whether or not the company is in receivership under this Article.  Upon approval by the Director, such a transfer cannot later be found to  constitute a prohibited or voidable transfer based solely upon a deviation from the statutory payment priorities established by law for any subsequent receivership; or(D)      Of money or other property arising under or     in connection with any Federal Home Loan Bank security agreement or any pledge, security, collateral or guarantee agreement, or any other similar arrangement or credit enhancement relating to a Federal Home Loan Bank security agreement.(n) The Director as rehabilitator, liquidator, or conservator may avoid
any transfer of or lien upon the property of a company that the estate of the
company or a policyholder, creditor, member, or stockholder of the company
may have avoided, and the Director as rehabilitator, liquidator, or conservator
may recover and collect the property so transferred or its value from the
person to whom it was transferred unless the property was transferred to a
bona fide holder for value before the filing of the complaint.  The Director
as rehabilitator, liquidator, or conservator shall be deemed a creditor for
purposes of pursuing claims under the Uniform Fraudulent Transfer Act.(o)     Notwithstanding any provision of this Article to the contrary, a Federal Home Loan Bank shall not be stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action regarding collateral pledged under any security agreement or any pledge, security, collateral or guarantee agreement, or any other similar arrangement or credit enhancement relating to a Federal Home Loan Bank security agreement. (Source: P.A. 100-89, eff. 8-11-17.) (215 ILCS 5/205) (from Ch. 73, par. 817)Sec. 205. Priority of distribution of general assets.(1) The priorities of distribution of general assets from the
company's estate is to be as follows:(a) The costs and expenses of administration,     including, but not limited to, the following:(i) The reasonable expenses of the Illinois         Insurance Guaranty Fund, the Illinois Life and Health Insurance Guaranty Association, and the Illinois Health Maintenance Organization Guaranty Association and of any similar organization in any other state, including overhead, salaries, and other general administrative expenses allocable to the receivership (administrative and claims handling expenses and expenses in connection with arrangements for ongoing coverage), but excluding expenses incurred in the performance of duties under Section 547 or similar duties under the statute governing a similar organization in another state. For property and casualty insurance guaranty associations that guaranty certain obligations of any member company as defined by Section 534.5, expenses shall include, but not be limited to, loss adjustment expenses, which shall include adjusting and other expenses and defense and cost containment expenses. The expenses of such property and casualty guaranty associations, including the Illinois Insurance Guaranty Fund, shall be reimbursed as prescribed by Section 545, but shall be subordinate to all other costs and expenses of administration, including the expenses reimbursed pursuant to subparagraph (ii) of this paragraph (a).(ii) The expenses expressly approved or ratified         by the Director as liquidator or rehabilitator, including, but not limited to, the following:(1) the actual and necessary costs of             preserving or recovering the property of the insurer;(2) reasonable compensation for all services             rendered on behalf of the administrative supervisor or receiver;(3) any necessary filing fees;(4) the fees and mileage payable to witnesses;(5) unsecured loans obtained by the receiver;             and(6) expenses approved by the conservator or         rehabilitator of the insurer, if any, incurred in the course of the conservation or rehabilitation that are unpaid at the time of the entry of the order of liquidation.Any unsecured loan falling under item (5) of     subparagraph (ii) of this paragraph (a) shall have priority over all other costs and expenses of administration, unless the lender agrees otherwise.  Absent agreement to the contrary, all other costs and expenses of administration shall be shared on a pro-rata basis, except for the expenses of property and casualty guaranty associations, which shall have a lower priority pursuant to subparagraph (i) of this paragraph (a).(b) Secured claims, including claims for taxes and     debts due the federal or any state or local government, that are secured by liens perfected prior to the filing of the complaint.(c) Claims for wages actually owing to employees for     services rendered within 3 months prior to the date of the filing of the complaint, not exceeding $1,000 to each employee unless there are claims due the federal government under paragraph (f), then the claims for wages shall have a priority of distribution immediately following that of federal claims under paragraph (f) and immediately preceding claims of general creditors under paragraph (g).(d) Claims by policyholders, beneficiaries, and     insureds, under insurance policies, annuity contracts, and funding agreements, liability claims against insureds covered under insurance policies and insurance contracts issued by the company, claims of obligees (and, subject to the discretion of the receiver, completion contractors) under surety bonds and surety undertakings (not to include mortgage or financial guaranty, or other forms of insurance offering protection against investment risk), claims by principals under surety bonds and surety undertakings for wrongful dissipation of collateral by the insurer or its agents, and claims incurred during any extension of coverage provided under subsection (5) of Section 193, and claims of the Illinois Insurance Guaranty Fund, the Illinois Life and Health Insurance Guaranty Association, the Illinois Health Maintenance Organization Guaranty Association, and any similar organization in another state as prescribed in Section 545.  For purposes of this Section, "funding agreement" means an agreement whereby an insurer authorized to write business under Class 1 of Section 4 of this Code may accept and accumulate funds and make one or more payments at future dates in amounts that are not based upon mortality or morbidity contingencies.(e) Claims by policyholders, beneficiaries, and     insureds, the allowed values of which were determined by estimation under paragraph (b) of subsection (4) of Section 209.(f) Any other claims due the federal government.(g) All other claims of general creditors not falling     within any other priority under this Section including claims for taxes and debts due any state or local government which are not secured claims and claims for attorneys' fees incurred by the company in contesting its conservation, rehabilitation, or liquidation.(h) Claims of guaranty fund certificate holders,     guaranty capital shareholders, capital note holders, and surplus note holders.(i) Proprietary claims of shareholders, members, or     other owners.Every claim under a written agreement, statute, or rule providing that the
assets in a separate account are not chargeable with the liabilities arising
out of any other business of the insurer shall be satisfied out of the funded
assets in the separate account equal to, but not to exceed, the reserves
maintained in the separate account under the separate account agreement, and to
the extent, if any, the claim is not fully discharged thereby, the remainder
of the claim shall be treated as a priority level (d) claim under paragraph
 (d) of this subsection to the extent that reserves have been established in the
insurer's general account pursuant to statute, rule, or the separate account
agreement.For purposes of this provision, "separate account policies, contracts, or
agreements" means any policies, contracts, or agreements that provide for
separate accounts as contemplated by Section 245.21.To the extent that any assets of an insurer, other than those assets properly
allocated to and maintained in a separate account, have been used to fund or
pay any expenses, taxes, or policyholder benefits that are attributable to a
separate account policy, contract, or agreement that should have been paid by a
separate account prior to the commencement of receivership proceedings, then
upon the commencement of receivership proceedings, the separate accounts
that benefited from this payment or funding shall first be used to repay or
reimburse the company's general assets or account for any unreimbursed net sums
due at the commencement of receivership proceedings prior to the application of
the separate account assets to the satisfaction of liabilities or the
corresponding separate account policies, contracts, and agreements.To the extent, if any, reserves or assets maintained in the separate account
are in excess of the amounts needed to satisfy claims under the separate
account contracts, the excess shall be treated as part of the general assets of
the insurer's estate.(2) Within 120 days after the issuance of an Order of Liquidation with a
finding of insolvency against a domestic company, the Director shall make
application to the court requesting authority to disburse funds to the
Illinois Insurance Guaranty Fund, the Illinois Life and Health Insurance
Guaranty Association, the Illinois Health Maintenance Organization Guaranty
Association, and similar organizations in other states from time to time out
of the company's marshaled assets as funds
become available in amounts equal to disbursements made by the
Illinois Insurance Guaranty Fund, the Illinois Life and Health Insurance
Guaranty Association, the Illinois Health Maintenance Organization Guaranty
Association, and similar organizations in other states
for covered claims obligations on the presentation of evidence that such
disbursements have been made by the Illinois Insurance
Guaranty Fund, the Illinois Life and Health Insurance Guaranty
Association, the Illinois Health Maintenance Organization Guaranty Association,
and similar organizations in other states.The Director shall establish procedures for the ratable allocation and
distribution of disbursements to the Illinois Insurance Guaranty Fund,
the Illinois Life and Health Insurance Guaranty Association, the Illinois
Health Maintenance Organization Guaranty Association, and
similar organizations in other states.  In determining the amounts available
for disbursement, the Director shall reserve sufficient assets for the
payment of the expenses of administration described in paragraph (1)(a)
of this Section.  All funds available for disbursement after the establishment
of the prescribed reserve shall be promptly distributed.   As a condition
to receipt of funds in reimbursement of covered claims obligations,
the Director shall secure from the Illinois Insurance Guaranty Fund,
the Illinois Life and Health Insurance Guaranty Association, the Illinois
Health Maintenance Organization Guaranty Association, and
each similar organization in other states, an agreement to return to the
Director on demand funds previously received as may be required to pay claims
of secured creditors and claims falling within the priorities established
in paragraphs (a), (b), (c), and (d) of subsection (1) of
this Section in accordance
with such priorities.(3) The changes made in this Section by this amendatory Act of the 100th General Assembly apply to all liquidation,
rehabilitation, or conservation proceedings that are pending on the effective date of this amendatory
Act of the 100th General Assembly and to all future liquidation, rehabilitation, or conservation proceedings.(4) The provisions of this Section are severable under Section 1.31 of
the Statute on Statutes.
(Source: P.A. 100-410, eff. 8-25-17; 101-652, eff. 1-1-23.) (215 ILCS 5/205.1)Sec. 205.1. Policyholder collateral, deductible reimbursements, and other policyholder obligations.(a) Any collateral held by, for the benefit of, or assigned to the insurer or the Director as rehabilitator or liquidator to secure the obligations of a policyholder under a deductible agreement shall not be considered an asset of the estate and shall be maintained and administered by the Director as rehabilitator or liquidator as provided in this Section and notwithstanding any other provision of law or contract to the contrary.(b) If the collateral is being held by, for the benefit of, or assigned to the insurer or subsequently the Director as rehabilitator or liquidator to secure obligations under a deductible agreement with a policyholder, subject to the provisions of this Section, the collateral shall be used to secure the policyholder's obligation to fund or reimburse claims payment within the agreed deductible amount.(c) If a claim that is subject to a deductible agreement and secured by collateral is not covered by any guaranty association or the Illinois Insurance Guaranty Fund and the policyholder is unwilling or unable to take over the handling and payment of the non-covered claims, the Director as rehabilitator or liquidator shall adjust and pay the non-covered claims utilizing the collateral but only to the extent the available collateral after allocation under subsection (d), is sufficient to pay all outstanding and anticipated claims. If the collateral is exhausted and the insured is not able to provide funds to pay the remaining claims within the deductible after all reasonable means of collection against the insured have been exhausted, the Director's obligation to pay such claims from the collateral as the rehabilitator or liquidator terminates, and the remaining claims shall be claims against the insurer's estate subject to complying with other provisions in this Article for the filing and allowance of such claims. When the liquidator determines that the collateral is insufficient to pay all additional and anticipated claims, the liquidator may file a plan for equitably allocating the collateral among claimants, subject to court approval.(d) To the extent that the Director as rehabilitator or liquidator is holding collateral provided by a policyholder that was obtained to secure a deductible agreement and to secure other obligations of the policyholder to pay the insurer, directly or indirectly, amounts that become assets of the estate, such as reinsurance obligations under a captive reinsurance program or adjustable premium obligations under a retrospectively rated insurance policy where the premium due is subject to adjustment based upon actual loss experience, the Director as rehabilitator or liquidator shall equitably allocate the collateral among such obligations and administer the collateral allocated to the deductible agreement pursuant to this Section. With respect to the collateral allocated to obligations under the deductible agreement, if the collateral secured reimbursement obligations under more than one line of insurance, then the
collateral shall be equitably allocated among the various lines based upon the estimated ultimate exposure within the deductible amount for each line. The Director as rehabilitator or liquidator shall inform the guaranty association or the Illinois Insurance Guaranty Fund that is or may be obligated for claims against the insurer of the method and details of all the foregoing allocations.(e) Regardless of whether there is collateral, if the insurer has contractually agreed to allow the policyholder to fund its own claims within the deductible amount pursuant to a deductible agreement, either through the policyholder's own administration of its claims or through the policyholder providing funds directly to a third party administrator who administers the claims, the Director as rehabilitator or liquidator shall allow such funding arrangement to continue and, where applicable, will enforce such arrangements to the fullest extent possible. The funding of such claims by the policyholder within the deductible amount will act as a bar to any claim for such amount in the liquidation proceeding, including but not limited to any such claim by the policyholder or the third party claimant. The funding will extinguish both the obligation, if any, of any guaranty association or the Illinois Insurance Guaranty Fund to pay such claims within the deductible amount, as well as the obligations, if any, of the policyholder or third party administrator to reimburse the guaranty association or the Illinois Insurance Guaranty Fund. No charge of any kind shall be made by the Director as rehabilitator or liquidator against any guaranty association or the Illinois Insurance Guaranty Fund on the basis of the policyholder funding of claims payment made pursuant to the mechanism set forth in this subsection.(f) If the insurer has not contractually agreed to allow the policyholder to fund its own claims within the deductible amount, to the extent a guaranty association or the Illinois Insurance Guaranty Fund is required by applicable state law to pay any claims for which the insurer would be or would have been entitled to reimbursement from the policyholder under the terms of the deductible agreement and to the extent the claims have not been paid by a policyholder or third party, the Director as rehabilitator or liquidator shall promptly bill the policyholder for such reimbursement and the policyholder will be obligated to pay such amount to the Director as rehabilitator or liquidator for the benefit of the guaranty association or the Illinois Insurance Guaranty Fund that paid such claims. Neither the insolvency of the insurer, nor its inability to perform any of its obligations under the deductible agreement, shall be a defense to the policyholder's reimbursement obligation under the deductible agreement. When the policyholder reimbursements are collected, the Director as rehabilitator or liquidator shall promptly reimburse the guaranty association or the Illinois Insurance Guaranty Fund for claims paid that were subject to the deductible. If the policyholder fails to pay the amounts due within 60 days after such bill for such reimbursements is due, the Director as rehabilitator or liquidator shall use the collateral to the extent necessary to reimburse the guaranty association or the Illinois Insurance Guaranty Fund, and, at the same time, may pursue other collections efforts against the policyholder. If more than one guaranty association or the Illinois Insurance Guaranty Fund has a claim against the same collateral and the available collateral (after allocation under subsection (d)), along with billing and collection efforts, are together insufficient to pay each guaranty association or the Illinois Insurance Guaranty Fund in full, then the Director as rehabilitator or liquidator will pro-rate payments to each guaranty association or the Illinois Insurance Guaranty Fund based upon the relationship the amount of claims each guaranty association or the Illinois Insurance Guaranty Fund has paid bears to the total of all claims paid by such guaranty association or the Illinois Insurance Guaranty Fund.(g) Director's duties and powers as rehabilitator or liquidator.(1) The Director as rehabilitator or liquidator is     entitled to deduct from reimbursements owed to guaranty associations or the Illinois Insurance Guaranty Fund or collateral to be returned to a policyholder     reasonable actual expenses incurred in fulfilling the responsibilities under this provision, not to exceed 3% of the collateral or the total deductible reimbursements actually collected by the Director as rehabilitator or liquidator.(2) With respect to claim payments made by any     guaranty association or the Illinois Insurance Guaranty Fund, the Director as rehabilitator or liquidator shall promptly provide the court, with a copy to the guaranty associations or the Illinois Insurance Guaranty Fund, with a complete report of the Director's deductible billing and collection activities as rehabilitator or liquidator including copies of the policyholder billings when rendered, the reimbursements collected, the available amounts and use of collateral for each policyholder, and any pro-ration of payments when it occurs. If the Director as rehabilitator or liquidator fails to make a good faith effort within 120 days of receipt of claims payment reports to collect reimbursements due from a policyholder under a deductible agreement based on claim payments made by one or more guaranty associations or the Illinois Insurance Guaranty Fund, then after such 120 day period such guaranty associations or the Illinois Insurance Guaranty Fund may pursue collection from the policyholders directly on the same basis as the Director as rehabilitator or liquidator, and with the same rights and remedies, and will report any amounts so collected from each policyholder to the Director as rehabilitator or liquidator. To the extent that guaranty associations or the Illinois Insurance Guaranty Fund pay claims within the deductible amount, but are not reimbursed by either the Director as rehabilitator, liquidator, or conservator under this Section or by policyholder payments from the guaranty associations' or the Illinois Insurance Guaranty Fund's own collection efforts, the guaranty association or the Illinois Insurance Guaranty Fund shall have a claim in the insolvent insurer's estate for such un-reimbursed claims payments.(3) The Director as rehabilitator or liquidator shall     periodically adjust the collateral being held as the claims subject to the deductible agreement are run-off, provided that adequate collateral is maintained to secure the entire estimated ultimate obligation of the policyholder plus a reasonable safety factor, and the Director as rehabilitator or liquidator shall not be required to adjust the collateral more than once a year. The guaranty associations or the Illinois Insurance Guaranty Fund shall be informed of all such collateral reviews, including but not limited to the basis for the adjustment. Once all claims covered by the collateral have been paid and the Director as rehabilitator or liquidator is satisfied that no new claims can be presented, the Director as rehabilitator or liquidator will release any remaining collateral to the policyholder.(h) The Illinois Circuit Court having jurisdiction over the liquidation proceedings shall have jurisdiction to resolve disputes arising under this provision.(i) Nothing in this Section is intended to limit or adversely affect any right the guaranty associations or the Illinois Insurance Guaranty Fund may have under applicable state law to obtain reimbursement from certain classes of policyholders for claims payments made by such guaranty associations or the Illinois Insurance Guaranty Fund under policies of the insolvent insurer, or for related expenses the guaranty associations or the Illinois Insurance Guaranty Fund incur.(j) This Section applies to all receivership proceedings under Article XIII that either (1) commence on or after the effective date of this amendatory Act of the 93rd General Assembly or (2) are on file or open on the effective date of this amendatory Act of the 93rd General Assembly and in which an Order of Liquidation is entered on or after May 1, 2004.   However, this Section applies to rehabilitation proceedings only to the extent that guaranty associations are required to pay claims and does not apply to receivership proceedings in which only an order of conservation has been entered.(k) For purposes of this Section, a "deductible agreement" is any combination of one or more policies, endorsements, contracts, or security agreements, which provide for the policyholder to bear the risk of loss within a specified amount per claim or occurrence covered under a policy of insurance, and may be subject to the aggregate limit of policyholder reimbursement obligations. This
Section shall not apply to first party claims, or to claims funded by a guaranty association or the Illinois Insurance Guaranty Fund in excess of the deductible unless subsection (e) above applies. The term "non-covered claim" shall mean a claim that is subject to a deductible agreement and is not covered by a guaranty association or the Illinois Insurance Guaranty Fund.
					(Source: P.A. 93-1028, eff. 8-25-04; 94-248, eff. 7-19-05.) (215 ILCS 5/206) (from Ch. 73, par. 818)Sec. 206. 
		
		Set-offs
or counterclaims.In all cases of mutual debts or mutual credits between the company and
another person, such credits and debts shall be set off or counterclaimed
and the balance only shall be allowed or paid, provided, however, that no
set-off or counterclaim shall be allowed in favor of any person where(a) the obligation of the company to such person was purchased by or
transferred to such person with a view of its being used as a set-off or
counterclaim, or(b) the obligation of such person is to pay an assessment levied against
the members or subscribers of any company which issued assessable policies,
or to pay a balance upon a subscription to the shares of a stock company.No set-off shall be allowed in favor of an insurance agent or broker
against his account with the company, for the unearned portion of the
premium on any cancelled policy, unless that policy was cancelled prior to
the entry of the Order of Liquidation or Rehabilitation, and unless the
unearned portion of the premium on that cancelled policy was refunded or
credited to the assured or his representative prior to the entry of the
Order of Liquidation or Rehabilitation.
		(Source: Laws 1967, p. 789.) (215 ILCS 5/206.1)Sec. 206.1. Qualified financial contracts.(a) Notwithstanding any other provision of this Article, including any other provision of this Article permitting the modification of contracts, or other law of a state, no person shall be stayed or prohibited from exercising:(1) a contractual right to cause the termination,     liquidation, acceleration, or close out of obligations under or in connection with any netting agreement or qualified financial contract with an insurer because of:(A) the insolvency, financial condition, or         default of the insurer at any time, provided that the right is enforceable under an  applicable law other than this Code; or(B) the commencement of a formal delinquency         proceeding under this Code;(2) any right under a pledge, security, collateral,     reimbursement or guarantee agreement or arrangement,  any other similar security agreement or arrangement, or other credit enhancement relating to one or more netting agreements or qualified financial contracts;(3) subject to any provision of Section 206 of this     Article, any right to set off or net out any termination value, payment amount, or other transfer obligation arising under or in connection with one or more qualified financial contracts where the counterparty or its guarantor is organized under the laws of the United States or a state or a foreign jurisdiction approved by the Securities Valuation Office of the National Association of Insurance Commissioners as eligible for netting; or(4) if a counterparty to a master netting agreement     or a qualified financial contract with an insurer subject to a proceeding under this Article terminates, liquidates, closes out or accelerates the agreement or contract, then damages shall be measured as of the date or dates of termination, liquidation, close out, or acceleration; the amount of a claim for damages shall be actual direct compensatory damages calculated in accordance with subsection (f) of this Section.(b) Upon termination of a netting agreement or qualified financial contract, the net or settlement amount, if any, owed by a nondefaulting party to an insurer against which an application or petition has been filed under this Code shall be transferred to or on the order of the receiver for the insurer, even if the insurer is the defaulting party, notwithstanding any walkaway clause in the netting agreement or qualified financial contract.For the purposes of this subsection (b), the term "walkaway clause" means a provision in a netting agreement or a qualified financial contract that, after calculation of a value of a party's position or an amount due to or from one of the parties in accordance with its terms upon termination, liquidation, or acceleration of the netting agreement or qualified financial contract, either does not create a payment obligation of a party or extinguishes a payment obligation of a party in whole or in part solely because of the party's status as a nondefaulting party. Any limited 2-way payment or first method provision in a netting agreement or qualified financial contract with an insurer that has defaulted shall be deemed to be a full 2-way payment or second method provision as against the defaulting insurer. Any such property or amount shall, except to the extent that it is subject to one or more secondary liens or encumbrances or rights of netting or setoff, be a general asset of the insurer.(c) In making any transfer of a netting agreement or qualified financial contract of an insurer subject to a proceeding under this Code, the receiver shall either:(1) transfer to one party (other than an insurer     subject to a proceeding under this Article) all netting agreements and qualified financial contracts between a counterparty or any affiliate of the counterparty and the insurer that is the subject of the proceeding, including:(A) all rights and obligations of each party         under each netting agreement and qualified financial contract; and(B) all property, including any guarantees or         other credit enhancement, securing any claims of each party under each netting agreement and qualified financial contract; or(2) transfer none of the netting agreements,     qualified financial contracts, rights, obligations, or property referred to in paragraph (1) of this subsection (c) (with respect to the counterparty and any affiliate of the counterparty).(d) If a receiver for an insurer makes a transfer of one or more netting agreements or qualified financial contracts, then the receiver shall use its best efforts to notify any person who is party to the netting agreements or qualified financial contracts of the transfer by 12:00 noon (the receiver's local time) on the business day following the transfer. For the purposes of this subsection (d), "business day" means a day other than a Saturday, Sunday, or any day on which either the New York Stock Exchange or the Federal Reserve Bank of New York is closed.(e) Notwithstanding any other provision of this Article, a receiver may not avoid a transfer of money or other property arising under or in connection with a netting agreement or qualified financial contract (or any pledge, security, collateral, or guarantee agreement or any other similar security arrangement or credit support document relating to a netting agreement or qualified financial contract) that is made before the commencement of a formal delinquency proceeding under this Article.(f) The following provisions shall apply concerning disaffirmance and repudiation:(1) In exercising the rights of disaffirmance or     repudiation of a receiver with respect to any netting agreement or qualified financial contract to which an insurer is a party, the receiver for the insurer shall either:(A) disaffirm or repudiate all netting agreements         and qualified financial contracts between a counterparty or any affiliate of the counterparty and the insurer that is the subject of the proceeding; or(B) disaffirm or repudiate none of the netting         agreements and qualified financial contracts referred to in subparagraph (A) (with respect to the person or any affiliate of the person).(2) Notwithstanding any other provision of this     Article, any claim of a counterparty against the estate arising from the receiver's disaffirmance or repudiation of a netting agreement or qualified financial contract that has not been previously affirmed in the liquidation or immediately preceding a conservation or rehabilitation case shall be determined and shall be allowed or disallowed as if the claim had arisen before the date of the filing of the petition for liquidation or, if a conservation or rehabilitation proceeding is converted to a liquidation proceeding, as if the claim had arisen before the date of the filing of the petition for conservation or rehabilitation. The amount of the claim shall be the actual direct compensatory damages determined as of the date of the disaffirmance or repudiation of the netting agreement or qualified financial contract. The term "actual direct compensatory damages" does not include punitive or exemplary damages, damages for lost profit or lost opportunity, or damages for pain and suffering, but does include normal and reasonable costs of cover or other reasonable measures of damages utilized in the derivatives, securities, or other market for the contract and agreement claims.(g) The term "contractual right", as used in this Section, includes any right set forth in a rule or bylaw of a derivatives clearing organization, as defined in the Commodity Exchange Act; a multilateral clearing organization, as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991; a national securities exchange; a national securities association; a securities clearing agency; a contract market designated under the Commodity Exchange Act; a derivatives transaction execution facility registered under the Commodity Exchange Act; or a board of trade, as defined in the Commodity Exchange Act or in a resolution of the governing board thereof and any right, whether or not evidenced in writing, arising under statutory or common law or under law merchant or by reason of normal business practice.(h) The provisions of this Section shall not apply to persons who are affiliates of the insurer that is the subject of the proceeding.(i) All rights of counterparties under this Article shall apply to netting agreements and qualified financial contracts entered into on behalf of the general account or separate accounts if the assets of each separate account are available only to counterparties to netting agreements and qualified financial contracts entered into on behalf of that separate account.
(Source: P.A. 96-1450, eff. 8-20-10.) (215 ILCS 5/207.1) (from Ch. 73, par. 819.1)Sec. 207.1. 
		Contingent Liability Policies.Upon the entry of an order of liquidation any provision in the policies
of a company providing for a contingent liability of the policyholders
shall become void.
		(Source: P.A. 76-715.) (215 ILCS 5/208) (from Ch. 73, par. 820)Sec. 208. 
		
		Time to
file claims.(1) When in a liquidation, rehabilitation, or conservation
proceeding
against an insurer under this Article an order has been entered for the
filing of claims, all persons who may have claims against such insurer
shall present the same to the Liquidator, Rehabilitator or Conservator, as
the case may be, at a place specified in the notice for filing of claims
within such time as may be fixed by order of the Court. The Director shall
notify all persons who may have claims against such insurer as disclosed by
its books and records, to present the same to him within the time as fixed.
The last date for the filing of proof of claim shall be specified in the
notice. Such notice shall be given in a manner determined by the Court. The
Director shall also cause a notice specifying the last day for filing of
claims to be published once a week for three consecutive weeks in a
newspaper published in the county where such proceedings are pending and in
such other newspapers as he may deem advisable.(2) Proofs of claim on good cause shown may be filed after the
date specified, but except as provided in subsection (3), no such claim
shall share in the distribution of
assets until all allowed claims proofs of which have been filed before said
date, have been paid in full.(3) The Director may deem proofs of claim filed after the date specified
as timely filed when the claimant shows to the Director's reasonable
satisfaction
that (i) the claimant had no actual knowledge of the date before it had passed,
(ii) a proof of claim was not sent to the claimant until after the date had
passed, and (iii) the Director knew of the claimant's existence and correct
address before the date had passed.  Any such claim shall share in the
distribution of assets under Section 205.
		(Source: P.A. 88-297.) (215 ILCS 5/209) (from Ch. 73, par. 821)Sec. 209. Proof and allowance of claims.(1) The following provisions shall apply concerning proof and allowance of claims:(a) Proof of claim shall consist of a statement     signed by the claimant or on behalf of the claimant that includes all of the following that are applicable:(i) the particulars of the claim including the         consideration given for it;(ii) the identity and amount of the security on         the claim;(iii) the payments made on the debt, if any;(iv) that the sum claimed is justly owing and         that there is no setoff, counterclaim, or defense to the claim;(v) any right of priority of payment or other         specific right asserted by the claimant;(vi) the name and address of the claimant and the         attorney, if any, who represents the claimant; and(vii) the claimant's social security or federal         employer identification number.(b) The Director may require that a prescribed form     be used and may require that other information and documents be included.(c) At any time the Director may require the claimant     to present information or evidence supplementary to that required under paragraph (a) and may take testimony under oath, require production of affidavits or depositions, or otherwise obtain additional information or evidence.(2) Whenever
a claim is based upon a document, the document, unless
lost or destroyed, shall be filed with the proof of claim. If the document is
lost or destroyed, a statement of that fact and of
the
circumstances of the loss or destruction shall be included in
the proof of claim.
A claim may be allowed even if contingent or unliquidated as of the date
fixed by the court
pursuant to subsection (a) of Section 194 if it is filed in accordance with
this subsection.  Except as otherwise provided in subsection (7), a proof of
claim required under this Section must identify a known loss or occurrence.(3) Upon the liquidation, rehabilitation, or conservation of
any
company which has issued policies insuring the lives of persons, the
Director shall, within a reasonable time, after the last day set for the
filing of claims, make a list of the persons who have not filed proofs of
claim with him and whose rights have not been reinsured, to whom it appears
from the books of the company, there are owing amounts on such policies and
he shall set opposite the name of each person such amount so owing to such
person. The Director shall incur no personal liability by reason of any
mistake in such list. Each person whose name shall appear upon said list
shall be deemed to have duly filed prior to the last day set for filing of
claims a proof of claim for the amount set opposite his name on said list.(4)(a) When a Liquidation, Rehabilitation, or
Conservation Order has been entered in a proceeding against an insurer under
this Code, any insured under an insurance policy shall have
the right to file a contingent claim.  The Court at the time of the entry of
the Order of Liquidation, Rehabilitation or Conservation shall fix the final
date for the liquidation of insureds' contingent claims, but
in no event
shall said date be more than 3 years after the last day fixed for the filing of
claims, provided, such date may be extended by the Court on petition of the
Director should the Director determine that such extension will not delay
distribution of assets under Section 210.  Such a contingent claim
shall be allowed if such claim is liquidated and the insured
claimant presents evidence of payment of such claim to the Director on or
before the last day fixed by the Court.(b) When an insured has been unable to liquidate its claim under paragraph
(a) of this subsection (4), the insured may have its claim allowed by
estimation if (i) it may be reasonably inferred from the proof presented upon
the claim that a claim exists under the policy; (ii) the insured has furnished
suitable proof, unless the court for good cause shown shall otherwise direct,
that no further valid claims against the insurer arising out of the cause of
action other than those already presented can be made, and (iii) the total
liability of the insurer to all claimants arising out of the same act shall be
no greater than its total liability would be were it not in liquidation,
rehabilitation, or conservation.(5) The obligation of the insurer, if any, to defend or continue the
defense
of any claim or suit under a liability insurance policy shall terminate on
the entry of the Order of Liquidation, Rehabilitation or Conservation,
except during the appeal of an Order of Liquidation as provided by Section
190.1 or, unless upon the petition of the Director, the court directs
otherwise.  Insureds may include in contingent claims reasonable attorneys
fees for services rendered subsequent to the date of Liquidation,
Rehabilitation or Conservation in defense of claims or suits covered by the
insured's policy provided such attorneys fees have actually been paid by the
assured and evidence of payment presented in the manner required for insured's
contingent claims.(6) When a liquidation, rehabilitation, or
conservation order has been
entered in a proceeding against
an insurer under this Code, any person who has a cause of action against an
insured of the insurer under an insurance
policy issued by the insurer shall have the right to file a
claim in the proceeding, regardless of the fact that the claim
may be contingent, and the claim may be allowed by estimation (a) if it may be
reasonably, inferred from proof presented upon the claim
that the claimant would be able to obtain a judgment upon
the cause of action against the insured; and (b) if
the person has furnished
suitable proof, unless the court for
good cause shown shall otherwise direct, that no further valid claims
against the insurer arising out of the cause of
action other than those
already presented can be made, and (c) the total liability of
the
insurer to all claimants arising out of the same act shall
be no greater than its total liability would be were it not in liquidation,
rehabilitation, or
conservation.(7) Contingent or unliquidated general creditors' and ceding insurers'
claims that are not made absolute and liquidated by the last day fixed by the
court pursuant to subsection (4) may be determined and allowed by estimation.
Any such estimate shall be based upon an actuarial evaluation made
with reasonable actuarial certainty or upon another accepted method of valuing
claims with reasonable certainty and, with respect to ceding insurers' claims,
may include an estimate of incurred but not reported losses.(7.5) (a) The estimation and allowance of the loss development on a known loss or occurrence shall trigger a reinsurer's obligation to pay pursuant to its reinsurance contract with the insolvent company, provided that the allowance is made in accordance with paragraph (b) of subsection (4) or subsection (6).  The Director shall have the authority to exercise all available remedies on behalf of the insolvent company to marshal these reinsurance recoverables.(b) That portion of any estimated and allowed contingent claim that is attributable to claims incurred but not reported to the insolvent company's reinsured shall not be billable to the insolvent company's reinsurers, except to the extent that (A) such claims develop into known losses or occurrences and become billable under paragraph (a) of this subsection or (B) the reinsurance contract specifically provides for the payment of such losses or reserves.(c) Notwithstanding any other provision of this Code, the liquidator may negotiate a voluntary commutation and release of all obligations arising from reinsurance contracts or other agreements.(8) No judgment against such an insured or an
insurer taken after the date of the entry of the liquidation,
rehabilitation, or conservation order shall be considered in the
proceedings
as evidence of liability, or of the amount of damages, and no judgment
against an insured or an insurer taken by default, or by collusion prior to
the entry of the liquidation order shall be considered as conclusive
evidence in the proceeding either of the liability of such insured to such
person upon such cause of action or of the amount of damages to which such
person is therein entitled.(9) The value of securities held by secured creditors shall be
determined by converting the same into money according to the terms of the
agreement pursuant to which such securities were delivered to such
creditors, or by such creditors and the Director by agreement, or by the
court, and the amount of such value shall be credited upon the claims of
such secured creditors and their claims allowed only for the balance.(10) Claims of creditors or policyholders who have received
preferences
voidable under Section 204 or to whom conveyances or transfers,
assignments or incumbrances have been made or given which are void under
Section 204, shall not be allowed unless such creditors or policyholders
shall surrender such preferences, conveyances, transfers, assignments or
incumbrances.(11)(a) When the Director denies a claim or allows a claim for less than
the amount requested by the claimant, written notice of the determination and
of the right to object shall be given promptly to the claimant or the
claimant's representative by first class mail at the address shown on the
proof of claim.  Within 60 days from the mailing of the notice, the claimant
may
file his written objections with the Director.  If no such filing is made on a
timely basis, the claimant may not further object to the determination.(b) Whenever objections are filed with the Director and he does not alter
his determination as a result of the objection and the claimant continues to
object, the Director shall petition the court for a hearing as soon as
practicable and give notice of the hearing by first class mail to the claimant
or his representative and to any other persons known by the Director to be
directly affected, not less than 10 days before the date of the hearing.(12) The Director shall review all claims duly filed in the liquidation,
rehabilitation, or conservation proceeding, unless otherwise directed by the
court, and shall make such further investigation as he considers necessary.
The Director may compound, compromise, or in any other manner negotiate the
amount for which claims will be recommended to the court.  Unresolved disputes
shall be determined under subsection (11).(13)(a) The Director shall present to the court reports of claims reviewed
under subsection (12) with his recommendations as to each claim.(b) The court may approve or disapprove any recommendations contained in the
reports of claims filed by the Director, except that the Director's agreements
with claimants shall be accepted as final by the court on claims settled for
$10,000 or less.(14) The changes made in this Section by this amendatory Act of 1993
apply to
all
liquidation, rehabilitation, or
conservation proceedings that are pending on the effective date of this
amendatory Act of 1993 and to all future liquidation, rehabilitation, or
conservation proceedings,
except that the changes made to the provisions of
this Section by this amendatory Act of 1993 shall not apply to any company
ordered into liquidation on or before January 1, 1982.(15) The changes made in this Section by this amendatory Act of the 93rd General Assembly do not apply to any company ordered into liquidation on or before January 1, 2004.
(Source: P.A. 96-1450, eff. 8-20-10.) (215 ILCS 5/210) (from Ch. 73, par. 822)Sec. 210. Distribution of assets; priorities; unpaid dividends.(1) Any time after the last day fixed for the filing of
proofs of claims in the liquidation of a company, the court may, upon the
application of the Director authorize him to declare out of the funds
remaining in his hands, one or more dividends upon all claims allowed in
accordance with the priorities established in Section 205.(2) Where there has been no adjudication of insolvency, the Director
shall pay all allowed claims in full in accordance with the priorities set
forth in Section 205.    The director shall not be chargeable for any
assets so distributed to any claimant who has failed to file a proper proof
of claim before such distribution has been made.(3) When subsequent to an adjudication of insolvency, pursuant to Section
208, a surplus is found to exist after the payment in full of all allowed
claims falling within the priorities set forth in paragraphs (a), (b), (c),
(d),
(e), (f) and (g) of subsection (1) of Section 205 and which have been duly
filed prior to the last date fixed for the filing thereof, and after the
setting aside of a reserve for  all additional  costs and expenses of the
proceeding, the court shall set a new date for the filing of claims.  After the
expiration of the new date, all allowed claims filed on or before said new date
together with all previously allowed claims falling within the priorities set
forth in paragraphs (h) and (i) of subsection (1) of Section 205 shall be paid
in accordance with the priorities set forth in Section 205.(4) Dividends remaining unclaimed or unpaid in the hands of the
Director for 6 months after the final order of distribution may be
by him deposited in one or more savings and loan associations, State or
national banks, trust companies or savings banks to the credit of the Director,
whomsoever he may be, in trust for the person entitled thereto, but no such
person shall be entitled to any interest upon such deposit.  All such deposits
shall be entitled to priority of payment in case of the insolvency or voluntary
or involuntary liquidation of the depositary on an equality with any other
priority given by the banking law.  Any such funds together with interest, if
any, paid or credited thereon, remaining and unclaimed in the hands of the
Director in Trust after 2 years shall be presumed abandoned and reported and
delivered to the State Treasurer and become subject to the provisions of the Revised
Uniform Unclaimed Property Act.
(Source: P.A. 100-22, eff. 1-1-18.) (215 ILCS 5/211.1)Sec. 211.1. 
		Termination of proceedings.(a) When all assets justifying the
expense of collection and distribution have been marshaled and distributed
under this Code, the Director as liquidator shall petition the court to
terminate the liquidation proceedings and to close the estate.  The court may
grant such other relief as may be appropriate, including a full discharge of
all
liability and responsibility of the
liquidator, a reservation of assets for administrative expenses incurred in the
closing of the estate, and the maintenance and destruction of records.(b) Subject to the approval of the court, after the completion of all
postclosure activities for which moneys
were reserved, the Director is authorized to destroy company records and
documents notwithstanding any other applicable statutes and any remaining
reserved
assets that are provided for in subsection (a) and that may not be practicably
or
economically distributed to claimants shall be deposited into a segregated
account
to be known as the Closed Estate Fund Trust Account.
The Director may use moneys held in the account for paying the administrative
expenses of companies
subject
to this Article that lack sufficient assets to allow the Director to perform
his duties and obligations under this Article.  An annual audit of
the Closed Estate Fund Trust Account shall be performed in accordance with
Section 200 of this Code regardless of its balance.(c) The Director may petition the court to reopen the proceedings for
good cause shown, including the marshaling of additional assets, and the court
may enter such other orders as may be deemed appropriate.
		(Source: P.A. 88-297; 89-206, eff. 7-21-95.) (215 ILCS 5/212.1)Sec. 212.1. 
		Subpoena and document production. 
		The court shall have
jurisdiction, upon, or at any time after the filing of the complaint, upon the
petition of the
Director to subpoena witnesses and
compel their attendance, administer oaths, examine any person under oath and
compel any person to subscribe to his or her testimony after it has been
correctly reduced to writing, and to require the production of any books,
papers, records, or other documents.
		(Source: P.A. 88-297.) (215 ILCS 5/213.5)Sec. 213.5. 
		Severability. 
		The provisions of this Article are severable
under Section 1.31 of the Statute on Statutes.
		(Source: P.A. 89-206, eff. 7-21-95.) (215 ILCS 5/221) (from Ch. 73, par. 833)Sec. 221. 
		Continuation of existing proceedings. 
		Every proceeding heretofore commenced under "An Act in relation to
delinquent insurance companies, associations and societies," approved June
26, 1925, as from time to time amended, which is repealed by this Code
shall be continued as if said Act had not been repealed, but assessments
against members or subscribers of any company which has issued assessable
policies or contracts of insurance may be made in accordance with Section
193.
		(Source: P.A. 83-333.)
(215 ILCS 5/Art. XIV.5 heading) ARTICLE XIV 1/2.  
		SEPARATE ACCOUNTS (215 ILCS 5/245.21) (from Ch. 73, par. 857.21)Sec. 245.21. Establishment of separate accounts by domestic companies
organized to do a life, annuity, or accident and health insurance business.  A
domestic company, including for the purposes of this
Article all domestic fraternal benefit
societies, may, for authorized
classes of insurance, establish one or more
separate accounts, and may allocate thereto amounts (including without
limitation proceeds applied under optional modes of settlement or under
dividend options) to provide for life, annuity, or accident and health
insurance (and benefits
incidental thereto), payable in fixed or variable amounts or both, subject
to the following:(1) The income, gains and losses, realized or     unrealized, from assets allocated to a separate account must be credited to or charged against the account, without regard to other income, gains or losses of the company.(2) Except as may be provided with respect to     reserves for guaranteed benefits and funds referred to in paragraph (3) of this Section (i) amounts allocated to any separate account and accumulations thereon may be invested and reinvested without regard to any requirements or limitations of Part 2 or Part 3 of Article VIII of this Code and (ii) the investments in any separate account or accounts may not be taken into account in applying the investment limitations otherwise applicable to the investments of the company.(3) Except with the approval of the Director and     under the conditions as to investments and other matters as the Director may prescribe, that must recognize the guaranteed nature of the benefits provided, reserves for (i) benefits guaranteed as to dollar amount and duration and (ii) funds guaranteed as to principal amount or stated rate of interest may not be maintained in a separate account.(4) Unless otherwise approved by the Director, assets     allocated to a separate account must be valued at their market value on the date of valuation, or if there is no readily available market, then as provided in the contract or the rules or other written agreement applicable to the separate account. Unless otherwise approved by the Director, the portion, if any, of the assets of the separate account equal to the company's reserve liability with regard to the guaranteed benefits and funds referred to in paragraph (3) of this Section must be valued in accordance with the rules otherwise applicable to the company's assets.(5) Amounts allocated to a separate account under     this Article are owned by the company, and the company may not be, nor hold itself out to be, a trustee with respect to those amounts. The assets of any separate account equal to the reserves and other contract liabilities with respect to the account may not be charged with liabilities arising out of any other business the company may conduct, unless the separate account is subject to guarantees, in which case the assets shall be charged with liabilities arising out of other business of the company, unless the contract specifies that the assets are insulated.(6) No sale, exchange or other transfer of assets may     be made by a company between any of its separate accounts or between any other investment account and one or more of its separate accounts unless, in case of a transfer into a separate account, the transfer is made solely to establish the account or to support the operation of the contracts with respect to the separate account to which the transfer is made, and unless the transfer, whether into or from a separate account, is made (i) by a transfer of cash, or (ii) by a transfer of securities having a readily determinable market value, if the transfer of securities is approved by the Director. The Director may approve other transfers among those accounts if, in his or her opinion, the transfers would not be inequitable.(7) To the extent a company considers it necessary to     comply with any applicable federal or state laws, the company, with respect to any separate account, including without limitation any separate account which is a management investment company or a unit investment trust, may provide for persons having an interest therein appropriate voting and other rights and special procedures for the conduct of the business of the account, including without limitation special rights and procedures relating to investment policy, investment advisory services, selection of independent public accountants, and the selection of a committee, the members of which need not be otherwise affiliated with the company, to manage the business of the account.(Source: P.A. 98-39, eff. 6-28-13.) (215 ILCS 5/245.22) (from Ch. 73, par. 857.22)Sec. 245.22. 
		
		
		Any contract providing benefits payable in variable amounts delivered or
issued for delivery in this State must contain a statement of the essential
features of the procedures to be followed by the insurance company in
determining the dollar amount of the variable benefits. Any such contract
under which the benefits vary to reflect investment experience, including a
group contract and any certificate in evidence of variable benefits issued
thereunder, must state that such dollar amount will so vary and must
contain on its first page a statement to the effect that the benefits
thereunder are on a variable basis.
		(Source: P.A. 77-1572.) (215 ILCS 5/245.23) (from Ch. 73, par. 857.23)Sec. 245.23. 
		
		No company may deliver or issue for delivery within this State variable
contracts unless it is authorized or organized to do a
life, annuity, or accident and health insurance business in this State, and the Director is satisfied that its
condition or method of operation in connection with the issuance of such
contracts will not render its operation hazardous to the public or its
policyholders in this State. In this connection, the Director may consider
among other things:(a) The history and financial condition of the company;(b) The character, responsibility and fitness of the officers and
directors of the company; and(c) The law and regulation under which the company is authorized in its
state of domicile to issue variable contracts.
If the company is a subsidiary of an authorized insurance
company, or
affiliated with such a company through common management or ownership, it
may be deemed by the Director to have met the requirements of this Section
if either it or the parent or the affiliated company meets the requirements
of this Section.
		(Source: P.A. 90-381, eff. 8-14-97.) (215 ILCS 5/245.24) (from Ch. 73, par. 857.24)Sec. 245.24. 
		
		
		Notwithstanding any other provision of law, the Director has sole
authority to regulate the issuance and sale of variable contracts, and to
promulgate such reasonable rules and regulations as may be appropriate to
carry out the purposes and provisions of this Article.
		(Source: P.A. 77-1572.) (215 ILCS 5/245.25) (from Ch. 73, par. 857.25)Sec. 245.25. 
		
		Except for subparagraphs (1)(a), (1)(f), (1)(g) and (3) of
Section
226 of the Illinois Insurance Code, in the case of a variable annuity
contract and subparagraphs (1)(b), (1)(f), (1)(g), (1)(h), (1)(i), and
(1)(k) of Section 224, subparagraph (1)(c) of Section 225, and
subparagraph (h) of Section 231 in the case of a variable life insurance
policy, except for Sections 357.4, 357.5, 367e, and 367e.1 in the
case of a variable
health insurance policy, and except as otherwise provided in this Article,
all pertinent
provisions of the Illinois Insurance Code which are appropriate to those
contracts apply to separate accounts and
contracts relating thereto. Any individual variable life insurance
contract, delivered or issued for delivery in this State, must contain
grace, reinstatement and non-forfeiture provisions appropriate to such a
contract. Any individual variable annuity contract, delivered or issued for
delivery in this State, must contain grace and reinstatement provisions
appropriate to such a contract. Any group variable life insurance contract,
delivered or issued for delivery in this State, must contain a grace
provision appropriate to such a contract. A group variable health insurance
contract delivered or issued for delivery in this State must contain a
continuation of group coverage provision appropriate to the contract.  The
reserve liability for
variable contracts must be established in accordance with actuarial
procedures that recognize the variable nature of the benefits provided and
any mortality guarantees.
		(Source: P.A. 93-477, eff. 1-1-04.) (215 ILCS 5/245.60) (from Ch. 73, par. 857.60)Sec. 245.60. 
		
		Whenever the Director finds that there has been a violation of
this Article or of any rules or regulations issued pertaining thereto, and
after written notice thereof and hearing given to the company or other
person authorized or licensed by the Director, he shall set forth his
findings, together with an order for compliance by a specific date. Such
order shall be binding on the company and other persons authorized or
licensed by the Director on the date specified unless sooner withdrawn by
the Director or a stay thereof has been ordered by a court of competent
jurisdiction.
		(Source: Laws 1963, p. 1137.) (215 ILCS 5/245.61) (from Ch. 73, par. 857.61)Sec. 245.61. 
		(Repealed). 
		(Source: Laws 1963, p. 1137.  Repealed by P.A. 90-381, eff. 8-14-97.) (215 ILCS 5/245.62) (from Ch. 73, par. 857.62)Sec. 245.62. 
		(Repealed). 
		(Source: P.A. 77-1572.  Repealed by P.A. 90-381, eff. 8-14-97.)
(215 ILCS 5/Art. XIV heading) ARTICLE XIV.  
		LEGAL RESERVE LIFE INSURANCE (215 ILCS 5/222) (from Ch. 73, par. 834)Sec. 222. 
		
		Scope of
article.This article shall apply to all stock and mutual legal reserve life
companies, and to the extent provided in section 281 to assessment legal
reserve life companies, authorized to transact in this State the kind or
kinds of business described in Class 1 of section 4.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/223) (from Ch. 73, par. 835)Sec. 223. Director to value policies - Legal standard of valuation.(1) For policies and contracts issued prior to the operative date of the Valuation Manual, the Director shall annually value, or cause to be valued, the
reserve liabilities (hereinafter called reserves) for all outstanding
life insurance policies and annuity and pure endowment contracts of
every life insurance company doing business in this State, except that
in the case of an alien company, such valuation shall be limited to its
United States business. In calculating such reserves, he may use group methods
and approximate averages for fractions of a year or otherwise. In lieu
of the valuation of the reserves herein required of any foreign or alien
company, he may accept any valuation made, or caused to be made, by the
insurance supervisory official of any state or other jurisdiction when
such valuation complies with the minimum standard provided in this Section.The provisions set forth in this subsection (1) and in subsections (2), (3), (4), (5), (6), and (7) of this Section shall apply to all policies and contracts, as appropriate, subject to this Section issued prior to the operative date of the Valuation Manual. The provisions set forth in subsections (8) and (9) of this Section shall not apply to any such policies and contracts.For policies and contracts issued on or after the operative date of the Valuation Manual, the Director shall annually value, or cause to be valued, the reserve liabilities (reserves) for all outstanding life insurance contracts, annuity and pure endowment contracts, accident and health contracts, and deposit-type contracts of every company issued on or after the operative date of the Valuation Manual. In lieu of the valuation of the reserves required of a foreign or alien company, the Director may accept a valuation made, or caused to be made, by the insurance supervisory official of any state or other jurisdiction when the valuation complies with the minimum standard provided in this Section.The provisions set forth in subsections (8) and (9) of this Section shall apply to all policies and contracts issued on or after the operative date of the Valuation Manual.Any such company which adopts at any time a standard of
valuation producing greater aggregate reserves than those calculated
according to the minimum standard provided under this Section may adopt a lower standard of valuation, with the approval
of the Director, but not lower
than the minimum herein provided, however, that, for the purposes of this
subsection, the holding of additional reserves previously determined by the appointed actuary to be necessary to render the opinion required by
subsection (1a) shall not be deemed to be the adoption of a higher standard
of valuation. In the valuation of policies the
Director shall give no consideration to, nor make any deduction because
of, the existence or the possession by the company of(a) policy liens created by any agreement given or     assented to by any assured subsequent to July 1, 1937, for which liens such assured has not received cash or other consideration equal in value to the amount of such liens, or(b) policy liens created by any agreement entered     into in violation of Section 232 unless the agreement imposing or creating such liens has been approved by a Court in a proceeding under Article XIII, or in the case of a foreign or alien company has been approved by a court in a rehabilitation or liquidation proceeding or by the insurance official of its domiciliary state or country, in accordance with the laws thereof.(1a) This subsection shall become operative at the end of the first
full calendar year following the effective date of this amendatory Act of 1991.(A) General.(1) Prior to the operative date of the Valuation         Manual, every life insurance company doing business in this State shall annually submit the opinion of a qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the Director by regulation are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts and comply with applicable laws of this State.  The Director by regulation shall define the specifics of this opinion and add any other items deemed to be necessary to its scope.(2) The opinion shall be submitted with the         annual statement reflecting the valuation of reserve liabilities for each year ending on or after December 31, 1992.(3) The opinion shall apply to all business in         force including individual and group health insurance plans, in form and substance acceptable to the Director as specified by regulation.(4) The opinion shall be based on standards         adopted from time to time by the Actuarial Standards Board and on additional standards as the Director may by regulation prescribe.(5) In the case of an opinion required to be         submitted by a foreign or alien company, the Director may accept the opinion filed by that company with the insurance supervisory official of another state if the Director determines that the opinion reasonably meets the requirements applicable to a company domiciled in this State.(6) For the purpose of this Section, "qualified         actuary" means a member in good standing of the American Academy of Actuaries who meets the requirements set forth in its regulations.(7) Except in cases of fraud or willful         misconduct, the qualified actuary shall not be liable for damages to any person (other than the insurance company and the Director) for any act, error, omission, decision or conduct with respect to the actuary's opinion.(8) Disciplinary action by the Director against         the company or the qualified actuary shall be defined in regulations by the Director.(9) A memorandum, in form and substance         acceptable to the Director as specified by regulation, shall be prepared to support each actuarial opinion.(10) If the insurance company fails to provide a         supporting memorandum at the request of the Director within a period specified by regulation or the Director determines that the supporting memorandum provided by the insurance company fails to meet the standards prescribed by the regulations or is otherwise  unacceptable to the Director, the Director may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting memorandum as is required by the Director.(11) Any memorandum in support of the opinion,         and any other material provided by the company to the Director in connection therewith, shall be kept confidential by the Director and shall not be made public and shall not be subject to subpoena, other than for the purpose of defending an action seeking damages from any person by reason of any action required by this Section or by regulations promulgated hereunder; provided, however, that the memorandum or other material may otherwise be released by the Director (a) with the written consent of the company or (b) to the American Academy of Actuaries upon request stating that the memorandum or other material is required for the purpose of professional disciplinary proceedings and setting forth procedures satisfactory to the Director for preserving the confidentiality of the memorandum or other material.  Once any portion of the confidential memorandum is cited by the company in its marketing or is cited before any governmental agency other than a state insurance department or is released by the company to the news media, all portions of the confidential memorandum shall be no longer confidential.(B) Actuarial analysis of reserves and assets     supporting those reserves.(1) Every life insurance company, except as         exempted by or under regulation, shall also annually include in the opinion required by paragraph (A)(1) of this subsection (1a), an opinion of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the Director by regulation, when considered in light of the assets held by the company with respect to the reserves and related actuarial items including, but not limited to, the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the company's obligations under the policies and contracts including, but not limited to, the benefits under and expenses associated with the policies and contracts.(2) The Director may provide by regulation for a         transition period for establishing any higher reserves which the qualified actuary may deem necessary in order to render the opinion required by this Section.(1b) Actuarial Opinion of Reserves after the Operative Date of the Valuation Manual.(A) General.(1) Every company with outstanding life insurance         contracts, accident and health insurance contracts, or deposit-type contracts in this State and subject to regulation by the Director shall annually submit the opinion of the appointed actuary as to whether the reserves and related actuarial items held in support of the policies and contracts are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws of this State. The Valuation Manual shall prescribe the specifics of this opinion, including any items deemed to be necessary to its scope.(2) The opinion shall be submitted with the         annual statement reflecting the valuation of such reserve liabilities for each year ending on or after the operative date of the Valuation Manual.(3) The opinion shall apply to all policies and         contracts subject to paragraph (B) of this subsection (1b), plus other actuarial liabilities as may be specified in the Valuation Manual.(4) The opinion shall be based on standards         adopted from time to time by the Actuarial Standards Board or its successor and on additional standards as may be prescribed in the Valuation Manual.(5) In the case of an opinion required to be         submitted by a foreign or alien company, the Director may accept the opinion filed by that company with the insurance supervisory official of another state if the Director determines that the opinion reasonably meets the requirements applicable to a company domiciled in this State.(6) Except in cases of fraud or willful         misconduct, the appointed actuary shall not be liable for damages to any person (other than the insurance company and the Director) for any act, error, omission, decision, or conduct with respect to the appointed actuary's opinion.(7) Disciplinary action by the Director against         the company or the appointed actuary shall be defined by the Director by rule.(8) A memorandum, in a form and substance as         specified in the Valuation Manual and acceptable to the Director, shall be prepared to support each actuarial opinion.(9) If the insurance company fails to provide a         supporting memorandum at the request of the Director within a period specified in the Valuation Manual or the Director determines that the supporting memorandum provided by the insurance company fails to meet the standards prescribed by the Valuation Manual or is otherwise unacceptable to the Director, the Director may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting memorandum as is required by the Director.(B) Every company with outstanding life insurance     contracts, accident and health insurance contracts, or deposit-type contracts in this State and subject to regulation by the Director, except as exempted in the Valuation Manual, shall also annually include in the opinion required by subparagraph (1) of paragraph (A) of this subsection (1b), an opinion of the same appointed actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified in the Valuation Manual, when considered in light of the assets held by the company with respect to the reserves and related actuarial items, including, but not limited to, the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the company's obligations under the policies and contracts, including, but not limited to, the benefits under and expenses associated with the policies and contracts.(2) This subsection shall apply to only those policies and contracts
issued prior to the operative date of Section 229.2 (the Standard
Non-forfeiture Law).(a) Except as otherwise in this Article provided, the     legal minimum standard for valuation of contracts issued before January 1, 1908, shall be the Actuaries or Combined Experience Table of Mortality with interest at 4% per annum and for valuation of contracts issued on or after that date shall be the American Experience Table of Mortality with either Craig's or Buttolph's Extension for ages under 10 and with interest at 3 1/2% per annum. The legal minimum standard for the valuation of group insurance policies under which premium rates are not guaranteed for a period in excess of 5 years shall be the American Men Ultimate Table of Mortality with interest at 3 1/2% per annum. Any life company may, at its option, value its insurance contracts issued on or after January 1, 1938, in accordance with their terms on the basis of the American Men Ultimate Table of Mortality with interest not higher than 3 1/2% per annum.(b) Policies issued prior to January 1, 1908, may     continue to be valued according to a method producing reserves not less than those produced by the full preliminary term method. Policies issued on and after January 1, 1908, may be valued according to a method producing reserves not less than those produced by the modified preliminary term method hereinafter described in paragraph (c). Policies issued on and after January 1, 1938, may be valued either according to a method producing reserves not less than those produced by such modified preliminary term method or by the select and ultimate method on the basis that the rate of mortality during the first 5 years after the issuance of such contracts respectively shall be calculated according to the following percentages of rates shown by the American Experience Table of Mortality:(i) first insurance year 50% thereof;(ii) second insurance year 65% thereof;(iii) third insurance year 75% thereof;(iv) fourth insurance year 85% thereof;(v) fifth insurance year 95% thereof.(c) If the premium charged for the first policy year     under a limited payment life preliminary term policy providing for the payment of all premiums thereon in less than 20 years from the date of the policy or under an endowment preliminary term policy, exceeds that charged for the first policy year under 20 payment life preliminary term policies of the same company, the reserve thereon at the end of any year, including the first, shall not be less than the reserve on a 20 payment life preliminary term policy issued in the same year at the same age, together with an amount which shall be equivalent to the accumulation of a net level premium sufficient to provide for a pure endowment at the end of the premium payment period, equal to the difference between the value at the end of such period of such a 20 payment life preliminary term policy and the full net level premium reserve at such time of such a limited payment life or endowment policy. The premium payment period is the period during which premiums are concurrently payable under such 20 payment life preliminary term policy and such limited payment life or endowment policy.(d) The legal minimum standard for the valuations of     annuities issued on and after January 1, 1938, shall be the American Annuitant's Table with interest not higher than 3 3/4% per annum, and all annuities issued before that date shall be valued on a basis not lower than that used for the annual statement of the year 1937; but annuities deferred 10 or more years and written in connection with life insurance shall be valued on the same basis as that used in computing the consideration or premiums therefor, or upon any higher standard at the option of the company.(e) The Director may vary the standards of interest     and mortality as to contracts issued in countries other than the United States and may vary standards of mortality in particular cases of invalid lives and other extra hazards.(f) The legal minimum standard for valuation of     waiver of premium disability benefits or waiver of premium and income disability benefits issued on and after January 1, 1938, shall be the Class (3) Disability Table (1926) modified to conform to the contractual waiting period, with interest at not more than 3 1/2% per annum; but in no event shall the values be less than those produced by the basis used in computing premiums for such benefits. The legal minimum standard for the valuation of such benefits issued prior to January 1, 1938, shall be such as to place an adequate value, as determined by sound insurance practices, on the liabilities thereunder and shall be such that the value of the benefits under each and every policy shall in no case be less than the value placed upon the future premiums.(g) The legal minimum standard for the valuation of     industrial policies issued on or after January 1, 1938, shall be the American Experience Table of Mortality or the Standard Industrial Mortality Table or the Substandard Industrial Mortality Table with interest at 3 1/2% per annum by the net level premium method, or in accordance with their terms by the modified preliminary term method hereinabove described.(h) Reserves for all such policies and contracts may     be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for all such policies and contracts than the minimum reserves required by this subsection.(3) This subsection shall apply to only those policies and contracts
issued on or after January 1, 1948 or such earlier operative date of
Section 229.2 (the Standard Non-forfeiture Law) as shall have been
elected by the insurance company issuing such policies or contracts.(a) Except as otherwise provided in subsections (4),     (6), and (7), the minimum standard for the valuation of all such policies and contracts shall be the Commissioners Reserve valuation method defined in paragraphs (b) and (f) of this subsection and in subsection 5, 3 1/2% interest for such policies issued prior to September 8, 1977, 5 1/2% interest for single premium life insurance policies and 4 1/2% interest for all other such policies issued on or after September 8, 1977, and the following tables:(i) The Commissioners 1941 Standard Ordinary         Mortality Table for all Ordinary policies of life insurance issued on the standard basis, excluding any disability and accidental death benefits in such policies, for such policies issued prior to the operative date of subsection (4a) of Section 229.2 (Standard Non-forfeiture Law); and the Commissioners 1958 Standard Ordinary Mortality Table for such policies issued on or after such operative date but prior to the operative date of subsection (4c) of Section 229.2 provided that for any category of such policies issued on female risks all modified net premiums and present values referred to in this Section may, prior to September 8, 1977, be calculated according to an age not more than 3 years younger than the actual age of the insured and, after September 8, 1977, calculated according to an age not more than 6 years younger than the actual age of the insured; and for such policies issued on or after the operative date of subsection (4c) of Section 229.2, (i) the Commissioners 1980 Standard Ordinary Mortality Table, or (ii) at the election of the company for any one or more specified plans of life insurance, the Commissioners 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors, or (iii) any ordinary mortality table adopted after 1980 by the NAIC and approved by regulations promulgated by the Director for use in determining the minimum standard of valuation for such policies.(ii) For all Industrial Life Insurance policies         issued on the standard basis, excluding any disability and accidental death benefits in such policies--the 1941 Standard Industrial Mortality Table for such policies issued prior to the operative date of subsection 4 (b) of Section 229.2 (Standard Non-forfeiture Law); and for such policies issued on or after such operative date the Commissioners 1961 Standard Industrial Mortality Table or any industrial mortality table adopted after 1980 by the NAIC  and approved by regulations promulgated by the Director for use in determining the minimum standard of valuation for such policies.(iii) For Individual Annuity and Pure Endowment         contracts, excluding any disability and accidental death benefits in such policies--the 1937 Standard Annuity Mortality Table--or, at the option of the company, the Annuity Mortality Table for 1949, Ultimate, or any modification of either of these tables approved by the Director.(iv) For Group Annuity and Pure Endowment         contracts, excluding any disability and accidental death benefits in such policies--the Group Annuity Mortality Table for 1951, any modification of such table approved by the Director, or, at the option of the company, any of the tables or modifications of tables specified for Individual Annuity and Pure Endowment contracts.(v) For Total and Permanent Disability Benefits         in or supplementary to Ordinary policies or contracts for policies or contracts issued on or after January 1, 1966, the tables of Period 2 disablement rates and the 1930 to 1950 termination rates of the 1952 Disability Study of the Society of Actuaries, with due regard to the type of benefit, or any tables of disablement rates and termination rates adopted after 1980 by the NAIC and approved by regulations promulgated by the Director for use in determining the minimum standard of valuation for such policies; for policies or contracts issued on or after January 1, 1961, and prior to January 1, 1966, either such tables or, at the option of the company, the Class (3) Disability Table (1926); and for policies issued prior to January 1, 1961, the Class (3) Disability Table (1926). Any such table shall, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance policies.(vi) For Accidental Death benefits in or         supplementary to policies--for policies issued on or after January 1, 1966, the 1959 Accidental Death Benefits Table or any accidental death benefits table adopted after 1980 by the NAIC  and approved by regulations promulgated by the Director for use in determining the minimum standard of valuation for such policies; for policies issued on or after January 1, 1961, and prior to January 1, 1966, any of such tables or, at the option of the company, the Inter-Company Double Indemnity Mortality Table; and for policies issued prior to January 1, 1961, the Inter-Company Double Indemnity Mortality Table. Either table shall be combined with a mortality table permitted for calculating the reserves for life insurance policies.(vii) For Group Life Insurance, life insurance         issued on the substandard basis and other special benefits--such tables as may be approved by the Director.(b) Except as otherwise provided in paragraph (f) of     subsection (3), subsection (5), and subsection (7) reserves according to the Commissioners reserve valuation method, for the life insurance and endowment benefits of policies providing for a uniform amount of insurance and requiring the payment of uniform premiums shall be the excess, if any, of the present value, at the date of valuation, of such future guaranteed benefits provided for by such policies, over the then present value of any future modified net premiums therefor. The modified net premiums for any such policy shall be such uniform percentage of the respective contract premiums for such benefits that the present value, at the date of issue of the policy, of all such modified net premiums shall be equal to the sum of the then present value of such benefits provided for by the policy and the excess of (A) over (B), as follows:(A) A net level annual premium equal to the         present value, at the date of issue, of such benefits provided for after the first policy year, divided by the present value, at the date of issue, of an annuity of one per annum payable on the first and each subsequent anniversary of such policy on which a premium falls due; provided, however, that such net level annual premium shall not exceed the net level annual premium on the 19 year premium whole life plan for insurance of the same amount at an age one year higher than the age at issue of such policy.(B) A net one year term premium for such benefits         provided for in the first policy year.For any life insurance policy issued on or after     January 1, 1987, for which the contract premium in the first policy year exceeds that of the second year with no comparable additional benefit being provided in that first year, which policy provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than such excess premium, the reserve according to the Commissioners reserve valuation method as of any policy anniversary occurring on or before the assumed ending date, defined herein as the first policy anniversary on which the sum of any endowment benefit and any cash surrender value then available is greater than such excess premium, shall, except as otherwise provided in paragraph (f) of subsection (3), be the greater of the reserve as of such policy anniversary calculated as described in the preceding part of this paragraph (b) and the reserve as of such policy anniversary calculated as described in the preceding part of this paragraph (b) with (i) the value defined in subpart A of the preceding part of this paragraph (b) being reduced by 15% of the amount of such excess first year premium, (ii) all present values of benefits and premiums being determined without reference to premiums or benefits provided for by the policy after the assumed ending date, (iii) the policy being assumed to mature on such date as an endowment, and (iv) the cash surrender value provided on such date being considered as an endowment benefit.  In making the above comparison, the mortality and interest bases stated in paragraph (a) of subsection (3) and in subsection (6)  shall be used.Reserves according to the Commissioners reserve     valuation method for (i) life insurance policies providing for a varying amount of insurance or requiring the payment of varying premiums, (ii) group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer (including a partnership or sole proprietorship) or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under Section 408 of the Internal Revenue Code, as now or hereafter amended, (iii) disability and accidental death benefits in all policies and contracts, and (iv) all other benefits, except life insurance and endowment benefits in life insurance policies and benefits provided by all other annuity and pure endowment contracts, shall be calculated by a method consistent with the principles of this paragraph (b), except that any extra premiums charged because of impairments or special hazards shall be disregarded in the determination of modified net premiums.(c) In no event shall a company's aggregate reserves     for all life insurance policies, excluding disability and accidental death benefits be less than the aggregate reserves calculated in accordance with the methods set forth in paragraphs (b), (f), and (g) of subsection (3) and in subsection (5) and the mortality table or tables and rate or rates of interest used in calculating non-forfeiture benefits for such policies.(d) In no event shall the aggregate reserves for all     policies, contracts, and benefits be less than the aggregate reserves determined by the appointed actuary to be necessary to render the opinion required by subsection (1a).(e) Reserves for any category of policies, contracts     or benefits as established by the Director, may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for such category than those calculated according to the minimum standard herein provided, but the rate or rates of interest used for policies and contracts, other than annuity and pure endowment contracts, shall not be higher than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided for therein.(f) If in any contract year the gross premium charged     by any life insurance company on any policy or contract is less than the valuation net premium for the policy or contract calculated by the  method used in calculating the reserve thereon but using the minimum valuation standards of mortality and rate of interest,  the minimum reserve required for such policy or contract shall be the greater of either the reserve calculated according to the mortality table, rate of interest, and method actually used for such policy or contract, or the reserve calculated by the method actually used for such policy or contract but using the minimum standards of mortality and rate of interest and replacing the valuation net premium by the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium.  The minimum valuation standards of mortality and rate of interest referred to in this paragraph (f) are those standards stated in subsection (6) and paragraph (a) of subsection (3).For any life insurance policy issued on or after     January 1, 1987, for which the gross premium in the first policy year exceeds that of the second year with no comparable additional benefit provided in that first year, which policy provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than such excess premium, the foregoing provisions of this paragraph (f) shall be applied as if the method actually used in calculating the reserve for such policy were the method described in paragraph (b) of subsection (3), ignoring the second paragraph of said paragraph (b). The minimum reserve at each policy anniversary of such a policy shall be the greater of the minimum reserve calculated in accordance with paragraph (b) of subsection (3), including the second paragraph of said paragraph (b), and the minimum reserve calculated in accordance with this paragraph (f).(g) In the case of any plan of life insurance which     provides for future premium determination, the amounts of which are to be determined by the insurance company based on then estimates of future experience, or in the case of any plan of life insurance or annuity which is of such a nature that the minimum reserves cannot be determined by the methods described in paragraphs (b) and (f) of subsection (3) and subsection (5), the reserves which are held under any such plan shall:(i) be appropriate in relation to the benefits         and the pattern of premiums for that plan, and(ii) be computed by a method which is consistent         with the principles of this Standard Valuation Law, as determined by regulations promulgated by the Director.(4) Except as provided in subsection (6), the minimum standard of valuation for individual annuity and pure endowment contracts issued
on or after the operative date of this subsection, as defined herein, and
for all annuities and pure endowments purchased on or after such operative
date under group annuity and pure endowment contracts shall be the
Commissioners Reserve valuation methods defined in paragraph (b) of
subsection (3) and subsection (5) and the following tables and interest rates:(a) For individual single premium immediate annuity     contracts, excluding any disability and accidental death benefits in such contracts, the 1971 Individual Annuity Mortality Table, any individual annuity mortality table adopted after 1980 by the NAIC  and approved by regulations promulgated by the Director for use in determining the minimum standard of valuation for such contracts, or any modification of those tables approved by the Director, and 7 1/2% interest.(b) For individual and pure endowment contracts other     than single premium annuity contracts, excluding any disability and accidental death benefits in such contracts, the 1971 Individual Annuity Mortality Table, any individual annuity mortality table adopted after 1980 by the NAIC and approved by regulations promulgated by the Director for use in determining the minimum standard of valuation for such contracts, or any modification of those tables approved by the Director, and 5 1/2% interest for single premium deferred annuity and pure endowment contracts and 4 1/2% interest for all other such individual annuity and pure endowment contracts.(c) For all annuities and pure endowments purchased     under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under such contracts, the 1971 Group Annuity Mortality Table, any group annuity mortality table adopted after 1980 by the NAIC and approved by regulations promulgated by the Director for use in determining the minimum standard of valuation for such annuities and pure endowments, or any modification of those tables approved by the Director, and 7 1/2% interest.After September 8, 1977, any company may file with the Director a written
notice of its election to comply with the provisions of this subsection
after a specified date before January 1, 1979, which shall be the operative
date of this subsection for such company; provided, a company may elect a
different operative date for individual annuity and pure endowment
contracts from that elected for group annuity and pure endowment contracts.
 If a company makes no election, the operative date of this subsection for
such company shall be January 1, 1979.(5) This subsection shall apply to all annuity and pure endowment contracts
other than group annuity and pure endowment contracts purchased under a
retirement plan or plan of deferred compensation, established or maintained
by an employer (including a partnership or sole proprietorship) or by an
employee organization, or by both, other than a plan providing individual
retirement accounts or individual retirement annuities under Section 408
of the Internal Revenue Code, as now or hereafter amended.Reserves according to the Commissioners annuity reserve method for
benefits under annuity or pure endowment contracts, excluding any
disability and accidental death benefits in such contracts, shall be the
greatest of the respective excesses of the present values, at the date of
valuation, of the future guaranteed benefits, including guaranteed
nonforfeiture benefits, provided for by such contracts at the end of each
respective contract year, over the present value, at the date of valuation,
of any future valuation considerations derived from future gross
considerations, required by the terms of such contract, that become payable
prior to the end of such respective contract year.  The future guaranteed
benefits shall be determined by using the mortality table, if any, and the
interest rate, or rates, specified in such contracts for determining
guaranteed benefits.  The valuation considerations are the portions of the
respective gross considerations applied under the terms of such contracts
to determine nonforfeiture values.(6)(a) Applicability of this subsection. The interest rates used
in determining the minimum standard for the valuation of(A) all life insurance policies issued in a     particular calendar year, on or after the operative date of subsection (4c) of Section 229.2 (Standard Nonforfeiture Law),(B) all individual annuity and pure endowment     contracts issued in a particular calendar year ending on or after December 31, 1983,(C) all annuities and pure endowments purchased in a     particular calendar year ending on or after December 31, 1983, under group annuity and pure endowment contracts, and(D) the net increase in a particular calendar year     ending after December 31, 1983, in amounts held under guaranteed interest contracts shall be the calendar year statutory valuation interest rates, as defined
in this subsection.(b) Calendar Year Statutory Valuation Interest Rates.(i) The calendar year statutory valuation         interest rates shall be determined according to the following formulae, rounding "I" to the nearest .25%.(A) For life insurance,I = .03 + W (R1 - .03) + W/2 (R2 - .09).(B) For single premium immediate annuities             and annuity benefits involving life contingencies arising from other annuities with cash settlement options and from guaranteed interest contracts with cash settlement options,I = .03 + W (R - .03) or with prior                 approval of the Director I = .03 + W (Rq - .03).For the purposes of this subparagraph (i), "I"         equals the calendar year statutory valuation interest rate, "R" is the reference interest rate defined in this subsection, "R1" is the lesser of R and .09, "R2" is the greater of R and .09, "Rq" is the quarterly reference interest rate defined in this subsection, and "W" is the weighting factor defined in this subsection.(C) For other annuities with cash settlement             options and guaranteed interest contracts with cash settlement options, valued on an issue year basis, except as stated in (B), the formula for life insurance stated in (A) applies to annuities and guaranteed interest contracts with guarantee durations in excess of 10 years, and the formula for single premium immediate annuities stated in (B) above applies to annuities and guaranteed interest contracts with guarantee durations of 10 years or less.(D) For other annuities with no cash             settlement options and for guaranteed interest contracts with no cash settlement options, the formula for single premium immediate annuities stated in (B) applies.(E) For other annuities with cash settlement             options and guaranteed interest contracts with cash settlement options, valued on a change in fund basis, the formula for single premium immediate annuities stated in (B) applies.(ii) If the calendar year statutory valuation         interest rate for any life insurance policy issued in any calendar year determined without reference to this subparagraph differs from the corresponding actual rate for similar policies issued in the immediately preceding calendar year by less than .5%, the calendar year statutory valuation interest rate for such life insurance policy shall be the corresponding actual rate for the immediately preceding calendar year.  For purposes of applying this subparagraph, the calendar year statutory valuation interest rate for life insurance policies issued in a calendar year shall be determined for 1980, using the reference interest rate defined for 1979, and shall be determined for each subsequent calendar year regardless of when subsection (4c) of Section 229.2 (Standard Nonforfeiture Law) becomes operative.(c) Weighting Factors.(i) The weighting factors referred to in the         formulae stated in paragraph (b) are given in the following tables.(A) Weighting Factors for Life Insurance.


Guarantee
Weighting


Duration
Factors



(Years)


10 or less
.50


More than 10, but not more than 20
.45


More than 20
.35

For life insurance, the guarantee duration is             the maximum number of years the life insurance can remain in force on a basis guaranteed in the policy or under options to convert to plans of life insurance with premium rates or nonforfeiture values or both which are guaranteed in the original policy.(B) The weighting factor for single premium             immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and guaranteed interest contracts with cash settlement options is .80.(C) The weighting factors for other annuities             and for guaranteed interest contracts, except as stated in (B) of this subparagraph (i), shall be as specified in tables (1), (2), and (3) of this subpart (C), according to the rules and definitions in (4), (5) and (6) of this subpart (C).(1) For annuities and guaranteed interest                 contracts valued on an issue year basis.


Guarantee
Weighting Factor


Duration
for Plan Type


(Years)
 A    B   C


5 or less........................
.80  .60 .50



More than 5, but not


more than 10......................
.75  .60 .50



More than 10, but not


more than 20......................
.65  .50 .45


More than 20......................
.45  .35 .35

(2) For annuities and guaranteed interest                 contracts valued on a change in fund basis, the factors shown in (1) for Plan Types A, B and C are increased by .15, .25 and .05, respectively.(3) For annuities and guaranteed interest                 contracts valued on an issue year basis, other than those with no cash settlement options, which do not guarantee interest on considerations received more than one year after issue or purchase, and for annuities and guaranteed interest contracts valued on a change in fund basis which do not guarantee interest rates on considerations received more than 12 months beyond the valuation date, the factors shown in (1), or derived in (2), for Plan Types A, B and C are increased by .05.(4) For other annuities with cash                 settlement options and guaranteed interest contracts with cash settlement options, the guarantee duration is the number of years for which the contract guarantees interest rates in excess of the calendar year statutory valuation interest rate for life insurance policies with guarantee durations in excess of 20 years.  For other annuities with no cash settlement options, and for guaranteed interest contracts with no cash settlement options, the guarantee duration is the number of years from the date of issue or date of purchase to the date annuity benefits are scheduled to commence.(5) The plan types used in the above                 tables are defined as follows.Plan Type A is a plan under which the                 policyholder may not withdraw funds, or may withdraw funds at any time but only (a) with an adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurance company, (b) without such an adjustment but in installments over 5 years or more, or (c) as an immediate life annuity.Plan Type B is a plan under which the                 policyholder may not withdraw funds before expiration of the interest rate guarantee, or may withdraw funds before such expiration but only (a) with an adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurance company, or (b) without such adjustment but in installments over 5 years or more.  At the end of the interest rate guarantee, funds may be withdrawn without such adjustment in a single sum or installments over less than 5 years.Plan Type C is a plan under which the                 policyholder may withdraw funds before expiration of the interest rate guarantee in a single sum or installments over less than 5 years either (a) without adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurance company, or (b) subject only to a fixed surrender charge stipulated in the contract as a percentage of the fund.(6) A company may elect to value                 guaranteed interest contracts with cash settlement options and annuities with cash settlement options on either an issue year basis or on a change in fund basis.  Guaranteed interest contracts with no cash settlement options and other annuities with no cash settlement options shall be valued on an issue year basis.  As used in this Section, "issue year basis of valuation" refers to a valuation basis under which the interest rate used to determine the minimum valuation standard for the entire duration of the annuity or guaranteed interest contract is the calendar year valuation interest rate for the year of issue or year of purchase of the annuity or guaranteed interest contract. "Change in fund basis of valuation", as used in this Section, refers to a valuation basis under which the interest rate used to determine the minimum valuation standard applicable to each change in the fund held under the annuity or guaranteed interest contract is the calendar year valuation interest rate for the year of the change in the fund.(d) Reference Interest Rate. The reference interest     rate referred to in paragraph (b) of this subsection is defined as follows.(A) For all life insurance, the reference         interest rate is the lesser of the average over a period of 36 months, and the average over a period of 12 months, with both periods ending on June 30, or with prior approval of the Director ending on December 31, of the calendar year next preceding the year of issue, of Moody's Corporate Bond Yield Average - Monthly Average Corporates, as published by Moody's Investors Service, Inc.(B) For single premium immediate annuities and         for annuity benefits involving life contingencies arising from other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the reference interest rate is the average over a period of 12 months, ending on June 30, or with prior approval of the Director ending on December 31, of the calendar year of issue or year of purchase, of Moody's Corporate Bond Yield Average - Monthly Average Corporates, as published by Moody's Investors Service, Inc.(C) For annuities with cash settlement options         and guaranteed interest contracts with cash settlement options, valued on a year of issue basis, except those described in (B), with guarantee durations in excess of 10 years, the reference interest rate is the lesser of the average over a period of 36 months and the average over a period of 12 months, ending on June 30, or with prior approval of the Director ending on December 31, of the calendar year of issue or purchase, of Moody's Corporate Bond Yield Average-Monthly Average Corporates, as published by Moody's Investors Service, Inc.(D) For other annuities with cash settlement         options and guaranteed interest contracts with cash settlement options, valued on a year of issue basis, except those described in (B), with guarantee durations of 10 years or less, the reference interest rate is the average over a period of 12 months, ending on June 30, or with prior approval of the Director ending on December 31, of the calendar year of issue or purchase, of Moody's Corporate Bond Yield Average-Monthly Average Corporates, as published by Moody's Investors Service, Inc.(E) For annuities with no cash settlement options         and for guaranteed interest contracts with no cash settlement options, the reference interest rate is the average over a period of 12 months, ending on June 30, or with prior approval of the Director ending on December 31, of the calendar year of issue or purchase, of Moody's Corporate Bond Yield Average-Monthly Average Corporates, as published by Moody's Investors Service, Inc.(F) For annuities with cash settlement options         and guaranteed interest contracts with cash settlement options, valued on a change in fund basis, except those described in (B), the reference interest rate is the average over a period of 12 months, ending on June 30, or with prior approval of the Director ending on December 31, of the calendar year of the change in the fund, of Moody's Corporate Bond Yield Average-Monthly Average Corporates, as published by Moody's Investors Service, Inc.(G) For annuities valued by a formula based on         Rq, the quarterly reference interest rate is, with the prior approval of the Director, the average within each of the 4 consecutive calendar year quarters ending on March 31, June 30, September 30 and December 31 of the calendar year of issue or year of purchase of Moody's Corporate Bond Yield Average-Monthly Average Corporates, as published by Moody's Investors Service, Inc.(e) Alternative Method for Determining Reference     Interest Rates. In the event that the Moody's Corporate Bond Yield Average-Monthly Average Corporates is no longer published by Moody's Investors Services, Inc., or in the event that the NAIC  determines that Moody's Corporate Bond Yield Average-Monthly Average Corporates as published by Moody's Investors Service, Inc. is no longer appropriate for the determination of the reference interest rate, then an alternative method for determination of the reference interest rate, which is adopted by the NAIC and approved by regulations promulgated by the Director, may be substituted.(7) Minimum Standards for Accident and Health (Disability, Accident and Sickness) Insurance Contracts.  The Director shall promulgate a regulation containing the minimum
standards applicable to the valuation of health (disability, sickness and
accident) plans which are issued prior to the operative date of the Valuation Manual.   For accident and health (disability, accident and sickness) insurance contracts issued on or after the operative date of the Valuation Manual, the standard prescribed in the Valuation Manual is the minimum standard of valuation required under subsection (1).(8) Valuation Manual for Policies Issued On or After the Operative Date of the Valuation Manual.(a) For policies issued on or after the operative     date of the Valuation Manual, the standard prescribed in the Valuation Manual is the minimum standard of valuation required under subsection (1), except as provided under paragraphs (e) or (g) of this subsection (8).(b) The operative date of the Valuation Manual is     January 1 of the first calendar year following the first July 1 when all of the following have occurred:(i) The Valuation Manual has been adopted by the         NAIC by an affirmative vote of at least 42 members, or three-fourths of the members voting, whichever is greater.(ii) The Standard Valuation Law, as amended by         the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by states representing greater than 75% of the direct premiums written as reported in the following annual statements submitted for 2008: life, accident and health annual statements; health annual statements; or fraternal annual statements.(iii) The Standard Valuation Law, as amended by         the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by at least 42 of the following 55 jurisdictions:  the 50 states of the United States, American Samoa, the American Virgin Islands, the District of Columbia, Guam, and Puerto Rico.(c) Unless a change in the Valuation Manual specifies     a later effective date, changes to the Valuation Manual shall be effective on January 1 following the date when the change to the Valuation Manual has been adopted by the NAIC by an affirmative vote representing:(i) at least three-fourths of the members of the         NAIC voting, but not less than a majority of the total membership; and(ii) members of the NAIC representing         jurisdictions totaling greater than 75% of the direct premiums written as reported in the following annual statements most recently available prior to the vote in subparagraph (i) of this paragraph (c): life, accident and health annual statements; health annual statements; or fraternal annual statements.(d) The Valuation Manual must specify all of the     following:(i) Minimum valuation standards for and         definitions of the policies or contracts subject to subsection (1).  Such minimum valuation standards shall be:(A) the Commissioners reserve valuation             method for life insurance contracts, other than annuity contracts, subject to subsection (1);(B) the Commissioners annuity reserve             valuation method for annuity contracts subject to subsection (1); and(C) minimum reserves for all other policies             or contracts subject to subsection (1).(ii) Which policies or contracts or types of         policies or contracts are subject to the requirements of a principle-based valuation in paragraph (a) of subsection (9) and the minimum valuation standards consistent with those requirements.(iii)  For policies and contracts subject to a         principle-based valuation under subsection (9):(A) Requirements for the format of reports to             the Director under subparagraph (iii) of paragraph (b) of subsection (9), and which shall include information necessary to determine if the valuation is appropriate and in compliance with this Section.(B) Assumptions shall be prescribed for risks             over which the company does not have significant control or influence.(C) Procedures for corporate governance and             oversight of the actuarial function, and a process for appropriate waiver or modification of such procedures.(iv) For policies not subject to a         principle-based valuation under subsection (9), the minimum valuation standard shall either:(A) be consistent with the minimum standard             of valuation prior to the operative date of the Valuation Manual; or(B) develop reserves that quantify the             benefits and guarantees and the funding associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring.(v) Other requirements, including, but not         limited to, those relating to reserve methods, models for measuring risk, generation of economic scenarios, assumptions, margins, use of company experience, risk measurement, disclosure, certifications, reports, actuarial opinions and memorandums, transition rules, and internal controls.(vi) The data and form of the data required under         subsection (10) of this Section, with whom the data must be submitted, and may specify other requirements, including data analyses and the reporting of analyses.(e) In the absence of a specific valuation     requirement or if a specific valuation requirement in the Valuation Manual is not, in the opinion of the Director, in compliance with this Section, then the company shall, with respect to such requirements, comply with minimum valuation standards prescribed by the Director by rule.(f) The Director may engage a qualified actuary, at     the expense of the company, to perform an actuarial examination of the company and opine on the appropriateness of any reserve assumption or method used by the company, or to review and opine on a company's compliance with any requirement set forth in this Section. The Director may rely upon the opinion regarding provisions contained within this Section of a qualified actuary engaged by the Director of another state, district, or territory of the United States.  As used in this paragraph, "engage" includes employment and contracting.(g) The Director may require a company to change any     assumption or method that in the opinion of the Director is necessary in order to comply with the requirements of the Valuation Manual or this Section; and the company shall adjust the reserves as required by the Director. The Director may take other disciplinary action as permitted pursuant to law.(9)  Requirements of a Principle-Based Valuation.(a) A company must establish reserves using a     principle-based valuation that meets the following conditions for policies or contracts as specified in the Valuation Manual:(i) Quantify the benefits and guarantees, and the         funding, associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring during the lifetime of the contracts.  For policies or contracts with significant tail risk, reflect conditions appropriately adverse to quantify the tail risk.(ii) Incorporate assumptions, risk analysis         methods, and financial models and management techniques that are consistent with, but not necessarily identical to, those utilized within the company's overall risk assessment process, while recognizing potential differences in financial reporting structures and any prescribed assumptions or methods.(iii) Incorporate assumptions that are derived in         one of the following manners:(A) The assumption is prescribed in the             Valuation Manual.(B) For assumptions that are not prescribed,             the assumptions shall:(1) be established utilizing the                 company's available experience, to the extent it is relevant and statistically credible; or(2) to the extent that company data is                 not available, relevant, or statistically credible, be established utilizing other relevant, statistically credible experience.(iv) Provide margins for uncertainty, including         adverse deviation and estimation error, such that the greater the uncertainty, the larger the margin and resulting reserve.(b) A company using a principle-based valuation for     one or more policies or contracts subject to this subsection as specified in the Valuation Manual shall:(i) Establish procedures for corporate governance         and oversight of the actuarial valuation function consistent with those described in the Valuation Manual.(ii) Provide to the Director and the board of         directors an annual certification of the effectiveness of the internal controls with respect to the principle-based valuation. Such controls shall be designed to ensure that all material risks inherent in the liabilities and associated assets subject to such valuation are included in the valuation, and that valuations are made in accordance with the Valuation Manual. The certification shall be based on the controls in place as of the end of the preceding calendar year.(iii) Develop and file with the Director upon         request a principle-based valuation report that complies with standards prescribed in the Valuation Manual.(c) A principle-based valuation may include a     prescribed formulaic reserve component.(10) Experience Reporting for Policies In Force On or After the Operative Date of the Valuation Manual. A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the Valuation Manual.(11)  Confidentiality.(a) For the purposes of this subsection (11),     "confidential information" means any of the following:(i) A memorandum in support of an opinion         submitted under subsection (1) of this Section and any other documents, materials, and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by or disclosed to the Director or any other person in connection with the memorandum.(ii) All documents, materials, and other         information, including, but not limited to, all working papers, and copies thereof, created, produced, or obtained by or disclosed to the Director or any other person in the course of an examination made under paragraph (f) of subsection (8) of this Section.(iii) Any reports, documents, materials, and         other information developed by a company in support of, or in connection with, an annual certification by the company under subparagraph (ii) of paragraph (b) of subsection (9) of this Section evaluating the effectiveness of the company's internal controls with respect to a principle-based valuation and any other documents, materials, and other information, including, but not limited to, all working papers, and copies thereof, created, produced, or obtained by or disclosed to the Director or any other person in connection with such reports, documents, materials, and other information.(iv) Any principle-based valuation report         developed under subparagraph (iii) of paragraph (b) of subsection (9) of this Section and any other documents, materials and other information, including, but not limited to, all working papers, and copies thereof, created, produced or obtained by or disclosed to the Director or any other person in connection with such report.(v) Any documents, materials, data, and other         information submitted by a company under subsection (10) of this Section (collectively, "experience data") and any other documents, materials, data, and other information, including, but not limited to, all working papers, and copies thereof, created or produced in connection with such experience data, in each case that include any potentially company-identifying or personally identifiable information, that is provided to or obtained by the Director (together with any experience data, the "experience materials") and any other documents, materials, data and other information, including, but not limited to, all working papers and copies thereof, created, produced, or obtained by or disclosed to the Director or any other person in connection with such experience materials.(b) Privilege for and Confidentiality of Confidential     Information.(i) Except as provided in this subsection (11), a         company's confidential information is confidential by law and privileged, and shall not be subject to the Freedom of Information Act, subpoena, or discovery or admissible as evidence in any private civil action; however, the Director is authorized to use the confidential information in the furtherance of any regulatory or legal action brought against the company as a part of the Director's official duties.(ii) Neither the Director nor any person who         received confidential information while acting under the authority of the Director shall be permitted or required to testify in any private civil action concerning any confidential information.(iii) In order to assist in the performance of         the Director's duties, the Director may share confidential information (A) with other state, federal, and international regulatory agencies and with the NAIC and its affiliates and subsidiaries and (B) in the case of confidential information specified in subparagraphs (i) and (iv) of paragraph (a) of subsection (11) only, with the Actuarial Board for Counseling and Discipline or its successor upon request stating that the confidential information is required for the purpose of professional disciplinary proceedings and with state, federal, and international law enforcement officials; in the case of (A) and (B), provided that such recipient agrees and has the legal authority to agree, to maintain the confidentiality and privileged status of such documents, materials, data, and other information in the same manner and to the same extent as required for the Director.(iv) The Director may receive documents,         materials, data, and other information, including otherwise confidential and privileged documents, materials, data, or information, from the NAIC and its affiliates and subsidiaries, from regulatory or law enforcement officials of other foreign or domestic jurisdictions, and from the Actuarial Board for Counseling and Discipline or its successor and shall maintain as confidential or privileged any document, material, data, or other information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or other information.(v) The Director may enter into agreements         governing the sharing and use of information consistent with paragraph (b) of this subsection (11).(vi) No waiver of any applicable privilege or         claim of confidentiality in the confidential information shall occur as a result of disclosure to the Director under this subsection (11) or as a result of sharing as authorized in subparagraph (iii) of paragraph (b) of this subsection (11).(vii) A privilege established under the law of         any state or jurisdiction that is substantially similar to the privilege established under paragraph (b) of this subsection (11) shall be available and enforced in any proceeding in and in any court of this State.(viii) In this subsection (11), "regulatory         agency", "law enforcement agency", and "NAIC" include, but are not limited to, their employees, agents, consultants, and contractors.(c) Notwithstanding paragraph (b) of this subsection     (11), any confidential information specified in subparagraphs (i) and (iv) of paragraph (a) of this subsection (11):(i) may be subject to subpoena for the purpose of         defending an action seeking damages from the appointed actuary submitting the related memorandum in support of an opinion submitted under subsection (1) of this Section or principle-based valuation report developed under subparagraph (iii) of paragraph (b) of subsection (9) of this Section by reason of an action required by this Section or by regulations promulgated under this Section;(ii) may otherwise be released by the Director         with the written consent of the company; and(iii) once any portion of a memorandum in support         of an opinion submitted under subsection (1) of this Section or a principle-based valuation report developed under subparagraph (iii) of paragraph (b) of subsection (9) of this Section is cited by the company in its marketing or is publicly volunteered to or before a governmental agency other than a state insurance department or is released by the company to the news media, all portions of such memorandum or report shall no longer be confidential.(12) Exemptions.(a) The Director may exempt specific product forms or     product lines of a domestic company that is licensed and doing business only in Illinois from the requirements of subsection (8) of this Section, provided that:(i) the Director has issued an exemption in         writing to the company and has not subsequently revoked the exemption in writing; and(ii) the company computes reserves using         assumptions and methods used prior to the operative date of the Valuation Manual in addition to any requirements established by the Director and adopted by rule.(b) For any company granted an exemption under this     subsection, subsections (1), (2), (3), (4), (5), (6), and (7) shall be applicable. With respect to any company applying this exemption, any reference to subsection (8) found in subsections (1), (2), (3), (4), (5), (6), and (7) shall not be applicable.(13) Definitions.
For the purposes of this Section, the following definitions shall apply beginning on the operative date of the Valuation Manual:"Accident and health insurance" means contracts that incorporate morbidity risk and provide protection against economic loss resulting from accident, sickness, or medical conditions and as may be specified in the Valuation Manual."Appointed actuary" means a qualified actuary who is appointed in accordance with the Valuation Manual to prepare the actuarial opinion required in paragraph (b) of subsection (1) of this Section."Company" means an entity that (a) has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this State and has at least one such policy in force or on claim or (b) has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance, or deposit-type contracts in this State."Deposit-type contract" means contracts that do not incorporate mortality or morbidity risks and as may be specified in the Valuation Manual."Life insurance" means contracts that incorporate mortality risk, including annuity and pure endowment contracts, and as may be specified in the Valuation Manual."NAIC" means the National Association of Insurance Commissioners."Policyholder behavior" means any action a policyholder, contract holder, or any other person with the right to elect options, such as a certificate holder, may take under a policy or contract subject to this Section including, but not limited to, lapse, withdrawal, transfer, deposit, premium payment, loan, annuitization, or benefit elections prescribed by the policy or contract, but excluding events of mortality or morbidity that result in benefits prescribed in their essential aspects by the terms of the policy or contract."Principle-based valuation" means a reserve valuation that uses one or more methods or one or more assumptions determined by the insurer and is required to comply with subsection (9) of this Section as specified in the Valuation Manual."Qualified actuary" means an individual who is qualified to sign the applicable statement of actuarial opinion in accordance with the American Academy of Actuaries qualification standards for actuaries signing such statements and who meets the requirements specified in the Valuation Manual."Tail risk" means a risk that occurs either where the frequency of low probability events is higher than expected under a normal probability distribution or where there are observed events of very significant size or magnitude."Valuation Manual" means the manual of valuation instructions adopted by the NAIC as specified in this Section or as subsequently amended. (Source: P.A. 99-162, eff. 1-1-16.) (215 ILCS 5/224) (from Ch. 73, par. 836)Sec. 224. Standard provisions for life policies.(1) After the
first day of July, 1937, no policy of life insurance other than
industrial, group or annuities and pure endowments with or without
return of premiums or of premiums and interest, may be issued or
delivered in this State, unless such policy contains in substance the
following provisions:(a) A provision that all premiums after the first     shall be payable in advance either at the home office of the company or to an agent of the company, upon delivery of a receipt signed by one or more of the officers who shall be designated in the policy, when such receipt is requested by the policyholder.(b) A provision that the insured is entitled to a     grace period either of 30 days or of one month within which the payment of any premium after the first may be made, subject at the option of the company to an interest charge not in excess of 6% per annum for the number of days of grace elapsing before the payment of the premium, during which period of grace the policy shall continue in force, but in case the policy becomes a claim during the grace period before the overdue premium is paid, or the deferred premiums of the current policy year, if any, are paid, the amount of such premium or premiums with interest thereon may be deducted in any settlement under the policy.(c) A provision that the policy, together with the     application therefor, a copy of which shall be endorsed upon or attached to the policy and made a part thereof, shall constitute the entire contract between the parties and that after it has been in force during the lifetime of the insured a specified time, not later than 2 years from its date, it shall be incontestable except for nonpayment of premiums and except at the option of the company, with respect to provisions relative to benefits in the event of total and permanent disability, and provisions which grant additional insurance specifically against death by accident and except for violations of the conditions of the policy relating to naval or military service in time of war or for violation of an express condition, if any, relating to aviation, (except riding as a fare-paying passenger of a commercial air line flying on regularly scheduled routes between definitely established airports) in which case the liability of the company shall be fixed at a definitely determined amount not less than the full reserve for the policy and any dividend additions; provided that the application therefor need not be attached to or made a part of any policy containing a clause making the policy incontestable from date of issue.(d) A provision that if it is found at any time     before final settlement under the policy that the age of the insured (or the age of the beneficiary, if considered in determining the premium) has been misstated, the amount payable under the policy shall be such as the premium would have purchased at the correct age or ages, according to the company's published rate at date of issue.(e) A provision that the policy shall participate     annually in the surplus of the company beginning not later than the end of the third policy year; and any policy containing provision for annual participation beginning at the end of the first policy year, may also provide that each dividend be paid subject to the payment of the premiums for the next ensuing year; and the insured under any annual dividend policy shall have the right each year to have the dividend arising from such participation either paid in cash, or applied in reduction of premiums, or applied to the purchase of paid-up additional insurance, or be left to accumulate to the credit of the policy, with interest at such rate as may be determined from time to time by the company, but not less than a guaranteed minimum rate specified in the policy, and payable at the maturity of the policy, but withdrawable on any anniversary date, subject to such further provisions as the policy may provide regarding the application of dividends toward the payment of any premiums unpaid at the end of the grace period; and if the insured fails to notify the company in writing of his election within the period of grace allowed for the payment of premium, the policy shall further provide which of such options are effective.(f) A provision that after the policy has been in     force 3 full years the company at any time, while the policy is in force, will advance, on proper assignment or pledge of the policy and on the sole security thereof, at a specified maximum fixed or adjusted rate of interest in accordance with Section 229.5, a sum equal to, or at the option of the insured less than the amount required by Section 229.3 under the conditions specified thereby and with notification as required by Section 229.5; and that the company will deduct from such loan value any indebtedness not already deducted in determining such value and any unpaid balance of the premium for the current policy year, and may collect interest in advance on the loan to the end of the current policy year; and any policy may also provide that if the interest on the loan is not paid when due it shall be added to the existing loan and shall bear interest at the same rate.  No condition other than as provided herein or in Sections 229.3 and 229.5 shall be exacted as a prerequisite to any such loan.  This clause shall not apply to term insurance.(g) A provision for nonforfeiture benefits and cash     surrender values in accordance with the requirements of paragraph (1) of Section 229.1 or, Section 229.2.(h) A table showing in figures the loan values and     the options available under the policy each year, upon default in premium payments, during at least the first 20 years of the policy; the policy to contain a provision that the company will furnish upon request an extension of such table beyond the years shown in the policy.(i) A provision that in event of default in premium     payments the value of the policy is applied to the purchase of other insurance as provided in this Section, and if such insurance is in force and the original policy is not surrendered to the company and cancelled, the policy may be reinstated within 3 years from such default, upon evidence of insurability satisfactory to the company and payment of arrears of premiums and the payment or reinstatement of any other indebtedness to the company upon the policy, with interest on the premiums at a rate not exceeding 6% per annum payable annually and with interest on the indebtedness at a rate not exceeding the rate prescribed by Section 229.5.(j) A provision that when a policy is a claim by the     death of the insured settlement shall be made upon receipt of due proof of death and not later than 2 months after the receipt of such proof. The policy may require that due proof of the death of the insured shall consist of a certified copy of the death certificate of the insured, or other lawful evidence providing equivalent information, and proof of the claimant's interest in the proceeds.(k) If the policy provides for payment of its     proceeds in installments, a table showing the amount and period of such installments shall be included in the policy.(l) Interest shall accrue on the proceeds payable     because of the death of the insured, from date of death, at the rate of 10% annually on the total amount payable or the face amount if payments are to be made in installments until the total payment or first installment is paid, unless payment is made within 31 days from the latest of the following to occur:(1) the date that due proof of death is received         by the company;(2) the date that the company receives sufficient         information to determine its liability, the extent of the liability, and the appropriate payee legally entitled to the proceeds; or(3) the date that legal impediments to payment of         proceeds that depend on the action of parties other than the company are resolved and sufficient evidence of the same is provided to the company;  legal impediments to payment include, but are not limited to, (A) the establishment of guardianships and conservatorships, (B) the appointment and qualification of trustees, executors, and administrators, and (C) the submission of information required to satisfy State and federal reporting requirements.This provision need not appear in the policy, however,     the company shall notify the beneficiary at the time of claim of this provision.  The payment of interest shall apply to all policies now in force, as well as those written after the effective date of this amendment.(m) Title on the face and on the back of the policy     briefly describing its form.(n) A provision, or a notice attached to the policy,     to the effect that during a period of ten days from the date the policy is delivered to the policy owner, it may be surrendered to the insurer together with a written request for cancellation of the policy and in such event, the insurer will refund any premium paid therefor, including any policy fees or other charges. The Director may by rule exempt specific types of policies from the requirements of this subsection.(2) In the case of the replacement of life insurance, as defined in the
rule promulgated by the Director, the replacing insurer shall either (1)
delay the issuance of its policy for not less than 20 days from the date
it has transmitted a policy summary to the existing insurer, or (2) provide
in a form titled "Notice Regarding Replacement of Life Insurance", as well
as in its policy, or in a separate notice delivered with the policy, that
the insured has the right to an unconditional refund of all premiums paid,
and that such right may be exercised within a period of 20 days commencing
from the date of delivery of such policy. Where option (2) is exercised,
the replacing insurer shall also transmit a policy summary to the existing
insurer within 3 working days after the date the replacement policy is issued.(3) Any of the foregoing provisions or portions thereof not
applicable to single premium or nonparticipating or term policies shall
to that extent not be incorporated therein.  This Section shall not
apply to policies of reinsurance nor to policies issued or granted
pursuant to the nonforfeiture provisions prescribed in subparagraph (g)
of paragraph (1) of this Section.
(Source: P.A. 97-527, eff. 8-23-11.) (215 ILCS 5/224.05)Sec. 224.05. Military personnel in military service; no lapse of life insurance policy.(a) Except as provided in subsection (b), this Section shall apply to any individual life insurance policy insuring the life of a resident of Illinois who is a member of any component of the U.S. Armed Forces or the National Guard of any state, the District of Columbia, a commonwealth, or a territory of the United States who has entered any full-time training or duty which the service member was ordered to report by the President, Governor of a state, commonwealth, or territory of the United States, or other appropriate military authority, if the life insurance policy meets both of the following conditions:(1) The policy has been in force for at least 180     days.(2) The policy has been brought within the     "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), 50 U.S.C. App. 541 and following.(b) This Section does not apply to any policy that was cancelled or that had lapsed for the nonpayment of premiums prior to the commencement of the insured's period of military service.(c) An individual life insurance policy described in this Section shall not lapse or be forfeited for the nonpayment of premiums during the military service of a service member in excess of 29 consecutive days during the 2-year period subsequent to the end of the member's period of military service.(d) In order to be eligible for the benefits granted to service members under this Section, a service member must provide the life insurance company with a copy of the orders calling the service member to military service and of any orders further extending the service member's period of service.(e) This Section does not limit a life insurance company's enforcement of provisions in the insured's policy relating to naval or military service in time of war.(f) A violation of this Section constitutes a civil rights violation under the Illinois Human Rights Act.All proceeds from the collection of any civil penalty imposed under this subsection shall be deposited into the Illinois Military Family Relief Fund.
(Source: P.A. 97-913, eff. 1-1-13.) (215 ILCS 5/224.1) (from Ch. 73, par. 836.1)Sec. 224.1. 
		Employer insurable interest. 
		Notwithstanding any other
Section of this Code, an employer or an employer sponsored trust for the
benefit of its employees has an insurable interest in the lives of the
employer's directors, officers, managers, nonmanagement employees, and
retired employees and may insure those lives on an individual or group
basis with the consent of the insured.  The consent requirement will be
satisfied if the insured is provided written notice of the coverage and
does not reject such coverage within 30 days of receipt of such notice.  The
extent of the employer's or the trust's insurable interest for nonmanagement
and retired employees shall be limited to an amount commensurate with the
employer's projected unfunded liabilities to nonmanagement and retired
employees for welfare benefit plans, as defined by the Employee Retirement
Income Security Act of 1974, Public Law 93-406, 88 Stat. 829, calculated
according to accepted actuarial principles.  An insurable interest must exist
at the time the contract of life or disability insurance becomes effective, but
need not exist at the time the loss occurs.  An employer shall not retaliate in
any manner against an employee or a retired employee for refusing consent to be
insured.  The proceeds of any policy or certificate issued pursuant to this
Section are exempt from the claims of any creditor or dependent of the insured.
 As used herein, "employer" means an individual, sole proprietorship,
partnership, firm, corporation, association, or any other legal entity that has
one or more employees and is legally doing business in this State.
		(Source: P.A. 87-936.) (215 ILCS 5/225) (from Ch. 73, par. 837)Sec. 225. 
		
		Prohibited
Provisions for Life Policies.
(1) After the effective date of this Code no policy of life insurance
may be issued or delivered in this State if it includes any of the
following provisions:(a) A provision limiting the time within which any action may be commenced
to less than 3 years after the cause of action
accrues.(b) A provision by which the policy purports to be issued or take effect
more than 6 months before the original application for the insurance was
made, but this provision does not apply in any case of a transfer from one
form of policy to another in connection with which the policy owner
receives credit for any reserve accumulation under the form of policy from
which the transfer was made.(c) A provision for any mode of settlement at maturity after the
expiration of the contestable period of the policy of less value than the
amount insured plus dividend additions, if any,
less any indebtedness to the company on or secured by the policy, and less
any premium that may by the terms of the policy be deducted, except as
permitted by clause (c) of subsection (1) of Section 224.(d) A provision for forfeiture of the policy for failure to repay any
loan on the policy, or to pay interest on such loan, while the total
indebtedness on the policy, including interest, is less than the loan value
thereof.(e) A provision to the effect that the agent soliciting the insurance is
the agent of the person insured under the policy, or making the acts or
representations of such agent binding upon the person so insured under the
policy.(f) A provision limiting the amount payable under a policy by reason of
death occurring after the expiration of the contestable period to less than
the face amount thereof on account of the kind or character of disease
causing the insured's death.(2) The provisions of this section do not apply to policies of
reinsurance, nor to policies issued or granted under the nonforfeiture
provisions prescribed in clause (g) of subsection (1) of Section 224.
		(Source: P.A. 83-345.) (215 ILCS 5/226) (from Ch. 73, par. 838)Sec. 226. 
		
		Standard
provisions for annuities and pure endowment contracts.  (1) After the effective
date of this Section and any amendments thereto no annuity
or pure endowment
contract, except in case of reversionary annuities, survivorship annuities
or annuities contracted by an employer on behalf of his employees, shall be
issued or delivered in this State unless it contains in substance the
following provisions:(a) A provision that there shall be a period of grace, either of thirty
days or of one month, within which any stipulated payment to the company
falling due after the first year may be made, subject at the option of the
company, to an interest charge thereon at a rate to be specified in the
contract but not exceeding six per centum per annum for the number of days
of grace elapsing before such payment, during which period of grace, the
contract shall continue in full force; but in case a claim arises under the
contract on account of death during the said period of grace before the
overdue payment to the company or the deferred payments of the current
contract year, if any, are made, the amount of such payments, with interest
on any overdue payments, may be deducted from any amount payable under the
contract in settlement.(b) If statements, other than those relating to age and identity, are
required as a condition to issuing the contract, a provision that the
contract shall be incontestable after it has been in force during the
lifetime of the person or each of the persons as to whom such statements
are required, for a period of two years from its date of issue, except
where stipulated payments to the company have not been made and except for
violations of the conditions of the contract relating to military or naval
service in time of war and except, at the option of the company, with
respect to provisions relative to benefits in the event of total and
permanent disability and provisions which grant insurance specifically
against death by accident.(c) A provision that such a contract shall constitute the entire
contract between the parties, but if the company desires to make the
application a part of the contract it may do so, provided a copy of such
application shall be endorsed upon or attached to such contract when
issued, and in such case such contract shall contain a provision that it,
together with the application therefor, shall constitute the entire
contract between the parties.(d) A provision that if the age or ages of the person or persons upon
whose life or lives the contract is based, or any of them, have been
misstated, the amount payable under the contract shall be such as the
stipulated payments to the company would have purchased at the correct age
or ages.(e) If the contract is participating, a provision that the divisible
surplus shall be apportioned annually and dividends shall be payable in
cash or shall be applicable to any stipulated payment or payments to the
company under the contract.(f) A provision that after the contract has been in force for three
years, if it shall, by its terms, lapse because any stipulated payment to
the company shall not have been made, the reserve on such contract,
exclusive of the reserve on account of total and permanent disability and
additional accidental death benefits, computed according to the standard
adopted by the company and in accordance with section 223, shall after
deducting not more than one-fifth of the said entire reserve and any
indebtedness to the company under the contract, be applied as a net single
payment according to said standard, for the purchase of a paid-up annuity
or a pure endowment contract, which may be nonparticipating and which
shall be payable by the company under the same terms and conditions as the
original contract, except as to amount.(g) A provision that the contract may be reinstated at any time within
one year from the date of default in making stipulated payments to the company,
but all overdue stipulated payments and any indebtedness to the company
on the contract shall be paid or reinstated, with interest thereon at a
rate to be specified in the contract but not exceeding six per centum per
annum payable annually, and in cases where applicable, a company may also
include a requirement of evidence of insurability satisfactory to the company.(h) A provision, or a notice attached to the contract, to the effect
that during a period of 10 days from the date the contract is delivered
to the contract-owner
it may be surrendered to the insurer together with a written request for
cancellation of the contract, and that in such event, with the exception
of a variable annuity contract, the insurer will refund any premium paid
for the contract, including any contract fees or other charges.  Cancellation
under a variable annuity contract shall entitle a person to an amount equal
to the sum of (i) the difference between the premiums paid including any
contract fees or other services and the amounts allocated to any separate
accounts under the contract and (ii) the cash value of the contract or,
if the contract does not have a cash value, the reserve for the contract,
on the date the return contract is received by the insurer or its agent. The Director
may by rule exempt specific types of contracts from this paragraph.(2) Any overpayment by the company on account of misstatement of age,
shall be charged against the current or next succeeding payment or payments
to be made by the company under the contract, with interest thereon at a
rate to be specified in the contract but not exceeding six per centum per annum.(3) A company may provide, in lieu of the paid-up values provided in
clause (f) of subsection (1), for a paid-up annuity or pure endowment
contract in an amount bearing the same proportion to the original annuity
or pure endowment contract as the number of stipulated payments which shall
have been made to the company shall bear to the total number of stipulated
payments required to be made to the company under contract, and if there be
any indebtedness to the company under the contract the amount of such
paid-up annuity or pure endowment shall be reduced by an amount bearing the
same proportion to such paid-up annuity or pure endowment as such
indebtedness bears to the cash value on such paid-up annuity or pure
endowment, computed according to the standard adopted by the company in
accordance with section 223.
		(Source: P.A. 82-594.) (215 ILCS 5/226.1) (from Ch. 73, par. 838.1)Sec. 226.1. 
		Entitled annuity payment options. 
		Annuity contracts and
funding agreements may be
issued without a life contingency annuity payment option in the following
circumstances: (1) to fund benefits under an employee benefit plan as
defined in the Employee Retirement Income Security Act of 1974, as now or
hereafter amended; (2) to fund the activities of an organization exempt
from taxation under Internal Revenue Code Section 501(c), as now or
hereafter amended; (3) to fund a program of a governmental entity or of an
agency or instrumentality thereof; (4) to fund an agreement providing for
periodic payments entered into in satisfaction of a claim; or (5) to fund a
program of an institution having assets in excess of $25,000,000.
		(Source: P.A. 92-875, eff. 1-3-03.) (215 ILCS 5/227) (from Ch. 73, par. 839)Sec. 227. 
		
		Standard
provisions for reversionary or survivorship annuity contracts.(1) After the effective date of this Code no contract for a reversionary
annuity or survivorship annuity shall be issued or delivered in this State
unless it contains in substance the following provisions:(a) The provisions of clauses (a), (b), (c), (d) and (e) of subsection
(1) of section 226, except that under said clause (a) the company may at
its option provide for an equitable reduction of the amount of the annuity
payments in settlement of an overdue or deferred payment in lieu of
providing for a deduction of such payments from an amount payable upon a
settlement under the contract.(b) A provision that the contract may be reinstated at any time within
three years from the date of default in making stipulated payments to the
company, upon production of evidence of insurability satisfactory to the
company, provided that all overdue payments and any indebtedness to the
company on account of the contract shall be paid or reinstated with
interest thereon at a rate to be specified in the contract but not
exceeding six per centum per annum payable annually.(2) Any of the foregoing provisions or portions thereof contained in
this section and in section 226 not applicable to non-participating
contracts nor to contracts for which a single stipulated payment to the
company is made, shall, to that extent, not be incorporated therein.(3) The provisions of this section and section 226 shall not apply to
contracts of re-insurance nor to contracts for deferred annuities or
reversionary annuities included in life insurance policies.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/228) (from Ch. 73, par. 840)Sec. 228. 
		
		Industrial
Life Insurance Defined.
As used in this Code "industrial life insurance" means either that form
of life insurance under which the premiums are payable monthly or more often if the face
amount of insurance provided in the policy does not exceed $2,500 and the
words "industrial policy" are printed in prominent type on the face of the
policy. Any life company authorized to do business in this State may issue
industrial policies.
		(Source: P.A. 82-498.) (215 ILCS 5/229) (from Ch. 73, par. 841)Sec. 229. 
		
		Standard
Provisions for Industrial Life Insurance.  (1) After the effective date
of this Section and any amendments thereto, no policy of industrial life
insurance shall be issued or delivered in this State, unless the same shall
contain in substance the following provisions, and shall be subject to the
other provisions of this section:(a) A provision that the insured is entitled to a grace period of four
weeks within which the payment of any premium after the first, may be made,
during which period of grace the policy shall continue in full force but in
case the policy becomes a claim during said grace period before the overdue
premiums are paid, the amount of overdue premiums may be deducted in any
settlement under the policy.(b) A provision that the policy shall contain the entire contract
between the parties, nothing to be incorporated therein by reference to any
constitution, bylaws, rules, application or other writing unless endorsed
upon or attached to the policy.(c) A provision that the policy shall be incontestable after it shall
have been in force during the lifetime of the insured for a specified
period, not more than two years from its date, except for nonpayment of
premiums and except for violation of the conditions of the policy relating
to naval or military service in time of war and except as to provisions
relating to benefits in the event of total and permanent disability and
those granting additional insurance specifically against death by accident.(d) A provision that if it shall be found at any time before final
settlement on the policy that the age of the insured (or the age of any
other person considered in determining the premium) has been misstated, the
amount payable under the policy shall be such as the premium would have
purchased at the correct age or ages at the time the policy was issued.(e) If a participating policy a provision indicating the conditions
under which the company shall annually ascertain and apportion any
divisible surplus accruing on the policy.(f) A provision for nonforfeiture benefits in accordance with the
requirements of section 229.1 (2) or section 229.2.(g) If more than one option is provided, a provision as to which of such
options shall apply in the event of the insured's failure to notify the
company of his selection of an option.(h) A provision for cash surrender values in accordance with the
requirements of section 229.1 (2) or section 229.2.(i) A provision that the policy may be reinstated, if not surrendered
for its cash value or if the period of extended term insurance has not
expired, within one year from the date of default in payment of premiums
upon presentation of evidence satisfactory to the company of the
insurability of the insured and the payment of arrears of premiums and the
payment or reinstatement of any other indebtedness to the company upon said
policy, with interest on said premiums and indebtedness at a rate not
exceeding six per centum per annum payable annually.(j) A table showing in figures the nonforfeiture options available
under the policy every year upon default in payment of premiums during at
least the first twenty years of the policy, and a provision that the
company will furnish upon request an extension of such table beyond the
years shown in the policy.(k) A provision that when a policy shall become a claim by the death of
the insured, settlement shall be made upon receipt of due proof of death
and not later than two months after the receipt of such proof.(l) Title on the face of the policy clearly and correctly describing its
form.(m) A provision, or a notice attached to the policy, to the effect that
during a period of 10 days from the date the policy is delivered to the
policy owner it may be surrendered to the insurer together with a written
request for cancellation of the policy, and that in such event the insurer
will refund any premium paid for the policy, including any policy fees or
other charges. The Director
may by rule exempt specific types of policies from this paragraph.(2) Any of the provisions of subsection (1) or portions thereof not
applicable to nonparticipating or term policies shall to that extent not
be incorporated therein. The provisions of this section shall not apply to
policies issued or granted pursuant to the nonforfeiture provisions
prescribed in clauses (f), (g) and (h) of subsection (1).(3) Upon proper written request, a named beneficiary shall be designated
in, or be endorsed on, the policy, to receive the benefits thereof on the
death of the insured, and there shall be reserved the power to change the
beneficiary at any time upon proper written request to the company at its
home office, accompanied by the policy for endorsement of the change
thereon by the company. The company shall have the right to refuse to
designate a beneficiary if evidence satisfactory to the company of such
beneficiary's insurable interest in the life of the insured is not
furnished on request. The policy may provide in substance that any payment
thereunder may be made or any nonforfeiture benefit may be granted to the
insured or to the insured's estate or to any relative by blood or
connection by marriage of the insured, or, to the extent of such portion of
any payment under the policy as may reasonably appear to the company to be
due to such person, to any other person equitably entitled thereto by
reason of having incurred expense occasioned by the maintenance or illness
or burial of the insured. If the policy shall be in force at the death of
the insured, the proceeds thereof shall be payable to the named beneficiary
if living, but unless proof of claim in the manner and form required by the
policy, accompanied by delivery of the policy for surrender, has been made
by such beneficiary within fifteen days after the death of the insured,
then upon the expiration of said fifteen days, or if the beneficiary is the
estate of the insured, or is a minor, or is not legally qualified to give a
valid release or dies before the insured, the company may pay to any person
permitted by the policy.
		(Source: P.A. 82-594.) (215 ILCS 5/229.1) (from Ch. 73, par. 841.1)Sec. 229.1. 
		
		Non-forfeiture benefits and cash surrender values in policies issued prior
to the operative date of section 229.2.(1) This subsection shall apply only to policies of life insurance
(other than Industrial life insurance) issued prior to the operative date
of section 229.2 (the Standard Non-forfeiture Law.)The non-forfeiture benefit referred to in clause (g) of section 224
shall be available to the insured in event of default in premium payments,
after premiums shall have been paid for three years, and shall be a
stipulated form of insurance, effective from the due date of the defaulted
premium, the net value of which shall not be less than the reserve at the
date of default on the policy and on dividend additions thereto, if any,
exclusive of the reserve on account of total and permanent disability and
additional accidental death benefits (the policy to specify the mortality
table, rate of interest and method of valuation adopted for computing such
reserve), less a specified maximum percentage (not more than two and
one-half) of the amount insured by the policy and of existing dividend
additions thereto, if any, and less any existing indebtedness to the
company on or secured by the policy, the exact percentage to be specified
for each year for which required values are not included in the policy; if
more than one option is provided, the policy to specify which of such
options shall apply in the event of the insured's failure to notify the
company of his selection of an option. The policy shall provide that it may
be surrendered to the company at its home office within the period of grace
after the due date of the defaulted premium for a specified cash value not
less than the above prescribed minimum value of the stipulated form of
insurance; and any policy may also provide that the company may defer
payment for not more than six months after the application therefor is
made. Provided that any policy may also contain a provision that in event
of default in a premium payment before such options become available the
reserve on any dividend additions then in force may at the option of the
company be paid in cash or applied as a net premium to the purchase of
paid-up term insurance for any amount not in excess of the face of the
original policy. This subsection shall not apply to term insurance of
twenty years or less, but such term policy shall specify the mortality
table, rate of interest and method of valuation adopted for computing
reserves.(2) This subsection shall apply only to policies of Industrial life
insurance issued prior to the operative date of section 229.2 (the Standard
Non-forfeiture Law).The non-forfeiture benefit referred to in clause (f) of section 229,
shall be available in event of default in premium payments after premiums
shall have been paid for five full years, and shall be a stipulated form of
insurance effective from the due date of the defaulted premium, the net
value of which shall not be less than the reserve on the policy at the end
of the last completed quarter of the policy year for which premiums have
been paid, and all dividend additions thereto, if any, exclusive of any
reserve on total and permanent disability and additional accidental death
benefits, (the policy to specify the mortality table, rate of interest and
method of valuation adopted for computing such reserve), less a maximum
percentage (not more than two and one-half per centum) of the amount
insured by the policy and of existing dividend additions thereto, if any,
and less any existing indebtedness to the company on or secured by the
policy. The policy shall also specify said percentage, or other rule of
calculation so as to permit determination of the values, to be specified
for each year for which required values are not included in the policy. The
cash surrender value referred to in clause (h) of section 229, shall be
available upon surrender of the policy to the company at its home office
within the period of grace after the due date of the defaulted premium and
shall be not less than the above prescribed minimum value of the stipulated
form of insurance; provided that the company may defer payment for not more
than six months after the application therefor is made. This subsection
shall not apply to term insurance of twenty years or less but such term
policy shall specify the mortality table, rate of interest and method of
valuation adopted for computing reserves.
		(Source: Laws 1943, Vol. 1, p. 824.) (215 ILCS 5/229.2) (from Ch. 73, par. 841.2)Sec. 229.2. Standard Non-forfeiture Law for Life Insurance.(1) No policy
of life insurance, except as stated in subsection (8),
shall be delivered or issued for delivery in this
State unless it contains in
substance the following provisions or corresponding provisions which in
the opinion of the Director are at least as favorable to the defaulting
or surrendering policyholder and are essentially in compliance with subsection
(7) of this law:(i) That, in the event of default in any premium payment, the
company will grant, upon proper request not later than 60 days after the
due date of the premium in default, a paid-up nonforfeiture
benefit on
a plan stipulated in the policy, effective as of such due date, of such
amount as may be hereinafter specified.  In lieu of such
stipulated paid-up nonforfeiture benefit, the company may substitute, upon
proper request not later than 60 days after the due date of the premium
in default, an actuarially equivalent alternative paid-up nonforfeiture
benefit which provides a greater amount or longer period of death benefits
or, if applicable, a greater amount or earlier payment of endowment benefits.(ii) That, upon surrender of the policy within 60 days after the due
date of any premium payment in default after premiums have been paid for
at least 3 full years in the case of Ordinary insurance or 5 full years
in the case of Industrial insurance, the company will pay, in lieu of
any paid-up nonforfeiture benefit, a cash surrender value of such
amount as may be hereinafter specified.(iii) That a specified paid-up nonforfeiture benefit
shall become
effective as specified in the policy unless the person entitled to make
such election elects another available option not later than 60 days
after the due date of the premium in default.(iv) That, if the policy shall have become paid-up by completion of
all premium payments or if it is continued under any paid-up
nonforfeiture benefit which became effective on or
after the third
policy anniversary in the case of Ordinary insurance or the fifth policy
anniversary in the case of Industrial insurance, the company will pay,
upon surrender of the policy within 30 days after any policy
anniversary, a cash surrender value of such amount as may be hereinafter
specified.(v) In the case of policies which cause on a basis guaranteed in the
policy unscheduled changes in benefits or premiums, or which provide an
option for changes in benefits or premiums other than a change to a new
policy, a statement of the mortality table, interest rate, and method used
in calculating cash surrender values and the paid-up nonforfeiture benefits
available under the policy.  In the case of all other policies,
a statement of the mortality table and interest rate used in
calculating the cash surrender values and the paid-up nonforfeiture
benefits available under the policy, together with a table showing the
cash surrender value, if any, and paid-up nonforfeiture
benefit, if
any, available under the policy on each policy anniversary either during
the first 20 policy years or during the term of the policy, whichever is
shorter, such values and benefits to be calculated upon the assumption
that there are no dividends or paid-up additions credited to the policy
and that there is no indebtedness to the company on the policy.(vi) A statement that the cash surrender values and the paid-up
nonforfeiture benefits available under the policy
are not less than the
minimum values and benefits required by or pursuant to the insurance law
of the state in which the policy is delivered; an explanation of the
manner in which the cash surrender values and the paid-up nonforfeiture
benefits are altered by the existence of any paid-up additions credited
to the policy or any indebtedness to the company on the policy; if a
detailed statement of the method of computation of the values and
benefits shown in the policy is not stated therein, a statement that
such method of computation has been filed with the insurance supervisory
official of the state in which the policy is delivered; and a statement
of the method to be used in calculating the cash surrender value and
paid-up nonforfeiture benefit available under the
policy on any policy
anniversary beyond the last anniversary for which such values and
benefits are consecutively shown in the policy.Any of the foregoing provisions or portions thereof not applicable by
reason of the plan of insurance may, to the extent inapplicable, be
omitted from the policy.The company shall reserve the right to defer the payment of any cash
surrender value for a period of 6 months after demand therefor with
surrender of the policy.(2) (i) Any cash surrender value available under the policy in the event
of default in a premium payment due on any policy anniversary, whether
or not required by subsection (1), shall be an amount not less than the
excess, if any, of the present value, on such anniversary, of the future
guaranteed benefits which would have been provided for by the policy,
including any existing paid-up additions, if there had been no default,
over the sum of (i) the then present value of the adjusted premiums as
defined in subsections 4, 4(a), 4(b) and 4(c), corresponding
to premiums which
would have fallen due on and after such anniversary, and (ii) the amount
of any indebtedness to the company on the policy.(ii) For any policy issued on or after the operative date of subsection
4(c), which provides supplemental life insurance or annuity benefits at
the option of the insured for an identifiable additional premium by rider
or supplemental policy provision,
the cash surrender value shall be an amount not less than the sum of the
cash surrender value as determined in paragraph (i) for an otherwise similar
policy issued at the same age without such rider or supplemental policy
provision and the cash surrender value as determined in such paragraph for
a policy which provides only the benefits otherwise provided by such rider
or supplemental policy provision.(iii) For any family policy issued on or after the operative date of subsection
4(c), which defines a primary insured and provides term insurance on the
life of the spouse of the primary insured expiring before the spouse attains
age 71, the cash surrender value shall be an amount not less than the sum
of the cash surrender value as determined in paragraph (i) for an otherwise
similar policy issued at the same age without such term insurance on the
life of the spouse and the cash surrender value as determined in such paragraph
for a policy which provides only the benefits otherwise provided by such
term insurance on the life of the spouse.(iv) Any cash surrender
value available within 30 days after any policy anniversary under any
policy paid up by completion of all premium payments or any policy
continued under any paid-up nonforfeiture benefit, whether or not
required by subsection (1), shall be an amount not less than the present
value, on such anniversary, of the future guaranteed benefits provided
for by the policy, including any existing paid-up additions, decreased
by any indebtedness to the company on the policy.(3) Any paid-up nonforfeiture benefit available
under the policy in
the event of default in a premium payment due on any policy anniversary
shall be such that its present value as of such anniversary shall be at
least equal to the cash surrender value then provided for by the policy,
or if none is provided for, that cash surrender value which would have
been required by this section in the absence of the condition that
premiums shall have been paid for at least a specified period.(4) This subsection (4) shall not apply to policies issued on or after
the operative date of subsection (4c). Except as provided in the third
paragraph of this subsection,
the adjusted premiums for any policy shall be calculated on an annual
basis and shall be such uniform percentage of the respective premium
specified in the policy for each policy year, excluding any extra
premiums charged because of impairments or special hazards, that the
present value, at the date of issue of the policy, of all such adjusted
premiums shall be equal to the sum of (i) the then present value of the
future guaranteed benefits provided for by the policy; (ii) 2% of the
amount of insurance, if the insurance be uniform in amount, or of the
equivalent uniform amount, as hereinafter defined, if the amount of
insurance varies with duration of the policy; (iii) 40% of the adjusted
premium for the first policy year; (iv) 25% of either the adjusted
premium for the first policy year or the adjusted premium for a whole
life policy of the same uniform or equivalent uniform amount with
uniform premiums for the whole of life issued at the same age for the
same amount of insurance, whichever is less. Provided, however, that in
applying the percentages specified in (iii) and (iv) above, no adjusted
premium shall be deemed to exceed 4% of the amount of insurance or
uniform amount equivalent thereto. The date of issue of a policy for the
purpose of this subsection shall be the date as of which the rated age
of the insured is determined.In the case of a policy providing an amount of insurance varying with
duration of the policy, the equivalent uniform amount thereof for the
purpose of this subsection shall be deemed to be the level amount of
insurance, provided by an otherwise similar policy, containing the same
endowment benefit or benefits, if any, issued at the same age and for
the same term, the amount of which does not vary with duration and the
benefits under which have the same present value at the inception of the
insurance as
the benefits under the policy; provided, however, that in the case of a
policy providing a varying amount of insurance issued on the life of a
child under age 10, the equivalent uniform amount may be computed as
though the amount of insurance provided by the policy prior to the
attainment of age 10 were the amount provided by such policy at age 10.The adjusted premiums for any policy providing term insurance
benefits by rider or supplemental policy provision shall be equal to (a)
the adjusted premiums for an otherwise similar policy issued at the same
age without such term insurance benefits, increased, during the period
for which premiums for such term insurance benefits are payable, by (b)
the adjusted premiums for such term insurance, the foregoing items (a)
and (b) being calculated separately and as specified in the first 2
paragraphs of this subsection except that, for the purposes of (ii),
(iii) and (iv) of the first such paragraph, the amount of insurance or
equivalent uniform amount of insurance used in the calculation of the
adjusted premiums referred to in (b) shall be equal to the excess of the
corresponding amount determined for the entire policy over the amount
used in the calculation of the adjusted premiums in (a).Except as otherwise provided in subsections (4a) and (4b), all
adjusted premiums and present values referred to in this section shall
for all policies of Ordinary insurance be calculated on the basis of the
Commissioners 1941 Standard Ordinary Mortality Table, provided that for
any category of Ordinary insurance issued on female risks adjusted
premiums and present values may be calculated according to an age not
more than 3 years younger than the actual age of the insured, and such
calculations for all policies of Industrial insurance shall be made on
the basis of the 1941 Standard Industrial Mortality Table. All
calculations shall be made on the basis of the rate of interest, not
exceeding 3 1/2% per annum, specified in the policy for calculating cash
surrender values and paid-up nonforfeiture benefits.
Provided, however,
that in calculating the present value of any paid-up term insurance with
accompanying pure endowment, if any, offered as a nonforfeiture
benefit, the rates of mortality assumed may be not more than 130% of the
rates of mortality according to such applicable table. Provided,
further, that for insurance issued on a substandard basis, the
calculation of any such adjusted premiums and present values may be
based on such other table of mortality as may be specified by the
company and approved by the Director.(4a) This subsection (4a) shall not apply to Ordinary policies issued
on or after the operative date of subsection (4c). In the case of Ordinary
policies issued on or after the
operative date of this subsection (4a) as defined herein, all adjusted
premiums and present values referred to in this Section shall be
calculated on the basis of the Commissioners 1958 Standard Ordinary
Mortality Table and the rate of interest specified in the policy for calculating
cash surrender values and
paid-up nonforfeiture benefits, provided that such
rate of interest shall not exceed 3 1/2% per annum except that a rate of
interest not exceeding 5 1/2% per annum may be used for policies issued
on or after September 8, 1977, except that for any single premium
whole life or endowment insurance policy a rate of interest not exceeding
6 1/2% per annum may be used and provided that for any category of
Ordinary insurance issued on female risks, adjusted premiums and present
values may be calculated according to an age not more than 6 years
younger than the actual age of the insured. Provided, however, that in
calculating the present value of any paid-up term insurance with
accompanying pure endowment, if any, offered as a nonforfeiture
benefit, the rates of mortality assumed may be not more than those shown
in the Commissioners 1958 Extended Term Insurance Table. Provided,
however, that for insurance issued on a substandard basis, the
calculation for any such adjusted premiums and present values may be
based on such other table of mortality as may be specified by the
company and approved by the Director. After the effective date of this
subsection (4a), any company may file with the Director written notice
of its election to comply with the provisions of this subsection after a
specified date before January 1, 1966. After the filing of such notice,
then upon such specified date (which shall be the operative date of this
subsection for such company), this subsection shall become operative
with respect to the Ordinary policies thereafter issued by such company.
If a company makes no such election, the operative date of this
subsection for such company shall be January 1, 1966.(4b) This subsection (4b) shall not apply to Industrial policies issued
on or after the operative date of subsection (4c). In the case of Industrial
policies issued on or after the
operative date of this subsection (4b) as defined herein, all adjusted
premiums and present values referred to in this Section shall be
calculated on the basis of the Commissioners 1961 Standard Industrial
Mortality Table and the rate of interest specified in the policy for calculating
cash surrender values and
paid-up nonforfeiture benefits, provided that such
rate of interest shall not exceed 3 1/2% per annum except that a rate of
interest not exceeding
5 1/2% per annum may be used for policies issued on or after September
8, 1977, except
that for any single premium whole life or endowment insurance policy a rate
of interest not exceeding 6 1/2% per annum may be used.  Provided, however,
that in calculating
the present value of any paid-up term insurance with accompanying pure
endowment, if any, offered as a nonforfeiture benefit,
the rates of
mortality assumed may be not more than those shown in the Commissioners
1961 Industrial Extended Term Insurance Table. Provided, further, that
for insurance issued on a substandard basis, the calculations of any
such adjusted premiums and present values may be based on such other
table of mortality as may be specified by the company and approved by
the Director. After the effective date of this subsection (4b), any
company may file with the Director a written notice of its election to
comply with the provisions of this subsection after a specified date
before January 1, 1968. After the filing of such notice, then upon such
specified date (which shall be the operative date of this subsection for
such company), this subsection shall become operative with respect to
the Industrial policies thereafter issued by such company. If a company
makes no such election, the operative date of this subsection for such
company shall be January 1, 1968.(4c)(a) This subsection shall apply to all policies issued on or after
its operative date.  Except as provided in paragraph (g), the adjusted premiums
for any policy shall be calculated on an annual basis and shall be such
uniform percentage of the respective premiums specified in the policy for
each policy year, excluding amounts payable as extra premiums to cover impairments
or special hazards and any uniform annual contract charge or policy fee
specified in the policy in a statement of the method to be used in calculating
the cash surrender value and paid-up nonforfeiture benefits of the policy,
that the present value, at the date of issue of the policy, of all adjusted
premiums shall be equal to the sum of (i) the then present value of the
future guaranteed benefits provided for by the policy; (ii) 1% of either
the amount of insurance, if the insurance is uniform in amount, or the average
amount of insurance at the beginning of each of the first 10 policy years;
and (iii) 125% of the nonforfeiture net level premium as hereinafter defined.
In applying the percentage specified in (iii), however,
no nonforfeiture net level premium shall exceed 4% of either the amount
of insurance, if the insurance is uniform in amount, or the average amount
of insurance at the beginning of each of the first 10 policy years.  The
date of issue of a policy for the purpose of this subsection is the date
as of which the rated age of the insured is determined.(b) The nonforfeiture net level premium equals the present value, at the
date of issue of the policy, of the guaranteed benefits provided for by
the policy divided by the present value, at the date of issue of the policy,
of an annuity of one per annum payable on the date of issue of the policy
and on each anniversary of such policy on which a premium falls due.(c) In the case of a policy which causes, on a basis guaranteed in such
policy, unscheduled changes in benefits or premiums, or which provides an
option for changes in benefits or premiums other than a change to a new
policy, adjusted premiums and present values shall initially be calculated
on the assumption that future benefits and premiums do not change from those
stipulated at the date of issue of such policy.  At the time of any such
change in the benefits or premiums, the future adjusted premiums, nonforfeiture
net level premiums and present values shall be recalculated on the assumption
that future benefits and premiums do not change from those stipulated by
such policy immediately after the change.(d) Except as otherwise provided in paragraph (g), the recalculated future
adjusted premiums for any policy shall be such uniform percentage of the
respective future premiums specified in the policy for each policy year,
excluding amounts payable as extra premiums to cover impairments and special
hazards and any uniform annual contract charge or policy fee specified in
the policy in a statement of the method to be used in calculating the cash
surrender values and paid-up nonforfeiture benefits, that the present value,
at the time of change to the newly defined benefits or premiums, of all
such future adjusted premiums shall be equal to the excess of (A) the sum
of (i) the then present value of the then future guaranteed benefits provided
for by the policy and (ii) the additional expense allowance, if any, over
(B) the then cash surrender value, if any, or present value of any paid-up
nonforfeiture benefit under the policy.(e) The additional expense allowance at the time of the change to the
newly defined benefits or premiums shall be the sum of
(i) 1% of the excess, if positive, of the average amount of insurance at
the beginning of each of the first 10 policy years subsequent to the change
over the average amount of insurance prior to the change at the beginning
of each of the first 10 policy years subsequent to the time of the most
recent previous change, or, if there has been no previous change, the date
of issue of the policy; and (ii) 125% of the increase, if positive, in
the nonforfeiture net level premium.(f) The recalculated nonforfeiture net level premium equals the result
obtained by dividing X by Y, where(i) X equals the sum of(A) the nonforfeiture net level premium applicable prior to the change
times the present value of an annuity of one per annum payable on each anniversary
of the policy on or subsequent to the date of the change on which a premium
would have fallen due had the change not occurred, and(B) the present value of the increase in future guaranteed benefits provided
for by the policy; and(ii) Y equals the present value of an annuity of one per annum payable
on each anniversary of the policy on or subsequent to the date of change
on which a premium falls due.(g) Notwithstanding any other provisions of this subsection to the contrary,
in the case of a policy issued on a substandard basis which provides reduced
graded amounts of insurance so that, in each policy year, such policy has
the same tabular mortality cost as an otherwise similar policy issued on
the standard basis which provides higher uniform amounts of insurance, adjusted
premiums and present values for such substandard policy may be calculated
as if it were issued to provide such higher uniform amounts of insurance
on the standard basis.(h) All adjusted premiums and present values referred to in this Section
shall for all policies of ordinary insurance be calculated on the basis
of the Commissioners 1980 Standard Ordinary Mortality Table or, at the election
of the company for any one or more specified plans of life
insurance, the Commissioners 1980 Standard Ordinary Mortality Table with
Ten-Year Select Mortality Factors.  All adjusted premiums and present values
referred to in this Section shall for all policies of Industrial insurance
be calculated on the basis of the Commissioners 1961 Standard Industrial
Mortality Table. All adjusted premiums and present values referred to in
this Section for all policies issued in a particular calendar year shall
be calculated on the basis of a rate of interest not exceeding
the nonforfeiture interest rate as defined in this subsection for policies
issued in that calendar year. The provisions of this paragraph are subject
to the provisions set forth in subparagraphs (i) through (vii).(i) At the option of the company, calculations for all policies issued
in a particular calendar year may be made on the basis of a rate of interest
not exceeding the nonforfeiture interest rate, as defined in this subsection,
for policies issued in the immediately preceding calendar year.(ii) Under any paid-up nonforfeiture benefit, including any paid-up dividend
additions, any cash surrender value available, whether or not required by
subsection (1), shall be calculated on the basis of the mortality table
and rate of interest used in determining the amount of such paid-up nonforfeiture
benefit and paid-up dividend additions, if any.(iii) A company may calculate the amount of any guaranteed paid-up nonforfeiture
benefit, including any paid-up additions under the policy, on the basis
of an interest rate no lower than that specified in the policy for calculating
cash surrender values.(iv) In calculating the present value of any paid-up term insurance with
an accompanying pure endowment, if any, offered as a nonforfeiture benefit,
the rates of mortality assumed may be not more than those shown in the Commissioners
1980 Extended Term Insurance Table for policies of ordinary insurance and
not more than the Commissioner 1961 Industrial Extended Term Insurance Table
for policies of industrial insurance.(v) For insurance issued on a substandard basis, the calculation of any
such adjusted premiums and present values may be based on appropriated modifications
of the aforementioned tables.(vi) For policies issued prior to the operative date of the Valuation Manual, any Commissioners Standard Mortality Table adopted after 1980 by the National Association
of Insurance Commissioners and approved by regulations promulgated
by the Director for use in determining the minimum nonforfeiture standard
may be substituted for the Commissioners 1980 Standard Ordinary Mortality
Table with or without Ten-Year Select Mortality Factors or for the Commissioners
1980 Extended Term Insurance Table.For policies issued on or after the operative date of the Valuation Manual, the Valuation Manual shall provide the Commissioners Standard Ordinary Mortality Table for use in determining the minimum nonforfeiture standard that may be substituted for the Commissioners 1980 Standard Ordinary Mortality Table with or without Ten-Year Select Mortality Factors or for the Commissioners 1980 Extended Term Insurance Table. If the Director approves by regulation any Commissioners Standard Ordinary Mortality Table adopted by the National Association of Insurance Commissioners for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the Valuation Manual, then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard provided by the Valuation Manual.(vii) For policies issued prior to the operative date of the Valuation Manual, any Commissioners Standard Industrial Mortality Table adopted after 1980 by the National
Association of Insurance Commissioners and approved by regulations promulgated
by the Director for use in determining the minimum nonforfeiture standard
may be substituted for the Commissioners 1961 Standard Industrial Mortality
Table or the Commissioners 1961 Industrial Extended Term Insurance Table.For policies issued on or after the operative date of the Valuation Manual, the Valuation Manual shall provide the Commissioners Standard Industrial Mortality Table for use in determining the minimum nonforfeiture standard that may be substituted for the Commissioners 1961 Standard Industrial Mortality Table or the Commissioners 1961 Industrial Extended Term Insurance Table. If the Director approves by regulation any Commissioners Standard Industrial Mortality Table adopted by the National Association of Insurance Commissioners for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the Valuation Manual, then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard provided by the Valuation Manual.(i) The nonforfeiture interest rate is defined as follows:(i) For policies issued prior to the operative date     of the Valuation Manual, the nonforfeiture interest rate per annum for any policy issued in a particular calendar year shall be equal to 125% of the calendar year statutory valuation interest rate for such policy, as defined in the Standard Valuation Law, rounded to the nearest .25%, provided, however, that the nonforfeiture interest rate shall not be less than 4.00%.(ii) For policies issued on and after the operative     date of the Valuation Manual, the nonforfeiture interest rate per annum for any policy issued in a particular calendar year shall be provided by the Valuation Manual.(j) Notwithstanding any other provision in this Code to the contrary,
any refiling of nonforfeiture values or their methods of computation for
any previously approved policy form which involves only a change in the
interest rate or mortality table used to compute nonforfeiture values shall
not require refiling of any other provisions of that policy form.(k) After the effective date of this subsection, any company may, with
respect to any category of insurance, file with the Director a written notice
of its election to comply with the provisions of this subsection after a
specified date before January 1, 1989.  That date
shall be the operative date of this subsection for that category of insurance
for such company. If
a company makes no such election, the operative date of this subsection
for that category of insurance issued by such company shall be January 1, 1989.(5) In the case of any plan of life insurance which provides for future
premium determination, the amounts of which are to be determined by the
insurance company based on then estimates of future experience, or in the
case of any plan of life insurance which is of such a nature that minimum
values cannot be determined by the methods described in subsections (1),
(2), (3), (4), (4a), (4b) or (4c), then(a) the Director shall satisfy himself that the benefits provided under
such plan are substantially as favorable to policyholders and insured parties
as the minimum benefits otherwise required by subsections (1), (2), (3),
(4), (4a), (4b) or (4c);(b) the Director shall satisfy himself that the benefits and the pattern
of premiums of that plan are not such as to mislead prospective policyholders
or insured parties; and(c) the cash surrender values and paid-up nonforfeiture benefits provided
by such plan shall not be less than the minimum values and benefits computed
by a method consistent with the principles of this Standard Nonforfeiture
Law for Life Insurance, as determined by regulations promulgated by the Director.(6) Any cash surrender value and any paid-up nonforfeiture benefit,
available under the policy in the event of default in a premium payment
due at any time other than on the policy anniversary, shall be
calculated with allowance for the lapse of time and the payment of
fractional premiums beyond the last preceding policy anniversary. All
values referred to in subsections (2), (3), (4), (4a), (4b)
and (4c) may be
calculated upon the assumption that any death benefit is payable at the
end of the policy year of death. The net value of any paid-up additions,
other than paid-up term additions, shall be not less than the amounts
used to provide such additions. Notwithstanding the provisions of
subsection (2), additional benefits payable (i) in the event of death or
dismemberment by accident or accidental means, (ii) in the event of
total and permanent disability, (iii) as reversionary annuity or
deferred reversionary annuity benefits, (iv) as term insurance benefits
provided by a rider or supplemental policy provision to which, if issued
as a separate policy, this section would not apply, (v) as term
insurance on the life of a child or on the lives of children provided in
a policy on the life of a parent of the child, if such term insurance
expires before the child's age is 26, is uniform in amount after the
child's age is one, and has not become paid-up by reason of the death of
a parent of the child, and (vi) as other policy benefits additional to
life insurance and endowment benefits, and premiums for all such
additional benefits, shall be disregarded in ascertaining cash surrender
values and nonforfeiture benefits required by this section, and no such
additional benefits shall be required to be included in any paid-up
nonforfeiture benefits.(7) This subsection shall apply to all policies issued on or after January
1, 1987.  Any cash surrender value available under the policy in the event
of default in a premium payment due on any policy anniversary shall be in
an amount which does not differ by more than .2% of either the amount of
insurance if the insurance is uniform in amount, or the average amount of
insurance at the beginning of each of the first 10 policy years, from the
sum of (a) the greater of zero and the basic cash value hereinafter specified
and (b) the present value of any existing paid-up additions less the amount
of any indebtedness to the company under the policy.The basic cash value equals the present value, on such anniversary, of
the future guaranteed benefits which would have been provided for by the
policy, excluding any existing paid-up additions and before deduction of
any indebtedness to the company, if there had been no default, less the
then present value of the nonforfeiture factors, as hereinafter defined,
corresponding to premiums which would have fallen due on and after such
anniversary.  The effects on the basic cash value of supplemental life insurance
or annuity benefits or of family coverage, as described in subsection (2)
or (4), whichever is applicable, shall, however, be the same as are the
effects specified in subsection (2) or (4), whichever is applicable, on
the cash surrender values defined in that subsection.The nonforfeiture factor for each policy year equals a percentage of the
adjusted premium for the policy year, as defined in subsection (4) or (4c),
whichever is applicable.  Except as is required by the next succeeding sentence
of this paragraph, such percentage(a) shall be the same percentage for each policy year between the second
policy anniversary and the later of (i) the fifth policy anniversary and
(ii) the first policy anniversary at which there is available under the
policy a cash surrender value in an amount, before including any paid-up
additions and before deducting any indebtedness, of at least .2% of either
the amount of insurance, if the insurance is uniform in amount, or the average
amount of insurance at the beginning of each of the first 10 policy years; and(b) shall be such that no percentage after the later of the 2 policy anniversaries
specified in the preceding item (a) may apply to fewer than 5 consecutive policy years.No basic cash value may be less than the value which would be obtained
if the adjusted premiums for the policy, as defined in subsection (4) or
(4c), whichever is applicable, were substituted for the nonforfeiture factors
in the calculation of the basic cash value.All adjusted premiums and present values referred to in this subsection
shall for a particular policy be calculated on the same mortality and interest
bases as those used in accordance with the other
subsections of this law.  The cash surrender values referred to in this
subsection shall include any endowment benefits provided for by the policy.Any cash surrender value available other than in the event of default in
a premium payment due on a policy anniversary, and the amount of any paid-up
nonforfeiture benefit available under the policy in the event of default
in a premium payment shall be determined in manners consistent with the
manners specified for determining the analogous minimum amounts in subsections
1, 2, 3, 4c, and 6.  The amounts of any cash surrender values and of any
paid-up nonforfeiture benefits granted in connection with additional benefits
such as those listed as items (i) through (vi) in subsection (6) shall conform
with the principles of this subsection (7).(8) This Section shall not apply to any of the following:(a) reinsurance,(b) group insurance,(c) a pure endowment,(d) an annuity or reversionary annuity contract,(e) a term policy of uniform amount, which provides no guaranteed nonforfeiture
or endowment benefits, or renewal thereof, of 20 years or
less expiring before age 71, for which uniform premiums are payable
during the entire term of the policy,(f) a term policy of
decreasing amount, which provides no guaranteed nonforfeiture or endowment
benefits, on which each adjusted premium, calculated as
specified in subsections (4), (4a), (4b) and (4c), is less
than the adjusted
premium so calculated, on a term policy of uniform
amount, or renewal thereof, which provides no guaranteed nonforfeiture or
endowment benefits, issued at the same
age and for the same initial amount of insurance and for a term of 20
years or less expiring before age 71, for which uniform premiums are payable
during the entire term of the policy,(g) a policy, which provides no guaranteed nonforfeiture or endowment
benefits, for which no cash surrender value, if any, or present value of
any paid-up nonforfeiture benefit, at the beginning of any policy year,
calculated as specified in subsections (2), (3), (4), (4a), (4b) and (4c),
exceeds 2.5% of the amount of insurance at the beginning of the same policy year,(h) any policy
which shall be delivered outside this State through an agent or other
representative of the company issuing the policy.For purposes of determining the applicability of this Section, the age
of expiry for a joint term life insurance policy shall be the age of expiry
of the oldest life.(9) For the purposes of this Section:"Operative date of the Valuation Manual" means the January 1 of the first calendar year that the Valuation Manual is effective."Valuation Manual" has the same meaning as set forth in Section 223 of this Code. (Source: P.A. 99-162, eff. 1-1-16.) (215 ILCS 5/229.3) (from Ch. 73, par. 841.3)Sec. 229.3.  
		Loan provisions in policies. 
		
		In the case of those policies issued prior to the operative date of
Section 229.2 (the Standard Non-forfeiture Law) the loan value referred
to in clause (f) of section 224 shall be the reserve at the end of the
current policy year on the policy and on the dividend additions thereto, if
any, exclusive of the reserve on account of total and permanent disability
and additional accidental death benefits, less a specified maximum
percentage (not more than two and one-half) of the amount insured by the
policy and of any dividend additions thereto (the policy to specify the
mortality table, rate of interest and method of valuation adopted for
computing such reserve), the exact percentage to be specified for each year
for which required values are not included in the policy. The policy may
also provide that such loan may be deferred for not exceeding six months
after the application therefor is made.(2) In the case of policies issued on or after the operative date of
Section 229.2 (the Standard Non-forfeiture Law) the loan value referred to
in clause (f) of section 224 shall be the cash surrender value at the end
of the current policy year as required by section 229.2. The company shall
reserve the right to defer such loan, except when made to pay premiums, for
six months after application therefor is made.
		(Source: Laws 1943, vol. 1, p. 824.) (215 ILCS 5/229.4) (from Ch. 73, par. 841.4)Sec. 229.4. (Repealed).(Source: P.A. 93-873, eff. 8-6-04. Repealed internally, eff. 7-1-06.) (215 ILCS 5/229.4a)Sec. 229.4a. Standard Non-forfeiture Law for Individual Deferred
Annuities.(1)
Title.This Section shall be known as the Standard Nonforfeiture Law for Individual Deferred Annuities.(2) Applicability.

This Section shall not apply to any reinsurance, group annuity purchased under a retirement plan or plan of deferred compensation established or maintained by an employer (including a partnership or sole proprietorship) or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under Section 408 of the Internal Revenue Code, as now or hereafter amended, premium deposit fund, variable annuity, investment annuity, immediate annuity, any deferred annuity contract after annuity payments have commenced, or reversionary annuity, nor to any contract which shall be delivered outside this State through an agent or other representative of the company issuing the contract.(3) Nonforfeiture Requirements.(A) In the case of contracts issued on or after the     operative date of this Section as defined in subsection (13), no contract of annuity, except as stated in subsection (2), shall be delivered or issued for delivery in this State unless it contains in substance the following provisions, or corresponding provisions which in the opinion of the Director of Insurance are at least as favorable to the contract holder, upon cessation of payment of considerations under the contract:(i) That upon cessation of payment of         considerations under a contract, or upon the written request of the contract owner, the company shall grant a paid-up annuity benefit on a plan stipulated in the contract of such value as is specified in subsections (5), (6), (7), (8) and (10);(ii) If a contract provides for a lump sum         settlement at maturity, or at any other time, that upon surrender of the contract at or prior to the commencement of any annuity payments, the company shall pay in lieu of a paid-up annuity benefit a cash surrender benefit of such amount as is   specified in subsections (5), (6), (8) and (10). The company may reserve the right to defer the payment of the cash surrender benefit for a period not to exceed 6 months after demand therefor with surrender of the contract after making written request and receiving written approval of the Director. The request shall address the necessity and equitability to all policyholders of the deferral;(iii) A statement of the mortality table, if any,         and interest rates used calculating any minimum paid-up annuity, cash surrender, or death benefits that are guaranteed under the contract, together with sufficient information to determine the amounts of the benefits; and(iv) A statement that any paid-up annuity, cash         surrender or death benefits that may be available under the contract are not less than the minimum benefits required by any statute of the state in which the contract is delivered and an explanation of the manner in which the benefits are altered by the existence of any additional amounts credited by the company to the contract, any indebtedness to the company on the contract or any prior withdrawals from or partial surrenders of the contract.(B) Notwithstanding the requirements of this Section,     a deferred annuity contract may provide that if no considerations have been received under a contract for a period of 2 full years and the portion of the paid-up annuity benefit at maturity on the plan stipulated in the contract arising from prior considerations paid would be less than $20 monthly, the company may at its option terminate the contract by payment in cash of the then present value of the portion of the paid-up annuity benefit, calculated on the basis on the mortality table, if any, and interest rate specified in the contract for determining the paid-up annuity benefit, and by this payment shall be relieved of any further obligation under the contract.(4) Minimum values. The minimum values as specified in subsections (5), (6), (7), (8) and (10) of any paid-up annuity, cash surrender or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this subsection.(A)(i) The minimum nonforfeiture amount at any time     at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at rates of interest as indicated in subdivision (4)(B) of the net considerations (as hereinafter defined) paid prior to such time, decreased by the sum of paragraphs (a) through (d) below:(a) Any prior withdrawals from or partial         surrenders of the contract accumulated at rates of interest as indicated in subdivision (4)(B);(b) An annual contract charge of $50, accumulated         at rates of interest as indicated in subdivision (4)(B);(c) Any premium tax paid by the company for the         contract, accumulated at rates of interest as indicated in subdivision (4)(B); and(d) The amount of any indebtedness to the company         on the contract, including interest due and accrued.(ii) The net considerations for a given contract year     used to define the minimum nonforfeiture amount shall be an amount equal to 87.5% of the gross considerations,  credited to the contract during that contract year.(B) The interest rate used in determining minimum     nonforfeiture amounts shall be an   annual rate of interest determined as the lesser of 3% per annum and the following, which shall be specified in the contract if the interest rate will be reset:(i) The five-year Constant Maturity Treasury Rate         reported by the Federal Reserve as of a date, or average over a period, rounded to the nearest 1/20th of one percent, specified in the contract no longer than 15 months prior to the contract issue date or redetermination date under subdivision (4)(B)(iv);(ii) Reduced by 125 basis points;(iii) Where the resulting interest rate is not         less than 0.15%; and(iv) The interest rate shall apply for an initial         period and may be redetermined for additional periods. The redetermination date, basis and period, if any, shall be stated in the contract. The basis is the date or average over a specified period that produces the value of the 5-year Constant Maturity Treasury Rate to be used at each redetermination date.(C) During the period or term that a contract     provides substantive participation in an equity indexed benefit, it may increase the reduction described in subdivision (4)(B)(ii) above by up to an additional 100 basis points to reflect the value of the equity index benefit. The present value at the contract issue date, and at each redetermination date thereafter, of the additional reduction shall not exceed market value of the benefit. The Director may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. Lacking such a demonstration that is acceptable to the Director, the Director may disallow or limit the additional reduction.(D) The Director may adopt rules to implement the     provisions of subdivision (4)(C) and to provide for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit and for other contracts that the Director determines adjustments are justified.(5) Computation of Present Value.

Any paid-up annuity benefit available under a contract shall be such that its present value on the date annuity payments are to commence is at least equal to the minimum nonforfeiture amount on that date. Present value shall be computed using the mortality table, if any, and the interest rates specified in the contract for determining the minimum paid-up annuity benefits guaranteed in the contract.(6) Calculation of Cash Surrender Value.
For contracts that provide cash surrender benefits, the cash surrender benefits available prior to maturity shall not be less than the present value as of the date of surrender of that portion of the maturity value of the paid-up annuity benefit that would be provided under the contract at maturity arising from considerations paid prior to the time of cash surrender reduced by the amount appropriate to reflect any prior withdrawals from or partial surrenders of the contract, such present value being calculated on the basis of an interest rate not more than 1% higher than the interest rate specified in the contract for accumulating the net considerations to determine maturity value, decreased by the amount of any indebtedness to the company on the contract, including interest due and accrued, and increased by any existing additional amounts credited by the company to the contract. In no event shall any cash surrender benefit be less than the minimum nonforfeiture amount at that time. The death benefit under such contracts shall be at least equal to the cash surrender benefit.(7) Calculation of Paid-up Annuity Benefits.
For contracts that do not provide cash surrender benefits, the present value of any paid-up annuity benefit available as a nonforfeiture option at any time prior to maturity shall not be less than the present value of that portion of the maturity value of the paid-up annuity benefit provided under the contract arising from considerations paid prior to the time the contract is

surrendered in exchange for, or changed to, a deferred paid-up annuity, such present value being calculated for the period prior to the maturity date on the basis of the interest rate specified in the contract for accumulating the net considerations to determine maturity value, and increased by any additional amounts credited by the company to the contract. For contracts that do not provide any death benefits prior to the commencement of any annuity payments, present values shall be calculated on the basis of such interest rate and the mortality table specified in the contract for determining the maturity value of the paid-up annuity benefit. However, in no event shall the present value of a paid-up annuity benefit be less than the minimum nonforfeiture amount at that time.(8) Maturity Date.

For the purpose of determining the benefits calculated under subsections (6) and (7), in the case of annuity contracts under which an election may be made to have annuity payments commence at optional maturity dates, the maturity date shall be deemed to be the latest date for which election shall be permitted by the contract, but shall not be deemed to be later than the anniversary of the contract next following the annuitant's seventieth birthday or the tenth anniversary of the contract, whichever is later.(9) Disclosure of Limited Death Benefits.

A contract that does not provide cash surrender benefits or does not provide death benefits at least equal to the minimum nonforfeiture amount prior to the commencement of any annuity payments shall include a statement in a prominent place in the contract that such benefits are not
provided.(10) Inclusion of Lapse of Time Considerations.

Any paid-up annuity, cash surrender or death benefits available at any time, other than on the contract anniversary under any contract with fixed scheduled considerations, shall be calculated with allowance for the lapse of time and the payment of any scheduled considerations beyond the beginning of the contract year in which cessation of payment of considerations under the contract occurs.(11) Proration of Values; Additional Benefits.

For a contract which provides, within the same contract by rider or supplemental contract provision, both annuity benefits and life insurance benefits that are in excess of the greater of cash surrender benefits or a return of the gross considerations with interest, the minimum nonforfeiture benefits shall be equal to the sum of the minimum nonforfeiture benefits for the annuity portion and the minimum nonforfeiture benefits, if any, for the life insurance portion computed as if each portion were a separate contract. Notwithstanding the provisions of subsections (5), (6), (7), (8) and (10), additional benefits payable in the event of total and permanent disability, as reversionary annuity or deferred reversionary annuity benefits, or as other policy benefits additional to life insurance, endowment and annuity benefits, and considerations for all such additional benefits, shall be disregarded in ascertaining the minimum nonforfeiture amounts,paid-up annuity, cash surrender and death benefits that may be required under this Section. The inclusion of such benefits shall not be required in any paid-up benefits, unless the additional benefits separately would require minimum nonforfeiture amounts, paid-up annuity, cash surrender and death benefits.(12) Rules. The Director may adopt rules to implement the provisions of this Section.(13) Effective Date.  After the effective date of this amendatory Act of the 93rd General Assembly, a company may elect to apply its provisions to annuity
contracts on a contract form-by-contract form basis before July 1, 2006. In all other instances, this Section shall become operative with respect to annuity contracts issued by the company on or after July 1, 2006.(14) (Blank).

(Source: P.A. 102-775, eff. 5-13-22.) (215 ILCS 5/229.5) (from Ch. 73, par. 841.5)Sec. 229.5. 
		Policy loan interest rates. 
		(a) As used in this Section,
unless the context requires otherwise:(1) "Policy" includes certificates issued by a fraternal benefit society
and annuity contracts which provide for policy loans.(2) "Policy loan" includes any premium loan made under a policy to pay
one or more premiums that were not paid to the life insurer as they became due.(3) "Policyholder" includes the owner of the policy or the person designated
to pay premiums as shown on the records of the life insurer.(4) "Published Monthly Average" means:(i) Moody's Corporate Bond Yield Average - Monthly Average Corporates
as published by Moody's Investors Service, Inc., or any successor thereto; or(ii) In the event that Moody's Corporate Bond Yield Average - Monthly Average
Corporates is no longer published, a substantially similar average, established
by regulation issued by the Director.(b) Maximum rate of interest on policy loans.(1) Policies issued on or after the effective date of this amendatory
Act of 1981 shall provide for policy loan interest rates as follows:(i) A provision permitting a maximum interest rate of not more than 8% per annum; or(ii) A provision permitting an adjustable maximum interest rate established
from time to time by the life insurer as permitted by law.(2) The rate of interest charged on a policy loan made under subsection
(1)(ii) shall not exceed the higher of the following:(i) The Published Monthly Average for the calendar month ending 2 months
before the date on which the rate is determined; or(ii) The rate used to compute the cash surrender values under the policy
during the applicable period plus 1% per annum.(3) If the maximum rate of interest is determined pursuant to clause
(ii) of paragraph (1) of this subsection (b), the policy shall contain a
provision setting forth the frequency at which the rate is to be determined
for that policy.(4) The maximum rate for each policy must be determined at regular intervals
at least once every 12 months, but not more frequently than once in any
3 month period. At the intervals specified in the policy:(i) The rate being charged may be increased whenever such change as determined
under paragraph (2) of this subsection (b) would increase that rate by 1/2%
or more per annum.(ii) The rate being charged must be reduced whenever such reduction as
determined under paragraph (2) of this subsection (b) would decrease that
rate by 1/2% or more per annum.(5) The life insurer shall:(i) notify the policyholder at the time a cash loan is made of the initial
rate of interest on the loan;(ii) notify the policyholder with respect to premium loans of the initial
rate of interest on the loan as soon as it is reasonably practical to do
so after making the initial loan. Notice need not be given to the policyholder
when a further premium loan is added, except as provided in (iii) below;(iii) send to policyholders with loans a reasonable advance notice of
any increase in the rate; and(iv) include in the notices required above the substance of the pertinent
provisions of paragraph (1) and (3) of this subsection (b).(6) The loan value of the policy shall be determined in accordance with
Section 229.3, but no policy shall terminate in a policy year as the sole
result of change in the interest rate during that policy year, and the
life insurer shall maintain coverage during that policy year until such
time as it would otherwise have terminated if there had been no change in
the interest rate during that policy year.(7) The substance of the pertinent provisions of paragraphs (1) and (3)
of this subsection (b) shall be set forth in the policies to which they apply.(8) For purposes of this Section, the rate of interest on policy loans
permitted under this Section includes the interest rate charged on
reinstatement
of policy loans for the period during and after any lapse of a policy.(9) No other provisions of law shall apply to policy loan interest rates
unless made specifically applicable to such rates.(c) The provisions of this Section shall not apply to any insurance contract
issued before the effective date of this amendatory Act of 1981, unless the
policyholder agrees in writing to the applicability of such provisions.
		(Source: P.A. 83-1362.) (215 ILCS 5/230.1) (from Ch. 73, par. 842.1)Sec. 230.1. 
		Group Insurance Definition. 
		Except as provided in Section
230.2, no policy of group life insurance shall be delivered in this State
unless it conforms to one of the following descriptions:(A) A policy issued to an employer, or to the trustees of a fund established
by an employer, which employer or trustees shall be deemed the policyholder,
to insure employees of the employer for the benefit of persons other than the
employer, subject to the following requirements:(1) The employees eligible for insurance under the policy shall be all
of the employees of the employer, or all of any class or classes thereof.
The policy may provide that the term "employees" shall include the employees
of one or more subsidiary corporations, and the employees, individual proprietors,
and partners of one or more affiliated corporations, proprietorships or
partnerships if the business of the employer and of such affiliated corporations,
proprietorships, or partnerships is under common control. The policy may
provide that the term "employees" shall include the individual proprietor
or partners if the employer is an individual proprietorship or partnership.
The policy may provide that the term "employees" shall include retired employees
and directors of a corporate employer. A policy issued to insure the employees
of a public body may provide that the term "employees" shall include elected
or appointed officials.(2) The premium for the policy shall be paid either from the employer's
funds or from funds contributed by the insured employees, or from both.
Except as provided in paragraph (3) of this subsection (A), a policy on
which no part of the premium is to be derived from funds contributed by
the insured employees must insure all eligible employees, except those who
reject such coverage in writing.(3) An insurer may exclude or limit the coverage on any person as to whom
evidence of individual insurability is not satisfactory to the insurer.(B) A policy issued to a creditor or its parent holding company or to
a trustee or trustees or agent designated by two or more creditors, which
creditor, holding company, affiliate, trustee, trustees, or agent shall
be deemed the policyholder, to insure debtors of the creditor, or creditors,
subject to the following requirements:(1) The debtors eligible for insurance under the policy shall be all of
the debtors of the creditor or creditors, or all of any class or classes
thereof. The policy may provide that the term "debtors" shall include (i)
borrowers of money or purchasers or lessees of goods, services, or property
for which payment is arranged through a credit transaction; (ii) the debtors
of one or more subsidiary corporations; and (iii) the debtors of one or
more affiliated corporations, proprietorships, or partnerships if the business
of the policyholder and of such affiliated corporations, proprietorships,
or partnerships is under common control.(2) The premium for the policy shall be paid either from the creditor's
funds, or from charges collected from the insured debtors, or from both. Except
as provided in paragraph (3) of this subsection (B), a policy on which no
part of the premium is to be derived from the funds contributed by insured
debtors specifically for their insurance must insure all eligible debtors.(3) An insurer may exclude any debtors as to whom evidence of individual
insurability is not satisfactory to the insurer.(4) The amount of the insurance on the life of any debtor shall at no
time exceed the greater of the scheduled or actual amount of unpaid indebtedness
to the creditor.(5) The insurance may be payable to the creditor or any successor to the
right, title, and interest of the creditor. Such payment shall reduce or
extinguish the unpaid indebtedness of the debtor to the extent of such payment.
Whenever the amount of insurance payable exceeds the amount of outstanding
indebtedness the excess benefit shall be payable to the person otherwise contractually
or legally entitled thereto; if there be no person determined to be so entitled,
such excess shall be paid to the estate of the insured person.(6) Notwithstanding the provisions of the above paragraphs, insurance
on agricultural credit transaction commitments may be written up to the
amount of the loan commitment on a non-decreasing or level term plan. Insurance
on educational credit transaction commitments may be written up to the amount
of the loan commitment less the amount of any repayments made on the loan.(C) A policy issued to a labor union, or similar employee organization,
which shall be deemed to be the policyholder, to insure members of such
union or organization for the benefit of persons other than the union or
organization or any of its officials, representatives, or agents, subject
to the following requirements:(1) The members eligible for insurance under the policy shall be all of
the members of the union or organization, or all of any class or classes thereof.(2) The premium for the policy shall be paid either from funds of the
union or organization, or from the funds contributed by the insured members
specifically for their insurance, or from both. Except as provided in paragraph
(3) of this subsection (C), a policy on which no part of the premium is
to be derived from funds contributed by the insured members specifically
for their insurance must insure all eligible members, except those who reject
such coverage in writing.(3) An insurer may exclude or limit the coverage on any person as to whom
evidence of individual insurability is not satisfactory to the insurer.(D) A policy issued to a trust or to the trustees of a fund established
by two or more employers, or by one or more labor unions or similar employee
organizations, or by one or more employers and one or more labor unions
or similar employee organizations, which trust or trustees shall be deemed
the policyholder, to insure employees of the employers or members of the
unions or organizations for the benefit of persons other than the employers
or the unions or organizations, subject to the following requirements:(1) The persons eligible for insurance shall be all employees of the employers
or all of the members of the unions or organizations, or all of any class
or classes thereof. The policy may provide that the term "employees" shall
include retired employees, the individual proprietor or partners if an employer
is an individual proprietorship or a partnership, and directors of a corporate
employer. The policy may provide that the term "employees" shall include
the trustees or their employees, or both, if their duties are principally
connected with such trusteeship.(2) The premium for the policy shall be paid from funds contributed by
the employer or employers of the insured persons, or by the union or unions
or similar employee organizations, or by both, or from funds contributed
by the insured persons or from both the insured persons and the employer
or union or similar employee organizations. Except as provided in paragraph
(3) of this subsection
(D), a policy on which no part of the premium is to be derived from funds
contributed by the insured persons
specifically for their insurance must insure all eligible persons, except
those who reject such coverage in writing.(3) An insurer may exclude or limit the coverage on any person as to whom
evidence of individual insurability is not satisfactory to the insurer.(E) A policy issued to an association or to a trust or to the trustees
of a fund established, created, or maintained for the benefit of members
of one or more associations. The association or associations shall have
at the outset a minimum of 100 persons; shall have been organized and maintained
in good faith for purposes other than that of obtaining insurance; shall
have been in active existence for at least two years; and shall have a constitution
and by-laws which provides that (i) the association or associations hold
regular meetings not less than annually to further purposes of the members,
(ii) except for credit unions, the association or associations collect dues
or solicit contributions from members, and (iii) the members have voting
privileges and representation on the governing board and committees. The
policy shall be subject to the following requirements:(1) The policy may insure members of such association or associations,
employees thereof or employees of members, or one or more of the preceding
or all of any class or classes thereof for the benefit of persons other
than the employee's employer.(2) The premium for the policy shall be paid from funds contributed by
the association or associations, or by employer members, or by both, or
from funds contributed by the covered persons or from both the covered persons
and the association, associations, or employer members.(3) Except as provided in paragraph (4) of this subsection (E), a policy
on which no part of the premium is to be derived from funds contributed
by the covered persons specifically for the insurance must insure all eligible
persons, except those who reject such coverage in writing.(4) An insurer may exclude or limit the coverage of any person as to whom
evidence of individual insurability is not satisfactory to the insurer.
		(Source: P.A. 83-1465.) (215 ILCS 5/230.2) (from Ch. 73, par. 842.2)Sec. 230.2. 
		Limits of Group Life Insurance. 
		Group life insurance offered
to a resident of this State under a group life insurance policy issued to
a group other than one described in Section 230.1 shall be subject to the
following requirements:(A) No such group life insurance policy shall be delivered in this State
unless the Director finds that:(1) The issuance of such group policy is not contrary to the best interest
of the public;(2) The issuance of the group policy would be actuarially sound;(3) The issuance of the group policy would result in economies of acquisition
or administration; and(4) The benefits are reasonable in relation to the premiums charged.(B) No such group life insurance coverage may be offered in this State
by an insurer under a policy issued in another State unless this State or
another State having requirements substantially similar to those contained
in subsection (A) of this Section has made a determination that such requirements
have been met.(C) The premium for the policy shall be paid either from the policyholder's
funds or from funds contributed by the covered persons, or from both.(D) An insurer may exclude or limit coverage on any person as to whom
evidence of individual insurability is not satisfactory to the insurer.
		(Source: P.A. 83-598.) (215 ILCS 5/230.3) (from Ch. 73, par. 842.3)Sec. 230.3. 
		Dependent Group Life Insurance. 
		Except for a policy issued
under subsection (B) of Section 230.1, a group life insurance policy may
be extended to insure the employees or members against loss due to the death
of their spouses and dependent children, or any class or classes thereof,
subject to the following:(A) The premium for the insurance shall be paid either from funds
contributed by the employer, union, association, or other person to whom the
policy has been issued, or from funds contributed by the covered persons, or
from both. Except as provided in subsection (B) of this Section, a policy on
which no part of the premium for the spouse's and dependent child's coverage is
to be derived from funds contributed by the covered persons must insure all
eligible employees or members with respect to their spouses and dependent
children, or any class or classes thereof.(B) An insurer may exclude or limit the coverage on any spouse or dependent
child as to whom evidence of individual insurability is not satisfactory to the
insurer.(C) The amount of insurance for any covered spouse or dependent child under
the policy may not exceed 100% of the amount of insurance for which the
employee or member is insured.
		(Source: P.A. 88-400.) (215 ILCS 5/231.1) (from Ch. 73, par. 843.1)Sec. 231.1. Group Life Insurance Standard Provision. No policy of group
life insurance shall be delivered in this State unless it contains in substance
the following provisions, or provisions which in the opinion of the Director
are more favorable to the persons insured, or at least as favorable to the
persons insured and more favorable to the policyholder, provided, however,
(a) that provisions (F) to (K) inclusive shall not apply to policies insuring
the lives of debtors; (b) that the standard provisions
required for individual life insurance policies shall not apply to group
life insurance policies; and (c) that if the group life insurance policy
is on a plan of insurance other than the term plan, it shall contain a nonforfeiture
provision which in the opinion of the Director is equitable to the insured
persons and to the policyholder, but nothing herein shall be construed to
require that group life insurance policies contain the same nonforfeiture
provisions as are required for individual life insurance policies:(A) A provision that the policyholder is entitled to a grace period of
31 days for the payment of any premium due except the first, during which
grace period the death benefit coverage shall continue in force, unless
the policyholder shall have given the insurer written notice of discontinuance
in advance of the date of discontinuance and in accordance with the terms
of the policy.  The policy may provide that the policyholder shall be liable
to the insurer for the payment of a pro rata premium for the time the policy
was in force during such grace period.(B) A provision that validity of the policy shall not be contested, except
for nonpayment of premiums, after it has been in force for two years from
its date of issue; and that no statement made by any person insured under
the policy relating to his insurability shall be used in contesting the
validity of the insurance with respect to which such statement was made
after such insurance has been in force prior to the contest for a period
of two years during such person's lifetime nor unless it is contained in
a written instrument signed by him; provided, however, that no such provision
shall preclude the assertion at any time of defenses based upon provisions
in the policy which relate to eligibility for coverage.(C) A provision that a copy of the application, if any, of the policyholder
shall be attached to the policy when issued, and that all statements made by
the policyholder shall be deemed representations and not warranties, and
that no statement made by any person insured shall be used in any contest
unless a copy of the instrument containing the statement
is or has been furnished to such person or, in the event of death or incapacity
of the insured person, to his beneficiary or personal representative.(D) A provision setting forth the conditions, if any, under which the
insurer reserves the right to require a person eligible for insurance to
furnish evidence of individual insurability satisfactory to the insurer
as a condition to part or all of his coverage.(E) A provision specifying an equitable adjustment of premiums or of benefits
or of both to be made in the event the age of a person insured has been
misstated, such provision to contain a clear statement of the method of
adjustment to be made.(F) A provision that any sum becoming due by reason of the death of the
person insured shall be payable to the beneficiary designated by the person
insured, except that where the policy contains conditions pertaining to
family status the beneficiary may be the family member specified by the
policy terms, subject to the provisions of the policy in the event there
is no designated beneficiary, as to all or any part of such sum, living
at the death of the person insured, and subject to any right reserved by
the insurer in the policy and set forth in the certificate to pay at its
option a part of such sum not exceeding $2,000 to any person appearing to
the insurer to be equitably entitled thereto by reason of having incurred
funeral or other expenses incident to the last illness or death of the person insured.(G) A provision that the insurer will issue to the policyholder for delivery
to each person insured a certificate setting forth a statement as to the
insurance protection to which he is entitled, to whom the insurance benefits
are payable, a statement as to any dependent's coverage included in such
certificate, and the rights and conditions set forth in provisions (H),
(I), (J) and (K) following.(H) A provision that if the insurance, or any portion of it, on a person
covered under the policy or on the dependent of a person covered, ceases
because of termination of employment or of membership in the class or classes
eligible for coverage under the policy, such person shall be entitled to
have issued to him by the insurer, without evidence of insurability, an
individual policy of life insurance without disability or other supplementary
benefits, unless such right to convert such coverage was provided for
in the group policy and is applied for in the application for conversion,
provided that an application for the individual policy shall be made,
and the first premium paid to the insurer, within 31 days after such termination,
and provided further that:(1) the individual policy may, at the option of such     person, be on any one of the forms then customarily issued by the insurer at the age and for the amount applied for, except that the group policy may exclude the option to elect term insurance;(2) the individual policy shall be in an amount equal     to, unless such person chooses to elect a lesser amount, the amount of life insurance which ceases because of such termination, less the amount of any life insurance for which such person becomes eligible under the same or any other group policy within 31 days after such termination, provided that any amount of insurance which shall have matured on or before the date of such termination as an endowment payable to the person insured, whether in one sum or in installments or in the form of an annuity, shall not, for the purposes of this provision, be included in the amount which is considered to cease because of such termination; and(3) the premium on the individual policy shall be at     the insurer's then customary rate applicable to the form and amount of the individual policy, to the class of risk to which such person then belongs, and to such person's age attained on the effective date of the individual policy.(4) If any individual insured under a group life     insurance policy becomes entitled under the terms of such policy to have an individual policy of life insurance issued and if such individual is not given notice of the existence of such right at least 15 days prior to the expiration date of such period, then in such event the individual shall have an additional period within which to exercise such right, but nothing herein contained shall be construed to continue any insurance beyond the period provided in such policy.  This additional period shall expire 15 days next after the individual is given such notice but in no event shall such additional period extend beyond 60 days next after the expiration date of the period provided in such policy.  Written notice presented to the individual or mailed by the policyholder to the last known address of the individual or mailed by the insurer to the last known address of the individual as furnished by the policyholder shall constitute notice for the purpose of this Section.Subject to the same conditions set forth above the conversion privilege
shall be available (i) to a surviving dependent, if any, at the death of
the employee or member, with respect to the coverage under the group policy
which terminates by reason of such death and (ii) to the dependent of the
employee or member upon termination of coverage of the dependent, while
the employee or member remains under the group policy, by reason of the
dependent ceasing to be a qualified family member under the group policy.(I) A provision, except in the case of a policy described in paragraph
(B) of Section 230.1, that the termination of the employment of an employee
or the membership of a member shall not terminate the insurance of such
employee or member under the group policy until the expiration of such period
for which the premium for such employee or member has been paid, not exceeding 31 days.(J) A provision that from time to time all new employees or members eligible
for insurance and desiring the same shall be added to the group or class
thereof originally insured.(K) A provision that if the group policy terminates or is
amended so as to terminate the insurance of any class of insured persons,
every person insured thereunder at the date of such termination whose insurance
terminates, including the insured dependent of a covered person, and who
has been so insured for at least five years prior to such termination date shall be
entitled to have issued by the insurer an individual policy of life insurance,
subject to the same conditions and limitations as are provided by provision
(H) above, except that the group policy may provide that the amount of such
individual policy shall not exceed the smaller of (a) the amount of the
person's life insurance protection ceasing because of the termination or amendment of
the group policy, less the amount of any life insurance for which he is
or becomes eligible under a group policy issued or reinstated by the same
or another insurer within 31 days after such termination, or (b) $10,000.(L) A provision that if a person insured under the group policy, or the
insured dependent of a covered person, dies during the period within which
the individual would have been entitled to have an individual policy issued
in accordance with provisions (H) or (I) above and before such an individual
policy shall have become effective, the amount of life insurance which he
would have been entitled to have issued under such individual policy shall
be payable as a claim under the group policy, whether or not application
for the individual policy or the payment of the first premium therefor has been made.(M) If active employment is a condition of insurance, a provision
that an insured may continue coverage during the insured's total disability
by timely payment to the policyholder of that portion, if any, of the premium
that would have been required from the insured had total disability not
occurred.  The continuation shall be on a premium paying basis for a period
of six months from the date on which the total disability started, but not
beyond the earlier of (a) approval by the insurer of continuation of the
coverage under any disability provision which the group insurance policy
may contain or (b) the discontinuance of the group insurance policy.(N) If active employment is a condition of insurance, in the case of a policy of group life insurance replacing another policy of group life insurance in force with another insurance carrier immediately prior to the effective date of the new policy, a provision preventing loss of coverage, subject to premium payments, for those active employees who are not actively at work on the effective date of the new policy if the following conditions are met:(1)   the active employee was insured under the prior     carrier's group life insurance policy immediately prior to the effective date of the policy;(2)   the active employee is not actively at work on     the effective date of the new policy;(3)   the active employee is a member of an eligible     class under the policy; and(4)   the active employee is not receiving or     eligible to receive benefits under the prior carrier's group life insurance policy.(O)   If active employment is a condition of insurance, a provision that for active employees receiving or eligible to receive benefits under provision (N) the continued coverage will remain in effect until the earliest of the following:(1)   the date the employee returns to active work;(2)   the date that coverage under the prior     carrier's group life insurance policy would have ended for any reason other than the termination of the policy;(3)   the date that coverage would otherwise end     under the replacing carrier's policy;(4)   a date no less than 6 months after the     replacement coverage begins; or(5)   the date the employee is covered or is eligible     for coverage under the prior carrier's group policy.(P)   If active employment is a condition of insurance, a provision that the replacing carrier's obligations under provisions (N) and (O) may be limited to the amount for which the employee was covered under the prior carrier's group life insurance policy and may be reduced by any amounts payable under the prior carrier's group life insurance policy.(Q) In the case of a policy insuring the lives of debtors,
a provision that the insurer will furnish to the policyholder for delivery
to each debtor insured under the policy a certificate of insurance describing
the coverage and specifying that the death benefit shall first be applied
to reduce or extinguish the indebtedness. Whenever the amount of insurance
payable exceeds the amount of outstanding indebtedness the excess benefit
shall be payable to the person otherwise contractually or legally entitled
thereto; if there be no person determined to be so entitled, such excess
shall be paid to the estate of the insured person. 
(Source: P.A. 102-367, eff. 1-1-22; 102-743, eff. 5-6-22.) (215 ILCS 5/232) (from Ch. 73, par. 844)Sec. 232. 
		
		Extension
of time and modification of standard provisions.(1) Any company authorized to transact business in this State on the
effective date of this Code may continue to issue policies and contracts of
the kind or kinds it was permitted to issue immediately prior to such
effective date, until December 31, 1937.(2) Policies and contracts may be issued and delivered in this State
which contain provisions more favorable to the holders of such policies or
contracts than the standard provisions required by this article. No
domestic company and holder of a policy or contract shall after the
effective date of this Code enter into any agreement to waive or modify in
whole or in part a standard provision required by this Code or any prior
law of this State, for the benefit of such holder, unless the agreement be
approved by a court in a proceeding under Article XIII.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/233) (from Ch. 73, par. 845)Sec. 233. 
		Participating and non-participating policies.After the calendar year during which this Code becomes effective, no
life company authorized to do business in this State shall issue both
participating and non-participating policies unless at least ninety per
centum of the profits on its participating policies shall inure to the
benefit of the participating policyholders. Any company having in force
both participating and non-participating policies shall keep a separate
accounting for each class of business and shall make and include in the
annual statement to be filed with the Director each year a separate
statement showing the gains, losses and expenses properly attributable to
each of such classes and also showing the manner in which any general
outlay of expense of the company has been apportioned to each except that
this provision shall not apply to any company in which ninety per centum or
more of the business in force is either participating or non-participating.
This section shall not apply to business done by such life company outside
this state, nor to paid-up, or temporary insurance or pure endowment
benefits issued or granted pursuant to the non-forfeiture provision
prescribed in clause (g) of sub-section (1) of Section 224 nor to
annuities or policies of reinsurance.
		(Source: Laws 1957, p. 607.) (215 ILCS 5/234) (from Ch. 73, par. 846)Sec. 234. 
		
		Notice of
premium required.(1) No life company doing business in this  State shall declare any
policy forfeited or lapsed within six months after default in payment of
any premium installment or interest or any portion thereof, nor shall any
such policy be forfeited or lapsed by reason of nonpayment when due of any
premium, installment or interest, or any portion thereof, required by the
terms of the policy to be paid, within six months from the default in
payment of such premium, installment or interest, unless a written or
printed notice stating the amount of such premium, installment, interest or
portion thereof due on such policy, the place where it shall be paid and
the person to whom the same is payable, shall have been duly addressed and
mailed with the required postage affixed, to the person whose life is
insured, or the assignee of the policy, (if notice of the assignment has
been given to the company) at his last known post office address, at least
fifteen days and not more than forty-five days prior to the day when the
same is due and payable, before the beginning of the period of grace,
except that in any case in which a parent insures the life of his minor
child, the company may send notice of premium due to the parent. Such
notice shall also state that unless such premium or other sums due shall be
paid to the company or its agents the policy and all payments thereon will
become forfeited and void, except as to the right to a surrender value or
paid-up policy as provided for by the policy. The affidavit of any officer,
clerk or agent of the company or of any one authorized to mail such notice
that the notice required by this section bearing the required postage has
been duly addressed and mailed shall be presumptive evidence that such
notice has been duly given.(2) This section shall not apply to cancellable accident and health
policies which are renewable at the option of the company nor shall it
apply to group policies, industrial life policies, or to any policies upon
which premiums are payable monthly or at shorter intervals.
		(Source: Laws 1961, p. 3852.) (215 ILCS 5/234.1) (from Ch. 73, par. 846.1)Sec. 234.1. 
		
		(Notice of the Enactment of a Non-Forfeiture Option.)  No life
company doing business in this State may enact a non-forfeiture option,
unless a notice is given to the policyowner which explains this action and
refers the policyowner to the other available options, if any, under the
provisions of the policy.  Evidence of this notice shall be maintained by the insurer.
		(Source: P.A. 80-566.) (215 ILCS 5/235) (from Ch. 73, par. 847)Sec. 235. 
		
		Extension
of time for payment of life premium.A life company may enter into subsequent agreements in writing with the
insured, which need not be attached to the policy, to extend the time for
the payment of any premium or part thereof, upon condition that failure to
comply with the terms of such agreement shall cause the policy to lapse as
provided in said agreement or in the policy. Subject to such lien as may be
created to secure any indebtedness contracted by the insured in
consideration of the extension, such agreement shall not impair any right
existing under the policy.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/235.1)Sec. 235.1. Notice of cancellation; secondary addressee.(a)   A life company issuing an individual life insurance contract on or after January 1, 2022 shall notify an applicant, in writing on a form prescribed by the company at the time of application for the policy, of the applicant's right to designate a secondary addressee to receive notice of cancellation of the policy based on nonpayment of premium.  The applicant may make such designation at the time of application for such policy or at any time such policy is in force by submitting a written notice to the insurer containing the name and address of the secondary addressee.(b)   The insurer's transmission to a secondary addressee of a copy of a notice of cancellation based on nonpayment of premium shall be in addition to the transmission of the original document to the policyholder.  The copy of the notice of cancellation transmitted to the secondary addressee shall be made in the same manner and form required for the transmission of the notice to the policyholder.(c)   The designation of a secondary addressee shall not constitute acceptance of any liability on the part of the secondary addressee or insurer for services provided to the policyholder.(d)   This Section does not apply to any individual life insurance contract under which premiums are payable monthly or more frequently and are regularly collected by a licensed agent or are paid by credit card or any preauthorized check processing or automatic debit service of a financial institution.(e)   Nothing in this Section shall prohibit an applicant or policyholder from designating a life insurance agent of record as his or her secondary addressee.
(Source: P.A. 102-542, eff. 1-1-22.) (215 ILCS 5/236) (from Ch. 73, par. 848)Sec. 236. Discrimination prohibited.(a) No life company doing business in this State shall make or permit any
distinction or discrimination in favor of individuals among insured
persons of the same class and equal expectation of life in the issuance
of its policies, in the amount of
payment of premiums or rates charged for policies of insurance, in the
amount of any dividends or other benefits payable thereon, or in any
other of the terms and conditions of the contracts it makes.(b) No life company shall make or permit any distinction or discrimination
against individuals
with disabilities in
the amount of payment
of premiums or rates charged for policies of life insurance, in the amount
of any dividends or death benefits payable thereon, or in any other terms
and conditions of the contract it makes unless the rate differential is
based on sound actuarial principles and a reasonable system of classification
and is related to actual or reasonably anticipated experience directly
associated with the disability.(c) No life company shall refuse to insure, or refuse to continue to insure,
or limit the amount or extent or kind of coverage available to an
individual, or charge an individual a different rate for the same coverage
solely because of blindness or partial blindness.  With respect to all
other conditions, including the underlying cause of the blindness or
partial blindness, persons who are blind or partially blind shall be
subject to the same standards of sound actuarial principles or actual or
reasonably anticipated experience as are sighted persons.  Refusal to
insure includes denial by an insurer of disability insurance coverage on
the grounds that the policy defines "disability" as being presumed in the
event that the insured loses his or her eyesight.  However, an insurer may
exclude from coverage disabilities consisting solely of blindness or
partial blindness when such condition existed at the time the policy was issued.(d) No life company shall refuse to insure or to continue to insure an
individual solely because of the individual's status as a member of the
United States Air Force, Army, Coast Guard, Marines, or Navy or solely because
of the individual's status as a member
of the National Guard or Armed Forces Reserve.(e) An insurer or producer authorized to issue policies of insurance in this State may not make a distinction or otherwise discriminate between persons, reject an applicant, cancel a policy, or demand or require a higher rate of premium for reasons based solely upon an applicant's or insured's past lawful travel experiences or future lawful travel plans. This subsection (e) does not prohibit an insurer or producer from excluding or limiting coverage under a policy or refusing to offer the policy based upon past lawful travel or future lawful travel plans or from charging a different rate for that coverage when that action is based upon sound actuarial principles or is related to actual or reasonably expected experience and is not based solely on the destination's inclusion on the United States Department of State's travel warning list.(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 5/237) (from Ch. 73, par. 849)Sec. 237. 
		Illegal inducements - Penalty. 
		No life company authorized to do business in this State shall issue
or deliver in this State or permit its agents, officers or employees to
issue or deliver in this State as an inducement to insurance or in
connection therewith, any agency company shares or other capital shares,
benefit certificates or shares in any common law corporation, securities
of any special or advisory board, or other contracts of any kind
promising returns and profits as an inducement to insurance; and no life
company shall be authorized to do business in this State which issues or
permits its agents, officers or employees to issue in this State or in
any other state, agency company shares or other capital shares or
benefit certificates or shares in any common law corporation or
securities of any special advisory board or other contracts of any kind
promising returns and profits as an inducement to insurance; and no
corporation acting as an agent of a life company, or any of its agents,
officers or employees shall be permitted to sell, agree or offer to
sell, or give or offer to give directly or indirectly, in any manner
whatsoever, as an inducement to insurance or in connection therewith,
any shares, securities, bonds or agreements of any form or nature
promising returns and profits as an inducement to insurance or in
connection therewith. It shall be the duty of the Director upon due
proof after notice and hearing to revoke the certificate of authority of
any company or the license of any agent so offending, or suspend such
license or certificate of authority for any period of time up to, but
not to exceed, two years; or may by order require such insurance company
or agent to pay to the people of the State of Illinois a penalty in a
sum not exceeding five hundred dollars, and upon the failure of such
insurance company or agent to pay such penalty within twenty days after
the mailing of such order, postage prepaid, registered, and addressed to
the last known place of business of such insurance company or agent,
unless such order is stayed by an order of a court of competent
jurisdiction, the Director of Insurance may revoke or suspend the
license or certificate of authority of such insurance company or agent
for any period of time up to, but not exceeding a period of, two years
if he finds that any such company or agent thereof has violated any of
the provisions of this section.
		(Source: Laws 1957, p. 1530.) (215 ILCS 5/238) (from Ch. 73, par. 850)Sec. 238. Exemption.(a) All proceeds payable because of the death of the insured and the
aggregate net cash value of any or all life and endowment policies and
annuity contracts payable to a wife or husband of the insured, or to a
child, parent or other person dependent upon the insured, whether the power
to change the beneficiary is reserved to the insured or not, and whether
the insured or his estate is a contingent beneficiary or not, shall be
exempt from execution, attachment, garnishment or other process, for the
debts or liabilities of the insured incurred subsequent to the effective
date of this Code, except as to premiums paid in fraud of creditors within
the period limited by law for the recovery thereof.(b) Any insurance company doing business
in this State and governed by this Code shall encumber or surrender
accounts as defined in Section 10-24 of the Illinois Public Aid Code held by
the insurance company owned by any responsible relative who is subject to a
child support lien, upon notice of the lien or levy by the Department of Healthcare and Family Services
						(formerly Illinois Department
of Public Aid) or its successor agency
pursuant to Section 10-25.5 of the Illinois Public Aid Code, or upon
notice of interstate lien from any other state's agency responsible for
implementing the child support enforcement program set forth in Title IV, Part
D of the
Social Security Act.This Section does not prohibit the furnishing of information in accordance
with the federal Personal Responsibility and Work Opportunity Reconciliation
Act of 1996.  Any insurance company governed by this Code shall enter into an
agreement for data exchanges with the Department of Healthcare and Family Services provided the
Department of Healthcare and Family Services
						
pays to the insurance company a reasonable fee not to exceed its
actual cost incurred.  An insurance company providing
information in accordance with this item shall not be liable to any owner of an
account as defined in Section 10-24 of the Illinois Public Aid Code or other
person for any disclosure of information to the Department of Healthcare and Family Services (formerly
						Department of Public Aid), for
encumbering or surrendering any accounts as defined in Section 10-24 of the
Illinois Public Aid Code held by the insurance company
in response to a lien
or order to withhold and deliver issued by a State agency, or for any other
action taken pursuant to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence or willful misconduct.
An insurance company shall have no obligation to hold, encumber, or
surrender any accounts as defined in Section 10-24 of the Illinois Public Aid
Code until
it has been served with a subpoena, summons, warrant, court or administrative
order, lien, or levy requiring that action.
					(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 5/238.1)Sec. 238.1. Data exchanges;
administrative liens.(a) Any insurance company
doing business in the State and governed by
this Code shall enter into an agreement for data exchanges
with the Department of Healthcare and Family Services
						
for the purpose of locating accounts as defined in Section 10-24 of the
Illinois Public Aid Code of responsible relatives to
satisfy past-due child support owed by responsible
relatives under an order for support entered by a court or
administrative body of this or any other State on behalf
of resident or non-resident persons.(b) Notwithstanding any provisions in this Code to the
contrary, an insurance company shall not be liable to any person:(1) for any disclosure of information to the     Department of Healthcare and Family Services (formerly Illinois Department of Public Aid) under subsection (a);(2) for encumbering or surrendering any accounts as     defined in Section 10-24 of the Illinois Public Aid Code held by such insurance company in response to a notice of lien or levy issued by the Department of Healthcare and Family Services (formerly Illinois Department of Public Aid), or by any other state's child support enforcement agency, as provided for in Section 238 of this Code; or(3) for any other action taken in good faith to     comply with the requirements of subsection (a).					(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 5/239) (from Ch. 73, par. 851)Sec. 239. 
		Misrepresentations-Penalty.No agent, examining physician, or other person shall knowingly or
wilfully make any false or fraudulent statement or representation in, or
with reference, to any application for life insurance, or shall make any
such statement or representation for the purpose of obtaining any fees,
commission, money or benefit from or in any life company. Any person who
violates any of the provisions of this section shall be guilty of a Class A
misdemeanor.
		(Source: P.A. 77-2699.) (215 ILCS 5/240) (from Ch. 73, par. 852)Sec. 240. 
		
		Premium
deposit reserve.A life company may contract for or accept premium deposits, other than
premiums stated in the policy. The unused accumulation from such shall be
held and accounted for as a premium deposit reserve, and in such case the
policy or an endorsement thereon shall provide for the manner of
application of the premium deposit reserve to the payment of premiums in
default and for the disposition of such reserve if it is not sufficient to
pay the next premium. Such premium deposit reserve shall be available as an
addition to the loan and cash surrender values, shall be paid with other
benefits upon death or maturity of the policy, and shall be paid to the
insured whenever the cash surrender value with the premium deposit reserve
shall equal or exceed the original amount of insurance, but no part of the
premium deposit reserve may be paid to the insured during the continuance
of the policy except at such times or in such amounts as specified in the
policy or in endorsements thereon.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/241) (from Ch. 73, par. 853)Sec. 241. 
		
		Trust
settlements.Any domestic life company shall have the power to hold the proceeds of
any policy issued by it under a trust or other agreement upon such terms
and restrictions as to revocation by the policyholder and control by
beneficiaries, and with such exemptions from the claims of creditors of
beneficiaries other than the policyholder as shall have been agreed to in
writing by such company and the policyholder. Upon maturity of a policy in
the event the policyholder has made no such agreement, the company shall
have power to hold the proceeds of the policy under an agreement with the
beneficiaries. Such company shall not be required to segregate funds so
held but may hold them as part of its general company assets. A foreign or
alien company, when authorized by its charter or the laws of its domicile,
may exercise any such powers in this State.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/242) (from Ch. 73, par. 854)Sec. 242. 
		
		Rights of
minors.Any minor of the age of fifteen years or more may, notwithstanding such
minority, contract for life, health and accident insurance on his own life
for his own benefit or for the benefit of his father, mother, husband,
wife, child, brother or sister, and may exercise all such contractual
rights and powers with respect to any such contract of insurance as might
be exercised by a person of full legal age, and may exercise with like
effect all rights and privileges under such contract, including the
surrender of his interest therein and the giving of a valid discharge for
any benefit accruing or money payable thereunder. Such minor shall not, by
reason of his minority, be entitled to rescind, avoid, or repudiate such
contract, or any exercise of a right or privilege thereunder.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/243) (from Ch. 73, par. 855)Sec. 243. 
		Contingency reserves.(1) Any domestic life company may accumulate and maintain in addition to
an amount equal to the net value of its participating policies computed
according to the standard adopted by it under section 223, a contingency
reserve not exceeding the following respective percentages of said net
values, to-wit:(a) When said net values are less than one hundred thousand dollars,
twenty per centum thereof or the sum of ten thousand dollars, whichever is
the greater.(b) When said net values are greater than one hundred thousand dollars
the percentage thereof measuring the contingency reserve shall decrease
one-half of one per centum for each one hundred thousand dollars of said
net values up to one million dollars; one-half of one per centum for each
additional one million dollars up to ten million dollars; one-half of one
per centum for each additional two million, five hundred thousand dollars
up to fifteen million dollars; and, if said net values equal or exceed the
last mentioned amount, the contingency reserve shall not exceed ten per
centum thereof.(2) As the net values of said policies increase and the maximum
percentage measuring the contingency reserve decreases the company may
maintain any contingency reserve accumulated under this section, although
it may exceed the maximum percentage herein prescribed, but may not add to
the contingency reserve when the addition will bring it beyond the maximum
percentage.(3) Nothing herein contained shall be construed to affect any existing
surplus or contingency reserves held by any such company except that
whenever the existing surplus and contingency reserves, exclusive of said
net values and of all accumulations held on account of existing deferred
dividend policies or groups of such policies, shall exceed the limit above
mentioned it shall not be entitled to maintain any additional contingency
reserve. However, for cause shown the Director may at any time and from
time to time permit any company to accumulate and maintain a contingency
reserve in excess of the limit above mentioned for a prescribed period not
exceeding one year under any one permission, by filing in his office a
decision stating his reasons therefor and causing the same to be published
in his next annual report.(4) This section shall not be construed as preventing the accumulation
from the non-participating business of a contingency reserve for the
benefit of non-participating policies.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/244) (from Ch. 73, par. 856)Sec. 244. 
		
		Limitation
of expenses for life companies.(1) No life company authorized to do business in this State shall make
or incur acquisition expenses in any calendar year after the calendar year
during which this Code becomes effective amounting to more than the first
year's gross premiums nor shall such company make or incur renewal expenses
on policies issued after such year in any of the nine succeeding renewal
years following each year's new business in excess of 10% of the gross
renewal premiums, unless the company collects renewal premiums in person in
which case such renewal expense applicable to such policies for as long as
such premiums are collected in person shall not exceed 20%, except that
renewal expenses in excess of such 10% limitation relative to the 9
succeeding renewal years may be made or incurred if such excess in any year
be included with acquisition expenses made or incurred during that calendar
year. After the tenth policy year the annual maximum renewal expenses shall
not exceed 3% of such gross annual renewal premiums, unless the company
collects renewal premiums in person in which case such renewal expense
applicable to such policies for as long as such premiums are collected in
person shall not exceed 13%, but a company may pay renewal expenses after
the tenth policy year in excess of 3% if such excess is charged to the
renewal expense of that calendar year within the limitation provided
herein.(2) In computing such acquisition expenses there shall be included all
commissions and other valuable considerations paid or payable to or for
agents, and other expenses made or incurred in acquiring new business,
except medical examination and inspection fees and the normal overhead
expenses of operation at the home office. In computing such renewal
expenses there shall be included commissions and other valuable
considerations paid or payable to or for agents, and all other expenses
made or incurred for the collection of such renewal premiums, except the
normal overhead expenses of operation at the home office.(3) This Section shall not apply to accident and health or industrial
business written by any companies.
		(Source: Laws 1967, p. 3359.) (215 ILCS 5/244.1) (from Ch. 73, par. 856.1)Sec. 244.1. 
		
		
		Whenever the financial condition of any company transacting the kinds of
business authorized in Class 1 of Section 4, when reviewed in conjunction
with the kinds and nature of risks insured, the loss experience and
ownership of the company and the ratio of annual premium volume to the
incurred acquisition expenses, indicates a condition such that the
continued operation of the company might be hazardous to its policyholders,
creditors or the general public, then the Director may, after notice and
hearing, order the company to take such action as may be reasonably
necessary to rectify the existing condition, including but not necessarily
limited to one or more of the following steps:(a) to reduce the loss exposure by reinsurance;(b) to reduce the volume of new business being     accepted;(c) to reduce general or acquisition expenses by     specified methods;(d) to suspend the writing of new business for a     period not to exceed 3 months; or(e) to increase the company's surplus by a     contribution to surplus.		(Source: P.A. 77-1514.) (215 ILCS 5/245) (from Ch. 73, par. 857)Sec. 245. 
		Salaries; pensions.(1) No domestic life company shall directly or indirectly pay any
salary, compensation or emolument to any officer, trustee or director
thereof, or any salary, compensation or emolument amounting in any year
to more than $200,000 to any person, firm or corporation,
unless such
payment be first authorized by a vote of the board of directors of such
company, which vote shall be duly recorded in the records of the
company.  No such domestic life company shall make any agreement with any
of its officers, trustees or salaried employees whereby it agrees that
for any services rendered or to be rendered he shall receive any salary,
compensation or emolument, directly or indirectly, that will extend
beyond a period of three years from the date of such agreement except
that payment of an amount not in excess of 20% of the salary of any of
its officers, trustees, or salaried employees may by written agreement
be deferred beyond such period of three years, which agreement may
include conditions to be met by such officer, trustee, or salaried
employee before payment will be made. The limitation as to time
contained herein shall not apply to a contract for renewal commissions
with any such officer, trustee or salaried employee who is also an agent
of the company nor shall such limitation be construed as preventing a
domestic company from entering into contracts with its agents for the
payment of renewal commissions.(2) No such life company shall grant any pension to any officer,
director or trustee thereof or to any member of his family after his
death except that it may provide a pension pursuant to the terms of the
uniform retirement plan adopted by the board of directors and for any person
who is or has been a salaried officer or
employee of such company and who may retire by reason of age or
disability.(3) No such company shall hereafter create or establish any account
or fund for the purpose of promoting the health or welfare of its
employees except from annual accretions to earned surplus computed in
the manner provided by this Code. Contributions to such fund by any
company in any calendar year shall not exceed 15% of the accretion to
earned surplus in such calendar year. Before such account or fund shall
be established, maintained or operated, the plan for such account or
fund and its method of operation shall be approved by the board of
directors of the company, and submitted to the shareholders in the case
of a stock company, or members in the case of a mutual company, at a
special meeting called for the purpose of considering such plan.
Contributions to the fund from sources other than the company may be
provided for in the operation of the plan. No amount held in such fund
or account whether contributed by the company or from any other source
shall be considered an admitted asset as defined in this Code, nor
considered in determining the solvency of such company, nor be subject to
the provisions of this Code.
		(Source: P.A. 91-549, eff. 8-14-99.) (215 ILCS 5/245.1) (from Ch. 73, par. 857.1)Sec. 245.1. Assignability of life insurance. 
No provision of the Illinois Insurance Code, or any other law prohibits
an insured under any policy of life insurance, or any other person who may
be the owner of any rights under such policy, from making an assignment of
all or any part of his rights and privileges under the policy including but
not limited to the right to designate a beneficiary thereunder and to have
an individual policy issued in accordance with paragraphs (G), (H), and (K) of Section 231.1 of the Illinois Insurance Code. Subject to the terms of the
policy or any contract relating thereto, an assignment by an insured or by
any other owner of rights under the policy, made before or after the
effective date of this amendatory Act of 1969 is valid for the purpose of
vesting in the assignee, in accordance with any provisions included therein
as to the time at which it is effective, all rights and privileges so
assigned. However, such assignment is without prejudice to the company on
account of any payment it makes or individual policy it issues in
accordance with paragraphs (d) and (g) of Section 231 before receipt of
notice of the assignment. This amendatory Act of 1969 acknowledges,
declares and codifies the existing right of assignment of interests under
life insurance policies.
(Source: P.A. 98-969, eff. 1-1-15.) (215 ILCS 5/245.2) (from Ch. 73, par. 857.2)Sec. 245.2. 
		
		Not-for-profit organizations; beneficiary of insurance on
member's life.  Members of not-for-profit organizations that are exempt
from taxation as described in paragraph (3), (4), (5), (9), or (10) of
subsection (c) of Section 501 of the Internal Revenue Code or either past
or present individual or family donors to a not-for-profit organization
may obtain life insurance policies naming the not-for-profit organization
as the irrevocable sole beneficiary of the policy.  The not-for-profit
organization, as the sole beneficiary of the policy, may continue to pay
the premiums to the issuing insurance company where the donor discontinues
the premium payments and continuance of the policy is a prudent investment.
		(Source: P.A. 87-770.) (215 ILCS 5/245.3)Sec. 245.3. Irrevocable assignment of life insurance to a funeral home. An insured or any other person who may be the owner of rights under a policy of life insurance may make an irrevocable assignment of all or a part of his or her rights under the policy to a funeral home in accordance with Section 2b of the Illinois Funeral or Burial Funds Act. Subject to the terms of the policy or a contract relating to the policy, including, but not limited to, a prepaid funeral or burial contract, an irrevocable assignment by an insured or other owner of rights under a policy made before or after the effective date of this amendatory Act of the 102nd General Assembly is valid for the purpose of vesting in the assignee, in accordance with the policy or contract as to the time at which it is effective, all rights assigned. That irrevocable assignment is, however, without prejudice to the company on account of any payment it makes. The insurance company shall within 15 business days notify the funeral home and owner of the policy of its receipt of the form. A policy owner who executes a designation of beneficiary form pursuant to Section 2b of the Illinois Funeral or Burial Funds Act also irrevocably waives and cannot exercise the following rights:(1) The right to collect from the insurance company     the net proceeds of the policy when it becomes a claim by   death.(2) The right to surrender the policy and receive the     cash surrender value of the policy.(3) The right to obtain a policy loan.(4) The right to designate as primary beneficiary of     the policy anyone other than as provided in that Act.(5) The right to collect or receive income,     distributions, or shares of surplus, dividend deposits, refunds of premium, or additions to the policy.This amendatory Act of the 102nd General Assembly acknowledges, declares, and codifies the existing right of assignment of interests under life insurance policies.
(Source: P.A. 102-959, eff. 5-27-22.)
(215 ILCS 5/Art. XIX heading) ARTICLE XIX.  
		BURIAL SOCIETIES (215 ILCS 5/338) (from Ch. 73, par. 950)Sec. 338. 
		Scope of
Article.(1) This Article shall apply to:(a) all societies organized or operating, prior to     the effective date of this Code, under an Act entitled "An Act relating to burial insurance societies", approved June 10, 1911;(b) any person, firm, corporation, society, or     association of individuals engaged in the business of providing a burial benefit or award for the payment, in whole or in part, of funeral, burial or other expenses relating to deceased members, certificate holders or subscribers, by the levying of assessments, or by the charging of a fee or premium.(2) Each person, firm, corporation, society or association mentioned in
subsection (1) is referred to in this Article as a "burial society" and
subscribers to and certificate holders of such a society are referred to in
this Article as "members."
		(Source: P.A. 91-357, eff. 7-29-99.) (215 ILCS 5/339) (from Ch. 73, par. 951)Sec. 339. 
		
		Present
authorized burial societies may transact business.Every society organized prior to the effective date of this amendatory
Act of 1959 and which society on that date was transacting business under a
certificate of authority issued by the Director may continue to transact
such business subject to the provisions of this article, but except as
provided in Section 336a no person, firm, corporation, society or
association shall enter business as a burial society after the effective
date of this amendatory Act of 1959.
		(Source: Laws 1959, p. 1150.) (215 ILCS 5/340) (from Ch. 73, par. 952)Sec. 340. 
		
		Article of
Incorporation.
The articles of incorporation of a burial society shall state:(a) The corporate name which shall not resemble the name of any existing
society or corporation organized under the laws of this State or authorized
to transact business therein as to mislead the public or cause confusion,
the purpose for which it is formed and the place in this State where its
principal office is located;(b) The mode and manner in which the corporate powers of the society
shall be exercised; the manner of electing directors; the number of
directors which shall not be less than 3 nor more than 7; terms of office
of directors which shall be not more than 4 years; the manner of electing
officers and filling vacancies and such other particulars as may be
necessary to explain and manifest the object and purpose of the society and
the manner in which it is to be conducted.A copy of the by-laws and forms of applications for members and a copy
of all forms of policies or certificates, literature and advertisements
shall be filed with the Director.The Director shall examine the articles of incorporation and other
papers so filed with him and if he finds no objection thereto he shall
submit the articles of incorporation to the Attorney General for
examination and if found by the Attorney General to be in accordance with
the provisions of this Code and not inconsistent with the laws and
constitution of this State and of the United States, he shall certify to
the same and deliver it back to the Director who shall cause the articles
to be recorded in his records and issue to the incorporators a certified
copy thereof, and thereupon such incorporators and their associates shall
become and be a body corporate with the power to sue and be sued, contract
and be contracted with, adopt by-laws not in conflict with the provisions
of this Code, adopt a seal and do such other acts, subject to the
provisions and restrictions of this Code, as shall be needful to accomplish
the purposes of its organization. The management of the affairs of the
society shall at all times be vested in the board of directors.
		(Source: P.A. 82-498.) (215 ILCS 5/341) (from Ch. 73, par. 953)Sec. 341. 
		
		Deposit
required.(1) A burial society shall maintain with the Director a
deposit of
cash or securities in an amount of at least $1,000. A
society having a membership of more than 2,500
members and
less than 5,000 members shall maintain a deposit with the
Director
of $5,000. A society having a
membership of
more than 5,000 members and less than 10,000 members shall
maintain a
deposit with the Director of $10,000. A society
having more
than 10,000 members shall maintain a deposit with the
Director of $10,000 and an additional $1,000 for
each 1,000 members in excess of 10,000.(2) All deposits as required herein shall be in cash or in securities
permitted by section 346.(3) The Director may release the required deposit of cash or securities
upon receipt of
an order of a court having proper jurisdiction or
upon: (i) certification by the burial society that it has no outstanding
creditors, policyholders, certificate holders, or member obligations in effect
and no plans to engage in the business of insurance; (ii) receipt of a lawful
resolution of the burial society's board of directors effecting the surrender
of its articles of incorporation for administrative dissolution by the
Director; and (iii) receipt of the name and forwarding address for each of the
final officers and directors of the burial society, together with a plan of
dissolution approved by the Director.
		(Source: P.A. 92-75, eff. 7-12-01.) (215 ILCS 5/342) (from Ch. 73, par. 954)Sec. 342. 
		
		Officers
bond.The officer or officers of the society entrusted with the custody of its
funds shall give bond to the association in double the amount of the
minimum deposit required by this article, but in no event less than Two
Thousand ($2,000) Dollars or more than Five Thousand ($5,000) Dollars,
conditioned upon the faithful performance of his or their duties and
accounting for the funds entrusted to his or their custody.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/343) (from Ch. 73, par. 955)Sec. 343. 
		Certificate form.(1) Every burial society shall issue a certificate of membership to
each member, agreeing to pay upon death a specified sum of money not to
exceed $1,000, which specified amount shall not be
diminished during the existence of the contract. The form of certificate
shall be submitted to the Director for his or her approval before the same
shall be issued. Each certificate issued after the effective date of
this Code, shall contain the following provisions, and shall be printed
in clear readable type of uniform size except that the words in capital
letters in the following form may be in larger type:
		............, Illinois.
		Certificate Number
		..................
		..............................
(A Burial Insurance Society)Incorporated under the Illinois Insurance Code.HEREBY INSURES the life of ...., hereinafter called the Member.The society hereby agrees to pay to .... Beneficiary, the sum of $....,
upon receipt of due proof of the death of the member, such
payment to be paid only in lawful money of the United States.This certificate is issued in consideration of the application and
the payment in advance of a first .... premium of .... which maintains
this certificate in force for a period ending .... following its date of
issue, and the payment of a like sum on the .... day of each ....
thereafter during the lifetime of the member.CHANGE OF BENEFICIARY. The member may change the beneficiary at any
time by giving notice at the principal office of the society.INCONTESTABLE CLAUSE. This certificate shall be incontestable after
it has been in force during the life-time of the member for 2 years
except for non-payment of premiums provided herein.GRACE PERIOD. A grace period of 30 days shall be allowed for the
payment of any premium after the first, during which time this
certificate shall be continued in full force. Should the member die
during such grace period, the unpaid premium may be deducted from the
amount otherwise payable. This certificate shall be regarded and
accepted by the society and the member as cancelled and terminated upon
failure to pay any premium before the expiration of the grace period.REINSTATEMENT. This certificate, after default in payment of any
premium, may be reinstated at the discretion of the Board of Directors
upon the member furnishing to the society satisfactory evidence of good
health and paying the delinquent premiums.CONTRACT. This certificate and the application therefor, a copy of which
is attached hereto, shall constitute the entire contract with the member.MISSTATEMENT OF AGE. If the age of the member has been misstated, the
amount payable under the certificate shall be such as the member would
have been entitled to at the true age.IN WITNESS WHEREOF, the society has caused this certificate to
be signed by its duly authorized officers, on (insert date), which shall be the effective date of this certificate.
		.................
		(Secretary)
		.................
		(President)(2) If the society is operating on an assessment plan, it may
substitute in lieu of the word premium the word assessment in each case
and may substitute in lieu of the consideration clause contained in the
form the following:This certificate is issued in consideration of the application and
the payment in advance of the first .... assessment and the further
payment of such assessments as may be levied from time to time during
the lifetime of the member.
		(Source: P.A. 91-357, eff. 7-29-99.) (215 ILCS 5/344) (from Ch. 73, par. 956)Sec. 344. 
		
		Burial
benefit payable in lawful money.No society operating under or by virtue of this article shall pay a
burial benefit or award other than in lawful money of the United States and
any provision in any contract to the contrary shall be of no effect, nor
shall any member of any society or representative or beneficiary of such
member be required as a condition of his becoming a member, or otherwise,
to purchase funeral supplies or burial services from any specified or
designated person, firm or corporation so as to deprive the representative,
beneficiary or family of any such member from procuring or purchasing said
supplies and services in the open market.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/345) (from Ch. 73, par. 957)Sec. 345. 
		
		Society
and directors or officers may not advertise funeral supplies.No burial society nor any officer, director or agent of any burial
society shall offer or make any oral or written agreement to furnish, or
shall distribute or cause to be distributed any literature or advertising
of any kind whatsoever which offers or purports to offer, funeral supplies
of any kind in lieu of the cash payment upon the death of a member. Upon
any violation of this section by any society, or officer, director or agent
thereof, the Director shall proceed to liquidate such society in accordance
with the provisions of Article XIII.
		(Source: Laws 1937, p. 689.) (215 ILCS 5/346) (from Ch. 73, par. 958)Sec. 346. 
		Benefit account and expense account. 
		(1) All burial societies shall charge a premium or levy an
assessment to be paid by the members.  Unless the society
maintains reserves meeting the standards of Article XIV on its benefit
certificates, the society shall not use more
than sixty-five per centum of such premium or assessment for the purpose
of paying commissions, salaries and other expenses of operation, and the
surplus and legal reserves shall constitute the benefit account of
the society and shall be
retained in cash or be invested in accordance with Article VIII.(2) No society shall invest in or loan upon any bond or note secured
by mortgage or trust deed on real estate if an officer or director of
such society has any financial interest in the real estate upon which
the loan is made.
		(Source: P.A. 86-753.) (215 ILCS 5/347) (from Ch. 73, par. 959)Sec. 347. 
		
		Failure to
maintain deposit-Payment of claims.All claims filed with a society shall be approved or disapproved within
sixty days after receipt of due proof of death and, if approved, shall be
paid within thirty days after such approval. The Director shall proceed
under Article XIII to liquidate any society which shall fail to maintain
the deposit required by this article, or shall conduct its business
fraudulently, or is not carrying out its contracts in good faith, or shall
be thirty days or more in arrears in payment of death claims after the same
have been allowed by the board of directors, or has violated any of the
provisions of this article.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/348) (from Ch. 73, par. 960)Sec. 348. 
		
		Amendment
of articles.The articles of incorporation of any society, subject to the provisions
of this article, may be amended by proper resolutions adopted by the Board
of Directors.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/349) (from Ch. 73, par. 961)Sec. 349. 
		Penalties.Any society or any officer or agent of any society who violates any of
the provisions of this article shall be guilty of a petty offense.
		(Source: P.A. 77-2699.) (215 ILCS 5/351) (from Ch. 73, par. 963)Sec. 351. 
		Application of article and other code provisions. 
		(1) This article shall not apply to fraternal or fraternal benefit
societies, assessment life and accident associations existing or
operating under or by virtue of any statute of this State, societies
that pay sick or disability benefits and limit their membership to a
particular class of persons or to the employees of a designated person,
firm or corporation nor shall this article apply to any burial insurance
society composed exclusively of the employees of any department of any
municipal, county, state or national government.(2) Unless otherwise provided in this article every burial society
shall be subject to other applicable provisions of this Code.
Unless specifically exempted by the Director of Insurance every
society not operating on the true assessment plan shall adopt a
standard of valuation approved by the Director.
		(Source: P.A. 80-624.)
(215 ILCS 5/Art. XIXA heading) ARTICLE XIXA. 
LONG-TERM CARE INSURANCE (215 ILCS 5/351A-1) (from Ch. 73, par. 963A-1)Sec. 351A-1. 
		Definitions. 
		Unless the context requires otherwise, in this
Article:(a) "Long-term care insurance" means any accident and health insurance
policy or rider advertised, marketed, offered or designed to provide
coverage for not less than 12 consecutive months for each covered person on
an expense incurred, indemnity, prepaid or other basis, for one or more
necessary or medically necessary diagnostic, preventive, therapeutic,
rehabilitative, maintenance, or personal care services, provided in a
setting other than an acute care unit of a hospital.  Such term includes
group and individual annuities and life insurance policies or riders which
provide directly or which supplement long-term care insurance.  The term also
includes a policy or rider that provides for payment of benefits based upon
cognitive impairment or the loss of functional capacity.  The term shall also
include qualified long-term care insurance contracts.  Long-term
care insurance may be issued by insurers, fraternal benefit societies,
nonprofit health, hospital, and medical service corporations, prepaid
health plans, health maintenance organizations or any similar organization
to the extent they are otherwise authorized to issue life or health
insurance. Long-term care insurance shall not include any insurance policy
which is offered primarily to provide basic Medicare supplement coverage,
basic hospital expense coverage, basic medical-surgical expense coverage,
hospital confinement indemnity coverage, major medical expense coverage,
disability income protection coverage, accident only coverage, specified
disease or specified accident coverage, or limited benefit health coverage.
Long-term care insurance may include benefits for care and treatment in
accordance with the tenets and practices of any established church or
religious denomination which teaches reliance on spiritual treatment
through prayer for healing.(b) "Applicant" means:(1) In the case of an individual long-term care     insurance policy, the person who seeks to contract for benefits.(2) In the case of a group long-term care insurance     policy, the proposed certificate holder.(c) "Certificate" means, for the purposes of this Article, any
certificate issued under a group long-term care insurance policy, which
policy has been delivered or issued for delivery in this State.(d) "Director" means the Director of Insurance of this State.(e) "Group long-term care insurance" means a long-term care insurance
policy which is delivered or issued for delivery in this State and issued
to one of the following:(1) One or more employers or labor organizations, or     to a trust or to the trustee or trustees of a fund established by one or more employers or labor organizations, or a combination thereof, for employees or former employees, or a combination thereof, or for members or former members, or a combination thereof, of the labor organizations.(2) Any professional, trade or occupational     association for its members or former or retired members, or combination thereof, if such association:(A) is composed of individuals all of whom are or         were actively engaged in the same profession, trade or occupation; and(B) has been maintained in good faith for         purposes other than obtaining insurance.(3) An association or a trust or the trustee or     trustees of a fund established, created or maintained for the benefit of members of one or more associations.  Prior to advertising, marketing or offering such policy within this State, the association or associations, or the insurer of the association or associations, shall file evidence with the Director that the association or associations have at the outset a minimum of 100 members and have been organized and maintained in good faith for purposes other than that of obtaining insurance, have been in active existence for at least one year, and have a constitution and by-laws which provide that:(A) the association or associations hold regular         meetings not less than annually to further the purposes of the members;(B) except for credit unions, the association or         associations collect dues or solicit contributions from members; and(C) the members have voting privileges and         representation on the governing board and committees.Thirty days after such filing the association or     associations will be deemed to satisfy such organizational requirements, unless the Director makes a finding that the association or associations do not satisfy those organizational requirements.(4) A group other than as described in paragraph (1),     (2) or (3) of this subsection (e), subject to a finding by the Director that:(A) the issuance of the group policy is not         contrary to the best interest of the public;(B) the issuance of the group policy would result         in economies of acquisition or administration; and(C) the benefits are reasonable in relation to         the premiums charged.(f) "Policy" means, for the purposes of this Article, any policy, contract,
subscriber agreement, rider or endorsement delivered or issued for delivery
in this State by an insurer, fraternal benefit society, nonprofit health,
hospital, or medical service corporation, prepaid health plan, health
maintenance organization or any similar organization.(g) "Qualified long-term care insurance contract" or "federally
tax-qualified long-term care insurance contract" means an individual or group
insurance contract that meets the requirements of Section 7702B(b) of the
Internal Revenue Code of 1986, as amended, as follows:(1) The only insurance protection provided under the     contract is coverage of qualified long-term care services.  A contract shall not fail to satisfy the requirements of this subparagraph by reason of payments being made on a per diem or other periodic basis without regard to the expenses incurred during the period to which the payments relate.(2) The contract does not pay or reimburse expenses     incurred for services or items to the extent that the expenses are reimbursable under Title XVIII of the Social Security Act, as amended, or would be so reimbursable but for the application of a deductible or coinsurance amount.  The requirements of this subparagraph do not apply to expenses that are reimbursable under Title XVIII of the Social Security Act only as a secondary payor.  A contract shall not fail to satisfy the requirements of this subparagraph by reason of payments being made on a per diem or other periodic basis without regard to the expenses incurred during the period to which the payments relate.(3) The contract is guaranteed renewable within the     meaning of Section 7702(B)(b)(1)(C) of the Internal Revenue Code of 1986, as amended.(4) The contract does not provide for a cash     surrender value or other money that can be paid, assigned, pledged as collateral for a loan, or borrowed except as provided in subparagraph (5).(5) All refunds of premiums and all policyholder     dividends or similar amounts under the contract are to be applied as a reduction in future premiums or to increase future benefits, except that a refund on the event of death of the insured or a complete surrender or cancellation of the contract cannot exceed the aggregate premiums paid under the contract.(6) The contract meets the consumer protection     provisions set forth in Section 7702B(g) of the Internal Revenue Code of 1986, as amended."Qualified long-term care insurance contract" or "federally tax-qualified
long-term care insurance contract" also means the portion of a life insurance
contract that provides long-term care insurance
coverage by rider or as part of the contract and that satisfies the
requirements of Sections 7702B(b) and 7702B(e) of the Internal Revenue Code of
1986,
as amended.
		(Source: P.A. 92-148, eff. 7-24-01.) (215 ILCS 5/351A-2) (from Ch. 73, par. 963A-2)Sec. 351A-2. 
		Group policy issued in another state. 
		No group long-term
care insurance coverage may be offered to a resident of this State under a
group policy issued in another state to a group described in paragraph (4)
of subsection (e) of Section 351A-1, unless the Director determines that
this State or another state having statutory and regulatory long-term care
insurance requirements substantially similar to those adopted in this State
has made a determination that such requirements have been met.
		(Source: P.A. 85-1172; 85-1174; 85-1440.) (215 ILCS 5/351A-3) (from Ch. 73, par. 963A-3)Sec. 351A-3. 
		Disclosures. 
		The Director may adopt rules that include
standards for full and fair disclosure setting forth the manner, content,
and required disclosures for the sale of long-term care insurance policies,
terms of renewability, initial and subsequent conditions of eligibility,
nonduplication of coverage provisions, coverage of dependents, preexisting
conditions, termination of insurance, continuation or conversion,
probationary periods, limitations, exceptions, reductions, elimination
periods, requirements for replacement, recurrent conditions, and
definitions of terms.
		(Source: P.A. 85-1172; 85-1174; 85-1440.) (215 ILCS 5/351A-4) (from Ch. 73, par. 963A-4)Sec. 351A-4. 
		Limitation. 
		No long-term care insurance policy may:(1) Be cancelled, nonrenewed or otherwise terminated     on grounds of the age or the deterioration of the mental or physical health of the insured individual or certificate holder.(2) Contain a provision establishing a new waiting     period in the event existing coverage is converted to or replaced by a new or other form, except with respect to an increase in benefits voluntarily selected by the insured individual or group policyholder.(3) Provide coverage for skilled nursing care only or     provide significantly more coverage for skilled care in a facility than coverage for lower levels of care.		(Source: P.A. 92-148, eff. 7-24-01.) (215 ILCS 5/351A-4.5)Sec. 351A-4.5. 
		Long-term care; coverages. 
		Nothing in this Code prohibits
an insurance company from offering a long-term care insurance
policy that provides for (1) reimbursement
of paid premiums in the event of cancellation or (2) reduced benefits in the
event the policyholder discontinues premium payments.
		(Source: P.A. 88-290.) (215 ILCS 5/351A-5) (from Ch. 73, par. 963A-5)Sec. 351A-5. 
		Preexisting condition. 
		(a)  No long-term care insurance
policy or certificate other than a policy or certificate thereunder issued
to a group as defined in paragraph (1) of subsection (e) of Section 351A-1
shall use a definition of "preexisting condition" which is more restrictive
than the following:  Preexisting condition means the existence of symptoms
which would cause an ordinarily prudent person to seek diagnosis, care or
treatment, or a condition for which medical advice or treatment was
recommended by, or received from a provider of health care services, within
6 months preceding the effective date of coverage for an insured person.(b) No long-term care insurance policy or certificate other than a
policy or certificate thereunder issued to a group as defined in paragraph
(1) subsection (e) of Section 351A-1 may exclude coverage for a loss or
confinement which is the result of a preexisting condition unless such loss
or confinement begins within 6 months following the effective date of
coverage of an insured person.(c) The Director may extend the limitation periods set forth in
subsections (a) and (b) of this Section as to specific age group categories
in specific policy forms upon finding that the extension is in the best
interest of the public.(d) The definition of "preexisting condition" does not prohibit an
insurer from using an application form designed to elicit the complete
health history of an applicant, and, on the basis of the answers on that
application, from underwriting in accordance with that insurer's
established underwriting standards.  Unless otherwise provided in the
policy or certificate, a preexisting condition, regardless of whether it is
disclosed on the application, need not be covered until the waiting period
described in subsection (b) of this Section expires.  No long-term care
insurance policy or certificate may exclude or use waivers or riders of any
kind to exclude, limit or reduce coverage or benefits for specifically
named or described preexisting diseases or physical conditions beyond the
waiting period described in subsection (b) of this Section.
		(Source: P.A. 85-1172; 85-1174; 85-1440.) (215 ILCS 5/351A-6) (from Ch. 73, par. 963A-6)Sec. 351A-6. 
		Prior hospitalization; institutionalizations.(a) On and after the effective date of this amendatory Act of 1989, no
long-term care insurance policy may be delivered or issued for delivery in
this State if such policy:(1) conditions eligibility for any benefits on a     prior hospitalization requirement; or(2) conditions eligibility for benefits provided in     an institutional care setting on the receipt of a higher level of institutional care.(b) Beginning one year after the effective date of this amendatory Act
of 1989, a long-term care insurance policy containing any limitations or
conditions for eligibility other than those prohibited above in subsection
(a) shall clearly label in a separate paragraph of the policy or
certificate entitled "Limitations or Conditions on Eligibility for
Benefits" such limitations or conditions, including any required number of
days of confinement.(1) A long-term care insurance policy containing a     benefit advertised, marketed or offered as a home health care or home care benefit may not condition receipt of benefits on a prior institutionalization requirement.(2) A long-term care insurance policy which     conditions eligibility of non-institutional benefits on the prior receipt of institutional care shall not require a prior institutional stay of more than 30 days for which benefits are paid.		(Source: P.A. 85-1440; 86-384.) (215 ILCS 5/351A-7) (from Ch. 73, par. 963A-7)Sec. 351A-7. 
		Right to return.(a) An individual long-term care
insurance policyholder shall have the right to return the policy  within 30
days of its delivery and to have the premium refunded directly to him or
her if, after examination of the policy, the policyholder is not satisfied
for any reason.  Long-term care insurance policies shall have a notice
prominently printed on the first page of the policy or attached thereto
stating in substance that the policyholder shall have the right to return
the policy within 30 days of its delivery and to have the premium refunded
if, after examination of the policy, the policyholder is not satisfied for
any reason.(b) A person insured under a long-term care insurance policy or
certificate issued pursuant to a direct response solicitation shall have
the right to return the policy or certificate within 30 days of its
delivery and to have the premium refunded directly to him or her if, after
examination, the insured person is not satisfied for any reason.  Long-term
care insurance policies or certificates issued pursuant to a direct
response solicitation shall have a notice prominently printed on the first
page of the policy or certificate attached thereto stating in substance
that the insured person shall have the right to return the policy or
certificate within 30 days of its delivery and to have the premium refunded
if, after examination of the policy or certificate, the insured person is
not satisfied for any reason.  This subsection also applies to denials of
applications, and any refund must be made within 30 days of the return or
denial.
		(Source: P.A. 92-148, eff. 7-24-01.) (215 ILCS 5/351A-8) (from Ch. 73, par. 963A-8)Sec. 351A-8. 
		Outline of coverage.(a) An outline of coverage shall be delivered to a prospective applicant
for long-term care insurance at the time of initial solicitation through
means which prominently direct the attention of the recipient to the
document and its purpose.(1) The Director shall prescribe a standard format      including style, arrangement and overall appearance and the content of an outline of coverage.(2) In the case of agent solicitations, an agent must     deliver the outline of coverage prior to the presentation of an application or enrollment form.(3) In the case of direct response solicitations, the     outline of coverage must be presented in conjunction with any application or enrollment form.(b) The outline of coverage shall include:(1) A description of the principal benefits and     coverage provided in the policy.(2) A statement of the principal exclusions,     reductions and limitations contained in the policy.(3) A statement of the terms under which the policy     or certificate, or both, may be continued in force or discontinued, including any reservation in the policy of a right to change premium.  Continuation or conversion provisions of group coverage shall be specifically described.(4) A statement that the outline of coverage is a     summary only, not a contract of insurance, and that the policy or group master policy contain governing contractual provisions.(5) A description of the terms under which the policy     or certificate may be returned and premium refunded.(6) A brief description of the relationship of cost     of care and benefits.(7) A statement that discloses to the policyholder or     certificate holder whether the policy is intended to be a federally tax-qualified long-term care insurance contract under 7702B(b) of the Internal Revenue Code of 1986, as amended.		(Source: P.A. 92-148, eff. 7-24-01.) (215 ILCS 5/351A-9) (from Ch. 73, par. 963A-9)Sec. 351A-9. 
		Disclosure in certificate. 
		A certificate issued pursuant
to a group long-term care insurance policy, which policy is delivered or
issued for delivery in this State, shall include each of the following:(1) A description of the principal benefits and coverage provided in
the policy.(2) A statement of the principal exclusions, reductions and limitations
contained in the policy.(3) A statement that the group master policy determines governing
contractual provisions.
		(Source: P.A. 85-1172; 85-1174; 85-1440.) (215 ILCS 5/351A-9.1) (from Ch. 73, par. 963A-9.1)Sec. 351A-9.1. 
		Policy summary and benefit reports.(a) At the time of policy delivery, a policy summary shall be delivered
for an individual life insurance policy which provides long-term care
benefits within the policy or by rider.  In the case of direct response
solicitations, the insurer shall deliver the policy summary upon the
applicant's request, but regardless of request shall make such delivery no
later than at the time of policy delivery.  In addition to complying with
all applicable requirements, the summary shall also include:(1) an explanation of how the long-term care benefit     interacts with other components of the policy, including deductions from death benefits;(2) an illustration of the amount of benefits, the     length of benefit, and the guaranteed lifetime benefits if any, for each covered person;(3) any exclusions, reductions and limitations on     benefits of long-term care; and(4) if applicable to the policy type, the summary     shall also include:(A) disclosure of the effects of exercising other         rights under the policy;(B) disclosure of guarantees related to long-term         care costs of insurance charges; and(C) current and projected maximum lifetime         benefits.(b) Any time a long-term care benefit, funded through a life insurance
vehicle by the acceleration of the death benefit, is in benefit payment
status, a monthly report shall be provided to the policyholder.  Such
report shall include:(1) any long-term care benefits paid during the month;(2) an explanation of any changes in the policy,     including changes in death benefits or cash values, due to long-term care benefits being paid out; and(3) the amount of long-term care benefits existing or     remaining.		(Source: P.A. 86-384.) (215 ILCS 5/351A-9.2)Sec. 351A-9.2. 
		Delivery of policy. 
		If an applicant for a long-term care
insurance contract or certificate is approved, the issuer shall deliver the
contract or certificate of insurance to the applicant no later than 30 days
after the date of approval.
		(Source: P.A. 92-148, eff. 7-24-01.) (215 ILCS 5/351A-9.3)Sec. 351A-9.3. 
		Claim denial; explanation. 
		If a claim under a long-term
care insurance contract is denied, the issuer, within 60 days after
receipt of a written request by a policyholder or certificate holder or a
policyholder's or certificate holder's representative shall:(1) provide a written explanation of the reasons for     the denial; and(2) make available all information directly related     to the denial.		(Source: P.A. 92-148, eff. 7-24-01.) (215 ILCS 5/351A-10) (from Ch. 73, par. 963A-10)Sec. 351A-10. 
		
		Any policy or rider advertised, marketed or offered as
long-term care or nursing home insurance shall comply with the provisions
of this Article.
		(Source: P.A. 85-1440; 86-384.) (215 ILCS 5/351A-11) (from Ch. 73, par. 963A-11)Sec. 351A-11. 
		Rules and regulations. 
		The Director may adopt rules and
regulations establishing minimum standards for marketing practices and
reporting practices, penalties for violating those standards, and loss
ratio standards for long-term care insurance policies, provided that a
specific reference to long-term care insurance policies is contained in the
regulation.  Rules adopted pursuant to this Article shall be in accordance
with the provisions of the Illinois Administrative Procedure Act.
		(Source: P.A. 87-601.)
(215 ILCS 5/Art. XL heading) ARTICLE XL.  
		INSURANCE INFORMATION
AND PRIVACY PROTECTION (215 ILCS 5/1001) (from Ch. 73, par. 1065.701)Sec. 1001. 
		Purpose. 
		The purpose of this Article is to establish standards
for the collection, use and disclosure of information gathered in connection
with insurance transactions by insurance institutions, agents or
insurance-support
organizations; to maintain a balance between the need for information by
those conducting the business of insurance and the public's need for fairness
in insurance information practices, including the need to minimize
intrusiveness;
to establish a regulatory mechanism to enable natural persons to ascertain
what information is being or has been collected about them in connection
with insurance transactions and to have access to such information for the
purpose of verifying or disputing its accuracy; to limit the disclosure
of information collected in connection with insurance transactions; and
to enable insurance applicants and policyholders to obtain the reasons for
any adverse underwriting decision.  Further, this Article shall grant the
Director the authority to enforce Title V of the Gramm-Leach-Bliley Act (Public
Law 106-102, 106th Congress).
		(Source: P.A. 92-556, eff. 6-24-02.) (215 ILCS 5/1002) (from Ch. 73, par. 1065.702)Sec. 1002. 
		Scope. 
		(A) The obligations imposed by this Article shall
apply to those insurance institutions, agents or insurance-support organizations
which, on or after the effective date of this Article:(1) in the case of life, health or disability insurance:(a) collect, receive or maintain information in connection with insurance
transactions which pertains to natural persons who are residents of this State, or(b) engage in insurance transactions with applicants, individuals or policyholders
who are residents of this State, and(2) in the case of property or casualty insurance:(a) collect, receive or maintain information in connection with insurance
transactions involving policies, contracts or certificates of insurance
delivered, issued for delivery or renewed in this State, or(b) engage in insurance transactions involving policies, contracts or
certificates of insurance delivered, issued for delivery or renewed in this State.(B) The rights granted by this Article shall extend to:(1) in the case of life, health or disability insurance, the following
persons who are residents of this State:(a) natural persons who are the subject of information collected, received
or maintained in connection with insurance transactions, and(b) applicants, individuals or policyholders who engage in or seek to
engage in insurance transactions, and(2) in the case of property or casualty insurance, the following persons:(a) natural persons who are the subject of information collected, received
or maintained in connection with insurance transactions involving policies,
contracts or certificates of insurance delivered, issued for delivery or
renewed in this State, and(b) applicants, individuals or policyholders who engage in or seek to
engage in insurance transactions involving policies, contracts or certificates
of insurance delivered, issued for delivery or renewed in this State.(C) For purposes of this Section, a person shall be considered a resident
of this State if the person's last known mailing address, as shown in the
records of the insurance institution, agent or insurance-support organization,
is located in this State.(D) Notwithstanding subsections (A) and (B) above, this Article shall not apply
to information collected from the public records of a governmental authority
and maintained by an insurance institution or its representatives for the
purpose of insuring the title to real property located in this State.
		(Source: P.A. 81-1430.) (215 ILCS 5/1003) (from Ch. 73, par. 1065.703)Sec. 1003. 
		Definitions. 
		As used in this Article:(A) "Adverse underwriting decision" means:(1) any of the following actions with respect to     insurance transactions involving insurance coverage which is individually underwritten:(a) a declination of insurance coverage,(b) a termination of insurance coverage,(c) failure of an agent to apply for insurance         coverage with a specific insurance institution which the agent represents and which is requested by an applicant,(d) in the case of a property or casualty         insurance coverage:(i) placement by an insurance institution or             agent of a risk with a residual market mechanism, an unauthorized insurer or an insurance institution which specializes in substandard risks, or(ii) the charging of a higher rate on the             basis of information which differs from that which the applicant or policyholder furnished, or(e) in the case of life, health or disability         insurance coverage, an offer to insure at higher than standard rates.(2) Notwithstanding paragraph (1) above, the     following actions shall not be considered adverse underwriting decisions but the insurance institution or agent responsible for their occurrence shall nevertheless provide the applicant or policyholder with the specific reason or reasons for their occurrence:(a) the termination of an individual policy form         on a class or statewide basis,(b) a declination of insurance coverage solely         because such coverage is not available on a class or statewide basis, or(c) the rescission of a policy.(B) "Affiliate" or "affiliated" means a person that directly, or indirectly
through one or more intermediaries, controls, is controlled by or is under
common control with another person.(C) "Agent" means an individual, firm, partnership, association or
corporation who is involved in the solicitation, negotiation or binding of
coverages for or on applications or policies of insurance, covering property or
risks located in this State.  For the purposes of this Article, both "Insurance
Agent" and "Insurance Broker", as defined in Section 490, shall be considered
an agent.(D) "Applicant" means any person who seeks to contract for insurance
coverage other than a person seeking group insurance that is not individually
underwritten.(E) "Director" means the Director of Insurance.(F) "Consumer report" means any written, oral or other communication of
information bearing on a natural person's credit worthiness, credit standing,
credit capacity, character, general reputation, personal characteristics
or mode of living which is used or expected to be used in connection with
an insurance transaction.(G) "Consumer reporting agency" means any person who:(1) regularly engages, in whole or in part, in the     practice of assembling or preparing consumer reports for a monetary fee,(2) obtains information primarily from sources other     than insurance institutions, and(3) furnishes consumer reports to other persons.(H) "Control", including the terms "controlled by" or "under
common control with", means the possession, direct or indirect, of the power
to direct or cause the direction of the management and policies of a person,
whether through the ownership of voting securities, by contract other than
a commercial contract for goods or nonmanagement services, or otherwise,
unless the power is the result of an official position with or corporate
office held by the person.(I) "Declination of insurance coverage" means a denial, in
whole or in part, by an insurance institution or agent of requested insurance
coverage.(J) "Individual" means any natural person who:(1) in the case of property or casualty insurance, is     a past, present or proposed named insured or certificateholder;(2) in the case of life, health or disability     insurance, is a past, present or proposed principal insured or certificateholder;(3) is a past, present or proposed policyowner;(4) is a past or present applicant;(5) is a past or present claimant; or(6) derived, derives or is proposed to derive     insurance coverage under an insurance policy or certificate subject to this Article.(K) "Institutional source" means any person or governmental entity that
provides information about an individual to an agent, insurance institution or
insurance-support organization, other than:(1) an agent,(2) the individual who is the subject of the     information, or(3) a natural person acting in a personal capacity     rather than in a business or professional capacity.(L) "Insurance institution" means any corporation, association, partnership,
reciprocal exchange, inter-insurer, Lloyd's insurer, fraternal benefit society
or other person engaged in the business of insurance, health maintenance
organizations as defined in Section 2 of the Health Maintenance Organization
Act,
voluntary health services plans as defined in Section 2 of the Voluntary Health
Services Plans Act, and dental service plans as defined in Section 4 of the
Dental Service Plan Act.  "Insurance institution" shall not include agents or
insurance-support organizations.(M) "Insurance-support organization" means:(1) any person who regularly engages, in whole or in     part, in the practice of assembling or collecting information about natural persons for the primary purpose of providing the information to an insurance institution or agent for insurance transactions, including:(a) the furnishing of consumer reports or         investigative consumer reports to an insurance institution or agent for use in connection with an insurance transaction, or(b) the collection of personal information from         insurance institutions, agents or other insurance-support organizations for the purpose of detecting or preventing fraud, material misrepresentation or material nondisclosure in connection with insurance underwriting or insurance claim activity.(2) Notwithstanding paragraph (1) above, the     following persons shall not be considered "insurance-support organizations" for purposes of this Article: agents, government institutions, insurance institutions, medical care institutions and medical professionals.(N) "Insurance transaction" means any transaction involving
insurance primarily for personal, family or household needs rather than
business or professional needs which entails:(1) the determination of an individual's eligibility     for an insurance coverage, benefit or payment, or(2) the servicing of an insurance application,     policy, contract or certificate.(O) "Investigative consumer report" means a consumer report
or portion thereof in which information about a natural person's character,
general
reputation, personal characteristics or mode of living is obtained through personal
interviews with the person's neighbors, friends, associates, acquaintances
or others who may have knowledge concerning such items of information.(P) "Medical-care institution" means any facility or institution
that is licensed to provide health care services to natural persons, including
but not limited to: hospitals, skilled nursing facilities, home-health
agencies, medical clinics, rehabilitation agencies and public-health
agencies and health-maintenance organizations.(Q) "Medical professional" means any person licensed or certified
to provide health care services to natural persons, including but not limited
to, a physician, dentist, nurse, optometrist, chiropractor, naprapath,
pharmacist, physical or occupational therapist, psychiatric social worker,
speech therapist, clinical dietitian or clinical psychologist.(R) "Medical-record information" means personal information which:(1) relates to an individual's physical or mental     condition, medical history or medical treatment, and(2) is obtained from a medical professional or     medical-care institution, from the individual, or from the individual's spouse, parent or legal guardian.(S) "Person" means any natural person, corporation, association,
partnership or other legal entity.(T) "Personal information" means any individually identifiable
information gathered in connection with an insurance transaction from which
judgments can be made about an individual's character, habits, avocations,
finances, occupation, general reputation, credit, health or any other personal
characteristics.  "Personal information" includes an individual's name and
address and "medical-record information" but does not include "privileged
information".(U) "Policyholder" means any person who:(1) in the case of individual property or casualty     insurance, is a present named insured;(2) in the case of individual life, health or     disability insurance, is a present policyowner; or(3) in the case of group insurance which is     individually underwritten, is a present group certificateholder.(V) "Pretext interview" means an interview whereby a person,
in an attempt to obtain information about a natural person, performs one or
more of the following acts:(1) pretends to be someone he or she is not,(2) pretends to represent a person he or she is not     in fact representing,(3) misrepresents the true purpose of the interview,     or(4) refuses to identify himself or herself upon     request.(W) "Privileged information" means any individually identifiable
information that: (1) relates to a claim for insurance benefits or
a civil or criminal proceeding involving an individual, and (2) is
collected in connection with or in reasonable anticipation
of a claim for insurance benefits or civil or criminal proceeding involving
an individual; provided,
however, information otherwise meeting the requirements of this subsection
shall nevertheless be considered "personal information" under this Article
if it is disclosed in violation of Section 1014 of this Article.(X) "Residual market mechanism" means an association, organization
or other entity described in Article XXXIII
of this Act, or Section 7-501 of The
Illinois Vehicle Code.(Y) "Termination of insurance coverage" or "termination of
an insurance policy" means either a cancellation or nonrenewal of an insurance
policy, in whole or in part, for any reason other than the failure to pay
a premium as required by the policy.(Z) "Unauthorized insurer" means an insurance institution that has not
been granted a certificate of authority by the Director to transact the
business of insurance in this State.
		(Source: P.A. 90-7, eff. 6-10-97; 90-177, eff. 7-23-97; 90-372,
eff. 7-1-98; 90-655, eff. 7-30-98.) (215 ILCS 5/1004) (from Ch. 73, par. 1065.704)Sec. 1004. 
		Pretext Interviews. 
		No insurance institution, agent or insurance-support
organization shall use or authorize the use of pretext interviews to obtain
information in connection with an insurance transaction; provided, however,
a pretext interview may be undertaken to obtain information
from a person or institution
that does not have a generally or statutorily recognized privileged relationship
with the person about whom the information relates for the
purpose of investigating a claim where, based upon specific information
available for review by the Director, there is a reasonable basis for
suspecting criminal activity, fraud, material misrepresentation or material
nondisclosure in connection with the claim.
		(Source: P.A. 82-108.) (215 ILCS 5/1005) (from Ch. 73, par. 1065.705)Sec. 1005. 
		Notice of Insurance Information Practices. 
		(A) An insurance
institution or agent shall provide a notice of information practices
to all applicants or policyholders in connection with insurance transactions
as provided below:(1) in the case of an application for insurance, a notice shall be provided
no later than:(a) at the time of the delivery of the insurance policy or certificate
when personal information is collected only from the applicant or from
public records, or(b) at the time the collection of personal information is initiated when
personal information is collected from a source other than
the applicant or public records;(2) in the case of a policy renewal, a notice shall be provided no later
than the policy renewal date, except
that no notice shall be required in connection with a policy renewal if:(a) personal information is collected only from the policyholder or
from public records, or(b) a notice meeting the requirements of this Section has been given within
the previous 24 months; or(3) in the case of a policy reinstatement or change in insurance benefits,
a notice shall be provided no later than the time a request for a policy
reinstatement or change in insurance benefits is received by the insurance
institution, except that no notice shall be required if personal information
is collected only from the policyholder or from public records.(B) The notice required by subsection (A) shall be in writing
and shall state:(1) whether personal information may be collected from persons other than
the individual or individuals proposed for coverage;(2) the types of personal information that may be collected and the types
of sources and investigative techniques that may be used to collect such information;(3) the types of disclosures identified in subsections
(B), (C), (D), (E), (F), (I),
(K), (L) and (N) of Section 1014 of this Article and the
circumstances under which such disclosures may be made without prior authorization;
provided, however,
only those circumstances need be described which occur with such frequency
as to indicate a general business practice;(4) a description of the rights established under Sections 1009 and
1010 of this Article and the manner in which such rights may be exercised; and(5) that information obtained from a report prepared by an
insurance-support organization may be retained by the insurance-support
organization and disclosed
to other persons.(C) In lieu of the notice prescribed in subsection (B), the insurance
institution or agent may provide an abbreviated notice informing the applicant
or policyholder that:(1) personal information may be collected from persons other than the
individual or individuals proposed for coverage,(2) such information as well as other personal or privileged information
subsequently collected by the insurance institution or agent may in certain
circumstances be disclosed to third parties without authorization,(3) a right of access and correction exists with respect to all personal
information collected, and(4) the notice prescribed in subsection (B) will be furnished to the applicant
or policyholder upon request.(D) The obligations imposed by this Section upon an insurance institution
or agent may be satisfied by another insurance institution or agent
authorized to act on its behalf.
		(Source: P.A. 82-108.) (215 ILCS 5/1006) (from Ch. 73, par. 1065.706)Sec. 1006. 
		Marketing and Research Surveys. 
		An insurance institution or
agent shall clearly specify those questions designed to obtain information
solely for marketing or research purposes
from an individual in connection with an insurance transaction.
		(Source: P.A. 82-108.) (215 ILCS 5/1007) (from Ch. 73, par. 1065.707)Sec. 1007. 
		Content of Disclosure Authorization Forms. 
		Notwithstanding
any other provision
of law of this State, no insurance institution, agent or insurance-support
organization may utilize as its disclosure authorization form
in connection with insurance transactions a
form or statement which authorizes the disclosure of personal or privileged
information about an individual to the insurance institution,
agent or insurance-support organization unless the form or statement:(A) is written in plain language;(B) is dated;(C) specifies the types of persons authorized to disclose information
about the individual;(D) specifies the nature of the information authorized to be disclosed;(E) names the insurance institution or agent and identifies
by generic reference representatives of the insurance institution to whom
the individual is authorizing information to be disclosed;(F) specifies the purposes for which the information is collected;(G) specifies the length of time such authorization shall remain valid,
which shall be no longer than:(1) in the case of authorizations signed for the purpose of collecting
information in connection with an application for an insurance policy, a
policy reinstatement or a request for change in policy benefits:(a) 30 months from the date the authorization is signed if the application
or request involves life, health or disability insurance,(b) one year from the date the authorization is signed if the application
or request involves property or casualty insurance;(2) in the case of authorizations signed for the purpose of collecting
information in connection with a claim for benefits under an insurance policy,(a) the term of coverage of the policy if the claim is for a health insurance benefit,(b) the duration of the claim if the claim is not for a health insurance
benefit; and(H) advises the individual or a person authorized to act on behalf of
the individual that the individual or the individual's authorized representative
is entitled to receive a copy of the authorization form.
		(Source: P.A. 82-108.) (215 ILCS 5/1008) (from Ch. 73, par. 1065.708)Sec. 1008. 
		Investigative Consumer Reports. 
		(A) No insurance institution,
agent or insurance-support organization may prepare or request an investigative
consumer report about an individual in connection with an insurance transaction
involving
an application for insurance, a policy renewal, a policy reinstatement or
a change in insurance benefits unless the insurance institution or agent
informs the individual:(1) that he or she may request to be interviewed in connection with the
preparation of the investigative consumer report, and(2) that upon a request pursuant to Section 1009, he or she is entitled to
receive a copy of the investigative consumer report.(B) If an investigative consumer report is to be prepared by an insurance
institution or agent, the insurance institution or agent shall institute
reasonable procedures to conduct a personal interview requested by an individual.(C) If an investigative consumer report is to be prepared by an insurance-support
organization, the insurance institution or agent desiring such report shall
inform the insurance-support organization whether a personal interview has
been requested by the individual.  The insurance-support organization shall
institute reasonable procedures to conduct such interviews, if requested.
		(Source: P.A. 82-108.) (215 ILCS 5/1009) (from Ch. 73, par. 1065.709)Sec. 1009. 
		Access to Recorded Personal Information. 
		
(A) If any individual, after proper identification, submits a written request
to an insurance institution, agent or insurance-support organization for
access to recorded personal information about the individual which is
reasonably described
by the individual and reasonably locatable and retrievable by the insurance
institution, agent or insurance-support organization, the insurance institution,
agent or insurance-support organization shall within 30 business days from
the date such request is received:(1) inform the individual of the nature and substance of such recorded
personal information in writing, by telephone or by other oral communication,
whichever the insurance institution, agent or insurance-support organization prefers;(2) permit the individual to see and copy, in person, such recorded personal
information pertaining to him or her or to obtain a copy of such recorded
personal information by mail, whichever the individual prefers, unless such
recorded personal information is in coded form, in which case an accurate
translation in plain language shall be provided in writing;(3) disclose to the individual the identity, if recorded, of those persons
to whom the insurance institution, agent or insurance-support organization
has disclosed such personal information within 2 years prior to such
request, and if the identity is not recorded, the names of those insurance
institutions, agents, insurance-support organizations or other persons to
whom such information is normally disclosed; and(4) provide the individual with a summary of the procedures by which he
or she may request correction, amendment or deletion of recorded personal information.(B) Any personal information provided pursuant to subsection (A) above
shall identify the source of the information if such source is an institutional source.(C) Medical-record information supplied by a medical-care institution
or medical professional and requested under subsection (A), together with
the identity of the medical professional or medical care institution which
provided such information, shall be supplied either directly to the individual
or to a medical professional designated by the individual and licensed to
provide medical care with respect to the condition to which the information
relates, whichever the insurance institution, agent or insurance-support
organization prefers.  If it elects to disclose the information to a medical
professional designated by the individual, the insurance institution, agent
or insurance-support organization shall notify the individual, at the time
of the disclosure, that it has provided the information to the medical professional.(D) Except for personal information provided under Section 1011, an insurance
institution, agent or insurance-support organization may charge a reasonable
fee to cover the costs incurred in providing a copy of recorded personal
information to individuals.(E) The obligations imposed by this Section upon an insurance institution
or agent may be satisfied by another insurance institution or agent authorized
to act on its behalf.  With respect to the copying and disclosure of recorded
personal information pursuant to a request under subsection (A), an insurance
institution, agent or insurance-support organization may make arrangements
with an insurance-support organization or a consumer reporting agency
to copy and disclose recorded personal
information on its behalf.(F) The rights granted to individuals in this Section shall extend to
all natural persons to the extent information about them is collected and
maintained by an insurance institution, agent or insurance-support organization
in connection with an insurance transaction.  The rights granted to all natural
persons by this subsection shall not extend to information about them that
relates to and is collected in connection with or in reasonable anticipation
of a claim or civil or criminal proceeding involving them.(G) For purposes of this Section, the term "insurance-support organization"
does not include "consumer reporting agency".
		(Source: P.A. 82-108.) (215 ILCS 5/1010) (from Ch. 73, par. 1065.710)Sec. 1010. 
		Correction, Amendment or Deletion of Recorded Personal Information. 
		(A) Within 30 business days from the date of receipt of a written
request from an individual to correct, amend or delete any recorded
personal information
about the individual within its possession, an insurance institution, agent
or insurance-support organization shall either:(1) correct, amend or delete the portion of the recorded personal information
in dispute; or(2) notify the individual of:(a) its refusal to make such correction, amendment or deletion,(b) the reasons for the refusal, and(c) the individual's right to file a statement as provided
in subsection (C).(B) If the insurance institution, agent or insurance-support organization
corrects, amends or deletes recorded personal information in accordance
with paragraph (1) of subsection (A) above, the insurance institution, agent
or insurance-support organization shall so notify the individual in writing
and furnish the correction, amendment or fact of deletion to:(1) any person specifically designated by the individual who may have,
within the preceding 2 years, received such recorded personal information;(2) any insurance-support organization whose primary source of personal
information is insurance institutions, if the insurance-support organization
has systematically received such recorded personal information from the
insurance institution within the preceding 7 years; provided, however, that
the correction, amendment or fact of deletion need not be furnished
if the insurance-support organization no longer maintains recorded personal
information about the individual; and(3) any insurance-support organization that furnished the personal information
that has been corrected, amended or deleted.(C) Whenever an individual disagrees with an insurance institution's,
 agent's or insurance-support organization's refusal to correct, amend or
delete recorded personal information, the individual shall be permitted
to file with the insurance institution, agent or insurance-support organization:(1) a concise statement setting forth what the individual thinks is the
correct, relevant or fair information, and(2) a concise statement of the reasons why the individual disagrees with
the insurance institution's, agent's or insurance-support organization's
refusal to correct, amend or delete recorded personal information.(D) In the event an individual files either statement as described in
subsection (C) above, the insurance institution, agent or support organization shall:(1) file the statement with the disputed personal information and provide
a means by which anyone reviewing the disputed personal information will
be made aware of the individual's statement and have access to it, and(2) in any subsequent disclosure by the insurance institution, agent or
support organization of the recorded personal information that is the subject
of disagreement, clearly identify the matter or matters in  dispute and
provide the individual's statement along with the recorded personal information
being disclosed; and(3) furnish the statement to the persons and in the manner specified in
subsection (B) above.(E) The rights granted to individuals in this Section shall extend to
all natural persons to the extent information about them is collected and
maintained by an insurance institution, agent or insurance-support organization
in connection with an insurance transaction.  The rights granted to all
natural persons by this subsection shall not extend to information about
them that relates to and is collected in connection with or in reasonable
anticipation of a claim or civil or criminal proceeding involving them.(F) For purposes of this Section, the term "insurance-support organization"
does not include "consumer reporting agency".
		(Source: P.A. 82-108.) (215 ILCS 5/1011) (from Ch. 73, par. 1065.711)Sec. 1011. 
		Reasons for Adverse Underwriting Decisions. 
		(A) In the event
of an adverse underwriting decision the insurance institution or agent responsible
for the decision shall:(1) either provide the applicant, policyholder or individual proposed
for coverage with the specific reason or reasons for the adverse underwriting
decision in writing or advise such person that upon written request he or
she may receive the specific reason or reasons in writing, and(2) provide the applicant, policyholder or individual proposed for coverage
with a summary of the rights established under subsection (B) and Sections
1009 and 1010 of this Article.(B) Upon receipt of a written request within 90 business days from the
date of the mailing of notice or other communication of an adverse underwriting
decision to an applicant, policyholder or individual proposed for coverage,
the insurance institution or agent shall furnish to such person within 21
business days from the date of receipt of such written request:(1) the specific reason or reasons for the adverse underwriting decision,
in writing, if such information was not initially furnished in writing pursuant
to paragraph (1) of subsection (A);(2) the specific items of personal and privileged information that
support those reasons; provided, however:(a) the insurance institution or agent shall not be required to furnish
specific items of privileged information if it has reasonable suspicion,
based upon specific information available for review by the Director, that
the applicant, policyholder
or individual proposed for coverage has engaged in criminal activity,
fraud, material misrepresentation
or material nondisclosure, and(b) specific items of medical-record information supplied by a medical-care
institution or medical professional shall be disclosed either directly to
the individual about whom the information relates or to a medical professional
designated by the individual and licensed to provide medical care with respect
to the condition to which the information relates, whichever the insurance
institution or agent prefers; and(3) the names and addresses of the institutional sources that supplied
the specific items of information pursuant to paragraph (2) of
subsection (B); provided, however, that the identity of any medical professional
or medical-care institution shall be disclosed either directly to the individual
or to the
designated medical professional, whichever the insurance institution or agent prefers.(C) The obligations imposed by this Section upon an insurance institution
or agent may be satisfied by another insurance institution or agent authorized
to act on its behalf.(D) When an adverse underwriting decision results solely from an oral
request or inquiry, the explanation of reasons and summary of rights required
by subsection (A) may be given orally.
		(Source: P.A. 82-108.) (215 ILCS 5/1012) (from Ch. 73, par. 1065.712)Sec. 1012. 
		Information Concerning Previous Adverse Underwriting Decisions. 
		
No insurance institution, agent or insurance-support organization may seek
information in connection with an insurance transaction concerning:(A) any previous adverse underwriting decision experienced by an individual, or(B) any previous insurance coverage obtained by an individual through
a residual market mechanism,
		unless such inquiry also requests the reasons for any previous adverse underwriting
decision or the reasons why insurance coverage was previously obtained through
a residual market mechanism.
		(Source: P.A. 81-1430.) (215 ILCS 5/1013) (from Ch. 73, par. 1065.713)Sec. 1013. 
		Previous Adverse Underwriting Decisions. 
		No insurance institution
or agent may base an adverse underwriting decision in whole or in part:(A) on the fact of a previous adverse underwriting decision or on
the fact that an individual previously obtained insurance coverage through
a residual market mechanism; provided, however, an insurance institution
or agent may base an adverse underwriting decision on further information
obtained from an
insurance institution or agent responsible for a previous adverse underwriting decision;(B) on personal information received from an insurance-support organization
whose primary source of information is insurance institutions; provided,
however, an insurance institution or agent may base an adverse underwriting
decision on further personal information obtained as the result of information
received from such insurance-support organization. 
		(Source: P.A. 82-108.) (215 ILCS 5/1014) (from Ch. 73, par. 1065.714)Sec. 1014. 
		Disclosure Limitations and Conditions. 
		An insurance institution,
agent or insurance-support organization shall not disclose any personal
or privileged information about an individual collected or received in connection
with an insurance transaction unless the disclosure is:(A) with the written authorization of the individual, provided:(1) if such authorization is submitted by another insurance institution,
agent or insurance-support organization, the
authorization meets the requirements of Section 1007 of this Article, or(2) if such authorization is submitted by a person other
than an insurance
institution, agent or insurance-support organization, the authorization is:(a) dated,(b) signed by the individual, and(c) obtained one year or less prior to the date a disclosure is sought
pursuant to this subsection; or(B) to a person other than an insurance institution, agent or insurance-support
organization, provided such disclosure is reasonably necessary:(1) to enable such person to perform a business, professional or insurance
function for the disclosing insurance institution, agent or insurance-support
organization and such person agrees not to disclose the information further
without the individual's written authorization unless the further disclosure:(a) would otherwise be permitted by this Section if made by an insurance
institution, agent, or insurance-support organization, or(b) is reasonably necessary for such person to perform its function for
the disclosing insurance institution, agent, or insurance-support organization, or(2) to enable such person to provide information to the disclosing insurance
institution, agent, or insurance-support organization for the purpose of:(a) determining an individual's eligibility for an insurance benefit or payment, or(b) detecting or preventing criminal activity, fraud, material misrepresentation
or material nondisclosure in connection with an insurance transaction; or(C) to an insurance institution, agent, insurance-support organization
or self-insurer, provided the information disclosed is limited to that which
is reasonably necessary:(1) to detect or prevent criminal activity, fraud, material misrepresentation
or material nondisclosure in connection with insurance transactions, or(2) for either the disclosing or receiving insurance institution, agent
or insurance-support organization to perform its function in connection
with an insurance transaction involving the individual; or(D) to a medical care institution or medical professional for the purpose of:(1) verifying insurance coverage or benefits,(2) informing an individual of a medical problem of which the individual
may not be aware, or(3) conducting an operations or services audit,
provided only such information
is disclosed as is reasonably necessary to accomplish the foregoing purposes; or(E) to an insurance regulatory authority; or(F) to a law enforcement or other governmental authority:(1) to protect the interests of the insurance  institution, agent or insurance-support
organization in preventing or prosecuting the perpetration of
fraud upon it, or(2) if the insurance institution, agent or insurance-support organization
reasonably believes that illegal activities have been conducted by the individual; or(G) otherwise permitted or required by law; or(H) in response to a facially valid administrative or judicial order,
including a search warrant or subpoena; or(I) made for the purpose of conducting actuarial or
research studies provided:(1) no individual may be identified in any actuarial or research
report,(2) materials allowing the individual to be identified are returned or
destroyed as soon as they are no longer needed, and(3) the actuarial or research organization agrees not to disclose the
information unless the disclosure would otherwise be permitted by this Section
if made by an insurance institution, agent or insurance-support organization; or(J) to a party or a representative of a party to a proposed or consummated
sale, transfer, merger or consolidation of all or part of the business of
the insurance institution, agent or insurance support organization, provided:(1) prior to the consummation of the sale, transfer, merger or consolidation
only such information is disclosed as is reasonably necessary to enable the
recipient to make business decisions about the purchase, transfer, merger
or consolidation, and(2) the recipient agrees not to disclose the information unless the disclosure
would otherwise be permitted by this Section if made by an insurance institution,
agent or insurance-support organization; or(K) to a person whose only use of such information will be in
connection with the marketing of a product or service, provided:(1) no medical-record information, privileged information,
or personal information relating to an individual's character, personal
habits, mode of living or general reputation is disclosed, and no classification
derived from such information is disclosed,(2) the individual has been given an opportunity to indicate
that he or she does not want personal information disclosed for marketing purposes and
has given no indication that he or she does not want the information disclosed, and(3) the person receiving such information agrees not to use
it except in connection with the marketing of a product or service; or(L) to an affiliate whose only use of the information will be in connection
with an audit of the insurance institution or agent or the marketing
of an insurance product or service, provided the affiliate agrees not to
disclose the information for any other purpose or to unaffiliated
persons; or(M) by a consumer reporting agency, provided:
the disclosure is to a person other than an insurance institution or agent; or(N) to a group policyholder for the purpose of reporting claims experience
or conducting an audit of the insurance institution's or agent's operations
or services, provided the information disclosed is reasonably necessary
for the group policyholder to conduct the review or audit; or(O) to a professional peer review organization for the purpose of reviewing
the service or conduct of a medical-care institution or medical professional; or(P) to a governmental authority for the purpose of determining the individual's
eligibility for health benefits for which the governmental authority may be liable; or(Q) to a certificateholder or policyholder for the purpose of providing
information regarding the status of an insurance transaction; or(R) to a lienholder, mortgagee, assignee, lessee, or other person shown
on the records of an insurance institution or agent as having a legal or
beneficial interest in a policy of insurance; provided that information
disclosed is limited to that which is reasonably necessary to permit such
person to protect its interest in such policy.
		(Source: P.A. 82-108.) (215 ILCS 5/1015) (from Ch. 73, par. 1065.715)Sec. 1015. 
		Powers of Director. 
		
(A) The Director shall have power to examine and investigate into the affairs
of every insurance institution or agent doing business in this State to
determine whether the insurance institution or agent has been or is engaged
in any conduct in violation of this Article.(B) The Director shall have the power to examine and investigate into
the affairs of every insurance-support organization acting on behalf of
an insurance institution or agent which either transacts business in this
State or transacts business outside this State that has an effect on a person
residing in this State, in order to determine whether such insurance-support
organization has been or is engaged in any conduct in violation of this Article.
		(Source: P.A. 81-1430.) (215 ILCS 5/1016) (from Ch. 73, par. 1065.716)Sec. 1016. 
		
		Hearings, Witnesses, Appearances, Production of Books and Service
of Process.
(A) Whenever the Director has reason to believe that an insurance institution,
agent or insurance-support organization has been or is engaged in conduct
in this State which violates this Article, or if the Director believes that
an insurance-support organization has been or is engaged in conduct outside
this State which has an effect on a person residing in this State and violates
this Article, the Director shall issue and serve upon such insurance institution,
agent or insurance-support organization a statement of charges and notice
of hearing to be held at a time and place fixed in the notice.  Such hearing
shall be conducted pursuant to Sections 401, 402 and 403 of this Act, and any
applicable rules of the Department.(B) At the time and place fixed for such hearing the insurance institution,
agent or insurance-support organization charged shall have an opportunity
to answer the charges against it and present evidence on its behalf.  Upon
good cause shown, the Director shall permit any adversely affected person
to intervene, appear and be heard at such hearing by counsel or in person.
		(Source: P.A. 81-1430.) (215 ILCS 5/1017) (from Ch. 73, par. 1065.717)Sec. 1017. 
		Service of Process - Insurance-Support Organizations. 
		For
the purpose of this Article, an insurance-support organization transacting
business outside this State which has an effect on a person residing in
this State shall be
deemed to have appointed the Director to accept service of process on its
behalf, provided the Director causes a copy of such service to be mailed
forthwith by registered mail to the insurance-support organization at its
last known principal place of business.  The return postcard receipt for
such mailing shall be sufficient proof that the same was properly mailed
by the Director.
		(Source: P.A. 81-1430.) (215 ILCS 5/1018) (from Ch. 73, par. 1065.718)Sec. 1018. 
		Cease and Desist Orders and Reports. 
		(A) If, after a hearing, the Director determines that the insurance institution,
agent or insurance-support organization charged has engaged in conduct or
practices in violation of this Article, he shall reduce his findings to
writing and shall issue and cause to be served upon such insurance institution,
agent or insurance-support organization a copy of such findings and an order
requiring such insurance institution, agent or insurance-support organization
to cease and desist from the conduct or practices constituting a violation
of this Article.(B) If, after a hearing, the Director determines that the insurance institution,
agent or insurance-support organization charged has not engaged in conduct
or practices in violation of this Article, he shall prepare a written report
which sets forth findings of fact and conclusions of law.  Such report shall
be served upon the insurance institution, agent or insurance-support organization
charged and upon the person or persons, if any, whose rights under this
Article were allegedly violated.
		(Source: P.A. 81-1430.) (215 ILCS 5/1019) (from Ch. 73, par. 1065.719)Sec. 1019. 
		Judicial Review. 
		(1) Any order or decision made, issued or
executed by the Director under this Article whereby any person or company
is aggrieved is subject to review by the Circuit Court of Sangamon County.(2) The Administrative Review Law, as now or hereafter amended, and the
rules adopted pursuant thereto, applies to and governs all proceedings for
review of final administrative decisions of the Director provided for in
this Section.  The term "administrative decision" is defined as in Section
3-101 of the Code of Civil Procedure.
		(Source: P.A. 82-783.) (215 ILCS 5/1020) (from Ch. 73, par. 1065.720)Sec. 1020. 
		Penalties.(A) In any case where a hearing pursuant to Section
1016 results in the finding of a knowing violation of  this Article, the
Director may, in addition to the issuance of a cease and desist order as
prescribed in Section 1018, order payment of a monetary penalty of not more
than $1,000 for each violation but not to exceed $20,000 in the aggregate
for multiple violations.(B) Any person who violates a cease and desist order of the Director under
Section 1018 of this Article may, after notice and hearing and upon order
of the Director, be subject to one or more of the following penalties, at
the discretion of the Director:(1) a monetary fine of not more than $20,000 for each     violation,(2) a monetary fine of not more than $100,000 if the     Director finds that violations have occurred with such frequency as to constitute a general business practice, or(3) suspension or revocation of an insurance     institution's or agent's license.		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/1021) (from Ch. 73, par. 1065.721)Sec. 1021. 
		Individual Remedies. 
		(A) If
any insurance institution, agent or insurance-support organization fails
to comply with Sections 1009, 1010 or 1011 of this Article with respect
to the rights granted under those Sections, any person whose rights are
violated may apply to the circuit court of this State, or any other court
of competent jurisdiction, for appropriate equitable relief.(B) An insurance institution, agent or insurance-support organization
which discloses information in violation of Section 1014 of this Article
shall be liable for damages sustained by the individual about whom the information
relates; provided, however, that no individual shall be  entitled to a monetary
award which exceeds the actual damages sustained by the individual as a
result of a violation of Section 1014 of this Article.(C) In any action brought pursuant to this Section, the court may award
the cost of the action and reasonable attorney's fees to the prevailing party.(D) An action under this Section must be brought within 2 years from the
date the alleged violation is or should have been discovered.(E) Except as specifically provided in this Section, there shall be no
remedy or recovery available to individuals, in law or in equity, for occurrences
constituting a violation of any provision of this Article.
		(Source: P.A. 82-108.) (215 ILCS 5/1022) (from Ch. 73, par. 1065.722)Sec. 1022. 
		Immunity. 
		No cause of action in the nature of defamation,
invasion of privacy or negligence shall arise against any person for disclosing
personal or privileged information in accordance with this Article, nor
shall such a cause of action arise against any person for furnishing personal
or privileged information to an insurance institution, agent or insurance-support
organization; provided, however, this Section shall provide no immunity
for disclosing or furnishing false information with malice or willful intent
to injure any person.
		(Source: P.A. 82-108.) (215 ILCS 5/1023) (from Ch. 73, par. 1065.723)Sec. 1023. 
		Obtaining Information Under False Pretenses. 
		Any person
who knowingly and willfully obtains information about an individual from
an insurance institution, agent or insurance-support organization under
false pretenses shall be guilty of a Class 4 felony.
		(Source: P.A. 81-1430.) (215 ILCS 5/1023.5)Sec. 1023.5. 
		Federal privacy protections.(A) In addition to the requirements of this Article, licensees shall comply
with the privacy protection provisions of Title V of the federal
Gramm-Leach-Bliley Act (Public Law 106-102, 106th Congress).(B) The Director shall have authority to enforce the requirements of the
privacy protection provisions of Title V of the federal Gramm-Leach-Bliley Act,
employing powers granted to him under this Article and this Code.(C) The Director shall make reasonable rules as may be necessary to make
effective the privacy provisions of Title V of the federal Gramm-Leach-Bliley
Act (Public Law 106-102, 106th Congress).(D) For purposes of this Section, "licensee" means all insurers, insurance
producers, and other persons licensed or required to be licensed, authorized or
required to be authorized, registered or required to be registered, or
domiciled, pursuant to this Code or any other insurance law
of this State administered by the Department.  "Licensee" also includes
unauthorized insurers who accept business placed through a licensed surplus
line
producer in this State, but only in regard to the surplus line placements
placed pursuant to Section 445 of this Code.  However, this Section does not
apply to "service contract providers" as defined by the Service Contract Act.
		(Source: P.A. 92-556, eff. 6-24-02.) (215 ILCS 5/1024) (from Ch. 73, par. 1065.724)Sec. 1024. 
		This Article takes effect on July 1, 1981. 
		The rights granted
under Sections 1009, 1010 and 1014 of this Article shall take effect on July 1, 1981,
regardless of the date of the collection or receipt of the information which
is the subject of such Sections.
		(Source: P.A. 81-1430.)
(215 ILCS 5/Art. XLI heading) ARTICLE XLI.  
		RISK RETENTION ARRANGEMENTS FOR
BANKING ASSOCIATIONS (215 ILCS 5/1101) (from Ch. 73, par. 1065.801)Sec. 1101. 
		Scope of Article. 
		This Article applies only to trusts
sponsored by domestic banking associations and organized under this
Article to provide casualty insurance authorized under Section 5 of the
Illinois Banking Act, as now or hereafter amended, for
association member banks.
		(Source: P.A. 84-1431.) (215 ILCS 5/1102) (from Ch. 73, par. 1065.802)Sec. 1102. 
		Definitions. 
		As used in this Article, the following terms
have the following meanings:(1) "Banking association" means any Illinois corporation, whether
for-profit or not-for-profit, which functions as a professional or trade
association of dues-paying member commercial banks.  For purposes of this
Article, "banking association" does not include any corporation which
directly or indirectly (a) accepts deposits which the depositor has a right
to withdraw on demand by check or negotiable order, or (b) engages in the
business of making loans, or both.(2) "Trust sponsor" means a banking association which has created a risk
retention trust under this Article.(3) "Pool retention fund" means a separate fund maintained for
payment of first dollar claims, up to a specific amount per claim
("specific retention") and up to an aggregate amount for a 12-month period
("aggregate retention").(4) "Contingency reserve fund" means a separate fund maintained for
payment of claims in excess of the pool retention fund amount.(5) "Coverage grant" means the document describing specific
coverages and terms of coverage which are provided by a risk retention trust
created under this Article.(6) "Licensed service company" means an entity licensed under Section
464a of the Illinois Insurance Code to perform claims adjusting, loss
control and data processing.
		(Source: P.A. 84-1431.) (215 ILCS 5/1103) (from Ch. 73, par. 1065.803)Sec. 1103. 
		Name. 
		The corporate name of any trust organized under this
Article shall not be the same as or deceptively similar to the name of any
domestic insurance company or of any foreign or alien insurance company
authorized to transact business in this State.
		(Source: P.A. 84-1431.) (215 ILCS 5/1104) (from Ch. 73, par. 1065.804)Sec. 1104. 
		Principal Office and Place of Business. 
		The principal
office of any trust organized under this Article shall be located in this State.
		(Source: P.A. 84-1431.) (215 ILCS 5/1105) (from Ch. 73, par. 1065.805)Sec. 1105. 
		Risk Retention Trust. 
		(1) Any banking association which has
been in existence for a period of not less than 2 years may create a risk
retention trust for the pooling of risks in order to provide
casualty coverage authorized under Section 5 of the Illinois Banking Act,
as now or hereafter amended, for its member banks.  Such trust
shall be administered by at least 3 trustees who are appointed by the trust
sponsor and who represent association member banks which have agreed in
writing to participate in the trust.(2) The trustees shall appoint a qualified administrator who shall
administer the affairs of the risk retention trust.(3) The trustees shall retain a licensed service company to perform
claims adjusting, loss control and data processing.(4) The trust sponsor, the trustees and the trust administrator shall be
fiduciaries of the trust.(5) Any trust created under this Article shall be consummated by a
written trust agreement and shall be subject to the laws of this State
governing the creation and operation of trusts, to the extent not
inconsistent with this Article.
		(Source: P.A. 84-1431.) (215 ILCS 5/1106) (from Ch. 73, par. 1065.806)Sec. 1106. 
		Trust - Participation. 
		(1) A banking association and its member banks
may participate in any trust created under this Article if it:(a) Meets the underwriting standards for acceptance into the trust;(b) Files a written application for coverage, agreeing to meet
all of the membership conditions of the trust;(c) Is a member of the association sponsoring the trust;(d) Agrees to meet the ongoing loss control provisions and risk pooling
arrangements set forth by the
trustees;(e) Pays its premium contribution on a timely basis as required; and(f) Pays its predetermined annual required contribution into the
contingency reserve fund.(2) Any bank accepted for trust membership and participating in the
trust under this Article shall be liable for payment to the trust
of the amount of its annual premium contribution and its annual
predetermined contingency reserve fund contribution.
		(Source: P.A. 84-1431.) (215 ILCS 5/1107) (from Ch. 73, par. 1065.807)Sec. 1107. 
		Trust - Coverage Grants - Payment of Claims. 
		(1) No risk
retention trust created under this Article may issue coverage grants until
it has procured 100 bonafide applications for coverage with the first
premium contribution in cash for each kind of coverage which the trust
undertakes to write, and has a contingency reserve fund of at least
$2,500,000.  Every trust subject to this Article must have, and at all times
maintain a pool retention fund at least equal to its unpaid liabilities and
an unimpaired minimum contingency reserve fund of $1,500,000.
The contingency reserve fund requirements shall be deemed satisfied if
the required contribution into such fund by any participating member bank
is obtained by a certificate of deposit redeemable by the trust in an
amount not greater than the amount insured by the Federal Deposit Insurance Corporation.(2) Every coverage grant issued or delivered in this State by any trust
subject to this Article shall provide for the liability of trust
members to the extent that funds are needed to pay a member's share of the
depleted contingency reserve fund needed to maintain the reserves required
by this Section.(3) The Director may after notice and hearing suspend or revoke the
license of any trust that
fails to maintain the minimum reserves required by this Section.(4) All claims shall first be paid from the pool retention fund.
 If that fund becomes depleted, any additional claims shall be paid from
the contingency reserve fund.(5) On the basis of an annual independent certified audit,
the Director may require the risk retention trust to purchase insurance in amounts
required to provide additional protection to member banks in excess of the
contingency reserve fund.
		(Source: P.A. 84-1431.) (215 ILCS 5/1108) (from Ch. 73, par. 1065.808)Sec. 1108. 
		Trust; filing requirements; records.(1) Any risk
retention trust
created under this Article shall file with the Director:(a) A statement of intent to provide named coverages.(b) The trust agreement between the trust sponsor and     the trustees, detailing the organization and administration of the trust and fiduciary responsibilities.(c) Signed risk pooling agreements from each trust     member describing their intent to participate in the trust and maintain the contingency reserve fund.(d) By April 1 of each year a financial statement for     the preceding calendar year ending December 31, and a list of all beneficiaries during the year.  The financial statement and report shall be in such form as the Director of Insurance may prescribe.  The truth and accuracy of the financial statement shall be attested to by each trustee.  Each Risk Retention Trust shall file with the Director by June 1 an opinion of an independent certified public accountant on the financial condition of the Risk Retention Trust for the most recent calendar year and the results of its operations, changes in financial position and changes in capital and surplus for the year then ended in conformity with accounting practices permitted or prescribed by the Illinois Department of Insurance.(e) The name of a bank or trust company with whom the     trust will enter into an escrow agreement which shall state that the contingency reserve fund will be maintained at the levels prescribed in this Article.(f) Copies of coverage grants it will issue.(2) The Director of Insurance shall charge, collect and give proper
acquittances for the payment of the following fees and charges:(a) For filing trust instruments, amendments thereto     and financial statement and report of the trustees, $50.(b) For copies of papers or records per page, $2.(c) For certificate to copy of paper, $10.(d) For filing an application for the licensing of a     risk retention trust, $1,000.(3) The trust shall keep its books and records in accordance with the
provisions of Section 133 of this Code.  The Director may examine such
books and records from time to time as provided in Sections 132
 through 132.7 of this Code
and may charge the expense of such examination to the trust as provided in
subsection (3) of Section 408 of this Code.(4) Trust funds established under this Section and all persons
interest therein or dealing therewith shall be subject to the provisions of
Sections 133, 144.1, 149, 401, 401.1, 402, 403, 403A, 412, and all of the
provisions of Articles VII, VIII, XII 1/2 and XIII of the Code, as amended.
Except as otherwise provided in this Section, trust funds established
under and which fully comply with this Section, shall not be subjected to
any other provision of the Code.(5) The Director of Insurance may make reasonable rules and regulations
pertaining to the standards of coverage and administration of the trust
authorized by this Section.  Such rules may include but need not be limited
to reasonable standards
for fiduciary duties of the trustees, standards for the investment of
funds, limitation of risks assumed, minimum size, capital, surplus,
reserves, and contingency reserves.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/1109) (from Ch. 73, par. 1065.809)Sec. 1109. 
		Illinois Insurance Guaranty Fund - Inapplicability. 
		The
provisions of Article XXXIV of this Code shall not apply to any risk
retention trust created under this Article.
		(Source: P.A. 84-1431.)
(215 ILCS 5/Art. XLII heading) ARTICLE XLII. 
INSURANCE COST CONTAINMENT (215 ILCS 5/1200) (from Ch. 73, par. 1065.900)Sec. 1200. 
		
		This Article shall be known and may be cited as the
"Illinois Insurance Cost Containment Act".
		(Source: P.A. 84-1431.) (215 ILCS 5/1201) (from Ch. 73, par. 1065.901)Sec. 1201. 
		Purpose of Article. 
		The purpose of this Article is to
promote the public welfare by studying the relationship of insurance
premium and related income as compared to insurance costs and expenses. The
General Assembly finds and declares that stabilizing the cost of insurance
is a vital concern to the people of this State.It is the legislative intent, pursuant to this declared public concern, to
develop measures which will stabilize prices while continuing to provide
quality insurance products to all sectors of the citizenry.  It is the
express intent of this Article to permit and encourage competition between
companies on a sound financial basis to the fullest extent possible and to
establish a mechanism to ensure the provision of adequate insurance at
reasonable rates to the citizens of this State.The General Assembly finds that while the gathering of insurance
cost data has been attempted on a voluntary basis in the past, the lack
of a uniform system for the collection and analysis of data and the lack
of full participation by insurers has led to inadequate and unusable data.
In order to remedy this problem, the General Assembly find it necessary to
create a mandated uniform system in Illinois for the collection, analysis
and distribution of insurance cost data.
		(Source: P.A. 84-1431.) (215 ILCS 5/1202) (from Ch. 73, par. 1065.902)Sec. 1202. Duties. The Director shall:(a) determine the relationship of insurance premiums     and related income as compared to insurance costs and expenses and provide such information to the General Assembly and the general public;(b) study the insurance system in the State of     Illinois, and recommend to the General Assembly what it deems to be the most appropriate and comprehensive cost containment system for the State;(c) respond to the requests by agencies of government     and the General Assembly for special studies and analysis of data collected pursuant to this Article. Such reports shall be made available in a form prescribed by the Director. The Director may also determine a fee to be charged to the requesting agency to cover the direct and indirect costs for producing such a report, and shall permit affected insurers the right to review the accuracy of the report before it is released. The fees shall be deposited into the Technology Management Revolving Fund and credited to the account of the Department of Insurance;(d) make an interim report to the General Assembly no     later than August 15, 1987, and an annual report to the General Assembly no later than July 1 every year thereafter which shall include the Director's findings and recommendations regarding its duties as provided under subsections (a), (b), and (c) of this Section.(Source: P.A. 99-642, eff. 7-28-16; 100-23, eff. 7-6-17.) (215 ILCS 5/1203) (from Ch. 73, par. 1065.903)Sec. 1203. 
		Powers and Additional Duties. 
		(a) The Director
may enter into any agreement with any corporation,
association or other entity he or she deems appropriate to undertake the process
described in this Article for the compilation and analysis of data
collected by the Department and may conduct or contract for studies on
insurance-related questions carried out in pursuance of the purposes of
this Article.  The agreement may provide for the corporation, association or
entity to prepare and distribute or make available data to insurers,
government and the general public.(b) The Director shall require, and the designated corporation,
association or entity shall prepare, semi-annual basic reports in the
aggregate on insurance cost trends in Illinois.   The Director shall provide
these reports to the General Assembly, and upon request, to the public.(c) Prior to the release or dissemination of these reports, the Director
or the designated corporation, association or entity, shall permit insurers
the opportunity to verify the accuracy of any information pertaining to the
insurer.  The insurer may submit to the Director any corrections or errors
in the compilation of the data together with any supporting evidence and
documents the insurer may provide.
		(Source: P.A. 84-1431.) (215 ILCS 5/1204) (from Ch. 73, par. 1065.904)(Text of Section WITH the changes made by P.A. 94-677, which has been held
unconstitutional)Sec. 1204. (A) The Secretary shall promulgate rules and regulations
which shall require each insurer licensed to write property or casualty
insurance in the State and each syndicate doing business on the Illinois
Insurance Exchange to record and report its loss and expense experience
and other data as may be necessary to assess the relationship of
insurance premiums and related income as compared to insurance costs and
expenses.  The Secretary may designate one or more rate service
organizations or advisory organizations to gather and compile such
experience and data.  The Secretary shall require each insurer licensed to
write property or casualty insurance in this State and each syndicate doing
business on the Illinois Insurance Exchange to submit a report, on
a form furnished by the Secretary, showing its direct writings in this
State and companywide.(B) Such report required by subsection (A) of this Section may include,
but not be limited to, the following specific types of insurance written by
such insurer:(1) Political subdivision liability insurance     reported separately in the following categories:(a) municipalities;(b) school districts;(c) other political subdivisions;(2) Public official liability insurance;(3) Dram shop liability insurance;(4) Day care center liability insurance;(5) Labor, fraternal or religious organizations     liability insurance;(6) Errors and omissions liability insurance;(7) Officers and directors liability insurance     reported separately as follows:(a) non-profit entities;(b) for-profit entities;(8) Products liability insurance;(9) Medical malpractice insurance;(10) Attorney malpractice insurance;(11) Architects and engineers malpractice insurance;     and(12) Motor vehicle insurance reported separately for     commercial and private passenger vehicles as follows:(a) motor vehicle physical damage insurance;(b) motor vehicle liability insurance.(C) Such report may include, but need not be limited to the following data,
both
specific to this State and companywide, in the aggregate or by type of
insurance for the previous year on a calendar year basis:(1) Direct premiums written;(2) Direct premiums earned;(3) Number of policies;(4) Net investment income, using appropriate     estimates where necessary;(5) Losses paid;(6) Losses incurred;(7) Loss reserves:(a) Losses unpaid on reported claims;(b) Losses unpaid on incurred but not reported         claims;(8) Number of claims:(a) Paid claims;(b) Arising claims;(9) Loss adjustment expenses:(a) Allocated loss adjustment expenses;(b) Unallocated loss adjustment expenses;(10) Net underwriting gain or loss;(11) Net operation gain or loss, including net     investment income;(12) Any other information requested by the Secretary.(C-3) Additional information by an advisory organization as defined in Section 463 of this Code.(1) An advisory organization as defined in Section     463 of this Code shall report annually the following information  in such format as may be prescribed by the Secretary:(a) paid and incurred losses for each of the past         10 years;(b) medical payments and medical charges, if         collected, for each of the past 10 years;(c) the following indemnity payment information:         cumulative payments by accident year by calendar year of development.  This array will show payments made and frequency of claims in the following categories: medical only, permanent partial disability (PPD), permanent total disability (PTD), temporary total disability (TTD), and fatalities;(d) injuries by frequency and severity;(e) by class of employee.(2) The report filed with  the Secretary of Financial     and Professional Regulation under paragraph (1) of this subsection (C-3) shall be made available, on an aggregate basis, to the General Assembly and to the general public.  The identity of the petitioner, the respondent, the attorneys, and the insurers shall not be disclosed.(3) Reports required under this subsection (C-3)      shall be filed with the Secretary no later than September 1 in  2006 and no later than September 1 of each year thereafter.(C-5) Additional information required from medical malpractice insurers.(1) In addition to the other requirements of this     Section, the following information shall be included in the report required by subsection (A) of this Section in such form and under such terms and conditions as may be prescribed by the Secretary:(a) paid and incurred losses by county for each         of the past 10 policy years;(b) earned exposures by ISO code, policy type,         and policy year by county for each of the past 10 years; and(c) the following actuarial information:(i) Base class and territory equivalent             exposures by report year by relative accident year.(ii) Cumulative loss array by accident year             by calendar year of development. This array will show frequency of claims in the following categories: open, closed with indemnity (CWI), closed with expense (CWE), and closed no pay (CNP); paid severity in the following categories: indemnity and allocated loss adjustment expenses (ALAE) on closed claims;  and indemnity and expense reserves on pending claims.(iii) Cumulative loss array by report year by             calendar year of development. This array will show frequency of claims in the following categories: open, closed with indemnity (CWI), closed with expense (CWE), and closed no pay (CNP); paid severity in the following  categories: indemnity and allocated loss adjustment expenses (ALAE) on closed claims; and indemnity and expense reserves on pending claims.(iv) Maturity year and tail factors.(v) Any expense, contingency ddr (death,             disability, and retirement), commission, tax, and/or off-balance factors.(2) The following information must also be annually     provided to the Department:(a) copies of the company's reserve and surplus         studies; and(b) consulting actuarial report and data         supporting the company's rate filing.(3) All information collected by the Secretary under     paragraphs (1) and (2)  shall be made available, on a company-by-company  basis, to the General Assembly and the general public. This provision shall supersede any other provision of State law that may otherwise protect such information from public disclosure as confidential.(D) In addition to the information which may be requested under
subsection (C), the Secretary may also request on a companywide, aggregate
basis, Federal Income Tax recoverable, net realized capital gain or loss,
net unrealized capital gain or loss, and all other expenses not requested
in subsection (C) above.(E) Violations - Suspensions - Revocations.(1) Any company or person subject to this Article,     who willfully or repeatedly fails to observe or who otherwise violates any of the provisions of this Article or any rule or regulation promulgated by the Secretary under authority of this Article or any final order of the Secretary entered under the authority of this Article shall by civil penalty forfeit to the State of Illinois a sum not to exceed $2,000. Each day during which a violation occurs constitutes a separate offense.(2) No forfeiture liability under paragraph (1) of     this subsection may attach unless a written notice of apparent liability has been issued by the Secretary and received by the respondent, or the Secretary sends written notice of apparent liability by registered or certified mail, return receipt requested, to the last known address of the respondent. Any respondent so notified must be granted an opportunity to request a hearing within 10 days from receipt of notice, or to show in writing, why he should not be held liable. A notice issued under this Section must set forth the date, facts and nature of the act or omission with which the respondent is charged and must specifically identify the particular provision of this Article, rule, regulation or order of which a violation is charged.(3) No forfeiture liability under paragraph (1) of     this subsection may attach for any violation occurring more than 2 years prior to the date of issuance of the notice of apparent liability and in no event may the total civil penalty forfeiture imposed for the acts or omissions set forth in any one notice of apparent liability exceed $100,000.(4) All administrative hearings conducted pursuant to     this Article are subject to 50 Ill. Adm. Code 2402 and all administrative hearings are subject to the Administrative Review Law.(5) The civil penalty forfeitures provided for in     this Section are payable to the General Revenue Fund of the State of Illinois, and may be recovered in a civil suit in the name of the State of Illinois brought in the Circuit Court in Sangamon County or in the Circuit Court of the county where the respondent is domiciled or has its principal operating office.(6) In any case where the Secretary issues a notice     of apparent liability looking toward the imposition of a civil penalty forfeiture under this Section that fact may not be used in any other proceeding before the Secretary to the prejudice of the respondent to whom the notice was issued, unless (a) the civil penalty forfeiture has been paid, or (b) a court has ordered payment of the civil penalty forfeiture and that order has become final.(7) When any person or company has a license or     certificate of authority under this Code and knowingly fails or refuses to comply with a lawful order of the Secretary requiring compliance with this Article, entered after notice and hearing, within the period of time specified in the order, the Secretary may, in addition to any other penalty or authority provided, revoke or refuse to renew the license or certificate of authority of such person or company, or may suspend the license or certificate of authority of such person or company until compliance with such order has been obtained.(8) When any person or company has a license or     certificate of authority under this Code and knowingly fails or refuses to comply with any provisions of  this Article, the Secretary may, after notice and hearing, in addition to any other penalty provided, revoke or refuse to renew the license or certificate of authority of such person or company, or may suspend the license or certificate of authority of such person or company, until compliance with such provision of this Article has been obtained.(9) No suspension or revocation under this Section     may become effective until 5 days from the date that the notice of suspension or revocation has been personally delivered or delivered by registered or certified mail to the company or person. A suspension or revocation under this Section is stayed upon the filing, by the company or person, of a petition for judicial review under the Administrative Review Law.
					(Source: P.A. 94-277, eff. 7-20-05; 94-677, eff. 8-25-05; 95-331, eff. 8-21-07.)(Text of Section WITHOUT the changes made by P.A. 94-677, which has been held
unconstitutional)Sec. 1204. (A) The Director shall promulgate rules and regulations
which shall require each insurer licensed to write property or casualty
insurance in the State and each syndicate doing business on the Illinois
Insurance Exchange to record and report its loss and expense experience
and other data as may be necessary to assess the relationship of
insurance premiums and related income as compared to insurance costs and
expenses.  The Director may designate one or more rate service
organizations or advisory organizations to gather and compile such
experience and data.  The Director shall require each insurer licensed to
write property or casualty insurance in this State and each syndicate doing
business on the Illinois Insurance Exchange to submit a report, on
a form furnished by the Director, showing its direct writings in this
State and companywide.(B) Such report required by subsection (A) of this Section may include,
but not be limited to, the following specific types of insurance written by
such insurer:(1) Political subdivision liability insurance     reported separately in the following categories:(a) municipalities;(b) school districts;(c) other political subdivisions;(2) Public official liability insurance;(3) Dram shop liability insurance;(4) Day care center liability insurance;(5) Labor, fraternal or religious organizations     liability insurance;(6) Errors and omissions liability insurance;(7) Officers and directors liability insurance     reported separately as follows:(a) non-profit entities;(b) for-profit entities;(8) Products liability insurance;(9) Medical malpractice insurance;(10) Attorney malpractice insurance;(11) Architects and engineers malpractice insurance;     and(12) Motor vehicle insurance reported separately for     commercial and private passenger vehicles as follows:(a) motor vehicle physical damage insurance;(b) motor vehicle liability insurance.(C) Such report may include, but need not be limited to the following data,
both
specific to this State and companywide, in the aggregate or by type of
insurance for the previous year on a calendar year basis:(1) Direct premiums written;(2) Direct premiums earned;(3) Number of policies;(4) Net investment income, using appropriate     estimates where necessary;(5) Losses paid;(6) Losses incurred;(7) Loss reserves:(a) Losses unpaid on reported claims;(b) Losses unpaid on incurred but not reported         claims;(8) Number of claims:(a) Paid claims;(b) Arising claims;(9) Loss adjustment expenses:(a) Allocated loss adjustment expenses;(b) Unallocated loss adjustment expenses;(10) Net underwriting gain or loss;(11) Net operation gain or loss, including net     investment income;(12) Any other information requested by the Director.(C-3) Additional information by an advisory organization as defined in Section 463 of this Code.(1) An advisory organization as defined in Section     463 of this Code shall report annually the following information  in such format as may be prescribed by the Secretary:(a) paid and incurred losses for each of the past         10 years;(b) medical payments and medical charges, if         collected, for each of the past 10 years;(c) the following indemnity payment information:         cumulative payments by accident year by calendar year of development.  This array will show payments made and frequency of claims in the following categories: medical only, permanent partial disability (PPD), permanent total disability (PTD), temporary total disability (TTD), and fatalities;(d) injuries by frequency and severity;(e) by class of employee.(2) The report filed with  the Secretary of Financial     and Professional Regulation under paragraph (1) of this subsection (C-3) shall be made available, on an aggregate basis, to the General Assembly and to the general public.  The identity of the petitioner, the respondent, the attorneys, and the insurers shall not be disclosed.(3) Reports required under this subsection (C-3)     shall be filed with the Secretary no later than September 1 in  2006 and no later than September 1 of each year thereafter.(D) In addition to the information which may be requested under
subsection (C), the Director may also request on a companywide, aggregate
basis, Federal Income Tax recoverable, net realized capital gain or loss,
net unrealized capital gain or loss, and all other expenses not requested
in subsection (C) above.(E) Violations - Suspensions - Revocations.(1) Any company or person subject to this Article,     who willfully or repeatedly fails to observe or who otherwise violates any of the provisions of this Article or any rule or regulation promulgated by the Director under authority of this Article or any final order of the Director entered under the authority of this Article shall by civil penalty forfeit to the State of Illinois a sum not to exceed $2,000. Each day during which a violation occurs constitutes a separate offense.(2) No forfeiture liability under paragraph (1) of     this subsection may attach unless a written notice of apparent liability has been issued by the Director and received by the respondent, or the Director sends written notice of apparent liability by registered or certified mail, return receipt requested, to the last known address of the respondent. Any respondent so notified must be granted an opportunity to request a hearing within 10 days from receipt of notice, or to show in writing, why he should not be held liable. A notice issued under this Section must set forth the date, facts and nature of the act or omission with which the respondent is charged and must specifically identify the particular provision of this Article, rule, regulation or order of which a violation is charged.(3) No forfeiture liability under paragraph (1) of     this subsection may attach for any violation occurring more than 2 years prior to the date of issuance of the notice of apparent liability and in no event may the total civil penalty forfeiture imposed for the acts or omissions set forth in any one notice of apparent liability exceed $100,000.(4) All administrative hearings conducted pursuant to     this Article are subject to 50 Ill. Adm. Code 2402 and all administrative hearings are subject to the Administrative Review Law.(5) The civil penalty forfeitures provided for in     this Section are payable to the General Revenue Fund of the State of Illinois, and may be recovered in a civil suit in the name of the State of Illinois brought in the Circuit Court in Sangamon County or in the Circuit Court of the county where the respondent is domiciled or has its principal operating office.(6) In any case where the Director issues a notice of     apparent liability looking toward the imposition of a civil penalty forfeiture under this Section that fact may not be used in any other proceeding before the Director to the prejudice of the respondent to whom the notice was issued, unless (a) the civil penalty forfeiture has been paid, or (b) a court has ordered payment of the civil penalty forfeiture and that order has become final.(7) When any person or company has a license or     certificate of authority under this Code and knowingly fails or refuses to comply with a lawful order of the Director requiring compliance with this Article, entered after notice and hearing, within the period of time specified in the order, the Director may, in addition to any other penalty or authority provided, revoke or refuse to renew the license or certificate of authority of such person or company, or may suspend the license or certificate of authority of such person or company until compliance with such order has been obtained.(8) When any person or company has a license or     certificate of authority under this Code and knowingly fails or refuses to comply with any provisions of  this Article, the Director may, after notice and hearing, in addition to any other penalty provided, revoke or refuse to renew the license or certificate of authority of such person or company, or may suspend the license or certificate of authority of such person or company, until compliance with such provision of this Article has been obtained.(9) No suspension or revocation under this Section     may become effective until 5 days from the date that the notice of suspension or revocation has been personally delivered or delivered by registered or certified mail to the company or person. A suspension or revocation under this Section is stayed upon the filing, by the company or person, of a petition for judicial review under the Administrative Review Law.					(Source: P.A. 94-277, eff. 7-20-05; 95-331, eff. 8-21-07.) (215 ILCS 5/1205) (from Ch. 73, par. 1065.905)Sec. 1205. 
		Employees and Professional Consultants. 
		The Department may
employ and fix the compensation of such employees, and may enter into
contractual agreements with technical and professional consultants as it
deems necessary to expedite the purposes of this Article.
		(Source: P.A. 84-1431.) (215 ILCS 5/1206) (from Ch. 73, par. 1065.906)Sec. 1206. Expenses. The companies required to file reports under this
Article shall pay a reasonable fee established by the Director sufficient
to cover the total cost of the Department incident to or associated
with the administration and enforcement of this Article, including the
collection, analysis and distribution of the insurance cost data, the
conversion of hard copy reports to tape, and the compilation and
analysis of basic reports.
The Director may establish a schedule of fees for this purpose.
Expenses for additional reports shall be billed
to those requesting the reports. Any such fees collected under this Section
shall be paid to the Director of Insurance and deposited into the Technology Management
 Revolving Fund and credited to the account of the
Department of Insurance.
(Source: P.A. 100-23, eff. 7-6-17.)
(215 ILCS 5/Art. XLIII heading) ARTICLE XLIII. 
Mortgage Insurance Consolidation (215 ILCS 5/1300) (from Ch. 73, par. 1065.1000)Sec. 1300. 
		Title. 
		This Article may be cited as the Mortgage Insurance
Consolidation Law.
		(Source: P.A. 86-378.) (215 ILCS 5/1301) (from Ch. 73, par. 1065.1001)Sec. 1301. 
		Purpose. 
		The purpose of this Article is to protect the
interests of Illinois insureds by:(1) establishing minimum standards and procedures for the effectuation
of mortgage insurance consolidations;(2) establishing disclosure requirements specific to mortgage insurance
consolidations and requiring insurers to make such disclosures on a timely
basis;(3) clarifying the applicability of the unfair rate discrimination
provisions of this Code to consolidations involved in loan transfers so as
to prevent premium increases for consumers resulting from mandatory premium
recalculation;(4) requiring that group mortgage life insurance certificates
contain minimum standard provisions including conversion rights; and(5) preventing the arbitrary termination of mortgage insurance coverage
in connection with consolidations.
		(Source: P.A. 86-378.) (215 ILCS 5/1302) (from Ch. 73, par. 1065.1002)Sec. 1302. 
		Scope. 
		(a) This Article applies:(1) To all insurance companies authorized to transact the business of
insurance in this State of the kind or kinds of business described in Class
1(a) and (b) and Class 2(a) of Section 4 of this Code except for the kind
or kinds of business described in Article IX 1/2 of this Code.(2) To all mortgage insurance coverage offered, issued, or issued
for delivery in this State, by mail or otherwise,
in connection with consolidations regardless of whether the financial
institution involved is located in or outside Illinois.(3) To all consolidations whether the old coverage is provided under an
individual or group policy.(b) Except as otherwise specifically provided, it is not intended that
this Article conflict with or supersede any other provisions of this Code,
or any rules promulgated by the Department of Insurance implementing any
such provisions.
		(Source: P.A. 86-378.) (215 ILCS 5/1303) (from Ch. 73, par. 1065.1003)Sec. 1303. Definitions. The following definitions shall apply to
this Article:"Consolidation" means any transaction in which a financial institution
makes its premium collection services available to its mortgage debtors in
connection with a particular insurer's ("new insurer") offer of mortgage
insurance, which offer is made to debtors who, immediately prior to the
offer, had mortgage insurance with another insurer ("old insurer") and were
paying premiums for that insurance with their monthly mortgage payments."Financial institution" or "servicer" means any entity or organization
that services mortgage loans by collecting and accounting for monthly mortgage
insurance premiums as part of the debtor's monthly mortgage payment for one
or more insurers."Insured" means the individual loan customer or certificate holder."Loan transfer" means a transaction in which the servicing of a block of
mortgage loans is transferred from one servicer to another servicer.
This shall include, but not be limited to, mergers or acquisitions."Loan transfer consolidation" means a consolidation in which coverage is
limited to insureds whose mortgage loans have been sold or transferred in
the secondary market from one servicer to another."Group-to-group consolidation" means a consolidation in which coverages
under both the old plan and the new plan is provided under group policies."Mortgage insurance" means mortgage life insurance (term or ordinary),
mortgage disability insurance, mortgage accidental death insurance, or any
combination thereof, including both individual and group policies, and
any certificates issued thereunder, on credit transactions of more than 10
years duration and written in connection with a credit transaction that is
secured by a first mortgage or deed of trust and made to finance the
purchase of real property or the construction of a dwelling thereon or to
refinance a prior credit transaction made for such a purpose."New coverage" or "new plan" means the mortgage insurance coverage or
plan for which a financial institution collects premium beginning on the
effective date of a consolidation."New insurer" means any insurer who offers mortgage insurance coverage to
borrowers of the financial institution who can no longer remit monthly
premiums for the old insurer along with their monthly mortgage payment."Old coverage" or "old plan" means the mortgage insurance coverage or
plan for which a financial institution collects premiums immediately prior
to a consolidation."Old insurer" means any insurer for whom a financial institution will no
longer make its premium collection facilities available for all or some
of the insurer's policyholders or certificate holders.
(Source: P.A. 100-201, eff. 8-18-17.) (215 ILCS 5/1304) (from Ch. 73, par. 1065.1004)Sec. 1304. 
		General requirements. 
		Except as provided in Section 1305, no
insurer shall participate in any consolidation unless, in addition to all
other requirements provided by law, it complies with the following:(1) The new insurer must calculate premiums for the new coverage on the
basis of its own rates, the prospective insured's then attained age, if
applicable, and the amount of insurance offered.(2) Notice of the new premium shall be mailed, together with the offer
of new coverage, to the prospective insured at least 30 days prior to the
effective date of the new coverage.(3) The new coverage shall be put into effect only after the new insurer
receives an application which has been signed by the prospective insured.(4) Whenever the existing coverage is provided under individual
policies, the new insurer shall comply with the requirements of Part 917 of
Title 50 of the Illinois Administrative Code, promulgated by the Department of Insurance.(5) All riders which are a part of the existing insurance shall be
offered without proof of insurability to all policyholders (or certificate
holders) obtained by consolidation, including, but not limited to, waiver
of premium and accidental death insurance.(6) Prospective insureds shall be given the option to name the
beneficiary of their choice by the new insurer, if the previous beneficiary
is other than a financial institution.(7) Regulations including, but not limited to, those promulgated by the
Department of Insurance implementing Sections 143, 149, 151, 236, 237, 421,
424 and 507.1 of this Code concerning misrepresentations to any
policyholder for the purpose of inducing or tending to induce such
policyholder to lapse, forfeit or surrender his insurance, unfair or
deceptive practices, complaints, solicitation and replacement of life
insurance, compensation, and rebating shall be complied with.
		(Source: P.A. 86-378.) (215 ILCS 5/1305) (from Ch. 73, par. 1065.1005)Sec. 1305. 
		Loan transfer consolidations. 
		In a consolidation conducted
as a result of a loan transfer, the offer of new coverage may be based on
the same premium the insured was paying for his old coverage only if, in
addition to all other requirements provided by law, the following conditions
are met:(1) Both the old and the new coverage must be provided under a group policy.(2) An offer of new coverage must be made as soon as reasonably possible
after the loan transfer.  If an offer of new coverage is not made within 30
days after the loan transfer, or at least 30 days prior to the proposed
effective date of the new coverage, the insurer shall notify the debtor,
in writing, that he has the right to an unconditional refund of all
premiums paid for the new coverage as long as he exercises that right, in
writing, within 30 days from the date of the notification.(3) The new coverage offered to the prospective insured must be the same
as the old coverage, including all supplemental benefits provided under the
old plan.  If the coverage offered is not the same, then all the
requirements of Section 1304 shall apply.(4) In addition to the requirements of Section 1307, the certificate
shall contain the following notice, printed in bold type on page one of
the certificate:
		IMPORTANT NOTICEThis certificate is issued to you in connection with a mortgage insurance
consolidation.  It is the intention of the Company to provide you group
coverage which is equal to or better than the group coverage you had
before.  To the extent the benefits provided or the provisions of your
prior certificate of insurance are more liberal than those under this
certificate, the provisions of your prior certificate will control.
Therefore, you should keep your old certificate along with this certificate
for comparison purposes.(5) The information contained in the notice prescribed by paragraph (4)
shall also be disclosed in writing (separate from the certificate of
insurance) to each prospective insured at the time the offer of new
coverage is made.(6) Only the group coverage written in connection with the loans which are
the subject of the loan transfer may be consolidated pursuant to this Section.(7) Payment of the required premium shall constitute acceptance of the
new coverage if:(A) such acceptance mechanism is clearly explained to the debtor; and(B) All other disclosure requirements of this Article are met.(8) Regulations including, but not limited to, those promulgated by the
Department of Insurance implementing Sections 143, 149, 151, 236, 237, 421,
424 and 507.1 of this Code concerning misrepresentations to any
policyholder for the purpose of inducing or tending to induce such
policyholder to lapse, forfeit or surrender his insurance, unfair or
deceptive practices, complaints, solicitation and replacement of life
insurance, compensation and rebating shall be complied
with.(9) If an insurer charges debtor insureds the same premium for the new
coverage that they were paying for the old coverage, and, as a result,
debtor insureds of a financial institution are charged different premium
rates for the same coverage, such rate differences shall not constitute
unfair discrimination under Sections 236 and 364 of this Code provided all
the other applicable requirements of this Code are met.
		(Source: P.A. 86-378.) (215 ILCS 5/1306) (from Ch. 73, par. 1065.1006)Sec. 1306. 
		Out-of-state consolidations. 
		If Illinois residents whose
loans are serviced outside Illinois are involved in a group-to-group
consolidation by an out-of-state servicer, Section 1305 may be employed if
the Illinois residents are an incidental part of the consolidation.
Otherwise the provisions of this Article shall apply to any consolidation
insofar as it involves Illinois residents.  For purposes of this provision
"incidental" shall mean that the Illinois residents comprise less than 25%
or 100 lives of the total lives involved in the consolidation, whichever
is less.
		(Source: P.A. 86-378.) (215 ILCS 5/1307) (from Ch. 73, par. 1065.1007)Sec. 1307. 
		Group certificates. 
		No insurer may participate in a
group-to-group consolidation or a loan transfer consolidation unless in
addition to all other requirements provided by law, it complies with
the following:(1) A group certificate must be delivered to each debtor insured under
the new plan, which certificate shall include the following information:(A) the name or names of the single or joint insureds;(B) identification of the insured mortgage;(C) the amount of insurance under the new plan;(D) the premium for the new coverage;(E) the effective date of the new coverage;(F) the beneficiary for the new coverage.(2) The new coverage offered to the prospective insured must be the same
coverage as the old coverage, including all supplemental benefits, or the
same type of coverage as the old coverage, whichever is otherwise required
by this Article.(3) A group certificate evidencing the new coverage may not include a
contestability clause or, in the case of mortgage life insurance, a
provision excluding suicide.
		(Source: P.A. 86-378.) (215 ILCS 5/1308) (from Ch. 73, par. 1065.1008)Sec. 1308. 
		Conversion privilege. 
		Notwithstanding the provisions of
Section 231.1(H) of this Code, all group mortgage life insurance policies
and any certificates issued thereunder shall include a conversion privilege
permitting a debtor insured to convert, without evidence of insurability,
to an individual policy of decreasing term insurance within 30 days of the
date the debtor insured's group coverage is terminated for any reason other
than the nonpayment of premiums.  The initial amount of coverage under the
individual policy shall be an amount equal to the amount of coverage
terminated under the group policy and shall decrease over a term that
corresponds with the scheduled term of the insured debtor's mortgage loan.
The premium for the individual policy shall be the same
premium the debtor insured was paying under the group policy.
		(Source: P.A. 86-378.) (215 ILCS 5/1309) (from Ch. 73, par. 1065.1009)Sec. 1309. 
		Required disclosures. 
		(a) In conjunction with the offer of new
coverage involving any consolidation, the new insurer shall disclose in
writing to each insured under the old plan or plans at least 30 days prior
to the effective date of the new coverage the following:(1) Identification of the insured mortgage.(2) The name of the insured or insureds.(3) Name of the owner of the individual policy or master policy (if
group insurance) under both the new and old plans, if known.(4) The premium for the new and old coverage.(5) Amount of coverage for both the new and old plans.  If the amount of
coverage for the old plan is not known, a statement that the amount may be
scheduled and it may be less than or greater than the amount of the loan
and the insured should check the policy schedule for an exact amount of
coverage.(6) Effective dates of the old coverage if the contestable or suicide
period have not expired as of the effective date of the new coverage.  If
the new insurer waives the contestable and suicide period, then the
effective date of the old coverage does not need to be disclosed.(7) Name of the beneficiary under the old plan, if known.(8) A statement as to whether the old plan was an individual or group
plan and a statement as to whether the new plan is an individual or a
group plan.(9) A statement that neither the old plan or new plan is required.(10) A statement that the prospective insured may have the right to
continue or convert his old coverage by paying premiums directly to the old
insurer, and what the prospective insured must do to keep the old coverage
in effect including, but not limited to, the name and address of the
company involved, the policy number or other information which reasonably
identifies the insured's plan of coverage, the amount of the premium and
where it is to be sent.(11) A statement that the mortgage payment will be reduced by the amount
of the old plan premium if the new plan is not accepted.(12) Name and home office address of the new and old insurer, as well as
the address and phone number for the customer services office for Illinois
insureds.(13) The effective date of the new coverage.(14) Whether premium rates under the new plan are guaranteed.(15) Material differences, if any between the new plan and the old plan.(b) Any insurer which fails to provide the written notice required by
subsection (a) at least 30 days prior to the effective date of the new
coverage shall notify the debtor, in writing, that he has the right to an
unconditional refund of all premiums paid for the new coverage as long as
he exercises that right, in writing, within 30 days from that notification.
		(Source: P.A. 86-378.) (215 ILCS 5/1310) (from Ch. 73, par. 1065.1010)Sec. 1310. 
		Compensation. 
		No sponsorship fees, or other special fees
designed to induce their participation, shall be paid to a financial
institution in connection with any mortgage consolidation, and any
compensation paid to either the financial institution or any of its
representatives shall be only in accordance with Section 151 and all other
applicable provisions of this Code.
		(Source: P.A. 86-378.) (215 ILCS 5/1311) (from Ch. 73, par. 1065.1011)Sec. 1311. 
		
		No group policy or group certificate of mortgage insurance
used in connection with a consolidation, nor any application, endorsement
or rider which becomes a part of any such group policy or certificate, may
be issued or delivered in this State until a copy of the form has been
filed with and approved by the Director.
		(Source: P.A. 86-378.) (215 ILCS 5/1312) (from Ch. 73, par. 1065.1012)Sec. 1312. 
		
		The Director is authorized to adopt such rules governing
mortgage insurance consolidations as he deems necessary to implement or
enforce this Article.
		(Source: P.A. 86-378.)
(215 ILCS 5/Art. XLIV heading) Article XLIV.  
		FINANCIAL INSTITUTIONS
INSURANCE SALES LAW (215 ILCS 5/1400)Sec. 1400. 
		Title. 
		This Article may be cited as the Financial Institutions
Insurance Sales Law.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1401)Sec. 1401. 
		Purpose. 
		The purpose of this Article is to increase the
availability of insurance products to the citizens of this State by expanding
those businesses authorized to sell insurance products to include financial
institutions, and to protect the interests of the citizens of this State by
regulating their authority to do so.  This Article does not apply to activities
or services conducted in this State by or for a financial institution that do
not require
licensure as an insurance producer, temporary
insurance producer, limited insurance representative, or registered firm.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1402)Sec. 1402. 
		Definitions. 
		For the purposes of this Article:"Financial institution" means:(1) a State bank, a national bank, or an out-of-state     bank, as those terms are defined in the Illinois Banking Act, or any subsidiary of a State bank, a national bank, or an out-of-state bank;(2) a foreign banking corporation, as that term is     defined in the Foreign Banking Office Act, or any subsidiary of a foreign banking corporation;(3) a corporate fiduciary, as that term is defined in     the Corporate Fiduciary Act;(4) a savings bank organized under the Savings Bank     Act, an out-of-state savings bank chartered under the laws of a state other than Illinois, a territory of the United States, or the District of Columbia, or a federal savings bank organized under federal law, or any subsidiary of a savings bank, an out-of-state savings bank or a federal savings bank;(5) an association or federal association, as those     terms are defined in the Illinois Savings and Loan Act of 1985, or any subsidiary of an association or federal association;(6) an out-of-state savings and loan association     chartered under the laws of a state other than Illinois, a territory of the United States or the District of Columbia, or a federal savings and loan association organized under federal law whose principal business office is located outside of Illinois, or any subsidiary of an out-of-state savings and loan association or federal savings and loan association whose principal business office is located outside of Illinois; or(7) a credit union as defined in the Illinois Credit     Union Act, or any subsidiary of a credit union.To the extent that any entity other than a financial institution conducts
insurance activities in this State on behalf of or on the premises of the
financial
institution, such entity shall be subject to this Article for the purposes of
those activities."Insurance" means all lines of insurance defined and regulated as insurance
under this Code, but for the purposes of this Article, "insurance" shall not
include the following lines of insurance, provided that this paragraph shall
not be deemed to preclude or otherwise limit regulation of the following lines
of insurance pursuant to and to the extent otherwise provided by any other
insurance law of this State:(1) credit life, credit accident and health, credit     involuntary unemployment, credit casualty and credit property insurance;(2) extended service contracts and warranty     agreements;(3) insurance obtained by the debtor to provide     payment for the difference between the remaining balance on a loan or other extension of credit and the amount of insurance coverage on the collateral securing the loan or other extension of credit;(4) insurance placed by a financial institution on     collateral used in connection with a loan or other extension of credit when a debtor breaches the contractual obligation to provide that insurance;(5) title insurance regulated by the Title Insurance     Act; and(6) private mortgage insurance and financial     guarantee insurance.		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1403)Sec. 1403. Licensure requirements for financial institutions.(a)  A financial institution transacting insurance business in this State
shall register with the Director pursuant to the Illinois Insurance Code and
shall be subject to the laws, rules, and penalties of the Illinois Insurance
Code.(b) The solicitation and sale of insurance by a financial institution
shall be conducted only by individuals who have been issued and maintain an
insurance producer's license pursuant to the Illinois Insurance Code and shall
be subject to the laws, rules, and penalties of the Illinois Insurance Code.(c)  For the purposes of this Section, a "financial institution" means the
subsidiary of a financial institution when the financial institution is
transacting insurance business in this State only through the subsidiary.  For
the purposes of Section 499.1 of the Illinois Insurance Code, a financial
institution shall be deemed to be a corporation.(d) Nothing in Section 500-100 of this Code shall be construed to require a limited lines producer license or any other form or class of producer's license for financial institutions, or their employees, if the financial institution has purchased or sponsored a group credit life, credit accident and health, credit casualty, credit property, or other group credit insurance policy or program under which the financial institution enrolls or performs other administrative services, or both, to enable individuals to purchase insurance coverage under the group credit insurance policy sold by a licensed producer in compliance with Section 155.56.  A financial institution that performs enrollment or other administrative services, or both, with respect to its group credit insurance policies or programs shall be deemed to be in compliance with paragraph (2) of subsection (b) of Section 500-20 of this Code. (Source: P.A. 100-349, eff. 8-25-17.) (215 ILCS 5/1404)Sec. 1404. 
		Subsidiaries or divisions. 
		A financial institution shall not
qualify for registration as a registered firm under Section 499.1 of
this Code unless: (1) it establishes a separate subsidiary that
acts as the registered firm or (2) it is otherwise permitted by law to sell
insurance directly through the financial institution, and it establishes a
separate division within the financial institution to conduct the business of
the registered firm.  The subsidiary or division acting as a registered firm
shall maintain records for insurance transactions that are
separate and distinct from the records of the financial institution.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1405)Sec. 1405. 
		Extensions of credit. 
		A financial institution shall not delay
or impede the completion of a loan transaction or other transactions involving
the extension of credit for the purpose of influencing a customer's selection
of any insurance product.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1406)Sec. 1406. 
		Insurance and financial institution products.(a) No financial institution may offer banking products or services, or fix
or vary the consideration of the offer, on a condition or requirement that the
customer obtain insurance from the financial institution or any affiliate of
the financial institution.(b) A financial institution that offers banking products or services in
conformity with the provisions of Section 106 of the Bank Holding Company Act
Amendments of 1970 (12 U.S.C.  1972) shall be deemed to be in compliance with
the provisions of subsection (a) of this Section.(c) No financial institution shall require that a customer or prospective
customer of the financial institution purchase an insurance product from any
particular registered firm or insurance producer as a condition for the lending
of money or extension of credit, the establishment or maintenance of a
checking, savings, or other deposit account, or the establishment or
maintenance
of a trust account.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1407)Sec. 1407. 
		Rebating and discounting.(a) No financial institution may offer a rebate on
an insurance product in violation of Section 151 of this
Code.(b) No financial institution may offer a discount on a loan or extension of
credit for the purpose of inducing the customer to purchase insurance required
in connection with the loan or extension of credit.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1408)Sec. 1408. 
		Discrimination prohibited. 
		No financial institution may:(1) require as a condition of providing any product or service or renewal of
any contract for providing a product or service to any customer, that the
customer acquire, finance, or negotiate any policy or contract of insurance
through a particular insurer, insurance producer, or registered firm;(2) in connection with a loan or extension of credit that requires a borrower
to obtain insurance, reject an insurance policy solely because the policy has
been issued or underwritten by any person who is not associated with the
financial institution;(3) impose any discriminatory requirement on any insurance producer who is
not associated with the financial institution that is not imposed on any
insurance producer who is associated with the financial institution; or(4) if the financial institution is a registered firm, require any debtor,
insurer, or insurance producer to pay a separate charge in connection with the
handling of insurance
that is required under a contract, unless: (i) the financial institution is the
registered firm
providing the insurance, (ii) if the financial institution is not the
registered
firm providing the insurance, the charge would be uniformly applied if the
financial institution was the registered firm providing the insurance, or (iii)
the charge is otherwise permitted by this Code or other
applicable State or federal law.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1409)Sec. 1409. 
		Disclosure. 
		A financial institution shall clearly and
conspicuously disclose in any written advertisement or promotional or
informational material regarding an insurance product that the insurance
offered, recommended, sponsored, or sold:(1) is not a deposit;(2) is not insured by the Federal Deposit Insurance Corporation, or in the
case of a credit union, by the National Credit Union Share Insurance Fund;(3) is not guaranteed by the financial institution or an affiliated insured
depository institution; and(4) where appropriate, involves investment risk, including potential loss of
principal.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1410)Sec. 1410. 
		Misleading advertising. 
		No financial institution or registered
firm may employ any advertisement that would mislead or otherwise cause a
reasonable person to believe mistakenly that the State of Illinois or the
federal government is responsible for the insurance sales activities of the
financial institution or stands behind the financial institution's credit, or
that the financial institution, the State of Illinois, or the federal
government guarantees any returns on insurance products or is a source of
payment of any insurance obligation of or sold by the financial institution.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1411)Sec. 1411. 
		Commissions and compensation. 
		No financial institution shall
pay, directly or indirectly, any commission, service fee, brokerage, or other
valuable consideration to any person for services as an insurance producer,
temporary insurance producer, or limited insurance representative, or for such
services by the person's members, officers, directors or employees, unless the
person, and any member, officer, director, or employee performing the service,
held a valid license regarding the class of insurance as to which the service
was rendered, or unless the person was a properly registered firm at the time
the service was performed.  No person, other than a person properly licensed
or registered in accordance with Article XXXI of this Code at
the time the person performs services as an insurance producer, temporary
insurance producer, or limited insurance representative, shall accept any
commission, service fee, brokerage, or other valuable consideration for such
services.  This Section shall not prevent payment or receipt of:(1) renewal or other deferred commissions to or by any person entitled
thereto under this Section;(2) fees to or by a financial institution or any other person for services
that do not require licensure as an insurance producer, temporary insurance
producer, limited insurance representative,
or registered firm; or(3) consideration paid to a financial institution by a registered firm,
insurance producer, insurance company, or any other person pursuant to any
lease
agreement.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1412)Sec. 1412. 
		Solicitations to loan applicants.(a) A financial institution that
requires a customer to obtain insurance in connection with a loan or extension
of credit and that offers that insurance either directly or through an
affiliate shall clearly disclose to the customer in writing at the time of
written application or at closing if no written application is obtained
in a form substantially similar to the following:"You may obtain insurance required in connection with     your loan or extension of credit from any insurance agent, broker, or firm that sells such insurance.  Your choice of insurance provider will not affect our credit decision or your credit terms.".(b) This Section shall not apply when a financial institution is contacting
a customer in the course of direct or mass marketing to a group of persons in a
manner that bears no relation to the customer's loan application or credit
decision.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1413)Sec. 1413. 
		
		Separate physical location and sales force when insurance is
solicited or sold in connection with a loan.(a)  An employee of a financial institution may not solicit or sell
insurance at the same  desk where a loan transaction is conducted when the
insurance is solicited or sold in connection with the same loan.(b) A loan officer of a financial institution
who is involved in the application, solicitation, or closing of a loan
transaction may not solicit or sell insurance in connection with the same loan,
but such loan officer may refer the loan customer to another insurance producer
who is not involved in the application, solicitation, or closing of the same
loan transaction.(c) Subsections (a) and (b) of this Section shall not apply to a financial
institution, other than a credit union, or a branch location of a financial
institution, other than a credit union, that has less than
$100,000,000 in deposits.(d) Subsections (a) and (b) of this Section shall not apply to a credit
union or a branch location of a credit union that has less than $30,000,000 in
deposits.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1414)Sec. 1414. 
		Signage. 
		Signs concerning the availability of insurance
products offered by the financial institution or by any registered firm shall
be
clearly displayed in the same area where applications for loans or other
extensions of
credit are being taken or closed and shall include the disclosure set forth in
subsection (a) of Section 1412.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1415)Sec. 1415. 
		Confidential customer information.(a) A financial institution that is a registered firm may not release a
customer's insurance information to any person other than an officer, director,
employee, agent, or affiliate of the financial institution without the written
consent of the customer.  For the purposes of this Section, "insurance
information" means information concerning the premiums, terms and conditions
of
insurance coverage, insurance claims, and the insurance history of a customer
contained in the financial institution's records.(b) Subsection (a) of this Section shall not apply to:(1) names, addresses, and telephone numbers derived     in any manner from the financial institution's records, or(2) the release of insurance information as otherwise     authorized by State or federal law.(c) A financial institution shall not require premium information when
requiring evidence of insurance in connection with a loan or extension of
credit and shall not use such premium information for the purpose of soliciting
insurance without the written consent of the customer.(d) A financial institution may not use health information obtained from a
customer's insurance records for any purpose other than for its activities as a
registered firm pursuant to this Code.
		(Source: P.A. 90-41, eff. 10-1-97.) (215 ILCS 5/1416)Sec. 1416. 
		Prohibited defenses. 
		A violation of any provision of this Article shall not be used as a
defense by any person in any action by a financial institution to recover the
amount owing on any loan or extension of credit.
		(Source: P.A. 90-41, eff. 10-1-97.)
(215 ILCS 5/Art. XLV heading) 
ARTICLE XLV. PUBLIC ADJUSTERS
(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1501)Sec. 1501. Short title. This Article may be cited as the Public Adjusters Law.
(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1505)Sec. 1505. Purpose and scope. This Article governs the qualifications and procedures for the licensing of public adjusters. It specifies the duties of and restrictions on public adjusters, which include limiting their licensure to assisting insureds in first party claims.
(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1510)Sec. 1510. Definitions. In this Article:"Adjusting a claim for loss or damage covered by an insurance contract" means negotiating values, damages, or depreciation or applying the loss circumstances to insurance policy provisions."Business entity" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity."Department" means the Department of Insurance."Director" means the Director of Insurance."Fingerprints" means an impression of the lines on the finger taken for the purpose of identification. The impression may be electronic or in ink converted to electronic format."Home state" means the District of Columbia and any state or territory of the United States where the public adjuster's principal place of residence or principal place of business is located. If neither the state in which the public adjuster maintains the principal place of residence nor the state in which the public adjuster maintains the principal place of business has a substantially similar law governing public adjusters, the public adjuster may declare another state in which it becomes licensed and acts as a public adjuster to be the home state."Individual" means a natural person."Person" means an individual or a business entity."Public adjuster" means any person who, for compensation or any other thing of value on behalf of the insured:(i) acts or aids, solely in relation to first party     claims arising under insurance contracts that insure the real or personal property of the insured, on behalf of an insured in adjusting a claim for loss or damage covered by an insurance contract;(ii) advertises for employment as a public adjuster     of insurance claims or solicits business or represents himself or herself to the public as a public adjuster of first party insurance claims for losses or damages arising out of policies of insurance that insure real or personal property; or(iii) directly or indirectly solicits business,     investigates or adjusts losses, or advises an insured about first party claims for losses or damages arising out of policies of insurance that insure real or personal property for another person engaged in the business of adjusting losses or damages covered by an insurance policy for the insured."Uniform individual application" means the current version of the National Association of Directors (NAIC) Uniform Individual Application for resident and nonresident individuals."Uniform business entity application" means the current version of the National Association of Insurance Commissioners (NAIC) Uniform Business Entity Application for resident and nonresident business entities."Webinar" means an online educational presentation during which a live and participating instructor and participating viewers, whose attendance is periodically verified throughout the presentation, actively engage in discussion and in the submission and answering of questions. (Source: P.A. 102-135, eff. 7-23-21.) (215 ILCS 5/1515)Sec. 1515. License required.(a) A person shall not act, advertise, solicit, or hold himself out as a public adjuster or to be in the business of adjusting insurance claims in this State, nor attempt to obtain a contract for public adjusting services, unless the person is licensed as a public adjuster in accordance with this Article.(b) A person licensed as a public adjuster shall not misrepresent to a claimant that he or she is an adjuster representing an insurer in any capacity, including acting as an employee of the insurer or acting as an independent adjuster unless so appointed by an insurer in writing to act on the insurer's behalf for that specific claim or purpose. A licensed public adjuster is prohibited from charging that specific claimant a fee when appointed by the insurer and the appointment is accepted by the public adjuster.(c) A business entity acting as a public adjuster is required to obtain a public adjuster license. Application shall be made using the Uniform Business Entity Application. Before approving the application, the Director shall find that:(1) the business entity has paid the required  fees     to be registered as a business entity in this State; and(2) all officers, shareholders, and persons with     ownership interests in the business entity are licensed public adjusters responsible for the business entity's compliance with the insurance laws, rules, and regulations of this State.(d) Notwithstanding subsections (a) through (c) of this Section, a license as a public adjuster shall not be required of the following:(1)  an attorney admitted to practice in this State,     when acting in his or her professional capacity as an attorney;(2) a person who negotiates or settles claims arising     under a life or health insurance policy or an annuity contract;(3) a person employed only for the purpose of     obtaining facts surrounding a loss or furnishing technical assistance to a licensed public adjuster, including photographers, estimators, private investigators, engineers, and handwriting experts;(4) a licensed health care provider, or employee of a     licensed health care provider, who prepares or files a health claim form on behalf of a patient; or(5) a person who settles subrogation claims between     insurers.(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1520)Sec. 1520. Application for license.(a) A person applying for a public adjuster license shall make application to the Director on the appropriate uniform application or other application prescribed by the Director.(b) The applicant shall declare under penalty of perjury and under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the applicant's knowledge and belief.(c) In order to make a determination of license eligibility, the Director is authorized to require all applicants for licensing, including renewal applicants, to undergo a fingerprint-based criminal history record check for the first year following the effective date of this amendatory Act of the 97th General Assembly.  The fingerprints and the fee required to perform the criminal history record checks shall be submitted to the Illinois State Police and the Federal Bureau of Investigation (FBI) to conduct a State and national criminal history record check. The Illinois State Police and the Federal Bureau of Investigation shall furnish to the Department of Insurance all records of convictions, unless or until expunged, pursuant to the fingerprint-based criminal history records check. The Illinois State Police shall charge a fee for conducting such checks, which fee shall be deposited into the State Police Services Fund and shall not exceed the cost of the inquiry. The applicant shall be required to pay all fees associated with conducting the criminal history record check.(d) The Director may adopt rules to establish procedures necessary to carry out the requirements of subsection (c) of this Section.(e) The Director is authorized to submit electronic fingerprint records and necessary identifying information to the NAIC, its affiliates, or subsidiaries for permanent retention in a centralized repository. The purpose of such a centralized repository is to provide Directors with access to fingerprint records in order to perform criminal history record checks.(f) Until such time as the Director can obtain and receive national criminal history records, the applicant shall obtain a copy of his or her fingerprints and complete criminal history record from the FBI Criminal Justice Information Services Division and the Illinois State Police and provide such information to the Department of Insurance. 
(Source: P.A. 102-538, eff. 8-20-21.) (215 ILCS 5/1525)Sec. 1525. Resident license.(a) Before issuing a public adjuster license to an applicant under this Section, the Director shall find that the applicant:(1) is eligible to designate this State as his or her     home state or is a nonresident who is not eligible for a license under Section 1540;(2) is sufficiently rehabilitated in cases in which     the applicant has committed any act that is a ground for denial, suspension, or revocation of a license as set forth in Section 1555, other than convictions set forth in paragraph (6) of subsection (a) of Section 1555; with respect to applicants with convictions set forth in paragraph (6) of subsection (a) of Section 1555, the Director shall determine in accordance with Section 1550 that the conviction will not impair the ability of the applicant to engage in the position for which a license is sought;(3) is trustworthy, reliable, competent, and of good     reputation, evidence of which may be determined by the Director;(4) is financially responsible to exercise the     license and has provided proof of financial responsibility as required in Section 1560 of this Article; and(5) maintains an office in the home state of     residence with public access by reasonable appointment or regular business hours. This includes a designated office within a home state of residence.(b) In addition to satisfying the requirements of subsection (a) of this Section, an individual shall:(1) be at least 18 years of age;(2) have successfully passed the public adjuster     examination;(3) designate a licensed individual public adjuster     responsible for the business entity's compliance with the insurance laws, rules, and regulations of this State; and(4) designate only licensed individual public     adjusters to exercise the business entity's license.(c) The Director may require any documents reasonably necessary to verify the information contained in the application.
(Source: P.A. 100-286, eff. 1-1-18.) (215 ILCS  5/1530)Sec. 1530. Examination.(a) An individual applying for a public adjuster license under this Article must pass a written examination unless he or she is exempt pursuant to Section 1535 of this Article. The examination shall test the knowledge of the individual concerning the duties and responsibilities of a public adjuster and the insurance laws and regulations of this State. Examinations required by this Section shall be developed and conducted under rules and regulations prescribed by the Director.(b) The Director may make arrangements, including contracting with an outside testing service, for administering examinations and collecting the nonrefundable fee. Each individual applying for an examination shall remit a nonrefundable fee as prescribed by the Director.  An individual who fails to appear for the examination as scheduled or fails to pass the examination shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination. An individual who fails to pass the examination on his or her first attempt must wait 7 days prior to rescheduling an examination. An individual who fails to pass the examination on his or her second or subsequent attempt must wait 30 days prior to rescheduling an examination.
(Source: P.A. 99-266, eff. 1-1-16.) (215 ILCS 5/1535)Sec. 1535. Exemptions from examination.(a) An individual who applies for a public adjuster license in this State who was previously licensed as a public adjuster in another state based on a public adjuster examination shall not be required to complete any examination. This exemption is only available if (i) the person is currently licensed in that state or if the application is received within 12 months of the cancellation of the applicant's previous license; and (ii) if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state's producer database records or records maintained by the NAIC, its affiliates, or subsidiaries, indicate that the public adjuster is or was licensed in good standing.(b) A person licensed as a public adjuster in another state based on a public adjuster examination who moves to this State shall submit an application within 90 days of establishing legal residence to become a resident licensee pursuant to Section 1525 of this Article. No prelicensing examination shall be required of that person to obtain a public adjuster license.(c) An individual who applies for a public adjuster license in this State who was previously licensed as a public adjuster in this State shall not be required to complete any prelicensing examination. This exemption is only available if the application is received within 12 months of the cancellation of the applicant's previous license in this State and if, at the time of cancellation, the applicant was in good standing in this State.
(Source: P.A. 96-1332, eff. 1-1-11; 97-207, eff. 7-28-11.) (215 ILCS 5/1540)Sec. 1540. Nonresident license reciprocity.(a) Unless denied licensure pursuant to Section 1555 of this Article, a nonresident person shall receive a nonresident public adjuster license if:(1) the person is currently licensed as a resident     public adjuster and in good standing in his or her home state;(2) the person has submitted the proper request for     licensure and has provided proof of financial responsibility as required in Section 1560 of this Article;(3) the person has submitted or transmitted to the     Director the appropriate completed application for licensure; and(4) the person's home state awards nonresident public     adjuster licenses to residents of this State on the same basis.(b) The Director may verify the public adjuster's licensing status through the producer database maintained by the NAIC, its affiliates, or subsidiaries.(c) As a condition to continuation of a public adjuster license issued under this Section, the licensee shall maintain a resident public adjuster license in his or her home state. The nonresident public adjuster license issued under this Section shall terminate and be surrendered immediately to the Director if the home state public adjuster license terminates for any reason, unless the public adjuster has been issued a license as a resident public adjuster in his or her new home state. Notification to the state or states where the nonresident license is issued must be made as soon as possible, yet no later than 30 days of change in new state resident license. The licensee shall include his or her new and old address on the notification. A new state resident license is required for nonresident licenses to remain valid. The new state resident license must have reciprocity with the licensing nonresident state or states for the nonresident license not to terminate.
(Source: P.A. 96-1332, eff. 1-1-11; 97-813, eff. 7-13-12.) (215 ILCS 5/1545)Sec. 1545. License.(a) Unless denied licensure under this Article, persons who have met the requirements of this Article shall be issued a public adjuster license.(b) A public adjuster license shall remain in effect unless revoked, terminated, or suspended as long as the  requirements for license renewal are met by the due date.(c) The licensee shall inform the Director by any means acceptable to the Director of a change of address, change of legal name, or change of information submitted on the application within 30 days of the change.(d) A licensed public adjuster shall be subject to  Article XXVI of this Code.(e) A public adjuster who allows his or her license to lapse may, within 12 months from the due date of the renewal, be issued a new public adjuster license without necessity of passing a written examination. However, a penalty in the amount of double the unpaid renewal fee shall be required for the issue of the new public adjuster license.(f) A licensed public adjuster that is unable to comply with license renewal procedures due to military service or a long-term medical disability may request a waiver of the procedures in subsection (e) of this Section. The public adjuster may also request a waiver of any examination requirement, fine, or other sanction imposed for failure to comply with renewal procedures.(g) The license shall contain the licensee's name, city and state of business address, personal identification number, the date of issuance, the expiration date, and any other information the Director deems necessary.(h) In order to assist in the performance of the Director's duties, the Director may contract with non-governmental entities, including the NAIC or any affiliates or subsidiaries that the NAIC oversees, to perform any ministerial functions, including the collection of fees and data, related to licensing that the Director may deem appropriate.
(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1550)Sec. 1550. Applicant convictions.(a) The Director and the Department shall not require applicants to report the following information and shall not collect or consider the following criminal history records in connection with a public adjuster license application:(1) Juvenile adjudications of delinquent minors as     defined in Section 5-105 of the Juvenile Court Act of 1987, subject to the restrictions set forth in Section 5-130 of that Act.(2) Law enforcement records, court records, and     conviction records of an individual who was 17 years old at the time of the offense and before January 1, 2014, unless the nature of the offense required the individual to be tried as an adult.(3) Records of arrest not followed by a formal charge     or conviction.(4) Records of arrest where charges were dismissed     unless related to the duties and responsibilities of a public adjuster.  However, applicants shall not be asked to report any arrests, and any arrest not followed by a conviction shall not be the basis of a denial and may be used only to assess an applicant's rehabilitation.(5) Convictions overturned by a higher court.(6) Convictions or arrests that have been sealed or     expunged.(b) The Director, upon a finding that an applicant for a license under this Act was previously convicted of a felony or misdemeanor involving dishonesty or fraud, shall consider any mitigating factors and evidence of rehabilitation contained in the applicant's record, including any of the following factors and evidence, to determine if  a license may be denied because the prior conviction will impair the ability of the applicant to engage in the position for which a license is sought:(1) the bearing, if any, of the offense    for which     the applicant was previously convicted on the duties, functions, and responsibilities of the position for which a license is sought;(2) whether the conviction suggests a future     propensity to endanger the safety and property of others while performing the duties and responsibilities for which a license is sought;(3) if the applicant was previously licensed or     employed in this State or other states or jurisdictions, then the lack of prior misconduct arising from or related to the licensed position or position of employment;(4) whether 5 years since a felony conviction or 3     years since release from confinement for the conviction, whichever is later, have passed without a subsequent conviction;(5) successful completion of sentence and, for     applicants serving a term of parole or probation, a progress report provided by the applicant's probation or parole officer that documents the applicant's compliance with conditions of supervision;(6) evidence of the applicant's present fitness and     professional character;(7) evidence of rehabilitation or rehabilitative     effort during or after incarceration or during or after a term of supervision, including, but not limited to, a certificate of good conduct under Section 5-5.5-25 of the Unified Code of Corrections or certificate of relief from disabilities under Section 5-5.5-10 of the Unified Code of Corrections; and(8) any other mitigating factors that contribute to     the person's potential and current ability to perform the  duties and responsibilities of a public adjuster.(c) If a nonresident licensee meets the standards set forth in items (1) through (4) of subsection (a) of Section 1540 and has received consent pursuant to 18 U.S.C. 1033(e)(2) from his or her home state, the Director shall grant the nonresident licensee a license.(d) If the Director refuses to issue a license to an applicant based on a conviction or convictions, in whole or in part, then the Director shall notify the applicant of the denial in writing with the following included in the notice of denial:(1) a statement about the decision to refuse to issue     a license;(2) a list of convictions that the Director     determined will impair the applicant's ability to engage in the position for which a license is sought;(3) a list of the convictions that were the sole or     partial basis for the refusal to issue a license; and(4) a summary of the appeal process or the earliest     the applicant may reapply for a license, whichever is applicable.(Source: P.A. 100-286, eff. 1-1-18.) (215 ILCS 5/1555)Sec. 1555. License denial, nonrenewal, or revocation.(a) The Director may place on probation, suspend, revoke, deny, or refuse to issue or renew a public adjuster's license or may levy a civil penalty or any combination of actions, for any one or more of the following causes:(1) providing incorrect, misleading, incomplete, or     materially untrue information in the license application;(2) violating any insurance laws, or violating any     regulation, subpoena, or order of the Director or of another state's Director;(3) obtaining or attempting to obtain a license     through misrepresentation or fraud;(4) improperly withholding, misappropriating, or     converting any monies or properties received in the course of doing insurance business;(5) intentionally misrepresenting the terms of an     actual or proposed insurance contract or application for insurance;(6) having been convicted of a felony or misdemeanor     involving dishonesty or fraud, unless the individual demonstrates to the Director sufficient rehabilitation to warrant the public trust; consideration of such  conviction of an applicant shall be in accordance with Section 1550;(7) having admitted or been found to have committed     any insurance unfair trade practice or insurance fraud;(8) using fraudulent, coercive, or dishonest     practices; or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this State or elsewhere;(9) having an insurance license or public adjuster     license or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory;(10) forging another's name to an application for     insurance or to any document related to an insurance transaction;(11) cheating, including improperly using notes or     any other reference material, to complete an examination for an insurance license or public adjuster license;(12) knowingly accepting insurance business from  or     transacting business with an individual who is not licensed but who is required to be licensed by the Director;(13) failing to comply with an administrative or     court order imposing a child support obligation;(14) failing to pay State income tax or comply with     any administrative or court order directing payment of State income tax;(15) failing to comply with or having violated any of     the standards set forth in Section 1590 of this Law; or(16) failing to maintain the records required by     Section 1585 of this Law.(b) If the action by the Director is to nonrenew, suspend, or revoke a license or to deny an application for a license, the Director shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reason for the suspension, revocation, denial, or nonrenewal of the applicant's or licensee's license. The applicant or licensee may make written demand upon the Director within 30 days after the date of mailing for a hearing before the Director to determine the reasonableness of the Director's action. The hearing must be held within not fewer than 20 days nor more than 30 days after the mailing of the notice of hearing and shall be held pursuant to 50 Ill. Adm. Code 2402.(c) The license of a business entity may be suspended, revoked, or refused if the Director finds, after hearing, that an individual licensee's violation was known or should have been known by one or more of the partners, officers, or managers acting on behalf of the business entity and the violation was neither reported to the Director, nor corrective action taken.(d) In addition to or in lieu of any applicable denial, suspension or revocation of a license, a person may, after hearing, be subject to a civil penalty. In addition to or instead of any applicable denial, suspension, or revocation of a license, a person may, after hearing, be subject to a civil penalty of up to $10,000 for each cause for denial, suspension, or revocation, however, the civil penalty may total no more than $100,000.(e) The Director shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by this Article against any person who is under investigation for or charged with a violation of this Article even if the person's license or registration has been surrendered or has lapsed by operation of law.(f) Any individual whose public adjuster's license is revoked or whose application is denied pursuant to this Section shall be ineligible to apply for a public adjuster's license for 5 years. A suspension pursuant to this Section may be for any period of time up to 5 years. 
(Source: P.A. 100-286, eff. 1-1-18.) (215 ILCS 5/1560)Sec. 1560. Bond or letter of credit.(a) Prior to the issuance of a license as a public adjuster and for the duration of the license, the applicant shall secure evidence of financial responsibility in a format prescribed by the Director through  a surety bond or irrevocable letter of credit, subject to all of the following requirements:(1) A surety bond executed and issued by an insurer     authorized to issue surety bonds in this State, which bond:(A) shall be in the minimum amount of $20,000;(B) shall be in favor of this State and shall         specifically authorize recovery by the Director on behalf of any person in this State who sustained damages as the result of erroneous acts, failure to act, conviction of fraud, or conviction of unfair practices in his or her capacity as a public adjuster; and(C) shall not be terminated unless at least 30         days' prior written notice will have been filed with the Director and given to the licensee; and(2) An irrevocable letter of credit issued by a     qualified financial institution, which letter of credit:(A) shall be in the minimum amount of $20,000;(B) shall be to an account to the Director and         subject to lawful levy of execution on behalf of any person to whom the public adjuster has been found to be legally liable as the result of erroneous acts, failure to act, fraudulent acts, or unfair practices in his or her capacity as a public adjuster; and(C) shall not be terminated unless at least 30         days' prior written notice will have been filed with the and given to the licensee.(b) The issuer of the evidence of financial responsibility shall notify the Director upon termination of the bond or letter of credit, unless otherwise directed by the  Director.(c) The Director may ask for the evidence of  financial responsibility at any time he or she deems relevant.(d) The authority to act as a public adjuster shall automatically terminate if the evidence of financial responsibility terminates or becomes impaired.
(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1563)Sec. 1563. Fees. The fees required by this Article
are as follows:(1) Public adjuster license fee of $250, payable once     every 2 years.(2) Business entity license fee of $250, payable once     every 2 years.(3) Application fee of $50 for processing each     request to take the written examination for a public adjuster license.(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 5/1565)Sec. 1565. Continuing education.(a) An individual who holds a public adjuster license and who is not exempt under subsection (b) of this Section shall satisfactorily complete a minimum of 24 hours of continuing education courses, including  3 hours of classroom or webinar ethics instruction, reported on a biennial basis in conjunction with the license renewal cycle.The Director may not approve a course of study unless the course provides for
classroom, seminar, or self-study instruction methods. A course
given in a combination instruction method of classroom or seminar
and self-study shall be deemed to be a self-study course unless the
classroom or seminar certified hours meets or exceeds two-thirds of
the total hours certified for the course. The self-study material used
in the combination course must be directly related to and complement
the classroom portion of the course in order to be considered for
credit. An instruction method other than classroom or seminar shall
be considered as self-study methodology. Self-study credit hours
require the successful completion of an examination covering the
self-study material. The examination may not be self-evaluated.
However, if the self-study material is completed through the use of
an approved computerized interactive format whereby the computer
validates the successful completion of the self-study material, no
additional examination is required. The self-study credit hours
contained in a certified course shall be considered classroom hours
when at least two-thirds of the hours are given as classroom or
seminar instruction.The public adjuster must complete the course in advance of the renewal date to
allow the education provider time to report the credit to the
Department.(b) This Section shall not apply to:(1) licensees not licensed for one full year prior to     the end of the applicable continuing education biennium; or(2) licensees holding nonresident public adjuster     licenses who have met the continuing education requirements of their home state and whose home state gives credit to residents of this State on the same basis.(c) Only continuing education courses approved by the Director shall be used to satisfy the continuing education requirement of subsection (a) of this Section.
(Source: P.A. 102-135, eff. 7-23-21.) (215 ILCS 5/1570)Sec. 1570. Public adjuster fees.(a) A public adjuster shall not pay a commission, service fee, or other valuable consideration to a person for investigating or settling claims in this State if that person is required to be licensed under this Article and is not so licensed.(b) A person shall not accept a commission, service fee, or other valuable consideration for investigating or settling claims in this State if that person is required to be licensed under this Article and is not so licensed.(c) A public adjuster may pay or assign commission, service fees, or other valuable consideration to persons who do not investigate or settle claims in this State, unless the payment would violate State law.(d) A public adjuster may not charge, agree to, or accept any compensation, payment, commissions, fee, or other valuable consideration in excess of 10% of the amount of the insurance settlement claim paid by the insurer on any claim resulting from a catastrophic event, unless approved in writing by the Director. Application for exception to the 10% limit must be made in writing. The request must contain specific reasons as to why the consideration should be in excess of 10% and proof that the policyholder would accept the consideration. The Director must act on any request within 5 business days after receipt of the request.For the purpose of this subsection (d), "catastrophic event" means an occurrence of widespread or severe damage or loss of property producing an overwhelming demand on State and local response resources and mechanisms and a severe long-term effect on general economic activity, and that severely affects State, local, and private sector capabilities to begin to sustain response activities resulting from any catastrophic cause, including, but not limited to, fire, including arson (provided the fire was not caused by the willful action of an owner or resident of the property), flood, earthquake, wind, storm, explosion, or extended periods of severe inclement weather as determined by declaration of a State of disaster by the Governor. This declaration may be made on a county-by-county basis and shall be in effect for 90 days, but may be renewed for 30-day intervals thereafter. (Source: P.A. 98-701, eff. 1-1-15.) (215 ILCS 5/1575)Sec. 1575. Contract between public adjuster and insured.(a)  Public adjusters shall ensure that all contracts for their services are in writing and contain the following terms:(1) legible full name of the adjuster signing the     contract, as specified in Department records;(2) permanent home state business address and phone     number;(3) license number;(4) title of "Public Adjuster Contract";(5) the insured's full name, street address,     insurance company name, and policy number, if known or upon notification;(6) a description of the loss and its location, if     applicable;(7) description of services to be provided to the     insured;(8) signatures of the public adjuster and the insured;(9) date and time the contract was signed by the     public adjuster and date and time the contract was signed by the insured;(10) attestation language stating that the public     adjuster is fully bonded pursuant to State law; and(11) full salary, fee, commission, compensation, or     other considerations the public adjuster is to receive for services.(b) The contract may specify that the public adjuster shall be named as a co-payee on an insurer's payment of a claim.(1) If the compensation is based on a share of the     insurance settlement, the exact percentage shall be specified.(2) Initial expenses to be reimbursed to the public     adjuster from the proceeds of the claim payment shall be specified by type, with dollar estimates set forth in the contract and with any additional expenses first approved by the insured.(3) Compensation provisions in a public adjuster     contract shall not be redacted in any copy of the contract provided to the Director.(c) If the insurer, not later than 5 business days after the date on which the loss is reported to the insurer, either pays or commits in writing to pay to the insured the policy limit of the insurance policy, the public adjuster shall:(1) not receive a commission consisting of a     percentage of the total amount paid by an insurer to resolve a claim;(2) inform the insured that loss recovery amount     might not be increased by insurer; and(3) be entitled only to reasonable compensation from     the insured for services provided by the public adjuster on behalf of the insured, based on the time spent on a claim and expenses incurred by the public adjuster, until the claim is paid or the insured receives a written commitment to pay from the insurer.(d) A public adjuster shall provide the insured a written disclosure concerning any direct or indirect financial interest that the public adjuster has with any other party who is involved in any aspect of the claim, other than the salary, fee, commission, or other consideration established in the written contract with the insured, including, but not limited to, any ownership of or any compensation expected to be received from, any construction firm, salvage firm, building appraisal firm, board-up company, or any other firm  that provides estimates for work, or that performs any work, in conjunction with damages caused by the insured loss on which the public adjuster is engaged. The word "firm" shall include any corporation, partnership, association, joint-stock company, or person.(e) A public adjuster contract may not contain any contract term that:(1) allows the public adjuster's percentage fee to be     collected when money is due from an insurance company, but not paid, or that allows a public adjuster to collect the entire fee from the first check issued by an insurance company, rather than as a percentage of each check issued by an insurance company;(2) requires the insured to authorize an insurance     company to issue a check only in the name of the public adjuster;(3) precludes a public adjuster or an insured from     pursuing civil remedies;(4) includes any hold harmless agreement that     provides indemnification to the public adjuster by the insured for liability resulting from the public adjuster's negligence; or(5) provides power of attorney by which the public     adjuster can act in the place and instead of the insured.(f) The following provisions apply to a contract between a public adjuster and an insured:(1) Prior to the signing of the contract, the public     adjuster shall provide the insured with a separate signed and dated disclosure document regarding the claim process that states:"Property insurance policies obligate the insured to     present a claim to his or her insurance company for consideration. There are 3 types of adjusters that could be involved in that process. The definitions of the 3 types are as follows:(A) "Company adjuster" means the insurance         adjusters who are employees of an insurance company. They represent the interest of the insurance company and are paid by the insurance company. They will not charge you a fee.(B) "Independent adjuster" means the insurance         adjusters who are hired on a contract basis by an insurance company to represent the insurance company's interest in the settlement of the claim. They are paid by your insurance company. They will not charge you a fee.(C) "Public adjuster" means the insurance         adjusters who do not work for any insurance company. They work for the insured to assist in the preparation, presentation and settlement of the claim. The insured hires them by signing a contract agreeing to pay them a fee or commission based on a percentage of the settlement, or other method of compensation.".(2) The insured is not required to hire a public     adjuster to help the insured meet his or her obligations under the policy, but has the right to do so.(3) The public adjuster is not a representative or     employee of the insurer.(4) The salary, fee, commission, or other     consideration is the obligation of the insured, not the insurer, except when rights have been assigned to the public adjuster by the insured.(g) The contracts shall be executed in duplicate to provide an original contract to the public adjuster, and an original contract to the insured. The public adjuster's original contract shall be available at all times for inspection without notice by the Director.(h) The public adjuster shall provide the insurer with an exact copy of the contract by the insured, authorizing the public adjuster to represent the insured's interest.(i) The public adjuster shall give the insured written notice of the insured's rights as a consumer under the law of this State.(j) A public adjuster shall not provide services until a written contract with the insured has been executed, on a form filed with and approved by the Director. At the option of the insured, any such contract shall be voidable for 5 business days after execution. The insured may void the contract by notifying the public adjuster in writing by (i) registered or certified mail, return receipt requested, to the address shown on the contract or (ii) personally serving the notice on the public adjuster.(k) If the insured exercises the right to rescind the contract, anything of value given by the insured under the contract will be returned to the insured within 15 business days following the receipt by the public adjuster of the cancellation notice.
(Source: P.A. 96-1332, eff. 1-1-11; 97-333, eff. 8-12-11.) (215 ILCS 5/1580)Sec. 1580. Escrow or trust accounts. 

A public adjuster who receives, accepts, or holds any funds on behalf of an insured towards the settlement of a claim for loss or damage shall deposit the funds in a non-interest bearing escrow or trust account in a financial institution that is insured by an agency of the federal government in the public adjuster's home state or where the loss occurred.
(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1585)Sec. 1585. Record retention.(a) A public adjuster shall maintain a complete record of each transaction as a public adjuster. The records required by this Section shall include the following:(1) name of the insured;(2) date, location and amount of the loss;(3) a copy of the contract between the public     adjuster and insured and a copy of the separate disclosure document;(4) name of the insurer, amount, expiration date and     number of each policy carried with respect to the loss;(5) itemized statement of the insured's recoveries;(6) itemized statement of all compensation received     by the public adjuster, from any source whatsoever, in connection with the loss;(7) a register of all monies received, deposited,     disbursed, or withdrawn in connection with a transaction with an insured, including fees transfers and disbursements from a trust account and all transactions concerning all interest bearing accounts;(8) name of public adjuster who executed the contract;(9) name of the attorney representing the insured, if     applicable, and the name of the claims representatives of the insurance company; and(10) evidence of financial responsibility in a format     prescribed by the Director.(b)  Records shall be maintained for at least 7 years after the termination of the transaction with an insured and shall be open to examination by the Director at all times.(c)  Records submitted to the Director in accordance with this Section that contain information identified in writing as proprietary by the public adjuster shall be treated as confidential by the Director and shall not be subject to the Freedom of Information Act.
(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1590)Sec. 1590. Standards of conduct of public adjuster.(a) A public adjuster is obligated, under his or her license, to serve with objectivity and complete loyalty for the interests of his client alone, and to render to the insured such information, counsel, and service, as within the knowledge, understanding, and opinion in good faith of the licensee, as will best serve the insured's insurance claim needs and interest.(b) A public adjuster may not propose or attempt to propose to any person that the public adjuster represent that person while a loss-producing occurrence is continuing, nor while the fire department or its representatives are engaged at the damaged premises, nor between the hours of 7:00 p.m. and 8:00 a.m.(c) A public adjuster shall not permit an unlicensed employee or representative of the public adjuster to conduct business for which a license is required under this Article.(d) A public adjuster shall not have a direct or indirect financial interest in any aspect of the claim, other than the salary, fee, commission, or other consideration established in the written contract with the insured, unless full written disclosure has been made to the insured as set forth in subsection (g) of Section 1575.(e) A public adjuster shall not acquire any interest in the salvage of property subject to the contract with the insured unless the public adjuster obtains written permission from the insured after settlement of the claim with the insurer as set forth in subsection (g) of Section 1575 of this Article.(f) The public adjuster shall abstain from referring or directing the insured to get needed repairs or services in connection with a loss from any person, unless disclosed to the insured:(1) with whom the public adjuster has a financial     interest; or(2) from whom the public adjuster may receive direct     or indirect compensation for the referral.(g) The public adjuster shall disclose to an insured if he or she has any interest or will be compensated by any construction firm, salvage firm, building appraisal firm, board-up company, or any other firm that performs any work in conjunction with damages caused by the insured loss. The word "firm" shall include any corporation, partnership, association, joint-stock company or individual as set forth in Section 1575 of this Article.(h) Any compensation or anything of value in connection with an insured's specific loss that will be received by a public adjuster shall be disclosed by the public adjuster to the insured in writing including the source and amount of any such compensation.(i) In all cases where the loss giving rise to the claim for which the public adjuster was retained arise from damage to a personal residence, the insurance proceeds shall be delivered to the named insured or his or her designee. Where proceeds paid by an insurance company are paid jointly to the insured and the public adjuster, the insured shall release such portion of the proceeds that are due the public adjuster within 30 calendar days after the insured's receipt of the insurance company's check, money order, draft, or release of funds. If the proceeds are not so released to the public adjuster within 30 calendar days, the insured shall provide the public adjuster with a written explanation of the reason for the delay.(j) Public adjusters shall adhere to the following general ethical requirements:(1) a public adjuster shall not undertake the     adjustment of any claim if the public adjuster is not competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the public adjuster's current expertise;(2)  a public adjuster shall not knowingly make any     oral or written material misrepresentations or statements which are false or maliciously critical and intended to injure any person engaged in the business of insurance to any insured client or potential insured client;(3) no public adjuster, while so licensed by the     Department, may represent or act as a company adjuster or independent adjuster on the same claim;(4) the contract shall not be construed to prevent an     insured from pursuing any civil remedy after the 5-business day revocation or cancellation period;(5) a public adjuster shall not enter into a contract     or accept a power of attorney that vests in the public adjuster the effective authority to choose the persons who shall perform repair work;(6) a public adjuster shall ensure that all contracts     for the public adjuster's services are in writing and set forth all terms and conditions of the engagement; and(7) a public adjuster shall not advance money or any     valuable consideration, except emergency services to an insured pending adjustment of a claim.(k) A public adjuster may not agree to any loss settlement without the insured's knowledge and consent and shall, upon the insured's request, provide the insured with a document setting forth  the scope, amount, and value of the damages prior to request by the insured for authority to settle the loss.(l) A public adjuster shall not provide legal advice or representation to the insured or engage in the unauthorized practice of law.(m) A public adjuster shall not represent that he or she is a representative of an insurance company, a fire department, or the State of Illinois, that he or she is a fire investigator, that his or her services are required for the insured to submit a claim to the insured's insurance company, or that he or she may provide legal advice or representation to the insured. A public adjuster may represent that he or she has been licensed by the State of Illinois.
(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1595)Sec. 1595. Reporting of actions.(a) The public adjuster shall report to the Director any administrative action taken against the public adjuster in another jurisdiction or by another governmental agency in this State within 30 days of the final disposition of the matter. This report shall include a copy of the order, consent to order, or other relevant legal documents.(b) Within 30 days of the initial pretrial hearing date, the public adjuster shall report to the Director any criminal prosecution of the public adjuster taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.
(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1600)Sec. 1600. Examinations.(a) The Director shall have the power to examine any applicant or any person licensed or registered pursuant to this Article.(b) Every person being examined and its officers, directors, and members must provide to the Director convenient and free access, at all reasonable hours, to all books, records, documents, and other papers relating to its public adjusting affairs. The officers, directors, members, and employees must facilitate and aid in such examinations so far as it is in their power to do so.(c) Examiners may be designated by the Director. Such examiners shall make their reports to the Director pursuant to this Section. Any report alleging substantive violations shall be in writing and shall be based upon the facts ascertained from the books, records, documents, papers, and other evidence obtained by the examiners or ascertained from the testimony of the officers, directors, members, or other individuals examined under oath or ascertained by notarized affidavits received by the examiners. The reports shall be verified by the examiners. 
(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1605)Sec. 1605. Injunctive relief. Any person who acts as or holds himself out to be a public adjuster without holding a valid and current license to do so is hereby declared to be inimical to the public welfare and to constitute a public nuisance. The Director may report such practice to the Attorney General of the State of Illinois 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, as plaintiff, for injunctive relief in the circuit court of the county where such practice occurred to enjoin the person from engaging in such practice; and upon the filing of a verified petition in such court, the court, if satisfied by affidavit or otherwise that the person has been engaged in such practice without a valid and current license to do so, may enter a temporary restraining order without notice or bond enjoining the defendant from such further practice. 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 such unlawful practice, then the court may enter an order or judgment perpetually enjoining the defendant from such further practice. In all proceedings hereunder, the court, in its discretion, may apportion the costs among the parties interested in the action, including the costs of filing the complaint, service of process, witness fees and expenses, court reporter charges, and reasonable attorney fees. In case of violation of any injunctive order entered under the provisions of this Section, the court may try and punish the offender for contempt of court. Such injunction proceedings shall be in addition to, and not in lieu of, all penalties and other remedies.
(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1610)Sec. 1610. Additional penalties. 

In addition to any other penalty set forth in this Article, any person violating Section 1605 of this Code shall be guilty of a Class A misdemeanor and any person misappropriating or converting any monies collected as a public adjuster, whether licensed or not, shall be guilty of a Class 4 felony.
(Source: P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/1615)Sec. 1615. Rules. 

The Director shall promulgate reasonable rules as are necessary or proper to carry out the purposes of this Article.
(Source: P.A. 96-1332, eff. 1-1-11.)
(215 ILCS 5/Art. XLVI heading) ARTICLE XLVI.  TRAVEL INSURANCE
(Source: P.A. 102-212, eff. 10-28-21.) (215 ILCS 5/1620)Sec. 1620. Short title. This Article may be cited as the Travel Insurance Act.
(Source: P.A. 102-212, eff. 10-28-21.) (215 ILCS 5/1625)Sec. 1625. Scope and purposes.(a)   The purpose of this Article is to promote the public welfare by creating a comprehensive legal framework within which travel insurance may be sold in this State.(b)   This Article applies to travel insurance that covers any resident of this State, and is sold, solicited, negotiated, or offered in this State, and policies and certificates that are delivered or issued for delivery in this State. This Article does not apply to cancellation fee waivers or travel assistance services except as expressly provided in this Article.(c)   All other applicable provisions of this State's insurance laws shall continue to apply to travel insurance, except that the specific provisions of this Article shall supersede any general provisions of law that would otherwise be applicable to travel insurance.
(Source: P.A. 102-212, eff. 10-28-21.) (215 ILCS 5/1630)Sec. 1630. Definitions. As used in this Article:"Aggregator site" means a website that provides access to information regarding insurance products from more than one insurer, including product and insurer information, for use in comparison shopping."Blanket travel insurance" means a policy of travel insurance issued to any eligible group providing coverage for specific classes of persons defined in the policy with coverage provided to all members of the eligible group without a separate charge to individual members of the eligible group."Cancellation fee waiver" means a contractual agreement between a supplier of travel services and its customer to waive some or all of the nonrefundable cancellation fee provisions of the supplier's underlying travel contract with or without regard to the reason for the cancellation or form of reimbursement. A "cancellation fee waiver" is not insurance."Eligible group", solely for the purposes of travel insurance, means 2 or more persons who are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, including, but not limited to, any of the following:(1)     any entity engaged in the business of     providing travel or travel services, including, but not limited to: tour operators, lodging providers, vacation property owners, hotels and resorts, travel clubs, travel agencies, property managers, cultural exchange programs, and common carriers or the operator, owner, or lessor of a means of transportation of passengers, including, but not limited to, airlines, cruise lines, railroads, steamship companies, and public bus carriers, wherein with regard to any particular travel or type of travel or travelers, all members or customers of the group must have a common exposure to risk attendant to such travel;(2)     any college, school, or other institution of     learning covering students, teachers, employees, or volunteers;(3)     any employer covering any group of employees,     volunteers, contractors, board of directors, dependents, or guests;(4)     any sports team, camp, or sponsor of any     sports team or camp covering participants, members, campers, employees, officials, supervisors, or volunteers;(5)     any religious, charitable, recreational,     educational, or civic organization, or branch of an organization covering any group of members, participants, or volunteers;(6)     any financial institution or financial     institution vendor, or parent holding company, trustee, or agent of or designated by one or more financial institutions or financial institution vendors, including account holders, credit card holders, debtors, guarantors, or purchasers;(7)     any incorporated or unincorporated     association, including labor unions, having a common interest, constitution and bylaws, and organized and maintained in good faith for purposes other than obtaining insurance for members or participants of such association covering its members;(8)     any trust or the trustees of a fund     established, created, or maintained for the benefit of and covering members, employees or customers, subject to the Director's permitting the use of a trust and the State's premium tax provisions, of one or more associations meeting the requirements of paragraph (7) of this definition;(9)     any entertainment production company covering     any group of participants, volunteers, audience members, contestants, or workers;(10)     any volunteer fire department, ambulance,     rescue, police, court, or any first aid, civil defense, or other such volunteer group;(11)     preschools, day care institutions for     children or adults, and senior citizen clubs;(12)     any automobile or truck rental or leasing     company covering a group of individuals who may become renters, lessees, or passengers defined by their travel status on the rented or leased vehicles. The common carrier, the operator, owner or lessor of a means of transportation, or the automobile or truck rental or leasing company, is the policyholder under a policy to which this Section applies; or(13)   any other group where the Director has     determined that the members are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, and that issuance of the policy would not be contrary to the public interest."Fulfillment materials" means documentation sent to the purchaser of a travel protection plan confirming the purchase and providing the travel protection plan's coverage and assistance details."Group travel insurance" means travel insurance issued to any eligible group."Limited lines travel insurance producer" means one of the following:(1)   a licensed managing general agent or     third-party administrator;(2)   a licensed insurance producer, including a     limited lines producer; or(3)   a travel administrator."Offering and disseminating" means the following:(1)   Providing information to a prospective or     current policyholder on behalf of a limited lines travel insurance entity, including brochures, buyer guides, descriptions of coverage, and price.(2)   Referring specific questions regarding coverage     features and benefits from a prospective or current policyholder to a limited lines travel insurance entity.(3)   Disseminating and processing applications for     coverage, coverage selection forms, or other similar forms in response to a request from a prospective or current policyholder.(4)   Collecting premiums from a prospective or     current policyholder on behalf of a limited lines travel insurance entity.(5)   Receiving and recording information from a     policyholder to share with a limited lines travel insurance entity."Primary policyholder" means an individual person who elects and purchases individual travel insurance."Travel administrator" means a person who directly or indirectly underwrites, collects charges, collateral, or premiums from, or adjusts or settles claims on residents of this State in connection with travel insurance, except that a person shall not be considered a travel administrator if that person's only actions that would otherwise cause the person to be considered a travel administrator are among the following:(1)   a person working for a travel administrator to     the extent that the person's activities are subject to the supervision and control of the travel administrator;(2)   an insurance producer selling insurance or     engaged in administrative and claims-related activities within the scope of the producer's license;(3)   a travel retailer offering and disseminating     travel insurance and registered under the license of a limited lines travel insurance producer in accordance with Section 1635;(4)   an individual adjusting or settling claims in     the normal course of that individual's practice or employment as an attorney-at-law and who does not collect charges or premiums in connection with insurance coverage; or(5)   a business entity that is affiliated with a     licensed insurer while acting as a travel administrator for the direct and assumed insurance business of an affiliated insurer."Travel assistance services" means noninsurance services for which the consumer is not indemnified based on a fortuitous event, and where providing the service does not result in transfer or shifting of risk that would constitute the business of insurance. "Travel assistance services" include, but are not limited to: security advisories; destination information; vaccination and immunization information services; travel reservation services; entertainment; activity and event planning; translation assistance; emergency messaging; international legal and medical referrals; medical case monitoring; coordination of transportation arrangements; emergency cash transfer assistance; medical prescription replacement assistance; passport and travel document replacement assistance; lost luggage assistance; concierge services; and any other service that is furnished in connection with planned travel. "Travel assistance services" are not insurance and are not related to insurance."Travel insurance" means insurance coverage for personal risks incident to planned travel, including, but not limited to:(1)   the interruption or cancellation of a trip or     event;(2)   the loss of baggage or personal effects;(3)   damages to accommodations or rental vehicles;(4)   sickness, accident, disability, or death     occurring during travel;(5)   emergency evacuation;(6)   repatriation of remains; or(7)   any other contractual obligations to indemnify     or pay a specified amount to the traveler upon determinable contingencies related to travel as approved by the Director."Travel insurance" does not include major medical plans that provide comprehensive medical protection for travelers with trips lasting 6 months or longer, including those working overseas as expatriates or as military personnel on deployment."Travel insurance business entity" means a licensed insurance producer designated by an insurer as set forth in subsection (h) of Section 1635."Travel protection plans" means plans that provide one or more of the following: travel insurance, travel assistance services, and cancellation fee waivers."Travel retailer" means a business organization that makes, arranges, or offers travel services and, with respect to travel insurance, is limited to offering and disseminating as defined in this Section, unless otherwise licensed under subsection (b) of Section 1635.
(Source: P.A. 102-212, eff. 10-28-21.) (215 ILCS 5/1635)Sec. 1635. Licensing and registration.(a)   The Director may issue to a travel insurance business entity that registers travel retailers under its license as described in paragraph (2) of subsection (c) of this Section a producer license as provided in paragraph (6) of subsection (a) of Section 500-35 of this Code. A travel insurance business entity license issued under this Section shall also authorize any employee of the travel insurance business entity to act individually on behalf and under the supervision of the travel insurance business entity licensee with respect to the coverage specified in this Section. Each travel insurance business entity licensed under this Section shall pay the Department a fee of $500 for its initial license and $500 for each renewal license, payable on May 31 annually.(b)   The Director may issue to a travel retailer a limited lines producer license. A travel retailer license issued under this Section shall also authorize any employee of the travel retailer limited line licensee to act individually on behalf and under the supervision of the travel retailer limited line licensee with respect to the coverage specified in this Section.(c)   Notwithstanding any other provision of law, a travel retailer may do the limited activities of offering and disseminating travel insurance on behalf of and under the license of a supervising travel insurance business entity if the following conditions are met:(1)   the travel insurance business entity or travel     retailer provides to purchasers of travel insurance:(A)   a description of the material terms or the         actual material terms of the insurance coverage;(B)   a description of the process for filing a         claim;(C)   a description of the review or cancellation         process for the travel insurance policy; and(D)   the identity and contact information of the         insurer and travel insurance business entity;(2) at the time of licensure, the travel insurance     business entity shall establish and maintain a register on a form prescribed by the Director of each travel retailer that offers travel insurance on the travel insurance business entity's behalf; the register shall be maintained and updated continuously by the travel insurance business entity and shall include the name, address, and contact information of the travel retailer and an officer or person who directs or controls the travel retailer's operations and the travel retailer's federal tax identification number; the travel insurance business entity shall submit the register to the Director annually on a form and in a manner approved by the Director; the limited lines producer shall also certify that the travel retailer personnel who are offering and disseminating insurance under the travel retailer's registration complies with 18 U.S.C. 1033;(3) the travel insurance business entity has     designated one of its employees as a licensed individual producer (a designated responsible producer or DRP) responsible for the travel insurance business entity's and its travel retailer's compliance with the travel insurance laws, rules, and regulations of this State;(4) the travel insurance business entity has paid all     applicable insurance producer licensing fees as set forth in this Code; and(5) the travel insurance business entity requires     each employee and authorized representative of the travel retailer whose duties include offering and disseminating travel insurance to receive a program of instruction or training that shall be subject to review by the Director; the training material shall, at a minimum, contain instructions on the types of insurance offered, ethical sales practices, and required disclosures to prospective customers.(d)   Any travel retailer offering or disseminating travel insurance shall make available to prospective purchasers brochures or other written materials that:(1) provide the identity and contact information of     the insurer and the travel insurance business entity;(2) explain that the purchase of travel insurance is     not required in order to purchase any other product or service from the travel retailer; and(3) explain that an unlicensed travel retailer is     permitted to provide general information about the insurance offered by the travel retailer, including a description of the coverage and price, but is not qualified or authorized to answer technical questions about the terms and conditions of the insurance offered by the travel retailer or to evaluate the adequacy of the customer's existing insurance coverage.(e)   A travel retailer's employee or authorized representative who is not licensed as an insurance producer may not:(1)   evaluate or interpret the technical terms,     benefits, and conditions of the offered travel insurance coverage;(2)   evaluate or provide advice concerning a     prospective purchaser's existing insurance coverage; or(3)   hold himself, herself, or itself out as a     licensed insurer, licensed producer, or insurance expert.(f)   A travel retailer whose insurance-related activities, and those of its employees and authorized representatives, are limited to offering and disseminating travel insurance on behalf of and under the direction of a travel insurance business entity meeting the conditions stated in this Section is authorized to do so and receive related compensation upon registration by the travel insurance business entity as described in paragraph (2) of subsection (c) of this Section.(g)  Travel insurance may be provided under an individual policy or under a group, blanket, or master policy.(h)  As the insurer designee, the travel insurance business entity is responsible for the acts of the travel retailer that is registered under its license.(i)  Any entity that violates any provision of this Article shall be subject to all appropriate regulatory action as set forth in this Code.(j)  Any person licensed in a major line of authority as an insurance producer is authorized to sell, solicit, and negotiate travel insurance. A property and casualty insurance producer is not required to become appointed by an insurer in order to sell, solicit, or negotiate travel insurance.
(Source: P.A. 102-212, eff. 10-28-21.) (215 ILCS 5/1640)Sec. 1640. Travel protection plans. Travel protection plans may be offered for one price for the combined features that the travel protection plan offers in this State if:(1)   the travel protection plan clearly discloses to     the consumer, at or before the time of purchase, that it includes travel insurance, travel assistance services, and cancellation fee waivers, as applicable, and provides information and an opportunity, at or before the time of purchase, for the consumer to obtain additional information regarding the features and pricing of each; and(2)   the fulfillment materials:(A)   describe and delineate the travel         insurance, travel assistance services, and cancellation fee waivers in the travel protection plan; and(B)   include the travel insurance disclosures         and the contact information for persons providing travel assistance services, and cancellation fee waivers, as applicable.(Source: P.A. 102-212, eff. 10-28-21.) (215 ILCS 5/1645)Sec. 1645. Sales practices.(a) All persons offering travel insurance to residents of this State are subject to the Unfair Methods of Competition and Unfair and Deceptive Acts and Practices Article of this Code, except as otherwise provided in this Section. In the event of a conflict between this Article and other provisions of this Code regarding the sale and marketing of travel insurance and travel protection plans, the provisions of this Article shall control.(b) Offering or selling a travel insurance policy that could never result in payment of any claims for any insured under the policy is an unfair trade practice under Section 424.(c) Marketing of travel insurance policies shall comply with the following:(1) All documents provided to consumers before the     purchase of travel insurance, including, but not limited to, sales materials, advertising materials, and marketing materials, shall be consistent with the travel insurance policy itself, including, but not limited to, forms, endorsements, policies, rate filings, and certificates of insurance.(2)   For travel insurance policies or certificates     that contain preexisting condition exclusions, information and an opportunity to learn more about the preexisting condition exclusions shall be provided any time prior to the time of purchase, and in the coverage's fulfillment materials.(3)   The fulfillment materials and the information     described in subparagraphs (A) through (D) of paragraph (1) of subsection (c) of Section 1635 shall be provided to a policyholder or certificate holder as soon as practicable following the purchase of a travel protection plan. Unless the insured has either started a covered trip or filed a claim under the travel insurance coverage, a policyholder or certificate holder may cancel a policy or certificate for a full refund of the travel protection plan price from the date of purchase of a travel protection plan until at least:(A) 15 days following the date of delivery of the         travel protection plan's fulfillment materials by postal mail; or(B) 10 days following the date of delivery of the         travel protection plan's fulfillment materials by means other than postal mail. For the purposes of this Section, delivery means handing fulfillment materials to the policyholder or certificate holder or sending fulfillment materials by postal mail or electronic means to the policyholder or certificate holder.(4) The company shall disclose in the policy     documentation and fulfillment materials whether the travel insurance is primary or secondary to other applicable coverage.(5)   Where travel insurance is marketed directly to     a consumer through an insurer's website or by others through an aggregator site, it shall not be an unfair trade practice or other violation of law where an accurate summary or short description of coverage is provided on the web page, so long as the consumer has access to the full provisions of the policy through electronic means.(d) No person offering, soliciting, or negotiating travel insurance or travel protection plans on an individual or group basis may do so by using negative option or opt out, which would require a consumer to take an affirmative action to deselect coverage, such as unchecking a box on an electronic form, when the consumer purchases a trip.(e) It shall be an unfair trade practice under Section 424 to market blanket travel insurance coverage as free.(f) Where a consumer's destination jurisdiction requires insurance coverage, it shall not be an unfair trade practice to require that a consumer choose between the following options as a condition of purchasing a trip or travel package:(1)   purchasing the coverage required by the     destination jurisdiction through the travel retailer or limited lines travel insurance producer supplying the trip or travel package; or(2)   agreeing to obtain and provide proof of     coverage that meets the destination jurisdiction's requirements before departure.(Source: P.A. 102-212, eff. 10-28-21.) (215 ILCS 5/1650)Sec. 1650. Travel insurance administrators.(a)   Notwithstanding any other provisions of this Code, no entity shall act or represent itself as a travel administrator for travel insurance in this State unless that entity:(1)   is a licensed property and casualty insurance     producer in this State for activities permitted under that producer license;(2)   holds a valid managing general agent license in     this State; or(3)   holds a valid third-party administrator license     in this State.(b)   An insurer is responsible for the acts of a travel administrator administering travel insurance underwritten by the insurer, and is responsible for ensuring that the travel administrator maintains all books and records relevant to the insurer to be made available by the travel administrator to the Director upon request.
(Source: P.A. 102-212, eff. 10-28-21.) (215 ILCS 5/1655)Sec. 1655. Policy.(a)   Notwithstanding any other provision of this Code, travel insurance shall be classified and filed for purposes of rates and forms under an inland marine line of insurance; however, travel insurance that provides coverage for sickness, accident, disability, or death occurring during travel, either exclusively, or in conjunction with related coverages of emergency evacuation or repatriation of remains, or incidental limited property and casualty benefits such as baggage or trip cancellation may be filed under either an accident and health line of insurance or an inland marine line of insurance.(b)   Travel insurance may be in the form of an individual, group, master, or blanket policy.(c)   Eligibility and underwriting standards for travel insurance may be developed and provided based on travel protection plans designed for individual or identified marketing or distribution channels, provided those standards also meet this State's underwriting standards for inland marine.
(Source: P.A. 102-212, eff. 10-28-21; 102-672, eff. 11-30-21.) (215 ILCS 5/1660)Sec. 1660. Rules. The Department may adopt rules to implement this Article.
(Source: P.A. 102-212, eff. 10-28-21.)
(215 ILCS 5/Art. XV heading) ARTICLE XV.  
		REGISTRATION OF POLICIES
AND DEPOSIT OF RESERVES (215 ILCS 5/246) (from Ch. 73, par. 858)Sec. 246. 
		
		Scope of
article.This article shall apply to companies that issued the policies or
annuity bonds, and to the policies or annuity bonds, referred to in an Act
entitled: "An Act to provide for the deposit of reserve and the
registration of policies and annuity bonds by life insurance companies of
this State," approved April 18, 1899. Such policies or annuity bonds are
referred to in this article as "policies."
		(Source: Laws 1937, p. 696.) (215 ILCS 5/247) (from Ch. 73, par. 859)Sec. 247. 
		
		Deposit of
reserves on registered policies.Any company heretofore making deposits and registering policies pursuant
to the act mentioned in section 246 shall keep and maintain such deposit
with the Director in securities which are authorized for investment by life
insurance companies under this Code. Certificates of purchase acquired by
any company through foreclosure proceedings instituted by it upon mortgages
in which its funds have been lawfully invested, and duly recorded
conveyances of unencumbered improved real estate lawfully acquired by any
company, accompanied by satisfactory evidence of ownership thereof shall
likewise be eligible for deposit. The Director shall hold the title to such
real estate so conveyed to him in trust until other satisfactory securities
in lieu thereof have been deposited with him whereupon he shall reconvey
the same to such company. The Director may cause such real estate to be
valued and the company shall pay the reasonable expenses incurred in such
valuation.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/248) (from Ch. 73, par. 860)Sec. 248. 
		Registration of new policies prohibited.After the effective date of this Code the Director shall not register
any new policies that are issued by any company, nor accept any deposits
covering reserves on business thereafter written.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/249) (from Ch. 73, par. 861)Sec. 249. 
		Valuation of registered policies.The Director shall keep such a record of the policies that have been
issued pursuant to the act mentioned in section 246 as to enable him to
compute their value at any time. Upon written proof attested by the
president or vice-president and secretary of the company which shall have
issued such policies that any of them have been commuted or terminated, the
Director shall indicate such commutation or cancellation upon such record.
The reserve value of all policies, according to the standard prescribed in
this Code for the valuation of policies of life insurance companies, when
the first premium shall have been paid thereon, less the amount of any
liens, (as set forth in a statement showing kind, nature and amount,
attested by the president or vice-president and secretary of the company
issuing the policies against which such liens exist) not exceeding such
value as the company may have against such policies shall be entered in the
record aforesaid at the time such record is made. On the first day of
January of each year, or within sixty days thereafter, the Director shall
cause the registered policies of each company to be carefully revalued, and
the reserve value thereof at the time fixed for such valuation, less any
liens, (as set forth in a statement showing kind, nature and amount,
attested by the president or vice-president and secretary of the company
issuing the policies against which such liens exist) not exceeding such
reserve value as the company may have against such policies shall be
entered upon the record. It shall be the duty of
the Director to cancel mutilated policies issued by said companies prior to
the effective date of this Code, and register in lieu thereof other
policies of like tenor and date.
		(Source: P.A. 87-757.) (215 ILCS 5/250) (from Ch. 73, par. 862)Sec. 250. 
		
		Additional
deposits.Each company which shall have made the deposit provided for by the act
mentioned in section 246, shall make additional deposits from time to
time in amounts of not less than five thousand dollars of securities which
are authorized investments for life insurance companies under this Code, so
that the market value of the securities deposited shall always be equal to
the reserve value of the policies heretofore registered by said company,
less such liens (not exceeding such net value) as the company may have
against them.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/251) (from Ch. 73, par. 863)Sec. 251. 
		
		Record of
securities-Deficit-When insolvent.The Director shall keep a record of the securities deposited by each
company and when furnishing the annual certificate of valuation mentioned
in section 249, he shall enter thereon the amount and market value of
such securities deposited by such company. If at any time it shall appear
from such certificate or otherwise that the value of the securities held on
deposit is less than the reserve value of the registered policies
theretofore issued by such company, less such liens (not exceeding such
reserve value) as the company may have against them, and the company shall
fail or neglect to make good such deposit within sixty days, after written
notice by the Director, it shall be deemed to be insolvent and shall be
proceeded against in the manner provided in Article XIII.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/252) (from Ch. 73, par. 864)Sec. 252. 
		
		May
increase deposit-Withdrawal of securities-Right to income.Any such company may increase its deposits at any time by making
additional deposits of not less than five thousand dollars of securities
which are authorized investments for life companies under this Code. Any
company whose deposits exceed the reserve of all registered policies it has
in force, less such liens (not exceeding such reserve value) as the company
may hold against them, may withdraw such excess, or it may withdraw any of
said securities at any time by depositing in their stead securities of
equal value and authorized under this Code. So long as said company shall
remain solvent and maintain its deposits, as herein provided, it may
collect the interest, coupons, rents, and other income on the securities
deposited as the same may accrue.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/253) (from Ch. 73, par. 865)Sec. 253. 
		
		Deposits
kept separate.The securities deposited with the Director pursuant to the act mentioned
in section 246, shall be kept in the same manner but separate from other
deposits of the company.
		(Source: Laws 1937, p. 696.)
(215 ILCS 5/Art. XVII heading) ARTICLE XVII.  
		FRATERNAL BENEFIT SOCIETIES
(Article scheduled to be repealed on January 1, 2027) (215 ILCS 5/282.1) (from Ch. 73, par. 894.1)(Section scheduled to be repealed on January 1, 2027)Sec. 282.1. 
		Fraternal benefit societies. 
		Any incorporated society,
order or supreme lodge without capital stock, including one exempted under
the provisions of Section 315.5(a) of this amendatory Act whether incorporated or
not, organized solely for the benefit of its members and their
beneficiaries and not for profit, operated on a lodge system with
ritualistic form of work, having a representative form of government and
providing benefits in accordance with this amendatory Act is hereby declared
to be a fraternal benefit society.
		(Source: P.A. 84-303.) (215 ILCS 5/283.1) (from Ch. 73, par. 895.1)(Section scheduled to be repealed on January 1, 2027)Sec. 283.1. 
		Lodge system.(a) A society is operating on the lodge
system if it has a supreme governing body and subordinate lodges into which
members are elected, initiated or admitted in accordance with its laws,
rules and ritual. Subordinate lodges shall be required by the laws of the
society to hold regular meetings at least once in each month in furtherance
of the purposes of the society.(b) A society may, at its option, organize and operate lodges for
children under the minimum age for adult membership. Membership and
initiation in local lodges shall not be required of such children nor
shall they have a voice or vote in the management of the society.
		(Source: P.A. 84-303.) (215 ILCS 5/284.1) (from Ch. 73, par. 896.1)(Section scheduled to be repealed on January 1, 2027)Sec. 284.1. 
		Representative form of government. 
		A society has a
representative form of government when:(a) It has a supreme governing body constituted in     one of the following ways:(1) Assembly. The supreme governing body is an         assembly composed of delegates elected directly by the members or at intermediate assemblies of members or their representatives, together with other delegates as may be prescribed in the society's laws. A society may provide for election of delegates by mail. The elected delegates shall constitute a majority in number and shall not have less than 2/3 of the votes and not less than the number of votes required to amend the society's laws. The assembly shall be elected and shall meet at least once every 4 years and shall elect a board of directors to conduct the business of the society between meetings of the assembly. Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws; or(2) Direct Election. The supreme governing body         is a board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws. A society may provide for election of the board by mail. Each term of a board member may be filled in the manner prescribed by the society's laws. However, those persons elected to the board shall constitute a majority in number and not less than the number of votes required to amend the society's laws. A person filling the unexpired term of an elected board member shall be considered to be an elected member. The board shall meet at least quarterly to conduct the business of the society;(b) The officers of the society are elected either by     the supreme governing body or by the board of directors;(c) Only benefit members are eligible for election to     the supreme governing body, the board of directors or any intermediate assembly; and(d) Each voting member has one vote; no vote may be     cast by proxy.		(Source: P.A. 84-303.) (215 ILCS 5/285.1) (from Ch. 73, par. 897.1)(Section scheduled to be repealed on January 1, 2027)Sec. 285.1. 
		Definitions. 
		Whenever used in this amendatory Act:(a) "Benefit contract" shall mean the agreement for provision of
benefits authorized by Section 297.1 of this amendatory Act as that agreement is
described in Section 300.1 of this amendatory Act;(b) "Benefit member" shall mean an adult member who is designated by the
laws or rules of the society to be a benefit member under a benefit contract;(c) "Certificate" shall mean the document issued as written evidence of
the benefit contract;(d) "Premiums" shall mean premiums, rates, dues or other required
contributions, by whatever name known, which are payable under the certificate;(e) "Laws" shall mean the society's articles of incorporation,
constitution and bylaws, however designated;(f) "Life insurer" shall mean an insurance company authorized to
transact in this State the insurance business classified as Class 1, Clause
(a) or (b) in Section 4 of this Code;(g) "Rules" shall mean all rules, regulations or resolutions adopted by
the supreme governing body or board of directors which are intended to
have general application to the members of the society;(h) "Society" shall mean fraternal benefit society, unless otherwise indicated; and(i) "Lodge" shall mean subordinate member units of the society, known as
camps, courts, councils, branches or by any other designation.
		(Source: P.A. 84-303.) (215 ILCS 5/286.1) (from Ch. 73, par. 898.1)(Section scheduled to be repealed on January 1, 2027)Sec. 286.1. Purposes and powers.(a) A society shall operate for the
benefit of members and their beneficiaries by:(1) Providing benefits as specified in Section 297.1     of this amendatory Act; and(2) Operating for one or more social, intellectual,     educational, charitable, benevolent, moral, fraternal, patriotic or religious purposes for the benefit of its members, which may also be extended to others. Such purposes may be carried out directly by the society or indirectly through subsidiary corporations or affiliated organizations.(b) Every society shall have the power to adopt laws and rules for the
government of the society, the admission of its members and the management
of its affairs. It shall have the power to change, alter, add to or amend
such laws and rules and shall have such other powers as are necessary and
incidental to carrying into effect the objects and purposes of the society.(c) A domestic  society that provides any of the benefits specified in Section 297.1 of this Code must be governed by a board of directors and managed by qualified officers subject to the following requirements:(1) The laws of a society must provide that:(i) the board of directors shall have the powers         and perform the duties ordinarily possessed and exercised by a board of directors under this Code, including, but not limited to, the authority and responsibility for the hiring and the discharge of a president, chief executive officer, or an equivalent position, except that a society that elects its president, chief executive officer, or equivalent position pursuant to its by-laws, as of the effective date of this amendatory Act of the 98th General Assembly, may continue to do so if it elects a president, chief executive officer, or equivalent position that meets qualifications set forth in a rule adopted by the Director; and(ii) the board of directors may remove a director         for cause and replace the director with another qualified director.After the effective date of this amendatory Act of     the 98th General Assembly, a domestic society shall amend its laws, as necessary, to comply with this paragraph (1) as soon as reasonably practicable, but in no event later than January 1, 2019.(2) A person convicted of a felony may not be a     director or an officer of a domestic society.(3) A society shall provide information regarding     qualifications of board candidates to voting members prior to the time of election.(4) Each newly elected director of a domestic society     shall participate in a board training or orientation program within 6 months after their election to the board that includes information regarding board duties and responsibilities.(5) At least annually, the board of directors shall     conduct a self-assessment.(6) Each domestic society shall establish an audit     committee.  The composition and responsibilities of the audit committee shall comply with the Illinois Administrative Code provisions relating to annual financial reporting. (Source: P.A. 98-814, eff. 1-1-15.) (215 ILCS 5/287.1) (from Ch. 73, par. 899.1)(Section scheduled to be repealed on January 1, 2027)Sec. 287.1. 
		Qualifications for membership.(a) A society shall specify
in its laws or rules:(1) eligibility standards for each and every class of     membership, provided that if benefits are provided on the lives of children, the minimum age for adult membership shall be set at not less than age 15 and not greater than age 21;(2) the process for admission to membership for each     membership class; and(3) the rights and privileges of each membership     class, provided that only benefit members shall have the right to vote on the management of the insurance affairs of the society.(b) A society may also admit social members who shall have no voice or
vote in the management of the insurance affairs of the society.(c) Membership rights in the society are personal to the member and are
not assignable.
		(Source: P.A. 84-303.) (215 ILCS 5/288.1) (from Ch. 73, par. 900.1)(Section scheduled to be repealed on January 1, 2027)Sec. 288.1. 
		Location of office, meetings, communications to members,
grievance procedures.(a) The principal office and place of business of any
domestic society shall be located in this State. The meetings of its
supreme governing body may be held in any state, district, province or
territory wherein such society has at least one subordinate lodge, or in
such other location as determined by the supreme governing body, and all
business transacted at such meeting shall be as valid in all respects as if
such meetings were held in this State. The minutes of the proceedings of
the supreme governing body and of the board of directors shall be in the English language.(b)(1) A society may provide in its laws for an official publication in
which any notice, report or statement required by law to be given to
members, including notice of election, may be published. Such required
reports, notices and statements shall be printed conspicuously in the
publication. If the records of a society show that 2 or more members have
the same mailing address, an official publication mailed to one member
is deemed to be mailed to all members at the same address unless a member
requests a separate copy.(2) Not later than June 1 of each year, a synopsis of the society's
annual statement providing an explanation of the facts concerning the
condition of the society thereby disclosed shall be printed and mailed to
each benefit member of the society or, in lieu thereof, such synopsis may
be published in the society's official publication.(c) A society may provide in its laws or rules for grievance or complaint
procedures for members.
		(Source: P.A. 84-303.) (215 ILCS 5/289.1) (from Ch. 73, par. 901.1)(Section scheduled to be repealed on January 1, 2027)Sec. 289.1. 
		Personal liability.(a) The officers and members of the
supreme governing body or any subordinate body of a society shall not be
personally liable for any benefits provided by a society.(b) Any person may be indemnified and reimbursed by any society for
expenses reasonably incurred by, and liabilities imposed upon, such person
in connection with or arising out of any action, suit or proceeding,
whether civil, criminal, administrative or investigative, or threat
thereof, in which the person may be involved by reason of the fact that he
or she is or was a director, officer, employee or agent of the society or
of any firm, corporation or organization which he or she served in any
capacity at the request of the society. A person shall not be so
indemnified or reimbursed (1) in relation to any matter in such action,
suit or proceedings as to which he or she shall finally be adjudged to be
or have been guilty of breach of a duty as a director, officer, employee or
agent of the society; or (2) in relation to any matter in such action, suit
or proceeding, or threat thereof, which has been made the subject of a
compromise settlement; unless in either such case the person acted in good
faith for a purpose the person reasonably believed to be in or not opposed
to the best interests of the society and, in a criminal action or
proceeding, in addition, had no reasonable cause to believe that his or her
conduct was unlawful. The determination whether the conduct of such person
met the standard required in order to justify indemnification and
reimbursement in relation to any matter described in subpoints (1) or (2)
of the preceding sentence may only be made by the supreme governing body or
board of directors by a majority vote of a quorum consisting of persons who
were not parties to such action, suit or proceeding or by a court of
competent jurisdiction. The termination of any action, suit or proceeding
by judgment, order, settlement, conviction or upon a plea of no contest
as to such person shall not in itself create a conclusive presumption that
the person did not meet the standard of conduct required in order to
justify indemnification and reimbursement. The foregoing right of
indemnification and reimbursement shall not be exclusive of other rights to
which such person may be entitled as a matter of law and shall inure to the
benefit of his or her heirs, executors and administrators.(c) A society shall have power to purchase and maintain insurance on
behalf of any person who is or was a director, officer, employee or agent
of the society, or who is or was serving at the request of the society as a
director, officer, employee or agent of any other firm, corporation or
organization against any liability asserted against such person and
incurred by him or her in any such capacity or arising out of his or her
status as such, whether or not the society would have the power to
indemnify the person against such liability under this Section.
		(Source: P.A. 84-303.) (215 ILCS 5/290.1) (from Ch. 73, par. 902.1)(Section scheduled to be repealed on January 1, 2027)Sec. 290.1. 
		Waiver. 
		The laws of the society may provide that no
subordinate body, nor any of its subordinate officers or members, shall have
the power or authority to waive any of the provisions of the laws of the
society. Such provisions shall be binding on the society and every member
and beneficiary of a member.
		(Source: P.A. 84-303.) (215 ILCS 5/291.1) (from Ch. 73, par. 903.1)(Section scheduled to be repealed on January 1, 2027)Sec. 291.1. Organization. A domestic society organized on or after
January 1, 1986 (the effective date of Public Act 84-303) shall be formed as follows:(a) Seven or more citizens of the United States, a     majority of whom are citizens of this State, who desire to form a fraternal benefit society may make, sign and acknowledge, before some officer competent to take acknowledgement of deeds, articles of incorporation, in which shall be stated:(1) The proposed corporate name of the society,         which shall not so closely resemble the name of any society or insurance company already authorized to transact business in this State as to be misleading or confusing;(2) The place where its principal office shall be         located within this State;(3) The purposes for which it is being formed and         the mode in which its corporate powers are to be exercised. Such purposes shall not include more liberal powers than are granted by this amendatory Act; and(4) The names and residences of the incorporators         and the names, residences and official titles of all the officers, trustees, directors or other persons who are to have and exercise the general control of the management of the affairs and funds of the society for the first year or until the ensuing election, at which all such officers shall be elected by the supreme governing body, which election shall be held not later than one year from the date of issuance of the permanent certificate of authority;(b) Duplicate originals of the articles of     incorporation, certified copies of the society's bylaws and rules, copies of all proposed forms of certificates, applicants and rates therefor, and circulars to be issued by the society and a bond conditioned upon the return to applicants of the advanced payments if the organization is not completed within one year shall be filed with the Director, who may require such further information as the Director deems necessary. The bond with sureties approved by the Director shall be in such amount, not less than $300,000 nor more than $1,500,000, as required by the Director. All documents filed are to be in the English language. If the Director finds that the purposes of the society conform to the requirements of this amendatory Act and all provisions of the law have been complied with, the Director shall approve the articles of incorporation and issue the incorporators a preliminary certificate of authority authorizing the society to solicit members as hereinafter provided;(c) No preliminary certificate of authority issued     under the provisions of this Section shall be valid after one year from its date of issue or after such further period, not exceeding one year, as may be authorized by the Director, upon cause shown, unless the 500 applicants hereinafter required have been secured and the organization has been completed as herein provided. The articles of incorporation and all other proceedings thereunder shall become null and void in one year from the date of the preliminary certificate of authority or at the expiration of the extended period, unless the society shall have completed its organization and received a certificate of authority to do business as hereinafter provided;(d) Upon receipt of a preliminary certificate of     authority from the Director, the society may solicit members for the purpose of completing its organization, shall collect from each applicant the amount of not less than one regular monthly premium in accordance with its table of rates and shall issue to each such applicant a receipt for the amount so collected. No society shall incur any liability other than for the return of such advance premium nor issue any certificate nor pay, allow or offer or promise to pay or allow any benefit to any person until:(1) Actual bona fide applications for benefits         have been secured on not less than 500 applicants and any necessary evidence of insurability has been furnished to and approved by the society;(2) At least 10 subordinate lodges have been         established into which the 500 applicants have been admitted;(3) There has been submitted to the Director,         under oath of the president or secretary, or corresponding officer of the society, a list of such applicants, giving their names, addresses, date each was admitted, name and number of the subordinate lodge of which each applicant is a member, amount of benefits to be granted and premiums therefor;(4) It shall have been shown to the Director, by         sworn statement of the treasurer or corresponding officer of such society, that at least 500 applicants have each paid in cash at least one regular monthly premium as herein provided, which premiums in the aggregate shall amount to at least $150,000. Said advance premiums shall be held in trust during the period of organization, and, if the society has not qualified for a certificate of authority within one year unless extended by the Director, as herein provided, such premiums shall be returned to said applicants; and(5) In the case of a domestic society that is         organized after January 1, 2015 (the effective date of Public Act 98-814), the society meets the following requirements:(i) maintains a minimum surplus of             $2,000,000, or such higher amount as the Director may deem necessary; and(ii)  meets any other  requirements as             determined by the Director.(e) The Director may make such examination and     require such further information as the Director deems necessary. Upon presentation of satisfactory evidence that the society has complied with all the provisions of law, the Director shall issue to the society a certificate of authority to that effect and that the society is authorized to transact business pursuant to the provisions of this amendatory Act; and(f) Any incorporated society authorized to transact     business in this State at the time Public Act 84-303 becomes effective (January 1, 1986) shall not be required to reincorporate.(Source: P.A. 102-558, eff. 8-20-21.) (215 ILCS 5/292.1) (from Ch. 73, par. 904.1)(Section scheduled to be repealed on January 1, 2027)Sec. 292.1. 
		Amendments to Laws.(a) A domestic society may amend its laws in
accordance with the provisions thereof by action of its supreme governing body
at any regular or special meeting thereof or, if its laws so provide, by
referendum. Such referendum may be held in accordance with the provisions
of its laws by the vote of the voting members of the society, by the vote
of delegates or representatives of voting members or by the vote of local
lodges. A society may provide for voting by mail. No amendment submitted for
adoption by referendum shall be adopted unless, within 6 months from the
date of submission thereof, a majority of the members voting shall have
signified their consent to such amendment by one of the methods herein
specified.(b) No amendment to the laws of any domestic society shall
take effect unless approved by the Director, who shall approve such
amendment if the Director finds that it has been duly adopted and is not
inconsistent with any requirement of the laws of this State or with the
character, objects and purposes of the society. Unless the Director shall
disapprove any such amendment within 60 days after the filing of same,
such amendment shall be considered approved. The approval or disapproval of
the Director shall be in writing and mailed to
the society. In case the
Director disapproves such amendment, the reasons therefor shall be stated
in such written notice.(c) Within 90 days from the approval thereof by the Director, all
such amendments, or a synopsis thereof, shall be furnished to all members
of the society either by mail or by publication in full in the official
publication of the society. The affidavit of any officer of the society or
of anyone authorized by it to mail any amendments or synopsis thereof,
stating facts which show that same have been duly addressed and mailed,
shall be prima facie evidence that such amendments, or a synopsis thereof,
have been furnished the addressee.(d) Every foreign or alien society authorized to do business in this
State shall file with the Director a certified copy of all amendments of, or
additions to, its laws within 90 days after the enactment of same.(e) Printed copies of the laws as amended, certified by the secretary or
corresponding officer of the society, shall be prima facie evidence of the
legal adoption thereof.
		(Source: P.A. 84-303.) (215 ILCS 5/293.1) (from Ch. 73, par. 905.1)(Section scheduled to be repealed on January 1, 2027)Sec. 293.1. 
		Institutions. 
		A society may create, maintain and operate, or
may establish organizations to operate, not for profit institutions to
further the purposes permitted by Section 286.1 of this amendatory Act. Such
institutions may furnish services free or at a reasonable charge. Any real
or personal property owned, held or leased by the society for this purpose
shall be reported in every annual statement. Admitted asset status of such
real or personal property shall be in accordance with Section 302.1 of this
amendatory Act.
		(Source: P.A. 84-303.) (215 ILCS 5/294.1) (from Ch. 73, par. 906.1)(Section scheduled to be repealed on January 1, 2027)Sec. 294.1. Reinsurance.(a) A domestic society may enter into reinsurance
transactions only in accordance with Article XI of this Code.(b)  A domestic society may reinsure the risks of another society in connection with a merger transaction with approval by the Director. (Source: P.A. 98-814, eff. 1-1-15.) (215 ILCS 5/295.1) (from Ch. 73, par. 907.1)(Section scheduled to be repealed on January 1, 2027)Sec. 295.1. 
		Consolidations and mergers. 
		A domestic society may enter
into agreements of consolidation or merger only in  accordance with Article
X of this Code.
		(Source: P.A. 84-303.) (215 ILCS 5/295.2)(Section scheduled to be repealed on January 1, 2027)Sec. 295.2. Maintenance of solvency.(a) In the event a domestic society has an authorized control level event described in Section 35A-25 of this Code under circumstances the Director determines will not be promptly remedied, the Director may, in addition to all other actions required or permitted by subsection (b) of Section 35A-25 of this Code, issue an order declaring the domestic society to be in hazardous condition and ordering that all steps be taken to remedy such condition pursuant to this Section.(b) A domestic society may negotiate an agreement to transfer  members, certificates, and other assets and liabilities of the society, in whole or in part, to another organization through merger, consolidation, assumption, or other means.  Such transfer shall be concluded within the timeframe established by the Director and subject to approval by the Director.  Such transfer agreement shall be deemed fully approved by the domestic society upon majority vote of its board of directors.  Such transfer shall be effective notwithstanding the provisions of Section 295.1 of this Code or any other law or regulation or laws of the domestic society requiring another form of notice to or approval by members, which shall be superseded by this Section.(c) In the event of an agreement to transfer under this Section to an organization without a certificate of authority in this State, the Director may grant a limited certificate of authority to such organization, upon request, if the organization does not apply for and obtain a certificate of authority to transact business in this State.  Such limited certificate of authority shall grant the organization authority to service the certificates following the transfer and fulfill all obligations owed to certificate holders but not to otherwise transact insurance business in this State.(d) The board of directors of a domestic society may suspend or modify its qualifications for membership as necessary or appropriate to facilitate an agreement to transfer under this Section, notwithstanding the laws of the society, or any other law or regulation to the contrary.
(Source: P.A. 98-814, eff. 1-1-15.) (215 ILCS 5/296.1) (from Ch. 73, par. 908.1)(Section scheduled to be repealed on January 1, 2027)Sec. 296.1. 
		Conversion of fraternal benefit society to mutual life
insurance company.(a) Any society subject to the provisions of this
amendatory Act possessed of admitted assets in excess of all liabilities at least
equal  to the minimum surplus required of a new mutual legal reserve life
company under Section 43 of this Code transacting the same kind or kinds of
business may, at its option, without reincorporation, adopt and become
subject to the provisions of Article III of this Code, in lieu  of this amendatory Act.(b) The board of directors of the society shall approve such proposed
amendments to the articles of incorporation, the constitution and bylaws
of the society as may be necessary or desirable to make the same conform to
the articles of incorporation and bylaws of a mutual legal reserve life
company, in accordance with the requirements of Article III of this Code.(c) The board of directors of the society shall then submit such
proposed amendments to the Director together with: (1) a copy of the notice
to be given to members and lodges as herein provided; (2) a current
financial statement of the society showing assets, liabilities and surplus
valued in accordance with the requirements of Article III; and (3) the
proposed plan for transition from a fraternal society to a mutual legal
reserve company, including, if pertinent, the following: dissolution of the
lodge system; disposition of property held for the benefit of lodges;
changes in the amount, calculation and collection of future premiums on
policies; the method of selection of officers and board of directors or
trustees to manage and control the mutual company until the regular annual
meeting of its members; and such other changes as may be necessary to an
orderly transition. If the Director finds that: (a) the amendments, notice
and plan are in accordance with the provisions of this amendatory Act and not
inconsistent with the laws and the Constitutions of this State and the
United States; (b) the society has a surplus which, when calculated in
accordance with the requirements of Article III of this Code, is at least
equal to the original surplus required under Article III of a mutual legal
reserve life company transacting the same kind or kinds of business; and (c)
no reasonable objection exists to such conversion, the Director shall,
within a reasonable time, authorize the sending of notices and further
proceedings hereunder.(d) After the Director has given such authority, the board of directors
of the society shall then submit the proposed amendments and plan of
transition, as so approved, to the supreme governing body of such society at
any regular or special meeting thereof, provided a copy of such amendments
and plan have been included in or enclosed with the notice of such meeting,
which notice shall be given as provided in the laws of the society for the
convening of such supreme governing body in regular or special session as
the case may be. At least 90 days prior to the date of such regular or
special meeting, as the case may be, a notice describing the purpose of
the proposed amendments, and including therein or enclosing therewith a
copy of such amendments and plan of transition, all as approved by the
Director, shall be mailed to each lodge or local body of the society
qualified to choose a delegate or delegates to said meeting and also to
each member of the society; for the purpose of this notice the lodges or
local bodies and the members and the addresses of same shall be taken as
those shown by the records of the society as of a date not earlier than 120
days prior to the date set for such meeting. The affidavit of
any officer, clerk or agent of the company, or of anyone authorized to mail
such notices, that the notices required by this Section bearing the required
postage have been duly addressed and mailed shall, upon final approval by
the Director of the proceedings hereunder, constitute conclusive evidence
that such notice has been duly given in accordance herewith.(e) The affirmative votes of 2/3 of the members of such supreme
governing body present at such meeting shall be necessary for the adoption
of amendments and the plan of transition under  this Section, provided,
however, that 2/3 of the elective members present shall vote in
favor thereof; the amendments and plan adopted shall be submitted to the
Director for his final approval. If the Director shall find that the
amendments and plan and the adoption thereof are in accordance with this
Section he shall approve the same, and, not less than 30 days nor more
than 60 days after such approval, he shall issue a certificate of
authority authorizing the company to do business subject to and entitled to
the benefits of Article III of this Code. Upon issuance of such
certificate, any right in the society to assess its members shall expire and
any provision for an assessment contained in the policies issued by the
society shall become thenceforth unenforceable, null and void.
		(Source: P.A. 84-303.) (215 ILCS 5/297.1) (from Ch. 73, par. 909.1)(Section scheduled to be repealed on January 1, 2027)Sec. 297.1. Benefits.(a) A society may provide the following contractual
benefits in any form:(1) Death benefits;(2) Endowment benefits;(3) Annuity benefits;(4) Temporary or permanent disability benefits;(5) Hospital, medical or nursing benefits;(6) Monument or tombstone benefits to the memory of     deceased members; and(7) Such other benefits as authorized for life     insurers  and which are not inconsistent with this amendatory Act.(b) A society shall specify in its rules  those persons who may be
issued, or covered by, the contractual benefits in subsection (a),
consistent with providing benefits to members and their dependents.
A society may provide benefits on the lives of children under the minimum age
for adult membership upon application of an adult person.(c) After the effective date of this amendatory Act of the 98th General Assembly, a society shall provide an applicant for contractual benefits a disclosure statement that reads  substantially as follows:". . . . . . .(name of the society) is licensed to do     business in the State of Illinois as a fraternal benefit society. As such, it is not included in the Illinois Life and Health Guaranty Association (otherwise known as the Guaranty Association). This means that fraternal benefit societies cannot be assessed for the insolvency of other life insurers or other fraternal benefit societies. By law, a fraternal benefit society is responsible for its own solvency. If there is an impairment of reserves, a certificate holder may be assessed a proportionate share of the impairment. This process is described in the certificate issued by the society.".The statement must appear immediately above the applicant's signature on the society's membership application or certificate or policy application, in uppercase and bold type or boxed. 
(Source: P.A. 98-814, eff. 1-1-15.) (215 ILCS 5/298.1) (from Ch. 73, par. 910.1)(Section scheduled to be repealed on January 1, 2027)Sec. 298.1. 
		Beneficiaries.(a) The owner of a benefit  contract shall
have the right at all times to change the beneficiary or beneficiaries in
accordance with the laws or rules of the society unless the owner waives
this right by specifically requesting in writing that the beneficiary
designation be irrevocable. A society may, through its laws or rules, limit
the scope of beneficiary designations and shall provide that no revocable
beneficiary shall have or obtain any vested interest in the proceeds of any
certificate until the certificate has become due and payable in conformity
with the provisions of the benefit contract.(b) A society may make provision for the payment of funeral benefits to
the extent of such portion of any payment under a certificate as might
reasonably appear to be due to any person equitably entitled thereto by
reason of having incurred expense occasioned by the burial of the member,
provided the portion so paid shall not exceed the sum of $2000.(c) If, at the death of any person insured under a benefit contract,
there is no lawful beneficiary to whom the proceeds shall be payable, the
amount of such benefit, except to the extent that funeral  benefits may be
paid as hereinbefore provided, shall be payable to the personal
representative of the deceased insured, provided that if the owner of the
certificate is other than the insured, such proceeds shall be payable to such owner.
		(Source: P.A. 84-303.) (215 ILCS 5/299.1a) (from Ch. 73, par. 911.1a)(Section scheduled to be repealed on January 1, 2027)Sec. 299.1a. Benefits not attachable.(a) No money or other charity, relief
or aid to be paid, provided or rendered by any society shall be liable to
attachment, garnishment or other process or to be seized, taken,
appropriated or applied by any legal or equitable process or operation of
law to pay any debt or liability of a member or beneficiary, or any other
person who may have a right thereunder, either before or after payment by the
society.(b) Any benefit association doing
business in
this State and governed by this Article XVII shall encumber or surrender
accounts as defined in Section 10-24 of the Illinois Public Aid Code
held by the benefit
association owned by any responsible relative who is subject to a child
support lien,
upon notice of the lien or levy by the Department of Healthcare and Family Services (formerly Illinois Department of Public Aid)
or its successor agency pursuant to Section 10-25.5 of the Illinois Public Aid
Code, or upon notice of interstate lien from any other state's agency
responsible for implementing the child support enforcement program set forth in
Title IV, Part D of the Social Security Act.This Section shall not prohibit the furnishing of information in
accordance
with the federal
Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
Any benefit association governed by this Article XVII shall enter into an
agreement for data
exchanges with the Department of Healthcare and Family Services
						
						provided the Department of Healthcare and Family Services pays to the benefit association a reasonable fee not to exceed its
actual cost incurred.  A benefit association providing
information in accordance with this item shall not be liable to any account
holder or other person for any disclosure of information to a State agency, for
encumbering or surrendering any accounts as defined in Section 10-24 of the
Illinois Public Aid Code held by the benefit association
in response to a lien
or order to withhold and deliver issued by a State agency, or for any other
action taken pursuant to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence or willful misconduct.
A benefit association shall have no obligation to hold, encumber, or
surrender accounts until
it has been served with a subpoena, summons, warrant, court or administrative
order, lien, or levy requiring that action.
		(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 5/299.1b)(Section scheduled to be repealed on January 1, 2027)Sec. 299.1b. Data exchanges;
administrative liens.(a) Any benefit
association doing business in the State and governed by
this Code shall enter into an agreement for data exchanges
with the Department of Healthcare and Family Services
						
for the purpose of locating accounts as defined in Section 10-24 of the
Illinois Public Aid Code of responsible relatives to
satisfy past-due child support owed by responsible
relatives under an order for support entered by a court or
administrative body of this or any other State on behalf
of resident or non-resident persons.(b) Notwithstanding any provisions in this Code to the
contrary, a benefit association
shall not be liable to any person:(1) for any disclosure of information to the     Department of Healthcare and Family Services (formerly Illinois Department of Public Aid) under subsection (a);(2) for encumbering or surrendering any accounts as     defined in Section 10-24 of the Illinois Public Aid Code held by such benefit association in response to a notice of lien or levy issued by the Department of Healthcare and Family Services (formerly Illinois Department of Public Aid), or by any other state's child support enforcement agency, as provided for in Section 299.1a of this Code; or(3) for any other action taken in good faith to     comply with the requirements of subsection (a).		(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 5/300.1) (from Ch. 73, par. 912.1)(Section scheduled to be repealed on January 1, 2027)Sec. 300.1. The benefit contract.(a) Every society authorized to do
business in this State shall issue to each owner of a benefit contract a
certificate specifying the amount of benefits provided thereby. The
certificate, together with any riders or endorsements attached thereto,
the laws of the society, the application for membership, the application
for insurance and declaration of insurability, if any, signed by the
applicant and all amendments to each thereof shall constitute the benefit
contract, as of the date of issuance, between the society and the owner,
and the certificate shall so state. A copy of the application for insurance
and declaration of insurability, if any, shall be endorsed upon or attached
to the certificate. All statements on the application shall be
representations and not warranties. Any waiver of this provision shall be void.(b) Any changes, additions or amendments to the laws of the society duly
made or enacted subsequent to the issuance of the certificate shall bind
the owner and the beneficiaries and shall govern and control the benefit
contract in all respects the same as though such changes, additions or
amendments had been made  prior to and were in force at the time of the
application for insurance, except that no change, addition or amendment
shall destroy or diminish benefits which the society contracted to give the
owner as of the date of issuance.(c) Any person upon whose life a benefit contract is issued prior to
attaining the age of majority shall be bound by the terms of the
application and certificate and by all the laws and rules of the society to
the same extent as though the age of majority had been attained  at the
time of application.(d) A society shall provide in its laws and its certificates that, if its
reserves as to all or any class of certificates become impaired, its board of
directors or corresponding body may require  that there shall be paid  by
the owner to the society an assessment in the amount of the owner's equitable proportion of
such deficiency as ascertained by its board, and that, if the payment is not
made, either (1) it shall stand as an indebtedness against the certificate
and draw interest not to exceed the rate specified for certificate loans
under the certificates; or (2) in lieu of or in combination with (1), the
owner may accept a proportionate reduction in benefits  under  the
certificate. However, in no event may an assessment obligation be forgiven, credited, or repaid by whatever means or however labeled by the society in lieu of     collection or reduction in benefits, unless provided to all society members and approved in writing by the Director, except that the forgiveness or repayment of any assessments issued by a society that remain outstanding as of January 1, 2015 (the effective date of Public Act 98-814) may be forgiven or repaid by any manner or plan certified by an independent actuary and filed with the Director to make reasonable and adequate provision for the forgiveness or repayment of the assessment to all society members. Notwithstanding the foregoing, a society may fully repay, credit, or forgive an assessment from the date of death of any life insured under a certificate so long as the plan to forgive or repay the assessment is certified by an independent actuary and filed with the Director to make reasonable and adequate provision for the forgiveness or repayment of the assessment to all assessed society members as a result of the death. The society may specify the manner of the election and which
alternative is to be presumed if no election is made. No such assessment shall take effect unless a 30-day notification has been provided to the Director, who shall have the ability to disapprove the assessment only if the Director finds that such assessment is not in the best interests of the benefit members of the domestic society. Disapproval by the Director shall be made within 30 days after receipt of notice and shall be in writing and mailed to the domestic society.  If the Director disapproves the assessment, the reasons therefor shall be stated in the written notice.(e) Copies of any of the documents mentioned in this Section, certified
by the secretary or corresponding officer of the society, shall be received
in evidence of the terms and conditions thereof.(f) No certificate shall be delivered or issued for delivery in this
State unless a copy of the form has been filed with the Director in the
manner provided for like policies issued by life insurers in this State.
Every life, accident, health or disability insurance certificate and every
annuity certificate issued on or after one year from January 1, 1986 (the effective date of Public Act 84-303)
 shall meet the standard contract provision requirements not
inconsistent with Public Act 84-303 for like policies issued by life insurers in
this State except that a society may provide for a grace period for payment
of premiums of one full month in its certificates. The certificate shall
also contain a provision stating the amount of premiums which are payable
under the certificate and a provision reciting or setting forth the
substance of any sections of the society's laws  or rules in force at the
time of issuance of the certificate which, if violated, will result in the
termination or reduction of benefits payable under the certificate. If the
laws of the society provide for expulsion or suspension of a member, the
certificate shall also contain a provision that any member so expelled or
suspended, except for nonpayment of a premium or within the contestable
period for material misrepresentation in the application for membership or
insurance, shall have the privilege of maintaining the certificate in force
by continuing payment of the required premium.(g) Benefit contracts issued on the lives of persons below the society's
minimum age for adult membership may provide for transfer of control or
ownership to the insured at an age specified in  the certificate. A society
may require approval of an application for membership in order to effect
this transfer and may provide in all other respect for the regulation,
government and control of such certificates and all rights, obligations and
liabilities incident thereto and connected therewith. Ownership rights
prior to such transfer shall be specified in the certificate.(h) A society may specify the terms and conditions on which benefit
contracts may be assigned.
(Source: P.A. 101-81, eff. 7-12-19.) (215 ILCS 5/301.1) (from Ch. 73, par. 913.1)(Section scheduled to be repealed on January 1, 2027)Sec. 301.1. 
		Nonforfeiture benefits, cash surrender values, certificate
loans and other  options.(a) For certificates issued prior to one year
after the effective date of this amendatory Act, the value of every paid-up
nonforfeiture benefit and the amount of  any cash surrender value, loan or
other option granted shall comply with the provisions of law applicable
immediately prior to the effective date of this amendatory Act.(b) For certificates issued on or after one year from the effective date
of this amendatory Act for which reserves are computed on the Commissioner's
1941 Standard Ordinary Mortality Table, the Commissioner's 1941 Standard
Industrial Table, the Commissioner's 1958 Standard Ordinary Mortality
Table, the Commissioner's 1980 Standard Mortality Table or any more
recent table made  applicable to life insurers, every paid-up nonforfeiture
benefit and the amount of any cash surrender value, loan or other  option
granted shall not be less than the corresponding amount ascertained in
accordance with the laws of this State applicable to life insurers issuing
policies containing like benefits based upon such tables.
		(Source: P.A. 84-303.) (215 ILCS 5/302.1) (from Ch. 73, par. 914.1)(Section scheduled to be repealed on January 1, 2027)Sec. 302.1. 
		Investments and admitted assets. 
		A domestic society shall
invest its funds only in such investments as are authorized by the laws of
this State for the investment of assets of life insurers and subject to the
limitations  thereon. Any foreign or alien society permitted or seeking to
do business in this State which invests its funds in accordance with the
laws of the state, district, territory, country or province in which it is
incorporated shall be held to meet the requirements of this Section for
the investment of funds. Admitted assets in addition to investments
authorized by this Section and Article VIII and Article VIII 1/2 of this
Code shall be in accordance with Section 3.1 of this Code.
		(Source: P.A. 84-303.) (215 ILCS 5/303.1) (from Ch. 73, par. 915.1)(Section scheduled to be repealed on January 1, 2027)Sec. 303.1. 
		Funds.(a) All assets shall be held, invested and disbursed
for the use and benefit of the society, and no member or beneficiary shall
have or acquire individual rights therein or become entitled to any
apportionment on the surrender of any part thereof except as provided in
the benefit contract.(b) A society may create, maintain, invest, disburse and apply any
special fund or funds necessary to carry out any purpose permitted by the
laws of such society.(c) A society may, pursuant to resolution of its supreme governing body,
establish and operate one or more separate accounts and issue contracts on
a variable basis, subject to the provisions of Article XIV 1/2 of this
Code. To the extent the society deems it necessary in order to comply with
any applicable federal or State law, or any rules issued thereunder, the
society may adopt special procedures for the conduct of the business and
affairs of a separate account; may, for persons having beneficial interests
therein, provide special voting and other rights, including without
limitation special rights and procedures relating to investment policy,
investment advisory services, selection of certified public accountants
and selection of a committee to manage the business and affairs of the
account; and may issue contracts on a variable  basis to which subsection
300.1(b) and 300.1(d) of this amendatory Act shall not apply.
		(Source: P.A. 84-303.) (215 ILCS 5/304.2) (from Ch. 73, par. 916.2)(Section scheduled to be repealed on January 1, 2027)Sec. 304.2. 
		Taxation. 
		Every society organized or licensed under this
amendatory Act is hereby declared to be a charitable and benevolent institution,
and all of its funds shall be exempt from all and every State, county,
district, municipal and school tax other than taxes on real estate and office equipment.
		(Source: P.A. 84-303.) (215 ILCS 5/305.1) (from Ch. 73, par. 917.1)(Section scheduled to be repealed on January 1, 2027)Sec. 305.1. 
		Valuation.(a) Standards of valuation for certificates
issued prior to one year after the effective date of this amendatory Act shall be
those provided by the laws applicable immediately prior to the  effective
date of this amendatory Act.(b) The minimum standards of valuation for certificates issued on or
after one year from the effective date of this amendatory Act shall be based on
the following tables:(1) For certificates of life insurance - the     Commissioner's 1941 Standard Ordinary Mortality Table, the Commissioner's 1941 Standard Industrial Mortality Table, the Commissioner's 1958 Standard Ordinary Mortality Table, the Commissioner's 1980 Standard Ordinary Mortality Table or any more recent table made applicable to life insurers; and(2) For annuity and pure endowment certificates, for     total and permanent disability benefits, for accidental death benefits and for non-cancellable accident and health benefits - such tables as are  authorized for use by life insurers in this State.All of the above shall be under valuation methods and standards including,
but not limited to, interest assumptions in accordance  with the laws of
this State applicable  to life insurers issuing policies containing like benefits.(c) The Director may, in his or her discretion, accept other standards
for valuation if the Director finds that the reserves produced thereby will
not be less in the aggregate than reserves computed in accordance with the
minimum valuation standard herein prescribed. The Director may, in his or
her discretion, vary the standards of mortality applicable to all benefit
contracts on substandard lives or other extra-hazardous lives by any
society authorized to do business in this State.(d) Any society, with the consent of the Commissioner of Insurance of the
state of domicile of the society and under such conditions, if any, which
the Commissioner may impose, may establish and maintain reserves on its
certificates in excess of the  reserves required thereunder, but the
contractual rights of any benefit member shall not be affected thereby.
		(Source: P.A. 84-303.) (215 ILCS 5/306.1) (from Ch. 73, par. 918.1)(Section scheduled to be repealed on January 1, 2027)Sec. 306.1. 
		Reports. 
		Every society transacting business in this State
shall annually, on or before the first day of March, unless for cause shown
such time has been extended by the Director, file with the Director a true
statement of its financial  condition, transactions and affairs for the
preceding calendar year in accordance with Section 136 of this Code. The
statement shall be in general form and context as approved by the National
Association of Insurance Commissioners for fraternal benefit societies and
as supplemented by additional information required by the Director.
		(Source: P.A. 84-303.) (215 ILCS 5/307.1) (from Ch. 73, par. 919.1)(Section scheduled to be repealed on January 1, 2027)Sec. 307.1. 
		Annual license. 
		Societies which were authorized to transact
business in this State prior to the effective date of this amendatory Act may
continue  such business until the first day of July next succeeding the
effective date of this amendatory Act. The authority of such societies and all
societies hereafter issued certificates of authority may thereafter be
renewed annually, but in all cases to terminate on the first day of the
succeeding July. A certified copy or duplicate of such certificate of
authority shall be prima facie evidence that the licensee is a fraternal
benefit society within the meaning of this amendatory Act.
		(Source: P.A. 84-303.) (215 ILCS 5/308.1) (from Ch. 73, par. 920.1)(Section scheduled to be repealed on January 1, 2027)Sec. 308.1. 
		Examination of societies - adverse publications.(a) The
Director, or any person he or she may appoint, may examine any domestic,
foreign or alien society transacting or applying for admission to transact
business in this State in the same manner as authorized for examination of
domestic, foreign or alien insurance companies. Requirements of notice and
an opportunity to respond before findings are made public as provided in
the laws regulating insurance companies shall also be applicable to the
examination of societies.(b) The expense of each examination and  of each valuation, including
compensation and actual expense of examiners, shall be paid by the society
examined or whose certificates are valued, upon statements  furnished by the Director.
		(Source: P.A. 84-303.) (215 ILCS 5/309.1) (from Ch. 73, par. 921.1)(Section scheduled to be repealed on January 1, 2027)Sec. 309.1. 
		Foreign or alien society - admission. 
		No foreign or alien
society shall transact business in this State without a certificate of
authority issued by the Director in accordance with Article VI of this
Code. Any such society desiring admission to this State shall comply
substantially with  the requirements and limitations of this amendatory Act
applicable to domestic societies.
		(Source: P.A. 84-303.) (215 ILCS 5/310.1) (from Ch. 73, par. 922.1)(Section scheduled to be repealed on January 1, 2027)Sec. 310.1. 
		Suspension, revocation or refusal to renew certificate of
authority.(a) Domestic Societies. When, upon  investigation, the Director
is satisfied that any domestic society transacting business under this
amendatory Act has exceeded its powers or has failed to comply with any
provisions  of this amendatory Act or is conducting business fraudulently or in
a
way hazardous to its members, creditors or the public or is not carrying
out its contracts in good faith, the Director shall notify the society of
his or her findings, stating in writing the grounds of his or her
dissatisfaction, and, after reasonable notice, require the society on a date
named to show cause why its certificate of authority should not be revoked
or suspended or why such society should not be fined as hereinafter
provided or why the Director should not proceed against  the society under
Article XIII  of this Code. If, on the date named in said notice, such
objections have not been removed to the satisfaction of the Director
or if the society does not present good and sufficient reasons why its
authority to transact business in this State should not at that time be
revoked or suspended or why such society should not be fined as
hereinafter provided,  the Director may revoke the authority  of the society to
continue business in this State and proceed against the society under
Article XIII of this Code or suspend such certificate of authority for any
period of time up to, but not to exceed, 2 years; or may by order require
such society to pay to the people of the State of Illinois a penalty in a
sum not exceeding $10,000, and, upon the failure of such
society to pay such penalty within 20 days after the mailing of such
order, postage prepaid, registered and addressed to the last known place
of business of such society, unless such order is stayed by an order of a
court of competent jurisdiction, the Director may revoke or suspend the
license of such society for any period of time up to, but not exceeding, a
period  of 2 years.(b) Foreign or alien societies. The Director shall suspend, revoke or
refuse to renew certificates of authority in accordance with Article VI of this
Code.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/311.1) (from Ch. 73, par. 923.1)(Section scheduled to be repealed on January 1, 2027)Sec. 311.1. 
		Injunction proceedings.(a) Upon the refusal or neglect of
any society to make the annual report, as provided in this amendatory Act, or in
case any such society shall exceed its powers or shall conduct its business
fraudulently or is not carrying out its contracts in good faith or shall
be 30 days in arrears in the payment of death or disability claims,
endowments or annuities after the same have been allowed by the board of
directors or other person or persons whose duty it is to pass upon such
claims and after establishment of the interest and competency of the payee
to receive, receipt and acquit for payment, provided that such claim shall
be approved or disapproved within 60 days after receipt of due proof of
loss or death or, after one year's existence, shall have a membership of
less than 500 or shall determine to discontinue business or shall
fail to comply with any of the provisions of this amendatory Act, the Director shall
immediately commence, or cause to be commenced, an action against such society
under Article XIII of this Code and to enjoin the same from carrying on
any business, and an injunction may be granted, upon proper showing by the
Director, in any circuit court in this State; provided, however, that no
injunction against any society within this State or application for or
appointment of a receiver or action to prevent any society from carrying
on business in this State shall be made or granted by any court except on
the application of the Director and after written notice duly made and served
upon the chief executive officer of such society within this State, or, if
incorporated under the laws of another state, then such notice may be served
by sending the same to the president or secretary of the society by registered
mail at the home office of the society, and a full hearing before such court,
whether the party seeking such relief be the State, member of such society
or any other person whatsoever.(b) If the court shall find that such society so enjoined was in default as
charged and the violation complained of shall have been corrected and the
injunction dissolved, the society may continue in business provided it
shall have satisfied the Director that it has paid the costs of the action.
Any officer, agent or person acting for any society or subordinate body
thereof within this State and who shall transact any business for such
society contrary to the provisions of such injunction or prohibition while
such society shall be so enjoined or prohibited from doing business
pursuant to this amendatory Act shall be deemed guilty of a Class A misdemeanor.
		(Source: P.A. 84-303.) (215 ILCS 5/312.1) (from Ch. 73, par. 924.1)(Section scheduled to be repealed on January 1, 2027)Sec. 312.1. 
		Salaries. 
		No domestic society shall pay any salary,
compensation or emolument to any officer, trustee or director thereof, nor
any salary, compensation or emolument amounting in any year to more than
$40,000 to any person, firm or corporation, unless such payment be
first authorized by the supreme governing body or the board of directors or
corresponding body. No such society shall make any agreement with any of
its officers, trustees or directors or salaried employees whereby it agrees
that for any service rendered or to be rendered he shall receive any
salary, compensation or emolument that will extend beyond a
period of 4 years from the date of such agreement, provided that payment of
an amount not in excess of 20% of the salary of any of its officers,
directors or salaried employees may by written agreement be deferred
beyond such period of 4 years, which agreement may include conditions to
be met by such officers, directors or salaried employees before payment
will be made, and provided further that a domestic society may enter
into contracts with its producer for the payment of renewal commissions. No
such society shall enter into a special contract which will compensate any
officer, trustee or director based on a percentage of premiums collected by
the society or on a percentage of the entire insurance business of the
society. No such society shall grant any pension to any officer, trustee or
director thereof or to any member of his family after his death except
that it may provide a pension pursuant to the terms of a uniform retirement
plan adopted by the board of directors.
		(Source: P.A. 84-303.) (215 ILCS 5/313.1) (from Ch. 73, par. 925.1)(Section scheduled to be repealed on January 1, 2027)Sec. 313.1. 
		Licensing of producers.(a) Except as otherwise provided
in this Section, producers of societies shall be subject to the provisions
of Article XXXI of this Code.(b) No examination or license shall be required of any regular salaried
officer, employee or member of a licensed society who devotes substantially
all of his or her services to activities other than the solicitation of
fraternal benefit contracts from the public and who receives for the
solicitation of such contracts no commission or other compensation
directly dependent upon the amount of business obtained.(c) Any producer, representative or member of a society who devotes or
intends to devote less than 50% of such person's time to the
solicitation and procurement of benefit contracts for such society shall be
exempt from the requirements of subsection (a). Any person who in the
preceding calendar year has solicited and procured life insurance contracts
on behalf of any society in an amount of insurance in excess of $100,000
or, in the case of any other kind or kinds of insurance which the society
might write, on the persons of more than 25 individuals and who has
received or will receive a commission or other compensation therefor shall
be presumed to be devoting, or intending to devote, 50% of time
to the solicitation or
procurement of benefit contracts for such society.
		(Source: P.A. 84- 303.) (215 ILCS 5/314.1) (from Ch. 73, par. 926.1)(Section scheduled to be repealed on January 1, 2027)Sec. 314.1. 
		Unfair methods of competition and unfair and deceptive
acts and practices.  Every society authorized to do business in this State
shall be subject to the provisions of Article XXVI of this Code, provided,
however, that nothing in such provisions shall be construed as applying to
or affecting the right of any society to determine its eligibility
requirements for membership or be construed as applying to or affecting
the offering of benefits exclusively to members or persons eligible for
membership in the society by a subsidiary corporation or affiliated
organization of the society.
		(Source: P.A. 84-303.) (215 ILCS 5/315.2) (from Ch. 73, par. 927.2)(Section scheduled to be repealed on January 1, 2027)Sec. 315.2. 
		Service of process.(a) Every society authorized to do
business in this State shall appoint in writing the Director and each
successor in office to be its true and lawful attorney upon whom all lawful
process in any action or proceeding against it shall be served and shall
agree in such writing that any lawful process against it which is served on
said attorney shall be of the same legal force and validity as if served
upon the society and that the authority shall continue in force so long as
any liability remains outstanding in this State. Copies of such
appointment, certified by said Director, shall be deemed sufficient evidence
thereof and shall be admitted in evidence with the same force and effect as
the original thereof might be admitted.(b) Service shall be made by delivering to and leaving with the Director
duplicate copies of such process with payment of the fee prescribed by this
Code and the service thereof shall constitute sufficient service upon the
society. When legal process against a society is served upon the Director,
the Director shall forthwith forward one of the duplicate copies, by
certified or registered mail prepaid, to the society. No such service shall
require a society to file its answer, pleading or defense in less than
30 days from the date of mailing the copy of the service to a society
unless otherwise ordered by the court. Legal process shall not be served
upon a society except in the manner herein provided.
		(Source: P.A. 84-303.) (215 ILCS 5/315.3) (from Ch. 73, par. 927.3)(Section scheduled to be repealed on January 1, 2027)Sec. 315.3. 
		Review. 
		The provisions of the Administrative Review Law,
and all amendments and modifications thereof, and the rules adopted
pursuant thereto shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the Department.
		(Source: P.A. 84-303.) (215 ILCS 5/315.4) (from Ch. 73, par. 927.4)(Section scheduled to be repealed on January 1, 2027)Sec. 315.4. 
		Penalties.(a) Any person who willfully makes a false or
fraudulent statement in or relating to an application for membership or for
the purpose of obtaining money from, or a benefit in, any society shall upon
conviction be fined not less than $200 nor more than $10,000 or be subject to
 imprisonment in the county jail not less than 30 days nor more than one
year, or both.(b) Any person who willfully makes a false or fraudulent statement in any
verified report or declaration under oath required or authorized by this
amendatory Act, or of any material fact or thing contained in a sworn statement
concerning the death or disability of an insured for the purpose of
procuring payment of a benefit named in the certificate, shall be guilty of
perjury and shall be subject to the penalties therefor prescribed by law.(c) Any person who solicits membership for, or in any manner assists in
procuring membership in, any society not licensed to do business in this
State shall upon conviction be fined not less than $100 nor more
than $400.(d) Any person guilty of a willful violation of, or neglect or refusal
to comply with, the provisions of this amendatory Act for which a penalty is
not
otherwise prescribed shall upon conviction be subject to a fine
not exceeding $10,000.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/315.5) (from Ch. 73, par. 927.5)(Section scheduled to be repealed on January 1, 2027)Sec. 315.5. 
		Exemption of certain societies.(a) Nothing contained in
this amendatory Act shall be so construed as to affect or apply to:(1) grand or subordinate lodges of societies, orders     or associations now doing business in this State which provide benefits exclusively through local or subordinate lodges;(2) orders, societies or associations which admit to     membership only persons engaged in one or more crafts or hazardous occupations, in the same or similar lines of business, insuring only their own members and their families, and the ladies' societies or ladies' auxiliaries to such orders, societies or associations;(3) domestic societies which limit their membership     to employees of a particular city or town, designated firm, business house or corporation which provide for a death benefit of not more than $700 or disability benefits of not more than $650 to any person in any one year, or both; or(4) domestic societies or associations of a purely     religious, charitable or benevolent description which provide for a death benefit of not more than $400 or for disability benefits of not more than $350 to any one person in any one year, or both.(b) Any such society or association described in subsections (a)(3) or
(a)(4) supra which provides for death or disability benefits for which
benefit certificates are issued and any such society or association
included in subsection (a)(4) which has more than 1000 members
shall not be exempted from the provisions of this amendatory Act but shall
comply with all requirements thereof.(c) No society which, by the provisions of this Section, is exempt from
the requirements of this amendatory Act, except any society  described in
subsection (a)(2) supra, shall give or allow, or promise to give or allow,
to any person any compensation for procuring new members.(d) Every society which provides for benefits in case of death or
disability resulting solely from accident and which does not obligate
itself to pay natural death or sick benefits shall have all of the
privileges and be subject to all the applicable provisions and regulations
of this amendatory Act except that the provisions thereof relating to medical
examination, valuations of benefit certificates and incontestability
shall not apply to such society.(e) The Director may require from any society or association, by
examination or otherwise, such information as will enable  the Director to
determine whether such society or association is exempt from the provisions
of this amendatory Act.(f) Societies  exempted under the provisions of this Section shall
also be exempt from all other provisions of the insurance laws of this State.
		(Source: P.A. 86-187.) (215 ILCS 5/315.6) (from Ch. 73, par. 927.6)(Section scheduled to be repealed on January 1, 2027)Sec. 315.6. Application of other Code provisions. Unless otherwise
provided in this amendatory Act, every fraternal benefit society shall be
governed
by this amendatory Act and shall be exempt from all other provisions of the
insurance laws of this State not only in governmental relations with the
State but for every other purpose, except for those provisions specified in
this amendatory Act and except as follows:(a) Sections 1, 2, 2.1, 3.1, 117, 118, 132, 132.1,     132.2, 132.3, 132.4, 132.5, 132.6, 132.7, 133, 134, 136, 138, 139, 140, 141, 141.01, 141.1, 141.2, 141.3, 143, 143c, 144.1, 147, 148, 149, 150, 151, 152, 153, 154.5, 154.6, 154.7, 154.8, 155, 155.04, 155.05, 155.06, 155.07, 155.08 and 408 of this Code; and(b) Articles VIII 1/2, XII, XII 1/2, XIII, XXIV, and     XXVIII of this Code.(Source: P.A. 98-814, eff. 1-1-15.) (215 ILCS 5/315.7) (from Ch. 73, par. 927.7)(Section scheduled to be repealed on January 1, 2027)Sec. 315.7. 
		Severability. 
		If any provision of this amendatory Act or the
application of such provision to any circumstance is held invalid, the
remainder of the amendatory Act or the application of the provision to other
circumstances shall not be affected thereby.
		(Source: P.A. 84-303.) (215 ILCS 5/315.9)(Section scheduled to be repealed on January 1, 2027)Sec. 315.9. Voluntary dissolution.   Upon application to the Director, a domestic society may request that it be dissolved and that its existence be terminated.  The  application shall demonstrate that the applicant has satisfied its members' certificate obligations or that it has transferred such obligations to another organization, domestic or foreign, by means of assumption or bulk reinsurance or otherwise, and that the domestic society's supreme governing body has approved the termination and dissolution.  The application shall contain any other information required by the Director. Any limitation related to reinsurance by a domestic society shall not apply to reinsurance entered into in conjunction with the transfer of members' certificate obligations as a part of a voluntary dissolution.  Upon approval of the application by the Director, the domestic society shall be deemed dissolved and its existence terminated as of the date set forth in the application.
(Source: P.A. 98-814, eff. 1-1-15.)
(215 ILCS 5/Art. XX.5 heading) ARTICLE XX-1/2  
		HEALTH CARE REIMBURSEMENT (215 ILCS 5/370f) (from Ch. 73, par. 982f)Sec. 370f. 
		Short Title. 
		This Article may be cited as the "Health Care
Reimbursement Reform Act of 1985".
		(Source: P.A. 84-618.) (215 ILCS 5/370g) (from Ch. 73, par. 982g)Sec. 370g. Definitions. As used in this Article, the following definitions
apply:(a) "Health care services" means health care services or products
rendered or sold by a provider within the scope of the provider's license
or legal authorization.  The term includes, but is not limited to, hospital,
medical, surgical, dental, vision and pharmaceutical services or products.(b) "Insurer" means an insurance company or a health service corporation
authorized in this State to issue policies or subscriber contracts which
reimburse for expenses of health care services.(c) "Insured" means an individual entitled to reimbursement for expenses
of health care services under a policy or subscriber contract issued or
administered by an insurer.(d) "Provider" means an individual or entity duly licensed or legally
authorized to provide health care services.(e) "Noninstitutional provider" means any person licensed under the Medical
Practice Act of 1987, as now or hereafter amended.(f) "Beneficiary" means an individual entitled to reimbursement for
expenses of or the discount of provider fees for health care services under
a program where the beneficiary has an incentive to utilize the services of a
provider which has entered into an agreement or arrangement with an
administrator.(g) "Administrator" means any person, partnership or corporation, other
than an insurer or health maintenance organization holding a certificate of
authority under the "Health Maintenance Organization Act", as now or hereafter
amended, that arranges, contracts with, or administers contracts with a
provider whereby beneficiaries are provided an incentive to use the services of
such provider.(h) "Emergency medical condition" has the meaning given to that term in Section 10 of the Managed Care Reform and Patient Rights Act. (Source: P.A. 102-409, eff. 1-1-22.) (215 ILCS 5/370h) (from Ch. 73, par. 982h)Sec. 370h. 
		Noninstitutional providers. 
		Before entering into any agreement
under this Article an insurer or administrator shall establish terms and
conditions that must be met by noninstitutional providers wishing to enter into
an agreement with the insurer or administrator.  These terms and conditions may
not discriminate unreasonably against or among noninstitutional providers.
Neither difference in prices among noninstitutional providers produced by
a process of individual negotiation nor price differences among other
noninstitutional providers in different geographical areas or different
specialties constitutes unreasonable discrimination.An insurer or administrator shall not refuse to contract with any
noninstitutional provider who meets the terms and conditions
established by the insurer or administrator.
		(Source: P.A. 90-655, eff. 7-30-98.) (215 ILCS 5/370i) (from Ch. 73, par. 982i)Sec. 370i. 
		
		Policies, agreements or arrangements with incentives or
limits on reimbursement authorized.(a) Policies, agreements or arrangements issued under this Article may
not contain terms or conditions that would operate unreasonably to restrict
the access and availability of health care services for the insured.(b) An insurer or administrator may:(1) enter into agreements with certain providers of     its choice relating to health care services which may be rendered to insureds or beneficiaries of the insurer or administrator, including agreements relating to the amounts to be charged the insureds or beneficiaries for services rendered;(2) issue or administer programs, policies or     subscriber contracts in this State that include incentives for the insured or beneficiary to utilize the services of a provider which has entered into an agreement with the insurer or administrator pursuant to paragraph (1) above.(c) After the effective date of this amendatory Act of the 92nd General
Assembly, any insurer
that arranges, contracts with, or administers contracts with a provider whereby
beneficiaries are
provided an incentive to use the services of such provider must include the
following disclosure
on its contracts and evidences of coverage: "WARNING, LIMITED BENEFITS WILL
BE
PAID WHEN NON-PARTICIPATING PROVIDERS ARE USED. You should be aware that
when you elect to utilize the services of a non-participating provider for a
covered service in
non-emergency situations, benefit payments to such non-participating provider
are not based
upon the amount billed. The basis of your benefit payment will be determined
according to your
policy's fee schedule, usual and customary charge (which is determined by
comparing charges
for similar services adjusted to the geographical area where the services are
performed), or other
method as defined by the policy. YOU CAN EXPECT TO PAY MORE THAN THE
COINSURANCE AMOUNT DEFINED IN THE POLICY AFTER THE PLAN HAS PAID ITS
REQUIRED PORTION. Non-participating providers may bill members for any amount
up to
the billed charge after the plan has paid its portion of the bill.
Participating providers have
agreed to accept discounted payments for services with no additional billing to
the member other
than co-insurance and deductible amounts. You may obtain further information
about the
participating status of professional providers and information on out-of-pocket
expenses by
calling the toll free telephone number on your identification card.".
		(Source: P.A. 92-579, eff. 1-1-03.) (215 ILCS 5/370j) (from Ch. 73, par. 982j)Sec. 370j. 
		Requirements not applicable to insurers. 
		Except as otherwise
provided, no insurer authorized to do business in this State shall be subject to any
of the requirements of this Article that are applicable to administrators.Requirements not applicable to self-insured
employers, employee benefit trust funds, other ERISA exempt
organizations or the State of Illinois.  Such organizations are not
subject to any provisions of
this Article even though they may contract with administrators for
administration of health insurance claims subject to contractual
arrangements of the administrator's preferred provider program.
		(Source: P.A. 84-1431.) (215 ILCS 5/370k) (from Ch. 73, par. 982k)Sec. 370k. 
		Registration.(a) All administrators of a preferred provider
program subject to this Article shall register with the Department of
Insurance, which shall by rule establish criteria for such registration
including minimum solvency requirements and an annual registration fee for
each administrator.(b) The Department of Insurance shall compile and maintain a listing
updated
at least annually of administrators and insurers offering agreements
authorized under this Article.(c) Preferred provider administrators are subject
to the provisions of Sections 368b, 368c, 368d, and 368e of this
Code.
		(Source: P.A. 93-261, eff. 1-1-04.) (215 ILCS 5/370l) (from Ch. 73, par. 982l)Sec. 370l. 
		Fiduciary and bonding requirements. 
		Each
administrator who handles money for purposes of payment for providers
services subject to this Article shall (1) establish and maintain
a fiduciary account, separate and apart from any and all other accounts,
for the receipt and disbursement of funds for reimbursement for programs
covered under this Article, or (2) post or cause to be posted, a bond of
indemnity in an amount equal to not less than 10% of the total estimated
annual reimbursements under such programs.If a bond of indemnity is posted, it shall be held by the Director of
Insurance for the benefit and indemnification of the beneficiaries and
payors of services under the programs subject to  this Article.An administrator who operates more than one such program may establish
and maintain a separate fiduciary account or bond of indemnity for each
such program, or may operate and maintain a consolidated fiduciary account
or bond of indemnity for all such programs.
		(Source: P.A. 84-618.) (215 ILCS 5/370m) (from Ch. 73, par. 982m)Sec. 370m. 
		Program Requirements. 
		Each
administrator shall provide to each beneficiary of any program subject to
this Article a document which (1) sets forth those providers with which
agreements or arrangements have been made to provide health care services
to such beneficiary, a source for the beneficiary to contact regarding
changes in such providers and a clear description of any incentives for the
beneficiary to utilize such providers, (2) discloses the extent of coverage
as well as any limitations or exclusions of health care services under the
program, (3) clearly sets out the circumstances under which reimbursement
will be made to a beneficiary unable to utilize the services of a provider
with which an arrangement or agreement has been made, (4) a description of
the process for addressing a beneficiary complaint under the program, and
(5) discloses deductible and coinsurance amounts charged to any person
receiving health care services from such a provider.
		(Source: P.A. 84-618.) (215 ILCS 5/370n) (from Ch. 73, par. 982n)Sec. 370n. 
		Utilization Review Requirements: 
		Any preferred provider
organization providing hospital, medical or dental services must include a
program of utilization review.This Section applies to insurers and administrators.
		(Source: P.A. 84-1431.) (215 ILCS 5/370o) (from Ch. 73, par. 982o)Sec. 370o. 
		Emergency Care. 
		Any preferred provider contract, subject to
this Article shall provide the beneficiary or insured emergency care
coverage such that payment for this coverage is not dependent upon whether
such services are performed by a preferred or nonpreferred provider and
such coverage shall be at the same benefit level as if the service or
treatment had been rendered by a plan provider.
		(Source: P.A. 85-476.) (215 ILCS 5/370p) (from Ch. 73, par. 982p)Sec. 370p. 
		Failure to register. 
		Any
administrator subject to this Article who fails to register or pay the fee
required by this Article shall be construed to be an unauthorized insurer as
defined in Article VII of the "Illinois Insurance Code", as now or
hereafter amended, and shall be subject to the penalties contained therein.
		(Source: P.A. 84-618.) (215 ILCS 5/370q) (from Ch. 73, par. 982q)Sec. 370q. 
		
		To the extent of any conflict between this Article and any
other statutory provision, this Article prevails over the conflicting
provision. Agreements may be entered into under this Article
notwithstanding any policy provision to the contrary.
		(Source: P.A. 84-618.) (215 ILCS 5/370r) (from Ch. 73, par. 982r)Sec. 370r. 
		(Renumbered).
		
		(Source: Renumbered by P.A. 95-331, eff. 8-21-07.) (215 ILCS 5/370s)Sec. 370s. 
		Managed Care Reform and Patient Rights Act. 
		All
administrators shall comply with Sections 55 and
85 of the Managed Care Reform and Patient
Rights Act.
		(Source: P.A. 91-617, eff. 1-1-00.) (215 ILCS 5/370t)Sec. 370t. 
		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/Art. XX heading) ARTICLE XX.  
		ACCIDENT AND HEALTH INSURANCE (215 ILCS 5/352) (from Ch. 73, par. 964)Sec. 352. Scope of Article.(a) Except as provided in subsections (b), (c), (d), and (e),
this Article shall
apply to all companies transacting in this State the kinds of business
enumerated in clause (b) of Class 1 and clause (a) of Class 2 of Section 4.
Nothing in this Article shall apply to, or in any way affect policies or
contracts described in clause (a) of Class 1 of Section 4; however, this
Article shall apply to policies and contracts which contain benefits
providing reimbursement for the expenses of long term health care which are
certified or ordered by a physician including but not limited to
professional nursing care, custodial nursing care, and non-nursing
custodial care provided in a nursing home or at a residence of the insured.(b) (Blank).(c) A policy issued and delivered in this State
that provides coverage under that policy for
certificate holders who are neither residents of nor employed in this State
does not need to provide to those nonresident
certificate holders  who  are not employed in this State the coverages or
services mandated by this Article.(d) Stop-loss insurance is exempt from all Sections
of this Article, except this Section and Sections 353a, 354, 357.30, and
370.  For purposes of this exemption, stop-loss insurance is further defined as
follows:(1) The policy must be issued to and insure an     employer, trustee, or other sponsor of the plan, or the plan itself, but not employees, members, or participants.(2) Payments by the insurer must be made to the     employer, trustee, or other sponsors of the plan, or the plan itself, but not to the employees, members, participants, or health care providers.(e) A policy issued or delivered in this State to the Department of Healthcare and Family Services (formerly
Illinois Department
of Public Aid) and providing coverage, under clause (b) of Class 1 or clause (a)
of Class 2 as described in Section 4, to persons who are enrolled under Article V of the Illinois
Public Aid Code or under the Children's Health Insurance Program Act is
exempt from all restrictions, limitations,
standards, rules, or regulations respecting benefits imposed by or under
authority of this Code, except those specified by subsection (1) of Section
143, Section 370c, and Section 370c.1.  Nothing in this subsection, however, affects the total medical services
available to persons eligible for medical assistance under the Illinois Public
Aid Code.(f) An in-office membership care agreement provided under the In-Office Membership Care Act is not insurance for the purposes of this Code. (Source: P.A. 101-190, eff. 8-2-19.) (215 ILCS 5/352a) (from Ch. 73, par. 964a)Sec. 352a. 
		Mandated Coverages. 
		No legislation enacted after the
effective date of this Amendatory Act of 1990 which mandates or requires
the offering of health care coverages or services shall apply to any
insurer unless the legislation applies equally to employee welfare benefit
plans described in 29 U.S.C. 1001 et seq.
		(Source: P.A. 86-1365.) (215 ILCS 5/352b)Sec. 352b. Policy of individual or group accident and health insurance. Unless specified otherwise and when used in context of accident and health insurance policy benefits, coverage, terms, or conditions required to be provided under this Article, "policy of individual or group accident and health insurance", as used in this Article, does not include any coverage or policy that provides an excepted benefit, as that term is defined in Section 2791(c) of the federal Public Health Service Act (42 U.S.C. 300gg-91). Nothing in this amendatory Act of the 101st General Assembly applies to a policy of liability, workers' compensation, automobile medical payment, or limited scope dental or vision benefits insurance issued under this Code.
(Source: P.A. 101-456, eff. 8-23-19.) (215 ILCS 5/353) (from Ch. 73, par. 965)Sec. 353. 
		Non-cancellable accident and health insurance reserves.(1) The legal minimum standard for computing the active life reserve,
including the unearned premium reserve, of non-cancellable accident and
health policies issued on and after January 1 of the year following that
during which this Code becomes effective shall be based on Class III
Disability Experience with interest at not to exceed three and one-half per
centum per annum on the full preliminary term basis; and the minimum
standard for computing the active life reserve of such policies issued
prior to January 1 of the year following that during which this Code
becomes effective shall be such as to place an adequate value, as
determined by sound insurance practices, on the liabilities thereunder.(2) For policies with a waiting period of less than three (3) months, or
providing benefits at ages beyond the limits of Class III Disability
Experience, such tables shall be extended to cover the provisions of such
policies on such basis as may be approved by the Director.(3) The reserve for losses under non-cancellable accident and health
policies issued on and after January 1 of the year following that during
which this Code becomes effective shall be based on Class III Disability
Experience, except that for claims of less than twenty-seven months
duration the reserve may be taken as equivalent to the prospective claim
payments for three and one-half times the elapsed period of disability,
provided, that in no case shall the reserve be less than the equivalent of
seven weeks' claim payments; and the minimum standard for computing the
reserve for losses under such policies issued prior to January 1 of the
year following that during which the Code becomes effective shall be such
as to place an adequate value, as determined by sound insurance practices,
on such losses.(4) The Director shall modify the application of the tables and
requirements prescribed in this section to policies or to claims arising
under policies in accordance with the waiting period contained in such
policies and in accordance with any limitation as to the time for which
indemnity is payable. The company shall give the notice required in section
234 on all non-cancellable accident and health policies.This section shall apply only to accident and health policies issued
prior to the operative date under section 353a as defined therein.
		(Source: Laws 1965, p. 740.) (215 ILCS 5/353a) (from Ch. 73, par. 965a)Sec. 353a. Accident
and health reserves. 
The reserves for all accident and health policies issued after the
operative date of this section shall be computed and maintained on a basis
which shall place an actuarially sound value on the liabilities under such
policies. To provide a basis for the determination of such actuarially
sound value, the Director from time to time shall adopt rules requiring the
use of appropriate tables of morbidity, mortality, interest rates and
valuation methods for such reserves for policies issued before January 1, 2017. For policies issued on or after January 1, 2017, Section 223 shall govern the basis for determining such actuarially sound value. In no event shall such reserves be
less than the pro rata gross unearned premium reserve for such policies.The company shall give the notice required in section 234 on all
non-cancellable accident and health policies.After this section becomes effective, any company may file with the
Director written notice of its election to comply with the provisions of
this section after a specified date before January 1, 1967. After the
filing of such notice, then upon such specified date (which shall be the
operative date of this section for such company), this section shall become
operative with respect to the accident and health policies thereafter
issued by such company. If a company makes no such election, the operative
date of this section for such company shall be January 1, 1967.After this section becomes effective, any company may file with the
Director written notice of its election to establish and maintain reserves
upon its accident and health policies issued prior to the operative date of
this section in accordance with the standards for reserves established by
this section, and thereafter the reserve standards prescribed pursuant to
this section shall be effective with respect to said accident and health
policies issued prior to the operative date of this section.
(Source: P.A. 102-775, eff. 5-13-22.) (215 ILCS 5/354) (from Ch. 73, par. 966)Sec. 354. 
		
		Accident
and health loss reserves.The loss reserves of all accident and health policies other than
non-cancellable accident and health policies shall be computed and
maintained in accordance with the applicable provisions of Article XXII.
The unearned premium reserve of all accident and health policies other than
non-cancellable accident and health policies shall be computed and
maintained on the monthly pro rata basis.This Section shall apply only to accident and health policies issued
prior to the operative date under section 353a as defined therein.
		(Source: P.A. 83-584.) (215 ILCS 5/355) (from Ch. 73, par. 967)Sec. 355. 
		
		Accident
and health policies-Provisions.)
No policy of insurance against loss or damage from the sickness, or from
the bodily injury or death of the insured by accident shall be issued or
delivered to any person in this State until a copy of the form thereof and
of the classification of risks and the premium rates pertaining thereto
have been filed with the Director; nor shall it be so issued or delivered
until the Director shall have approved such policy pursuant to the provisions
of Section 143.  If the Director
disapproves the policy form he shall make a written decision stating the
respects in which such form does not comply with the requirements of law
and shall deliver a copy thereof to the company and it shall be unlawful
thereafter for any such company to issue any policy in such form.
		(Source: P.A. 79-777.) (215 ILCS 5/355.1) (from Ch. 73, par. 967.1)Sec. 355.1. 
		
		No claim for benefits for loss of time from the insured person's
occupation, under a group or individual accident and health insurance
policy delivered in this State more than 120 days after the effective date
of this Section, shall be reduced by reason of any cost-of-living increase,
designated as such under the Federal Social Security Act, if such
cost-of-living increase occurs while the policy's benefits are payable for
that claim.
		(Source: P.A. 78-603.) (215 ILCS 5/355.2) (from Ch. 73, par. 967.2)Sec. 355.2. 
		Dental coverage reimbursement rates.(a) Every company that issues, delivers, amends, or renews any
individual or group policy of accident and health insurance on or after the
effective date of this amendatory Act of 1991 that provides
dental insurance and bases payment for those benefits upon a
usual and customary fee charged by licensed dentists
must disclose all of the following:(1) The frequency of the determination of the usual     and customary fee.(2) A general description of the methodology used to     determine usual and customary fees.(3) The percentile that determines the maximum     benefit that the company will pay for any dental procedure, if the usual and customary fee is determined by taking a sample of fees submitted on actual claims from licensed dentists and then determining the benefit by selecting a percentile of those fees.(b) The disclosure must be provided upon request to all group and
individual policy holders and group certificate holders.  All proposals for
dental insurance must notify the prospective policy holder that information
regarding usual and customary fee determinations is available from the
insurer.  All employee benefit descriptions or supplemental documents must
notify the employee that information regarding reimbursement rates is
available from the employer.
		(Source: P.A. 87-587.) (215 ILCS 5/355.3)Sec. 355.3. Noncovered dental services.(a) In this Section:"Covered services" means dental care services for which a reimbursement is available under an

enrollee's plan contract, or for which a reimbursement would be available but for the application of

contractual limitations such as deductibles, copayments, coinsurance, waiting periods, annual or

lifetime maximums, frequency limitations, alternative benefit payments, or any other limitation."Dental insurance" means any policy of insurance that is issued by a company that provides coverage for dental services not covered by a medical plan.(b) No company that issues, delivers, amends, or renews an individual or group policy of accident and health insurance on or after the effective date of this amendatory Act of the 97th General Assembly that provides dental insurance shall issue a service provider contract that requires a dentist to provide services to the insurer's policyholders at a fee set by the insurer unless the services are covered services under the applicable policyholder agreement.
(Source: P.A. 97-805, eff. 1-1-13.) (215 ILCS 5/355.4)Sec. 355.4. Provider notification of network plan changes. Any contract entered into or renewed on or after the effective date of this amendatory Act of the 99th General Assembly that allows the rights and obligations of the contract to be assigned or leased to another insurer shall provide for notice of that assignment or lease within 30 days after the assignment or lease to the contracting dentist.
(Source: P.A. 99-568, eff. 7-15-16.) (215 ILCS 5/355a) (from Ch. 73, par. 967a)Sec. 355a. Standardization of terms and coverage.(1) The purposes of this Section shall be (a) to provide
reasonable standardization and simplification of terms and coverages of
individual accident and health insurance policies to facilitate public
understanding and comparisons; (b) to eliminate provisions contained in
individual accident and health insurance policies which may be
misleading or unreasonably confusing in connection either with the
purchase of such coverages or with the settlement of claims; and (c) to
provide for reasonable disclosure in the sale of accident and health
coverages.(2) Definitions applicable to this Section are as follows:(a) "Policy" means all or any part of the forms     constituting the contract between the insurer and the insured, including the policy, certificate, subscriber contract, riders, endorsements, and the application if attached, which are subject to filing with and approval by the Director.(b) "Service corporations" means voluntary health and     dental corporations organized and operating respectively under the Voluntary Health Services Plans Act and the Dental Service Plan Act.(c) "Accident and health insurance" means insurance     written under Article XX of this Code, other than credit accident and health insurance, and coverages provided in subscriber contracts issued by service corporations.  For purposes of this Section such service corporations shall be deemed to be insurers engaged in the business of insurance.(3) The Director shall issue such rules as he shall deem necessary
or desirable to establish specific standards, including standards of
full and fair disclosure that set forth the form and content and
required disclosure for sale, of individual policies of accident and
health insurance, which rules and regulations shall be in addition to
and in accordance with the applicable laws of this State, and which may
cover but shall not be limited to:  (a) terms of renewability; (b)
initial and subsequent conditions of eligibility; (c) non-duplication of
coverage provisions; (d) coverage of dependents; (e) pre-existing
conditions; (f) termination of insurance; (g) probationary periods; (h)
limitation, exceptions, and reductions; (i) elimination periods; (j)
requirements regarding replacements; (k) recurrent conditions; and (l)
the definition of terms, including, but not limited to, the following:
hospital, accident, sickness, injury, physician, accidental means, total
disability, partial disability, nervous disorder, guaranteed renewable,
and non-cancellable.The Director may issue rules that specify prohibited policy
provisions not otherwise specifically authorized by statute which in the
opinion of the Director are unjust, unfair or unfairly discriminatory to
the policyholder, any person insured under the policy, or beneficiary.(4) The Director shall issue such rules as he shall deem necessary
or desirable to establish minimum standards for benefits under each
category of coverage in individual accident and health policies, other
than conversion policies issued pursuant to a contractual conversion
privilege under a group policy, including but not limited to the
following categories:  (a) basic hospital expense coverage; (b) basic
medical-surgical expense coverage; (c) hospital confinement indemnity
coverage; (d) major medical expense coverage; (e) disability income
protection coverage; (f) accident only coverage; and (g) specified
disease or specified accident coverage.Nothing in this subsection (4) shall preclude the issuance of any
policy which combines two or more of the categories of coverage
enumerated in subparagraphs (a) through (f) of this subsection.No policy shall be delivered or issued for delivery in this State
which does not meet the prescribed minimum standards for the categories
of coverage listed in this subsection unless the Director finds that
such policy is necessary to meet specific needs of individuals or groups
and such individuals or groups will be adequately informed that such
policy does not meet the prescribed minimum standards, and such policy
meets the requirement that the benefits provided therein are reasonable
in relation to the premium charged. The standards and criteria to be
used by the Director in approving such policies shall be included in the
rules required under this Section with as much specificity as
practicable.The Director shall prescribe by rule the method of identification of
policies based upon coverages provided.(5) (a) In order to provide for full and fair disclosure in the
sale of individual accident and health insurance policies, no such
policy shall be delivered or issued for delivery in this State unless
the outline of coverage described in paragraph (b) of this subsection
either accompanies the policy, or is delivered to the applicant at the
time the application is made, and an acknowledgment signed by the
insured, of receipt of delivery of such outline, is provided to the
insurer.  In the event the policy is issued on a basis other than that
applied for, the outline of coverage properly describing the policy must
accompany the policy when it is delivered and such outline shall clearly
state that the policy differs, and to what extent, from that for which
application was originally made. All policies, except single premium
nonrenewal policies, shall have a notice prominently printed on the
first page of the policy or attached thereto stating in substance, that
the policyholder shall have the right to return the policy within 10 days of its delivery and to have the premium refunded if after
examination of the policy the policyholder is not satisfied for any
reason.(b) The Director shall issue such rules as he shall deem necessary
or desirable to prescribe the format and content of the outline of
coverage required by paragraph (a) of this subsection. "Format" means
style, arrangement, and overall appearance, including such items as the
size, color, and prominence of type and the arrangement of text and
captions.  "Content" shall include without limitation thereto,
statements relating to the particular policy as to the applicable
category of coverage prescribed under subsection (4); principal benefits;
exceptions, reductions and limitations; and renewal provisions,
including any reservation by the insurer of a right to change premiums.
Such outline of coverage shall clearly state that it constitutes a
summary of the policy issued or applied for and that the policy should
be consulted to determine governing contractual provisions.(c) (Blank).(d) (Blank).(e) (Blank).(f) (Blank).(6) Prior to the issuance of rules pursuant to this Section, the
Director shall afford the public, including the companies affected
thereby, reasonable opportunity for comment.  Such rulemaking is subject
to the provisions of the Illinois Administrative Procedure Act.(7) When a rule has been adopted, pursuant to this Section, all
policies of insurance or subscriber contracts which are not in
compliance  with such rule shall, when so provided in such rule, be
deemed to be disapproved as of a date specified in such rule not less
than 120 days following its effective date, without any further or
additional notice other than the adoption of the rule.(8) When a rule adopted pursuant to this Section so provides, a
policy of insurance or subscriber contract which does not comply with
the rule shall, not less than 120 days from the effective date of such
rule, be construed, and the insurer or service corporation shall be
liable, as if the policy or contract did comply with the rule.(9) Violation of any rule adopted pursuant to this Section shall be
a violation of the insurance law for purposes of Sections 370 and 446 of this
 Code.
(Source: P.A. 102-775, eff. 5-13-22.) (215 ILCS 5/355b)Sec. 355b. Claim-related information; alternative means of communication.(a) For the purposes of this Section, "claim-related information" means all claim or billing information relating specifically to an insured, subscriber, or person covered by an individual or group policy of accident and health insurance issued, delivered, amended, or renewed by a company doing business in this State.(b) A company that issues, delivers, amends, or renews an individual or group policy of accident and health insurance on or after the effective date of this amendatory Act of the 98th General Assembly shall accommodate a reasonable request by a person covered by a policy issued by the company to receive communications of claim-related information from the company by alternative means or at alternative locations if the person clearly states that disclosure of all or part of the information could endanger the person.(c) If a child is covered by a policy issued by a company, then the child's parent or guardian may make a request to the company pursuant to subsection (b) of this Section.(d) A company may require (1) a person making a request pursuant to subsection (b) of this Section to do so in writing, (2) the request to contain a statement that disclosure of all or part of the claim-related information to which the request pertains could endanger the person or child, and (3) the specification of an alternative address, telephone number, or other method of contact.(e) Except with the express consent of the person making a request pursuant to subsection (b) of this Section, a company may not disclose to the policyholder (1) the address, telephone number, or any other personally identifying information of the person who made the request or child for whose benefit a request was made, (2) the nature of the health care services provided, or (3) the name or address of the provider of the health care services.(f) A company that makes reasonable and good faith efforts to comply with this Section shall not be subject to civil or criminal liability on the grounds of noncompliance with this Section.(g) The Director shall adopt rules to guide companies in guarding against the disclosure of the information protected pursuant to this Section.(h) Nothing in this Section shall prevent, hinder, or otherwise affect the entry of an appropriate order made in the best interests of a child by a court of competent jurisdiction adjudicating disputed issues of child welfare or custody.
(Source: P.A. 98-189, eff. 1-1-14.) (215 ILCS 5/355c)Sec. 355c. Availability of information on qualified health plans.(a)         Without limiting the generality of paragraph (b) of subsection (5) of Section 355a, no qualified health plans shall be offered for sale directly to consumers through the health insurance marketplace operating in this State in accordance with Sections 1311 and 1321 of the federal Patient Protection and Affordable Care Act of 2010 (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), and any amendments thereto, or regulations or guidance issued thereunder (collectively, "the Federal Act"), unless the following information is made available to the consumer at the time he or she is comparing policies and their premiums:(1)    With respect to prescription drug benefits,     the most recently published formulary where a consumer can view in one location covered prescription drugs; information on tiering and the cost-sharing structure for each tier; and information about how a consumer can obtain specific copayment amounts or coinsurance percentages for a specific qualified health plan before enrolling in that plan. This information shall clearly identify the qualified health plan to which it applies.(2)    The most recently published provider directory     where a consumer can view the provider network that applies to each qualified health plan and information about each provider, including location, contact information, specialty, medical group, if any, any institutional affiliation, and whether the provider is accepting new patients at each of the specific locations listing the provider. Dental providers shall notify qualified health plans electronically or in writing of any changes to their information as listed in the provider directory. Qualified health plans shall update their directories in a manner consistent with the information provided by the provider or dental management service organization within 10 business days after being notified of the change by the provider. Nothing in this paragraph (2) shall void any contractual relationship between the provider and the plan. The information shall clearly identify the qualified health plan to which it applies.(b)    Each company that offers qualified health plans for sale directly to consumers through the health insurance marketplace operating in this State shall make the information in subsection (a), for each qualified health plan that it offers, available and accessible to the general public on the company's website and through other means for individuals without access to the Internet.(c)    The Department shall ensure that State-operated websites, in addition to the website for the health insurance marketplace established in this State in accordance with the Federal Act, prominently provide links to Internet-based materials and tools to help consumers be informed purchasers of health insurance.(d)    Nothing in this Section shall be interpreted or implemented in a manner not consistent with the Federal Act. This Section shall apply to all qualified health plans offered for sale directly to consumers through the health insurance marketplace operating in this State for any coverage year beginning on or after January 1, 2015. 
(Source: P.A. 102-775, eff. 5-13-22.) (215 ILCS 5/356a) (from Ch. 73, par. 968a)Sec. 356a. 
		
		Form of
policy.(1) No policy of accident and health insurance shall be delivered or
issued for delivery to any person in this state unless:(a) the entire money and other considerations therefor are expressed
therein; and(b) the time at which the insurance takes effect and terminates is
expressed therein; and(c) it purports to insure only one person, except that a policy may
insure, originally or by subsequent amendment, upon the application of an
adult member of a family who shall be deemed the policyholder, any two or
more eligible members of that family, including husband, wife, dependent
children or any children under a specified age which shall not exceed 19
years and any other person dependent upon the policyholder; and(d) the style, arrangement and over-all appearance of the policy give no
undue prominence to any portion of the text, and unless every printed
portion of the text of the policy and of any endorsements or attached
papers is plainly printed in light-faced type of a style in general use,
the size of which shall be uniform and not less than ten-point with a
lower-case unspaced alphabet length not less than one hundred and
twenty-point (the "text" shall include all printed matter except the name
and address of the insurer, name or title of the policy, the brief
description if any, and captions and subcaptions); and(e) the exceptions and reductions of indemnity are set forth in the
policy and, except those which are set forth in Sections 357.1 through
357.30 of this act, are printed, at the insurer's option, either included
with the benefit provision to which they apply, or under an appropriate
caption such as "EXCEPTIONS", or "EXCEPTIONS AND REDUCTIONS", provided that
if an exception or reduction specifically applies only to a particular
benefit of the policy, a statement of such exception or reduction shall be
included with the benefit provision to which it applies; and(f) each such form, including riders and endorsements, shall be
identified by a form number in the lower left-hand corner of the first page
thereof; and(g) it contains no provision purporting to make any portion of the
charter, rules, constitution, or by-laws of the insurer a part of the
policy unless such portion is set forth in full in the policy, except in
the case of the incorporation of, or reference to, a statement of rates or
classification of risks, or short-rate table filed with the Director.(2) If any policy is issued by an insurer domiciled in this state for
delivery to a person residing in another state, and if the official having
responsibility for the administration of the insurance laws of such other
state shall have advised the Director that any such policy is not subject
to approval or disapproval by such official, the Director may by ruling
require that such policy meet the standards set forth in subsection (1) of
this section and in Sections 357.1 through 357.30.
		(Source: P.A. 76-860.) (215 ILCS 5/356b) (from Ch. 73, par. 968b)Sec. 356b. (a) This Section applies to the hospital and medical expense
provisions of an accident or health insurance policy.(b) If a policy provides that coverage of a dependent person terminates
upon attainment of the limiting age for dependent persons specified in the
policy, the attainment of such limiting age
does not operate to terminate the hospital and medical coverage of a person
who, because of a disabling condition that occurred before
attainment of the limiting age, is incapable of self-sustaining employment and
is dependent on his or her parents or other care providers for lifetime
care and supervision.(c) For purposes of subsection (b), "dependent on other care providers" is
defined as requiring a Community Integrated Living Arrangement, group home,
supervised apartment, or other residential services licensed or certified by
the Department of Human Services (as successor to the Department of Mental
Health and Developmental Disabilities), the Department of Public Health, or
the Department of Healthcare and Family Services (formerly Department of Public Aid).(d) The insurer may inquire of the policyholder 2 months prior to
attainment by a dependent of the limiting age set forth in the policy, or at
any reasonable time thereafter, whether such dependent is in fact a person who has a disability and is dependent and, in the absence of proof submitted within 60 days of
such inquiry that such dependent is a person who has a disability and is dependent may
terminate coverage of such person at or after attainment of the limiting age.
In the absence of such inquiry, coverage of any person who has a disability and is dependent 
shall continue through the term of such policy or any extension or renewal
thereof.(e) This amendatory Act of 1969 is applicable to policies issued or
renewed
more than 60 days after the effective date of this amendatory Act of 1969.
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 5/356c) (from Ch. 73, par. 968c)(Text of Section before amendment by P.A. 102-768)Sec. 356c. 
		
		(1)  No policy of accident and health insurance providing
coverage of hospital expenses or medical expenses or
both on an expense incurred basis which in addition to covering the
insured, also covers members of the insured's immediate family, shall
contain any disclaimer, waiver or other limitation of coverage relative to
the hospital or medical
coverage or insurability of newborn  infants from and after
the moment of birth.(2) Each such policy of accident and health insurance shall contain
a provision stating that the accident and health insurance benefits
applicable for children shall be granted immediately with respect to a
newly born child from the moment of birth.  The coverage for newly born
children shall include coverage of illness, injury, congenital defects,
birth abnormalities and premature birth.(3) If payment of a specific premium is required to provide coverage
for a child, the policy may require that notification of birth of a
newly born child must be furnished to the insurer within 31 days after
the date of birth in order to have the coverage continue beyond such 31
day period and may require payment of the appropriate premium.(4) In the event that no other members of the insured's immediate
family are covered, immediate coverage for the first newborn infant shall
be provided if the insured applies for dependent's coverage
within 31 days of the newborn's birth.
Such coverage shall be contingent upon payment of the additional premium.(5) The requirements of this Section shall apply, on or after the
sixtieth day following the effective date of this Section, (a) to all
such non-group policies delivered or issued for delivery, and (b) to all
such group policies delivered, issued for  delivery, renewed or amended.
The insurers of such non-group policies in effect on the sixtieth day
following the effective date of this Section shall extend to owners of
said policies, on or before the first policy anniversary following such
date, the opportunity to apply for the addition to their policies of a
provision as set forth in paragraph (2) above, with, at the option of
the insurer, payment of a premium appropriate thereto.
		(Source: P.A. 85-220.)(Text of Section after amendment by P.A. 102-768)Sec. 356c. 
(1)  No policy of accident and health insurance providing
coverage of hospital expenses or medical expenses or
both on an expense incurred basis which in addition to covering the
insured, also covers members of the insured's immediate family, shall
contain any disclaimer, waiver or other limitation of coverage relative to
the hospital or medical
coverage or insurability of newborn  infants from and after
the moment of birth.(2) Each such policy of accident and health insurance shall contain
a provision stating that the accident and health insurance benefits
applicable for children shall be granted immediately with respect to a
newly born child from the moment of birth.  The coverage for newly born
children shall include coverage of illness, injury, congenital defects (including the treatment of cleft lip and cleft palate),
birth abnormalities and premature birth.(3) If payment of a specific premium is required to provide coverage
for a child, the policy may require that notification of birth of a
newly born child must be furnished to the insurer within 31 days after
the date of birth in order to have the coverage continue beyond such 31
day period and may require payment of the appropriate premium.(4) In the event that no other members of the insured's immediate
family are covered, immediate coverage for the first newborn infant shall
be provided if the insured applies for dependent's coverage
within 31 days of the newborn's birth.
Such coverage shall be contingent upon payment of the additional premium.(5) The requirements of this Section shall apply, on or after the
sixtieth day following the effective date of this Section, (a) to all
such non-group policies delivered or issued for delivery, and (b) to all
such group policies delivered, issued for  delivery, renewed or amended.
The insurers of such non-group policies in effect on the sixtieth day
following the effective date of this Section shall extend to owners of
said policies, on or before the first policy anniversary following such
date, the opportunity to apply for the addition to their policies of a
provision as set forth in paragraph (2) above, with, at the option of
the insurer, payment of a premium appropriate thereto.
(Source: P.A. 102-768, eff. 1-1-24.) (215 ILCS 5/356d) (from Ch. 73, par. 968d)Sec. 356d. 
		Conversion privileges for insured former spouses. 
		(1) No policy
of accident and health insurance providing coverage of
hospital and/or medical expense on either an expense incurred basis or
other than an expense incurred basis, which in addition to covering the
insured also provides coverage to the spouse of the insured shall
contain a provision for termination of coverage for a spouse covered
under the policy solely as a result of a break in the marital
relationship except by reason of an entry of a valid judgment of dissolution
of marriage between the parties.(2) Every policy which contains a provision for termination of coverage
of the spouse upon dissolution of marriage shall contain a provision to the
effect that upon the entry of a valid judgment of dissolution of marriage
between the insured parties the spouse whose marriage was dissolved
shall be entitled to have issued to
him or her, without evidence of insurability, upon application made to
the company within 60 days following the entry of such judgment, and upon
the payment of the appropriate premium, an individual policy of accident
and health insurance.  Such policy shall provide the coverage then being
issued by the insurer which is most nearly similar to, but not greater
than, such terminated coverages.  Any and all probationary and/or
waiting periods set forth in such policy shall be considered as being
met to the extent coverage was in force under the prior policy.(3) The requirements of this Section shall apply to all policies
delivered or issued for delivery on or after the 60th day following the
effective date of this Section.
		(Source: P.A. 84-545.) (215 ILCS 5/356e) (from Ch. 73, par. 968e)Sec. 356e. Victims of certain offenses.(1) No policy of accident and health insurance, which provides
benefits for hospital or medical expenses based upon the actual expenses
incurred, delivered or issued for delivery to any person in this State
shall contain any  specific exception to coverage which would preclude
the payment under that policy of actual expenses incurred in the
examination and testing of a victim of an offense defined in Sections
11-1.20 through 11-1.60 or 12-13 through 12-16 of the Criminal Code of  1961 or the Criminal Code of 2012, 
or an attempt to commit such offense to
establish that sexual contact did occur or did not occur, and to
establish the presence or absence of sexually transmitted
disease or infection, and
examination and treatment of injuries and trauma sustained by a victim
of such offense arising
out of the offense.
Every policy of accident
and health insurance which specifically provides benefits for routine physical
examinations shall provide full coverage for expenses incurred in the
examination
and testing of a victim of an offense defined in Sections 11-1.20 through 11-1.60 or 12-13 through
12-16 of the Criminal Code of 1961 or the Criminal Code of 2012, or an attempt
to commit such offense
as set forth in this Section.
This Section shall not apply to a policy which covers hospital and
medical expenses for specified illnesses or injuries only.(2) For purposes of enabling the recovery of State funds, any insurance
carrier subject to this Section shall upon reasonable demand by the Department
of Public Health disclose the names and identities of its insureds entitled
to benefits under this provision to the Department of Public Health whenever
the Department of Public Health has determined that it has paid, or is about
to pay, hospital or medical expenses for which an insurance carrier is liable
under this Section. All information received by the Department of Public
Health under this provision shall be held on a confidential basis and shall
not be subject to subpoena and shall not be made public by the Department
of Public Health or used for any purpose other than that authorized by this
Section.(3) Whenever the Department of Public Health finds that it has paid all
or part of any hospital or medical expenses which an insurance carrier is
obligated to pay under this Section, the Department of Public Health shall
be entitled to receive reimbursement for its payments from such insurance
carrier provided that the Department of Public Health has notified the
insurance
carrier of its claims before the carrier has paid such benefits to its insureds
or in behalf of its insureds.
(Source: P.A. 96-1551, eff. 7-1-11; 97-1150, eff. 1-25-13.) (215 ILCS 5/356f) (from Ch. 73, par. 968f)Sec. 356f. 
		
		No policy of accident or health insurance or any renewal thereof
shall be denied or cancelled by the insurer, nor shall any such policy contain
any exception or exclusion of benefits, solely because the mother of the
insured has taken diethylstilbestrol, commonly referred to as DES.
		(Source: P.A. 81-656.) (215 ILCS 5/356g) (from Ch. 73, par. 968g)Sec. 356g. Mammograms; mastectomies.(a) Every insurer shall provide in each group or individual
policy, contract, or certificate of insurance issued or renewed for persons
who are residents of this State, coverage for screening by low-dose
mammography for all women 35 years of age or older for the presence of
occult breast cancer within the provisions of the policy, contract, or
certificate. The coverage shall be as follows:(1) A baseline mammogram for women 35 to 39 years of     age.(2) An annual mammogram for women 40 years of age or     older.(3) A mammogram at the age and intervals considered     medically necessary by the woman's health care provider for women under 40 years of age and having a family history of breast cancer, prior personal history of breast cancer, positive genetic testing, or other risk factors.(4) For an individual or group policy of accident and     health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after the effective date of this amendatory Act of the 101st General Assembly, a comprehensive ultrasound screening and MRI of an entire breast or breasts if a mammogram demonstrates heterogeneous or dense breast tissue or when medically necessary as determined by a physician licensed to practice medicine in all of its branches.(5) A screening MRI when medically necessary, as     determined by a physician licensed to practice medicine in all of its branches.(6) For an individual or group policy of accident and     health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after the effective date of this amendatory Act of the 101st General Assembly, a diagnostic mammogram when medically necessary, as determined by a physician licensed to practice medicine in all its branches, advanced practice registered nurse, or physician assistant.A policy subject to this subsection shall not impose a deductible, coinsurance, copayment, or any other cost-sharing requirement on the coverage provided; except that this sentence does not apply to coverage of diagnostic mammograms to the extent such coverage would disqualify a high-deductible health plan from eligibility for a health savings account pursuant to Section 223 of the Internal Revenue Code (26 U.S.C. 223).For purposes of this Section:"Diagnostic
mammogram" means a mammogram obtained using diagnostic mammography."Diagnostic
mammography" means a method of screening that is designed to
evaluate an abnormality in a breast, including an abnormality seen
or suspected on a screening mammogram or a subjective or objective
abnormality otherwise detected in the breast."Low-dose mammography"
means the x-ray examination of the breast using equipment dedicated
specifically for mammography, including the x-ray tube, filter, compression
device, and image receptor, with radiation exposure delivery of less than
1 rad per breast for 2 views of an average size breast.  The term also includes digital mammography and includes breast tomosynthesis. As used in this Section, the term "breast tomosynthesis" means a radiologic procedure that involves the acquisition of projection images over the stationary breast to produce cross-sectional digital three-dimensional images of the breast.If, at any time, the Secretary of the United States Department of Health and Human Services, or its successor agency, promulgates rules or regulations to be published in the Federal Register or publishes a comment in the Federal Register or issues an opinion, guidance, or other action that would require the State, pursuant to any provision of the Patient Protection and Affordable Care Act (Public Law 111-148), including, but not limited to, 42 U.S.C. 18031(d)(3)(B) or any successor provision, to defray the cost of any coverage for breast tomosynthesis outlined in this subsection, then the requirement that an insurer cover breast tomosynthesis is inoperative other than any such coverage authorized under Section 1902 of the Social Security Act, 42 U.S.C. 1396a, and the State shall not assume any obligation for the cost of coverage for breast tomosynthesis set forth in this subsection.(a-5) Coverage as described by subsection (a) shall be provided at no cost to the insured and shall not be applied to an annual or lifetime maximum benefit.(a-10) When health care services are available through contracted providers and a person does not comply with plan provisions specific to the use of contracted providers, the requirements of  subsection (a-5) are not applicable.  When a person does not comply with plan provisions specific to the use of contracted providers, plan provisions specific to the use of non-contracted providers must be applied without distinction for coverage required by this Section and shall be at least as favorable as for other radiological examinations covered by the policy or contract.(b) No policy of accident or health insurance that provides for
the surgical procedure known as a mastectomy shall be issued, amended,
delivered, or renewed in this State unless
that coverage also provides for prosthetic devices
or reconstructive surgery
incident to the mastectomy.
Coverage for breast reconstruction in connection with a mastectomy shall
include:(1) reconstruction of the breast upon which the     mastectomy has been performed;(2) surgery and reconstruction of the other breast to     produce a symmetrical appearance; and(3) prostheses and treatment for physical     complications at all stages of mastectomy, including lymphedemas.
Care shall be determined in consultation with the attending physician and the
patient.
The offered coverage for prosthetic devices and
reconstructive surgery shall be subject to the deductible and coinsurance
conditions applied to the mastectomy, and all other terms and conditions
applicable to other benefits.  When a mastectomy is performed and there is
no evidence of malignancy then the offered coverage may be limited to the
provision of prosthetic devices and reconstructive surgery to within 2
years after the date of the mastectomy. As used in this Section,
"mastectomy" means the removal of all or part of the breast for medically
necessary reasons, as determined by a licensed physician.Written notice of the availability of coverage under this Section shall be
delivered to the insured upon enrollment and annually thereafter.  An insurer
may not deny to an insured eligibility, or continued eligibility, to enroll or
to renew coverage under the terms of the plan solely for the purpose of
avoiding the requirements of this Section.  An insurer may not penalize or
reduce or
limit the reimbursement of an attending provider or provide incentives
(monetary or otherwise) to an attending provider to induce the provider to
provide care to an insured in a manner inconsistent with this Section.(c) Rulemaking authority to implement Public Act 95-1045, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.(Source: P.A. 100-395, eff. 1-1-18; 101-580, eff. 1-1-20.) (215 ILCS 5/356g.5)Sec. 356g.5. Clinical breast exam.(a) The General Assembly finds that clinical breast examinations are a critical tool in the early detection of breast cancer, while the disease is in its earlier and potentially more treatable stages. Insurer reimbursement of clinical breast examinations is essential to the effort to reduce breast cancer deaths in Illinois.(b) Every insurer shall provide, in each group or individual policy, contract, or certificate of accident or health insurance issued or renewed for persons who are residents of Illinois, coverage for complete and thorough clinical breast examinations as indicated by guidelines of practice, performed by a physician licensed to practice medicine in all its branches, a licensed advanced practice registered nurse, or a licensed physician assistant, to check for lumps and other changes for the purpose of early detection and prevention of breast cancer as follows:(1) at least every 3 years for women at least 20     years of age but less than 40 years of age; and(2) annually for women 40 years of age or older.(c) Upon approval of a nationally recognized separate and distinct clinical breast exam code that is compliant with all State and federal laws, rules, and regulations, public and private insurance plans shall take action to cover clinical breast exams on a separate and distinct basis.
(Source: P.A. 99-173, eff. 7-29-15; 100-513, eff. 1-1-18.) (215 ILCS 5/356g.5-1)Sec. 356g.5-1. Breast cancer pain medication and therapy.  A group or individual policy of accident and health insurance or managed care plan that is amended, delivered, issued, or renewed after the effective date of this amendatory Act of the 95th General Assembly must provide coverage for all medically necessary pain medication and pain therapy related to the treatment of breast cancer on the same terms and conditions that are generally applicable to coverage for other conditions.  For purposes of this Section, "pain therapy" means pain therapy that is medically based and includes reasonably defined goals, including, but not limited to, stabilizing or reducing pain, with periodic evaluations of the efficacy of the pain therapy against these goals.  The provisions of this Section do not apply to short-term travel, accident-only, limited, or specified-disease policies, or to policies or contracts designed for issuance to persons eligible for coverage under Title XVIII of the Social Security Act, known as Medicare, or any other similar coverage under State or federal governmental plans.Rulemaking authority to implement this amendatory Act of the 95th General Assembly, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized. 
(Source: P.A. 95-1045, eff. 3-27-09.) (215 ILCS 5/356h) (from Ch. 73, par. 968h)Sec. 356h. 
		
		No individual or group policy of accident and health
insurance which covers the insured's immediate family or children, as well
as covering the insured, shall exclude a child from coverage or limit
coverage for a child solely because the child is an adopted child, or
solely because the child does not reside with the insured. For purposes of
this Section, a child who is in the custody of the insured, pursuant to an
interim court order of adoption or, in the case of group insurance, placement
of adoption, whichever comes first, vesting temporary care of the child in
the
insured, is an adopted child, regardless of whether a final order granting
adoption is ultimately issued.
		(Source: P.A. 91-549, eff. 8-14-99.) (215 ILCS 5/356i) (from Ch. 73, par. 968i)Sec. 356i. 
		Medical assistance; coverage of child.(a) In this Section, "Medicaid" means medical assistance authorized under
Section 1902 of the Social Security Act.(b) An individual or group
policy of accident and health insurance that is delivered or issued for
delivery to any person in this State or renewed or amended may not contain
any provision which limits or excludes payments of hospital or
medical
benefits coverage to or on behalf of the insured because the insured or
any covered dependent is eligible for or receiving Medicaid benefits in this or any other state.(c) To the extent that payment for covered expenses has been made under
Article V, VI, or VII of the Illinois Public Aid Code for health care services
provided to an individual, if a third party has a legal liability to make
payments for those health care services, the State is considered to have
acquired the rights of the individual to payment.(d) If a child is covered under an accident and health insurance policy
issued to the child's noncustodial parent, the issuer of the policy shall do
all of the following:(1) Provide necessary information to the child's     custodial parent to enable the child to obtain benefits under that coverage.(2) Permit the child's custodial parent (or the     provider, with the custodial parent's approval) to submit claims for payment for covered services without the approval of the noncustodial parent.(3) Make payments on claims submitted in accordance     with paragraph (2) directly to the custodial parent, the provider of health care services, or the state Medicaid agency.(e) An insurer may not deny enrollment of a child under the accident and
health insurance coverage of the child's parent on any of the following
grounds:(1) The child was born out of wedlock.(2) The child is not claimed as a dependent on the     parent's federal income tax return.(3) The child does not reside with the parent or in     the insurer's service area.(f) If a parent is required by a court or administrative order to provide
accident and health insurance coverage for a child and the parent is insured
under a plan that offers coverage
for eligible dependents, the insurer, upon receiving a copy of the order,
shall:(1) Upon application, permit the parent to add to the     parent's coverage such a child who is otherwise eligible for that coverage, without regard to any enrollment season restrictions.(2) Add the child to the parent's coverage upon     application of the child's other parent, the state agency administering the Medicaid program, or the state agency administering a program for enforcing child support and establishing paternity under 42 U.S.C. 651 through 669 (or another child support enforcement program), if the parent is covered but fails to apply for coverage for the child.(g) An insurer may not impose, on a state agency that has been assigned the
rights of a covered individual who
receives Medicaid benefits, requirements that are different from requirements
applicable to an assignee of any other individual covered under the same
insurance policy.(h) Nothing in subsections (e) and (f) prevents an
insurer from denying any such application if the child is not eligible for
coverage according to the insurer's medical underwriting standards.(i) The insurer may not eliminate coverage of such a child unless the
insurer
is provided
satisfactory written evidence of either of the following:(1) The court or administrative order is no longer in     effect.(2) The child is or will be covered under a     comparable health care plan obtained by the parent under such order and that coverage is currently in effect or will take effect not later than the date the prior coverage is terminated.		(Source: P.A. 89-183, eff. 1-1-96.) (215 ILCS 5/356j) (from Ch. 73, par. 968j)Sec. 356j. 
		(Repealed). 
		(Source: Repealed by P.A. 89-183, eff. 1-1-96.) (215 ILCS 5/356K) (from Ch. 73, par. 968K)Sec. 356K. 
		Coverage for Organ Transplantation Procedures. 
		No accident
and health insurer providing coverage under this Act for hospital or
medical expenses shall deny reimbursement for an otherwise covered expense
incurred for any organ transplantation procedure solely on the basis that
such procedure is deemed experimental or investigational unless supported
by the determination of the Office of Health Care Technology Assessment
within the Agency for Health Care Policy and Research within the federal
Department of Health and Human Services that such procedure is either
experimental or investigational or that there is insufficient data or
experience to determine whether an organ transplantation procedure is
clinically acceptable. If an accident and health insurer has made written
request, or had one made on its behalf by a national organization, for
determination by the Office of Health Care Technology Assessment within the
Agency for Health Care Policy and Research within the federal Department of
Health and Human Services as to whether a specific organ transplantation
procedure is clinically acceptable and said organization fails to respond
to such a request within a period of 90 days, the failure to act may be
deemed a determination that the procedure is deemed to be experimental or
investigational.
		(Source: P.A. 87-218.) (215 ILCS 5/356L) (from Ch. 73, par. 968L)Sec. 356L. 
		
		No policy of accident or health insurance shall include any
provision which shall have the effect of denying coverage to or on behalf
of an insured under such policy on the basis of a failure by the insured to
file a notice of claim within the time period required by the policy,
provided such failure is caused solely by the physical inability or mental
incapacity of the
insured to file such notice of claim because of a period of emergency hospitalization.
		(Source: P.A. 86-784.) (215 ILCS 5/356m) (from Ch. 73, par. 968m)Sec. 356m. Infertility coverage.(a) No group policy of accident and health insurance providing coverage
for more than 25 employees that provides pregnancy related benefits may be
issued, amended, delivered, or
renewed in this State after the effective date of this amendatory Act of the 99th General Assembly unless the policy contains coverage for the diagnosis and treatment of
infertility including, but not limited to, in vitro fertilization, uterine
embryo lavage, embryo transfer, artificial insemination, gamete
intrafallopian tube transfer, zygote intrafallopian tube transfer, and low
tubal ovum transfer.(b) The coverage required under subsection (a) is subject to the following conditions:(1) Coverage for procedures for in vitro     fertilization, gamete intrafallopian tube transfer, or zygote intrafallopian tube transfer shall be required only if:(A) the covered individual has been unable to         attain a viable pregnancy, maintain a viable pregnancy, or sustain a successful pregnancy through reasonable, less costly medically appropriate infertility treatments for which coverage is available under the policy, plan, or contract;(B) the covered individual has not undergone 4         completed oocyte retrievals, except that if a live birth follows a completed oocyte retrieval, then 2 more completed oocyte retrievals shall be covered; and(C) the procedures are performed at medical         facilities that conform to the American College of Obstetric and Gynecology guidelines for in vitro fertilization clinics or to the American Fertility Society minimal standards for programs of in vitro fertilization.(2) The procedures required to be covered under this     Section are not required to be contained in any policy or plan issued to or by a religious institution or organization or to or by an entity sponsored by a religious institution or organization that finds the procedures required to be covered under this Section to violate its religious and moral teachings and beliefs.(c) As used in this Section, "infertility" means a disease, condition, or status characterized by:(1) a failure to establish a pregnancy or to carry a     pregnancy to live birth after 12 months of regular, unprotected sexual intercourse if the woman is 35 years of age or younger, or after 6 months of regular, unprotected sexual intercourse if the woman is over 35 years of age; conceiving but having a miscarriage does not restart the 12-month or 6-month term for determining infertility;(2) a person's inability to reproduce either as a     single individual or with a partner without medical intervention; or(3) a licensed physician's findings based on a     patient's medical, sexual, and reproductive history, age, physical findings, or diagnostic testing.(d) A policy, contract, or certificate may not impose any exclusions, limitations, or other restrictions on coverage of fertility medications that are different from those imposed on any other prescription medications, nor may it impose any exclusions, limitations, or other restrictions on coverage of any fertility services based on a covered individual's participation in fertility services provided by or to a third party, nor may it impose deductibles, copayments, coinsurance, benefit maximums, waiting periods, or any other limitations on coverage for the diagnosis of infertility, treatment for infertility, and standard fertility preservation services, except as provided in this Section, that are different from those imposed upon benefits for services not related to infertility. (Source: P.A. 102-170, eff. 1-1-22.) (215 ILCS 5/356n) (from Ch. 73, par. 968n)Sec. 356n. 
		Fibrocystic condition; denial of coverage. 
		No
group or individual policy of accident or health insurance or
any renewal thereof shall be denied by the insurer, nor shall any policy
contain any exception or exclusion of benefits, solely because the insured
has been diagnosed as having a fibrocystic breast condition, unless the
condition is diagnosed by a breast biopsy that demonstrates an increased
disposition to the development of breast cancer or unless the insured's medical
history confirms a chronic, relapsing, symptomatic breast condition.
		(Source: P.A. 87-519; 87-895; 87-1066.) (215 ILCS 5/356p) (from Ch. 73, par. 968p)Sec. 356p. 
		Breast implant removal. 
		No individual or group policy of
accident and health insurance shall deny coverage for the removal of breast
implants when the removal of the implants is medically necessary treatment
for a sickness or injury.  This Section does not apply to surgery performed
for removal of breast implants that were implanted solely for cosmetic
reasons.  For the purpose of this Section, cosmetic reasons does not include
cosmetic surgery performed as reconstruction resulting from sickness or
injury.
		(Source: P.A. 87-938.) (215 ILCS 5/356q)Sec. 356q. 
		
		On or after the effective date of this Section, every insurer
which delivers or issues for delivery in this State a group accident and health
policy providing coverage for hospital, medical, or surgical treatment on an
expense-incurred basis shall offer, for an additional premium and subject to
the insurer's standard of insurability, optional coverage for the reasonable
and necessary medical treatment of temporomandibular joint disorder and
craniomandibular disorder.  The group policyholder shall accept or reject the
coverage in writing on the application or an amendment thereto for the master
group policy.  Benefits may be subject to the same pre-existing
conditions, limitations, deductibles, co-payments and co-insurance that
generally apply to any other sickness.  The maximum lifetime benefits for
temporomandibular joint disorder and craniomandibular treatment shall be no
less than $2,500.  Nothing herein shall prevent an insurer from including such
coverage for temporomandibular joint disorder and craniomandibular disorder as
part of a policy's basic coverage, in lieu of offering optional coverage.
		(Source: P.A. 88-592, eff. 1-1-95.) (215 ILCS 5/356r)Sec. 356r. Woman's principal health care provider.(a) An individual or group policy of accident and health insurance or a
managed care plan amended, delivered, issued, or renewed in this State after
November 14, 1996 that
requires an insured or enrollee to designate an individual to coordinate care
or to control access to health care services shall also permit a female insured
or enrollee to designate a participating woman's principal health care
provider,
and the insurer or managed care plan shall provide the following written
notice to all female insureds or enrollees no later than 120 days after the
effective date of this amendatory Act of 1998; to all new enrollees at the
time of enrollment;
and thereafter to all existing enrollees at least annually, as a part of a
regular publication or informational mailing:
					"NOTICE TO ALL FEMALE PLAN MEMBERS:
YOUR RIGHT TO SELECT A WOMAN'S PRINCIPAL
HEALTH CARE PROVIDER.Illinois law allows you to select "a woman's     principal health care provider" in addition to your selection of  a primary care physician.   A woman's principal health care provider is a physician licensed to practice medicine in all its branches specializing in obstetrics or gynecology or specializing in family practice.  A woman's principal health care provider may be seen for care without referrals from your primary care physician.  If you have not already selected a woman's principal health care provider, you may do so now or at any other time. You are not required to have or to select a woman's principal health care provider.Your woman's principal health care provider must be a     part of your plan.  You may get the list of participating obstetricians, gynecologists, and family practice specialists from your employer's employee benefits coordinator, or for your own copy of the current list, you may call [insert plan's toll free number].  The list will be sent to you within 10 days after your call.  To designate a woman's principal health care provider from the list, call [insert plan's toll free number] and tell our staff the name of the physician you have selected.".
					If the insurer or managed care plan exercises the option set forth in
subsection
(a-5), the notice shall also state:"Your plan requires that your primary care physician     and your woman's principal health care provider have a referral arrangement with one another.  If the woman's principal health care provider that you select does not have a referral arrangement with your primary care physician, you will have to select a new primary care physician who has a referral arrangement with your woman's principal health care provider or you may select a woman's principal health care provider who has a referral arrangement with your primary care physician.  The list  of woman's principal health care providers will also have the names of the primary care physicians and their referral arrangements.".No later than 120 days after the effective date of this amendatory Act of
1998, the insurer or managed
care plan shall provide each employer who has a policy of insurance or a
managed
care plan with the insurer or managed care plan with a list of physicians
licensed to practice medicine in all its branches specializing in obstetrics or
gynecology or specializing in family practice who have contracted with the
plan. At the time of enrollment and thereafter within 10 days after a request
by an insured  or enrollee, the insurer or managed care plan also shall provide
this list directly to the insured or enrollee.
The list shall include each physician's address, telephone
number, and specialty.  No insurer or plan formal or informal
policy may restrict a female insured's or enrollee's right to designate a
woman's
principal health care provider, except as set forth in subsection (a-5).
If the
female enrollee is an enrollee of a managed care plan under contract with the
Department of Healthcare and Family Services, the physician chosen by the enrollee as her woman's
principal health care provider must be a Medicaid-enrolled provider.
This requirement does not require a female insured or enrollee to make a
selection of a woman's principal health care provider.
The female insured or enrollee may designate a physician licensed to practice
medicine in
all its branches specializing in family practice as her woman's principal
health care provider.(a-5) The insured or enrollee may be required by the insurer or managed care
plan to select a woman's principal health care provider who has a
referral
arrangement with the insured's or enrollee's individual who coordinates care or
controls access to health care services
if such referral arrangement exists
or to
select a new individual to coordinate care or to control access to health care
services who has a referral arrangement with the
woman's principal health care provider chosen by the insured or enrollee, if
such referral arrangement exists.  If an
insurer or a managed care plan requires an insured or enrollee to select a new
physician under this subsection (a-5), the insurer or managed care plan must
provide the insured or enrollee with both options to select a new physician
provided in this subsection
(a-5).Notwithstanding a plan's restrictions of the frequency or timing of making
designations of primary care providers, a female enrollee or insured who is
subject to the selection requirements of this subsection, may, at any time,
effect a change in primary care physicians in order to make a
selection of a woman's principal health care provider.(a-6) If an insurer or managed care plan exercises the option in
subsection (a-5), the list to be provided under subsection (a) shall identify
the referral arrangements that exist between the individual who
coordinates
care or controls access to health care services and the woman's principal
health care provider in order to assist the female insured or enrollee to make
a selection within the insurer's or managed care plan's requirement.(b) If a female insured or enrollee has designated a woman's principal
health care provider, then the insured or enrollee must be given direct access
to the woman's principal health care provider for services covered by the
policy or plan without the need
for a referral or prior approval.  Nothing shall prohibit the insurer or
managed care plan from requiring prior authorization or approval from either a
primary care provider or the woman's principal health care provider for
referrals for additional care or services.(c) For the purposes of this Section the following terms are defined:(1) "Woman's principal health care provider" means a     physician licensed to practice medicine in all of its branches specializing in obstetrics or gynecology or specializing in family practice.(2) "Managed care entity" means any entity including     a licensed insurance company, hospital or medical service plan, health maintenance organization, limited health service organization, preferred provider organization, third party administrator, an employer or employee organization, or any person or entity that establishes, operates, or maintains a network of participating providers.(3) "Managed care plan" means a plan operated by a     managed care entity that provides for the financing of health care services to persons enrolled in the plan through:(A) organizational arrangements for ongoing         quality assurance, utilization review programs, or dispute resolution; or(B) financial incentives for persons enrolled in         the plan to use the participating providers and procedures covered by the plan.(4) "Participating provider" means a physician who     has contracted with an insurer or managed care plan to provide services to insureds or enrollees as defined by the contract.(d) The original provisions of this Section became law on July 17,
1996 and took effect November 14, 1996, which is 120 days after
becoming law.
					(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 5/356s)Sec. 356s. 
		Post-parturition care. 
		An individual or group
policy of accident and health insurance that provides maternity coverage and is
amended, delivered, issued, or renewed after the effective date of this
amendatory Act of 1996 shall provide coverage for the following:(1) a minimum of 48 hours of inpatient care following     a vaginal delivery for the mother and the newborn, except as otherwise provided in this Section; or(2) a minimum of 96 hours of inpatient care following     a delivery by caesarian section for the mother and newborn, except as otherwise provided in this Section.A shorter length of hospital inpatient stay for services related to maternity
and newborn care may be provided if the attending physician licensed to
practice medicine in all of its branches determines, in accordance with the
protocols and guidelines developed by the American College of Obstetricians and
Gynecologists or the American Academy of Pediatrics, that the mother and the
newborn meet the appropriate guidelines for that length of stay based upon
evaluation of the mother and newborn and the coverage and availability of a
post-discharge physician office visit or in-home nurse visit to verify the
condition of the infant in the first 48 hours after discharge.
		(Source: P.A. 89-513, eff. 9-15-96; 90-14, eff. 7-1-97.) (215 ILCS 5/356t)Sec. 356t. 
		Post-mastectomy care. 
		An individual or group policy of accident
and health insurance or managed care plan that provides surgical coverage and
is amended, delivered, issued, or renewed after the effective date of this
amendatory Act of 1997 shall provide inpatient coverage following a mastectomy
for a length of time determined by the attending physician to be medically
necessary and in accordance with protocols and guidelines based on sound
scientific evidence and upon evaluation of the patient and the coverage for and
availability of a post-discharge physician office visit or in-home nurse visit
to verify the condition of the patient in the first 48 hours after discharge.
		(Source: P.A. 90-7, eff. 6-10-97; 90-655, eff. 7-30-98.) (215 ILCS 5/356u)Sec. 356u. Pap tests and prostate cancer screenings.(a) A group policy of accident and health insurance that provides coverage
for hospital or medical treatment or services for illness on an
expense-incurred basis and is amended, delivered, issued, or renewed after January 1, 2024 shall provide coverage, without imposing a deductible, coinsurance, copayment, or any other cost-sharing requirement, for all of
the
following:(1) An annual cervical smear or Pap smear test for     female insureds.(2) An annual prostate cancer screening for male     insureds upon the recommendation of a physician licensed to practice medicine in all its branches for:(A) asymptomatic men age 50 and over;(B) African-American men age 40 and over; and(C) men age 40 and over with a family history of         prostate cancer.(3) Surveillance tests for ovarian cancer for female     insureds who are at risk for ovarian cancer.(b) This Section shall not apply to agreements, contracts, or policies that
provide coverage for a specified disease or other limited benefit coverage.(c) This Section does not apply to coverage of prostate cancer screenings to the extent such coverage would disqualify a high-deductible health plan from eligibility for a health savings account pursuant to Section 223 of the Internal Revenue Code.(d) For the purposes of this Section:"At risk for ovarian cancer" means:(1) having a family history (i) with one or more     first-degree relatives with ovarian cancer, (ii) of clusters of women relatives with breast cancer, or (iii) of nonpolyposis colorectal cancer; or(2) testing positive for BRCA1 or BRCA2 mutations."Prostate cancer screening" means medically viable methods for the detection and diagnosis of prostate cancer, including a digital rectal exam and the prostate-specific antigen test and associated laboratory work.  "Prostate cancer screening" includes medically necessary subsequent follow-up testing as directed by a health care provider, including, but not limited to:(1) urinary analysis;(2) serum biomarkers; and(3) medical imaging, including, but not limited to,     magnetic resonance imaging."Surveillance tests for ovarian cancer" means annual screening using (i) CA-125 serum tumor marker testing, (ii) transvaginal ultrasound, (iii) pelvic examination.
(Source: P.A. 102-1073, eff. 1-1-23.) (215 ILCS 5/356u.5)Sec. 356u.5. Coverage for genetic testing for breast and ovarian cancer susceptibility. A group or individual policy of accident and health insurance that is amended, delivered, issued, or renewed on or after January 1, 2024 shall provide coverage for the cost of the genetic testing of the BRCA1 and BRCA2 genes to detect an increased risk for breast and ovarian cancer if recommended by a health care provider in accordance with the United States Preventive Services Task Force's recommendations for testing.
(Source: P.A. 102-979, eff. 1-1-23.) (215 ILCS 5/356v)Sec. 356v. 
		Use of information derived from genetic testing. 
		
After the effective date of this amendatory Act of 1997, an insurer must comply
with the provisions of the Genetic Information Privacy Act in connection with
the amendment, delivery, issuance, or renewal of, or claims for or denial of
coverage under, an individual or group policy of accident and health insurance.
Additionally, genetic information shall not be treated as a condition
described in item (1) of subsection (A) of Section 20 of the Illinois Health
Insurance Portability and Accountability Act in the absence of a diagnosis of
the condition related to that genetic information.
		(Source: P.A. 90-25, eff. 1-1-98; 90-655, eff. 7-30-98; 91-549, eff. 8-14-99.) (215 ILCS 5/356w)Sec. 356w. Diabetes self-management training and education.(a) A group policy of accident and health insurance that is amended,
delivered,
issued, or renewed after the
effective date of this amendatory Act of 1998 shall provide coverage for
outpatient self-management
training and education, equipment, and supplies, as set forth in this Section,
for the treatment of type 1 diabetes, type 2 diabetes, and gestational diabetes
mellitus.(b) As used in this Section:"Diabetes self-management training"
means instruction in an outpatient setting
which enables a diabetic patient to understand the diabetic management process
and daily management of
diabetic therapy as a means of avoiding frequent hospitalization and
complications.  Diabetes self-management training shall include
the content areas listed in the National Standards for Diabetes Self-Management
Education Programs as published by the American Diabetes Association, including
medical nutrition therapy and education programs, as defined by the contract of insurance, that allow the patient to maintain an A1c level within the range identified in nationally recognized standards of care."Medical nutrition therapy" shall have the meaning
ascribed to that term in the Dietitian Nutritionist
Practice Act."Physician" means a
physician licensed to practice medicine in all of
its branches providing care to the individual."Qualified provider" for an
individual that is enrolled in:(1) a health maintenance organization that uses a     primary care physician to control access to specialty care means (A) the individual's primary care physician licensed to practice medicine in all of its branches, (B) a physician licensed to practice medicine in all of its branches to whom the individual has been referred by the primary care physician, or (C) a certified, registered, or licensed network health care professional with expertise in diabetes management to whom the individual has been referred by the primary care physician.(2) an insurance plan means (A) a physician licensed     to practice medicine in all of its branches or (B) a certified, registered, or licensed health care professional with expertise in diabetes management to whom the individual has been referred by a physician.(c) Coverage under this Section for diabetes self-management training,
including medical nutrition
education, shall be limited to the following:(1) Up to 3 medically necessary visits to a qualified     provider upon initial diagnosis of diabetes by the patient's physician or, if diagnosis of diabetes was made within one year prior to the effective date of this amendatory Act of 1998 where the insured was a covered individual, up to 3 medically necessary visits to a qualified provider within one year after that effective date.(2) Up to 2 medically necessary visits to a qualified     provider upon a determination by a patient's physician that a significant change in the patient's symptoms or medical condition has occurred.  A "significant change" in condition means symptomatic hyperglycemia (greater than 250 mg/dl on repeated occasions), severe hypoglycemia (requiring the assistance of another person), onset or progression of diabetes, or a significant change in medical condition that would require a significantly different treatment regimen.Payment by the  insurer or health maintenance organization for the coverage
required for diabetes self-management training pursuant to the provisions of
this Section is only required to be made for services provided.
No coverage is required for additional visits beyond those specified in items
(1) and (2) of this subsection.Coverage under this subsection (c) for diabetes self-management training
shall
be subject to the same
deductible, co-payment, and co-insurance provisions that apply to coverage
under
the policy for other
services provided by the same type of provider.(d) Coverage shall be provided for the following
equipment when medically necessary
and prescribed by a physician licensed to practice medicine in all
of its branches.
Coverage for the following items shall be subject to deductible, co-payment
and co-insurance provisions
provided for under the policy or a durable medical equipment rider to the
policy:(1) blood glucose monitors;(2) blood glucose monitors for the legally blind;(3) cartridges for the legally blind; and(4) lancets and lancing devices.This subsection does not apply to a group policy of accident and health
insurance that does not provide a durable medical equipment benefit.(e) Coverage shall be provided for the following pharmaceuticals and
supplies when
medically necessary and prescribed by a physician licensed to
practice medicine in all of its
branches.
Coverage for the following items shall be subject to the same coverage,
deductible,
co-payment, and co-insurance
provisions under the policy or a drug rider to the policy, except as otherwise provided for under Section 356z.41:(1) insulin;(2) syringes and needles;(3) test strips for glucose monitors;(4) FDA approved oral agents used to control blood     sugar; and(5) glucagon emergency kits.This subsection does not apply to a group policy of accident and health
insurance that does not provide a drug benefit.(f) Coverage shall be provided for regular foot care exams by a
physician or by a
physician to whom a physician has referred the patient.  Coverage
for regular foot care exams
shall be subject to the same deductible, co-payment, and co-insurance
provisions
that apply under the policy for
other services provided by the same type of provider.(g) If authorized by a physician, diabetes self-management
training may be provided as a part of an office visit, group setting, or home
visit.(h) This Section shall not apply to agreements, contracts, or policies that
provide coverage for a specified diagnosis or other limited benefit coverage.
(Source: P.A. 101-625, eff. 1-1-21.) (215 ILCS 5/356x)Sec. 356x. 
		Coverage for colorectal cancer examination and screening.(a) An individual or group policy of accident and health insurance or a
managed care plan that is amended, delivered, issued,
or
renewed on or after the effective date of this amendatory Act of the 93rd
General Assembly that provides coverage to a resident of this State must
provide benefits or coverage for all colorectal cancer examinations and
laboratory
tests for colorectal cancer
as prescribed by a physician, in
accordance with the
published American Cancer Society guidelines on colorectal cancer
screening or
other existing colorectal cancer screening guidelines issued by nationally
recognized professional medical
societies or federal government agencies, including the
National Cancer Institute, the Centers for Disease
Control and Prevention, and the
American College of Gastroenterology.(b) Coverage required under this Section may not impose any deductible,
coinsurance, waiting
period, or other cost-sharing limitation that is greater than that
required for other coverage under the policy.
		(Source: P.A. 93-568, eff. 1-1-04.) (215 ILCS 5/356y)Sec. 356y. 
		(Repealed). 
		(Source: P.A. 91-406, eff. 1-1-00.  Repealed internally, eff. 1-1-03.) (215 ILCS 5/356z.1)Sec. 356z.1. Prenatal HIV testing. An individual or group policy of
accident and health insurance that provides maternity coverage and is amended,
delivered, issued, or renewed after the effective date of this amendatory Act
of the 92nd General Assembly must provide coverage for prenatal HIV testing
ordered by an attending physician licensed to practice medicine in all its
branches, or by a physician assistant or advanced practice registered nurse, including but not limited to orders consistent with
the recommendations of the American College of Obstetricians and Gynecologists
or the American Academy of Pediatrics.
(Source: P.A. 99-173, eff. 7-29-15.) (215 ILCS 5/356z.2)Sec. 356z.2. Coverage for adjunctive services in dental care.(a) An individual or group policy of accident and health insurance
amended, delivered, issued, or renewed after January 1, 2003 (the effective date of Public Act 92-764) shall cover
charges incurred, and anesthetics provided, in
conjunction with dental care that is provided to a covered individual in a
hospital or
an ambulatory surgical treatment center
if any of the
following
applies:(1) the individual is a child age 6 or under;(2) the individual has a medical condition that     requires hospitalization or general anesthesia for dental care; or(3) the individual is a person with a disability.(a-5) An individual or group policy of accident and health insurance amended, delivered, issued, or renewed after January 1, 2016 (the effective date of Public Act 99-141) shall cover charges incurred, and anesthetics provided by a dentist with a permit provided under Section 8.1 of the Illinois Dental Practice Act, in conjunction with dental care that is provided to a covered individual in a dental office, oral surgeon's office, hospital, or ambulatory surgical treatment center if the individual is under age 26 and has been diagnosed with an autism spectrum disorder as defined in Section 10 of the Autism Spectrum Disorders Reporting Act or a developmental disability. A covered individual shall be required to make 2 visits to the dental care provider prior to accessing other coverage under this subsection.For purposes of this subsection, "developmental disability" means "developmental disability" as defined in Section 1-106 of the Mental Health and Developmental Disabilities Code.(b) For purposes of this Section, "ambulatory surgical treatment center"
has the meaning given to that term in Section 3 of the Ambulatory
Surgical Treatment Center Act.For purposes of this Section, "person with a disability" means a person, regardless of age,
with a chronic
disability if the chronic disability meets all of the following conditions:(1) It is attributable to a mental or physical     impairment or combination of mental and physical impairments.(2) It is likely to continue.(3) It results in substantial functional limitations     in one or more of the following areas of major life activity:(A) self-care;(B) receptive and expressive language;(C) learning;(D) mobility;(E) capacity for independent living; or(F) economic self-sufficiency.(c) The coverage required under this Section may be subject to any
limitations, exclusions, or cost-sharing provisions that apply generally under
the insurance policy.(d) This Section does not apply to a policy that covers only dental care.(e) Nothing in this Section requires that the dental services be
covered.(f) The provisions of this Section do not apply to short-term travel,
accident-only, limited, or specified disease policies, nor to policies or
contracts designed for issuance to persons eligible for coverage under Title
XVIII of the Social Security Act, known as Medicare, or any other similar
coverage under State or federal governmental plans.
(Source: P.A. 101-525, eff. 1-1-20; 102-972, eff. 1-1-23.) (215 ILCS 5/356z.3)Sec. 356z.3.  Disclosure of limited benefit. An insurer that
issues,
delivers,
amends, or
renews an individual or group policy of accident and health insurance in this
State after the
effective date of this amendatory Act of the 92nd General Assembly and
arranges, contracts
with, or administers contracts with a provider whereby beneficiaries are
provided an incentive to
use the services of such provider must include the following disclosure on its
contracts and
evidences of coverage: "WARNING, LIMITED BENEFITS WILL BE PAID WHEN
NON-PARTICIPATING PROVIDERS ARE USED. You should be aware that when you elect
to
utilize the services of a non-participating provider for a covered service in non-emergency
situations, benefit payments to such non-participating provider are not based upon the amount
billed. The basis of your benefit payment will be determined according to your policy's fee
schedule, usual and customary charge (which is determined by comparing charges for similar
services adjusted to the geographical area where the services are performed), or other method as
defined by the policy. YOU CAN EXPECT TO PAY MORE THAN THE COINSURANCE
AMOUNT DEFINED IN THE POLICY AFTER THE PLAN HAS PAID ITS REQUIRED
PORTION. Non-participating providers may bill members for any amount up to the
billed
charge after the plan has paid its portion of the bill, except as provided in Section 356z.3a of the Illinois Insurance Code for covered services received at a participating health care facility from a nonparticipating provider that are: (a) ancillary services, (b) items or services furnished as a result of unforeseen, urgent medical needs that arise at the time the item or service is furnished, or (c) items or services received when the facility or the non-participating provider fails to satisfy the notice and consent criteria specified under Section 356z.3a. Participating providers
have agreed to accept
discounted payments for services with no additional billing to the member other
than co-insurance and deductible amounts. You may obtain further information
about the
participating
status of professional providers and information on out-of-pocket expenses by
calling the toll
free telephone number on your identification card.".(Source: P.A. 102-901, eff. 1-1-23.) (215 ILCS 5/356z.3a)Sec. 356z.3a. Billing; emergency services; nonparticipating providers.(a) As used in this Section:"Ancillary services" means:(1)   items and services related to emergency     medicine, anesthesiology, pathology, radiology, and neonatology that are provided by any health care provider;(2)   items and services provided by assistant     surgeons, hospitalists, and intensivists;(3)   diagnostic services, including radiology and     laboratory services, except for advanced diagnostic laboratory tests identified on the most current list published by the United States Secretary of Health and Human Services under 42 U.S.C. 300gg-132(b)(3);(4)    items and services provided by other specialty     practitioners as the United States Secretary of Health and Human Services specifies through rulemaking  under 42 U.S.C. 300gg-132(b)(3);(5)   items and services provided by a     nonparticipating provider if there is no participating provider who can furnish the item or service at the facility; and(6)   items and services provided by a     nonparticipating provider if there is no participating provider who will furnish the item or service because a participating provider has asserted the participating provider's rights under the Health Care Right of Conscience Act."Cost sharing" means the amount an insured, beneficiary, or enrollee is responsible for paying for a covered item or service under the terms of the policy or certificate. "Cost sharing" includes copayments, coinsurance, and amounts paid toward deductibles, but does not include amounts paid towards premiums, balance billing by out-of-network providers, or the cost of items or services that are not covered under the policy or certificate."Emergency department of a hospital" means any hospital department that provides emergency services, including a hospital outpatient department."Emergency medical condition" has the meaning ascribed to that term in Section 10 of the Managed Care Reform and Patient Rights Act."Emergency medical screening examination" has the meaning ascribed to that term in Section 10 of the Managed Care Reform and Patient Rights Act."Emergency services" means, with respect to an emergency medical condition:(1)   in general, an emergency medical screening     examination, including ancillary services routinely available to the emergency department to evaluate such emergency medical condition, and such further medical examination and treatment as would be required to stabilize the patient regardless of the department of the hospital or other facility in which such further examination or treatment is furnished; or(2)   additional items and services for which     benefits are provided or covered under the coverage and that are furnished by a nonparticipating provider or nonparticipating emergency facility regardless of the department of the hospital or other facility in which such items are furnished after the insured, beneficiary, or enrollee is stabilized and as part of outpatient observation or an inpatient or outpatient stay with respect to the visit in which the services described in paragraph (1) are furnished. Services after stabilization cease to be emergency services only when all the conditions of 42 U.S.C. 300gg-111(a)(3)(C)(ii)(II) and regulations thereunder are met."Freestanding Emergency Center" means a facility licensed under Section 32.5 of the Emergency Medical Services (EMS) Systems Act."Health care facility" means, in the context of non-emergency services, any of the following:(1)   a hospital as defined in 42 U.S.C. 1395x(e);(2)   a hospital outpatient department;(3)   a critical access hospital certified under 42     U.S.C. 1395i-4(e);(4)   an ambulatory surgical treatment center as     defined in the Ambulatory Surgical Treatment Center Act; or(5)   any recipient of a license under the Hospital     Licensing Act that is not otherwise described in this definition."Health care provider" means a provider as defined in subsection (d) of Section 370g. "Health care provider" does not include a provider of air ambulance or ground ambulance services."Health care services" has the meaning ascribed to that term in subsection (a) of Section 370g."Health insurance issuer" has the meaning ascribed to that term in Section 5 of the Illinois Health Insurance Portability and Accountability Act."Nonparticipating emergency facility" means, with respect to the furnishing of an item or service under a policy of group or individual health insurance coverage, any of the following facilities that does not have a contractual relationship directly or indirectly with a health insurance issuer in relation to the coverage:(1)   an emergency department of a hospital;(2)   a Freestanding Emergency Center;(3)   an ambulatory surgical treatment center as     defined in the Ambulatory Surgical Treatment Center Act; or(4)   with respect to emergency services described in     paragraph (2) of the definition of "emergency services", a hospital."Nonparticipating provider" means, with respect to the furnishing of an item or service under a policy of group or individual health insurance coverage, any health care provider who does not have a contractual relationship directly or indirectly with a health insurance issuer in relation to the coverage."Participating emergency facility" means any of the following facilities that has a contractual relationship directly or indirectly with a health insurance issuer offering group or individual health insurance coverage setting forth the terms and conditions on which a relevant health care service is provided to an insured, beneficiary, or enrollee under the coverage:(1)   an emergency department of a hospital;(2)   a Freestanding Emergency Center;(3)   an ambulatory surgical treatment center as     defined in the Ambulatory Surgical Treatment Center Act; or(4)   with respect to emergency services described in     paragraph (2) of the definition of "emergency services", a hospital.For purposes of this definition, a single case agreement between an emergency facility and an issuer that is used to address unique situations in which an insured, beneficiary, or enrollee requires services that typically occur out-of-network constitutes a contractual relationship and is limited to the parties to the agreement."Participating health care facility" means any health care facility that has a contractual
relationship directly or indirectly with a health insurance issuer offering group or individual health insurance coverage setting forth the terms and conditions on which a relevant health care service is provided to an insured, beneficiary, or enrollee under the coverage. A single case agreement between an emergency facility and an issuer that is used to address unique situations in which an insured, beneficiary, or enrollee requires services that typically occur out-of-network constitutes a contractual relationship for purposes of this definition and is limited to the parties to the agreement."Participating provider" means any health care provider that has a
contractual relationship directly or indirectly with a health insurance issuer offering group or individual health insurance coverage setting forth the terms and conditions on which a relevant health care service is provided to an insured, beneficiary, or enrollee under the coverage."Qualifying payment amount" has the meaning given to that term in 42 U.S.C. 300gg-111(a)(3)(E) and the regulations promulgated thereunder."Recognized amount" means the lesser of the amount initially billed by the provider or the qualifying payment amount."Stabilize" means "stabilization" as defined in Section 10 of the Managed Care Reform and Patient Rights Act."Treating provider" means a health care provider who has evaluated the individual."Visit" means, with respect to health care services furnished to an individual at a health care facility, health care services furnished by a provider at the facility, as well as equipment, devices, telehealth services, imaging services, laboratory services, and preoperative and postoperative services regardless of whether the provider furnishing such services is at the facility.(b)  Emergency services. When a beneficiary, insured, or enrollee receives emergency services from a nonparticipating provider or a nonparticipating emergency facility, the health insurance issuer shall ensure that the beneficiary, insured, or enrollee shall incur no greater out-of-pocket costs than the beneficiary, insured, or enrollee would have incurred with a participating provider or a participating emergency facility. Any cost-sharing requirements shall be applied as though the emergency services had been received from a participating provider or a participating facility. Cost sharing shall be calculated based on the recognized amount for the emergency services. If the cost sharing for the same item or service furnished by a participating provider would have been a flat-dollar copayment, that amount shall be the cost-sharing amount unless the provider has billed a lesser total amount. In no event shall the beneficiary, insured, enrollee, or any group policyholder or plan sponsor be liable to or billed by the health insurance issuer, the nonparticipating provider, or the nonparticipating emergency facility for any amount beyond the cost sharing calculated in accordance with this subsection with respect to the emergency services delivered. Administrative requirements or limitations shall be no greater than those applicable to emergency services received from a participating provider or a participating emergency facility.(b-5) Non-emergency services at participating health care facilities.(1) When a beneficiary, insured, or enrollee utilizes     a participating health care facility and, due to any reason, covered ancillary services are provided by a nonparticipating provider during or resulting from the visit, the health insurance issuer shall ensure that the beneficiary, insured, or enrollee shall incur no greater out-of-pocket costs than the beneficiary, insured, or enrollee would have incurred with a participating provider for the ancillary services. Any cost-sharing requirements shall be applied as though the ancillary services had been received from a participating provider. Cost sharing shall be calculated based on the recognized amount for the ancillary services. If the cost sharing for the same item or service furnished by a participating provider would have been a flat-dollar copayment, that amount shall be the cost-sharing amount unless the provider has billed a lesser total amount. In no event shall the beneficiary, insured, enrollee, or any group policyholder or plan sponsor be liable to or billed by the health insurance issuer, the nonparticipating provider, or the participating health care facility for any amount beyond the cost sharing calculated in accordance with this subsection with respect to the ancillary services delivered. In addition to ancillary services, the requirements of this paragraph shall also apply with respect to covered items or services furnished as a result of unforeseen, urgent medical needs that arise at the time an item or service is furnished, regardless of whether the nonparticipating provider satisfied the notice and consent criteria under paragraph (2) of this subsection.(2) When a beneficiary, insured, or enrollee utilizes     a participating health care facility and receives non-emergency covered health care services other than those described in paragraph (1) of this subsection from a nonparticipating provider during or resulting from the visit, the health insurance issuer shall ensure that the beneficiary, insured, or enrollee incurs no greater out-of-pocket costs than the beneficiary, insured, or enrollee would have incurred with a participating provider unless the nonparticipating provider or the participating health care facility on behalf of the nonparticipating provider satisfies the notice and consent criteria provided in 42 U.S.C. 300gg-132 and regulations promulgated thereunder. If the notice and consent criteria are not satisfied, then:(A)   any cost-sharing requirements shall be         applied as though the health care services had been received from a participating provider;(B)   cost sharing shall be calculated based on         the recognized amount for the health care services; and(C)   in no event shall the beneficiary, insured,         enrollee, or any group policyholder or plan sponsor be liable to or billed by the health insurance issuer, the nonparticipating provider, or the participating health care facility for any amount beyond the cost sharing calculated in accordance with this subsection with respect to the health care services delivered.(c) Notwithstanding any other provision of this Code, except when the notice and consent criteria are satisfied for the situation in paragraph (2) of subsection (b-5), any benefits a beneficiary, insured, or enrollee receives for services under the situations in subsection (b) or (b-5) are assigned to the nonparticipating providers or the facility acting on their behalf.  Upon receipt of the provider's bill or facility's bill, the health insurance issuer shall provide the nonparticipating provider or the facility with a written explanation of benefits that specifies the proposed reimbursement and the applicable deductible, copayment, or coinsurance amounts owed by the insured, beneficiary, or enrollee.  The health insurance issuer shall pay any reimbursement subject to this Section directly to the nonparticipating provider or the facility.(d)  For bills assigned under subsection (c), the nonparticipating provider or the facility may bill the health insurance issuer for the services rendered, and the health insurance issuer may pay the billed amount or attempt to negotiate reimbursement with the nonparticipating provider or the facility. Within 30 calendar days after the provider or facility transmits the bill to the health insurance issuer, the issuer shall send an initial payment or notice of denial of payment with the written explanation of benefits to the provider or facility.  If attempts to negotiate reimbursement for services provided by a nonparticipating provider do not result in a resolution of the payment dispute within 30 days after receipt of written explanation of benefits by the health insurance issuer, then the health insurance issuer or nonparticipating provider or the facility may initiate binding arbitration to determine payment for services provided on a per-bill basis.  The party requesting arbitration shall notify the other party arbitration has been initiated and state its final offer before arbitration.  In response to this notice, the nonrequesting party shall inform the requesting party of its final offer before the arbitration occurs.  Arbitration shall be initiated by filing a request with the Department of Insurance.(e)  The Department of Insurance shall publish a list of approved arbitrators or entities that shall provide binding arbitration.  These arbitrators shall be American Arbitration Association or American Health Lawyers Association trained arbitrators.  Both parties must agree on an arbitrator from the Department of Insurance's or its approved entity's list of arbitrators.  If no agreement can be reached, then a list of 5 arbitrators shall be provided by the Department of Insurance or the approved entity.  From the list of 5 arbitrators, the health insurance issuer can veto 2 arbitrators and the provider or facility can veto 2 arbitrators. The remaining arbitrator shall be the chosen arbitrator.  This arbitration shall consist of a review of the written submissions by both parties.  The arbitrator shall not establish a rebuttable presumption that the qualifying payment amount should be the total amount owed to the provider or facility by the combination of the issuer and the insured, beneficiary, or enrollee. Binding arbitration shall provide for a written decision within 45 days after the request is filed with the Department of Insurance.  Both parties shall be bound by the arbitrator's decision.  The arbitrator's expenses and fees, together with other expenses, not including attorney's fees, incurred in the conduct of the arbitration, shall be paid as provided in the decision.(f) (Blank).(g)  Section 368a of this Act shall not apply during the pendency of a decision under subsection (d). Upon the issuance of the arbitrator's decision, Section 368a applies with respect to the amount, if any, by which the arbitrator's determination exceeds the issuer's initial payment under subsection (c), or the entire amount of the arbitrator's determination if initial payment was denied. Any interest required to be paid to a provider under Section 368a shall not accrue until after 30 days of an arbitrator's decision as provided in subsection (d), but in no circumstances longer than 150 days from the date the nonparticipating facility-based provider billed for services rendered.(h)  Nothing in this Section shall be interpreted to change the prudent layperson provisions with respect to emergency services under the Managed Care Reform and Patient Rights Act.(i)   Nothing in this Section shall preclude a health care provider from billing a beneficiary, insured, or enrollee for reasonable administrative fees, such as service fees for checks returned for nonsufficient funds and missed appointments.(j)   Nothing in this Section shall preclude a beneficiary, insured, or enrollee from assigning benefits to a nonparticipating provider when the notice and consent criteria are satisfied under paragraph (2) of subsection (b-5) or in any other situation not described in subsection (b) or (b-5).(k)   Except when the notice and consent criteria are satisfied under paragraph (2) of subsection (b-5), if an individual receives health care services under the situations described in subsection (b) or (b-5), no referral requirement or any other provision contained in the policy or certificate of coverage shall deny coverage, reduce benefits, or otherwise defeat the requirements of this Section for services that would have been covered with a participating provider. However, this subsection shall not be construed to preclude a provider contract with a health insurance issuer, or with an administrator or similar entity acting on the issuer's behalf, from imposing requirements on the participating provider, participating emergency facility, or participating health care facility relating to the referral of covered individuals to nonparticipating providers.(l)   Except if the notice and consent criteria are satisfied under paragraph (2) of subsection (b-5), cost-sharing amounts calculated in conformity with this Section shall count toward any deductible or out-of-pocket maximum applicable to in-network coverage.(m)   The Department has the authority to enforce the requirements of this Section in the situations described in subsections (b) and (b-5), and in any other situation for which 42 U.S.C. Chapter 6A, Subchapter XXV, Parts D or E and regulations promulgated thereunder would prohibit an individual from being billed or liable for emergency services furnished by a nonparticipating provider or nonparticipating emergency facility or for non-emergency health care services furnished by a nonparticipating provider at a participating health care facility.(n)   This Section does not apply with respect to air ambulance or ground ambulance services. This Section does not apply to any policy of excepted benefits or to short-term, limited-duration health insurance coverage. (Source: P.A. 102-901, eff. 7-1-22; 102-1117, eff. 1-13-23.) (215 ILCS 5/356z.4)Sec. 356z.4. Coverage for contraceptives.(a)(1)      The General Assembly hereby finds and declares all of the following:(A)    Illinois has a long history of expanding     timely access to birth control to prevent unintended pregnancy.(B)   The federal Patient Protection and Affordable     Care Act includes a contraceptive coverage guarantee as part of a broader requirement for health insurance to cover key preventive care services without out-of-pocket costs for patients.(C)   The General Assembly intends to build on     existing State and federal law to promote gender equity and women's health and to ensure greater contraceptive coverage equity and timely access to all federal Food and Drug Administration approved methods of birth control for all individuals covered by an individual or group health insurance policy in Illinois.(D)   Medical management techniques such as denials,     step therapy, or prior authorization in public and private health care coverage can impede access to the most effective contraceptive methods.(2) As used in this subsection (a):"Contraceptive services" includes consultations, examinations, procedures, and medical services related to the use of contraceptive methods (including natural family planning) to prevent an unintended pregnancy."Medical necessity", for the purposes of this subsection (a),  includes, but is not limited to, considerations such as severity of side effects, differences in permanence and reversibility of contraceptive, and ability to adhere to the appropriate use of the item or service, as determined by the attending provider."Therapeutic equivalent version" means drugs, devices, or products that can be expected to have the same clinical effect and safety profile when administered to patients under the conditions specified in the labeling and satisfy the following general criteria:(i) they are approved as safe and effective;(ii) they are pharmaceutical equivalents in that they     (A) contain identical amounts of the same active drug ingredient in the same dosage form and route of administration and (B) meet compendial or other applicable standards of strength, quality, purity, and identity;(iii) they are bioequivalent in that (A) they do not     present a known or potential bioequivalence problem and they meet an acceptable in vitro standard or (B) if they do present such a known or potential problem, they are shown to meet an appropriate bioequivalence standard;(iv) they are adequately labeled; and(v) they are manufactured in compliance with Current     Good Manufacturing Practice regulations.(3) An individual or group policy of accident and health insurance amended,
delivered, issued, or renewed in this State after the effective date of this amendatory Act of the 99th General Assembly shall provide coverage for all of the following services and contraceptive methods:(A)   All contraceptive drugs, devices, and other     products approved by the United States Food and Drug Administration. This includes all over-the-counter contraceptive drugs, devices, and products approved by the United States Food and Drug Administration, excluding male condoms. The following apply:(i)      If the United States Food and Drug         Administration has approved one or more therapeutic equivalent versions of a contraceptive drug, device, or product, a policy is not required to include all such therapeutic equivalent versions in its formulary, so long as at least one is included and covered without cost-sharing and in accordance with this Section.(ii)      If an individual's attending provider         recommends a particular service or item approved by the United States Food and Drug Administration based on a determination of medical necessity with respect to that individual, the plan or issuer must cover that service or item without cost sharing. The plan or issuer must defer to the determination of the attending provider.(iii)     If a drug, device, or product is not         covered, plans and issuers must have an easily accessible, transparent, and sufficiently expedient process that is not unduly burdensome on the individual or a provider or other individual acting as a patient's authorized representative to ensure coverage without cost sharing.(iv)     This coverage must provide for the         dispensing of 12 months' worth of contraception at one time.(B)    Voluntary sterilization procedures.(C)   Contraceptive services, patient education, and     counseling on contraception.(D)   Follow-up services related to the drugs,     devices, products, and procedures covered under this Section, including, but not limited to, management of side effects, counseling for continued adherence, and device insertion and removal.(4) Except as otherwise provided in this subsection (a), a policy subject to this subsection (a) shall not impose a deductible, coinsurance, copayment, or any other cost-sharing requirement on the coverage provided. The provisions of this paragraph do not apply to coverage of voluntary male sterilization procedures to the extent such coverage would disqualify a high-deductible health plan from eligibility for a health savings account pursuant to the federal Internal Revenue Code, 26 U.S.C. 223.(5) Except as otherwise authorized under this subsection (a), a policy shall not impose any restrictions or delays on the coverage required under this subsection (a).(6) If, at any time, the Secretary of the United States Department of Health and Human Services, or its successor agency, promulgates rules or regulations to be published in the Federal Register or publishes a comment in the Federal Register or issues an opinion, guidance, or other action that would require the State, pursuant to any provision of the Patient Protection and Affordable Care Act (Public Law 111-148), including, but not limited to, 42 U.S.C. 18031(d)(3)(B) or any successor provision, to defray the cost of any coverage outlined in this subsection (a), then this subsection (a) is inoperative with respect to all coverage outlined in this subsection (a) other than that authorized under Section 1902 of the Social Security Act, 42 U.S.C. 1396a, and the State shall not assume any obligation for the cost of the coverage set forth in this subsection (a).(b) This subsection (b) shall become operative if and only if subsection (a) becomes inoperative.An individual or group policy of accident and health insurance amended,
delivered, issued, or renewed in this State after the date this subsection (b) becomes operative that provides coverage for
outpatient services and outpatient prescription drugs or devices must provide
coverage for the insured and any
dependent of the
insured covered by the policy for all outpatient contraceptive services and
all outpatient contraceptive drugs and devices approved by the Food and
Drug Administration.  Coverage required under this Section may not impose any
deductible, coinsurance, waiting period, or other cost-sharing or limitation
that is greater than that required for any outpatient service or outpatient
prescription drug or device otherwise covered by the policy.Nothing in this subsection (b) shall be construed to require an insurance
company to cover services related to permanent sterilization that requires a
surgical procedure.As used in this subsection (b), "outpatient contraceptive service" means
consultations, examinations, procedures, and medical services, provided on an
outpatient basis and related to the use of contraceptive methods (including
natural family planning) to prevent an unintended pregnancy.(c) (Blank).(d) If a plan or issuer utilizes a network of providers, nothing in this Section shall be construed to require coverage or to prohibit the plan or issuer from imposing cost-sharing for items or services described in this Section that are provided or delivered by an out-of-network provider, unless the plan or issuer does not have in its network a provider who is able to or is willing to provide the applicable items or services. 
(Source: P.A. 100-1102, eff. 1-1-19; 101-13, eff. 6-12-19.) (215 ILCS 5/356z.4a)Sec. 356z.4a. Coverage for abortion.(a) Except as otherwise provided in this Section, no individual or group policy of accident and health insurance that provides pregnancy-related benefits may be issued, amended, delivered, or renewed in this State after the effective date of this amendatory Act of the 101st General Assembly unless the policy provides a covered person with coverage for abortion care. Regardless of whether the policy otherwise provides prescription drug benefits, abortion care coverage must include medications that are obtained through a prescription and used to terminate a pregnancy, regardless of whether there is proof of a pregnancy.(b) Coverage for abortion care may not impose any deductible, coinsurance, waiting period, or other cost-sharing limitation that is greater than that required for other pregnancy-related benefits covered by the policy.(c) Except as otherwise authorized under this Section, a policy shall not impose any restrictions or delays on the coverage required under this Section.(d) This Section does not, pursuant to 42 U.S.C. 18054(a)(6), apply to a multistate plan that does not provide coverage for abortion.(e) If the Department concludes that enforcement of this Section may adversely affect the allocation of federal funds to this State, the Department may grant an exemption to the requirements, but only to the minimum extent necessary to ensure the continued receipt of federal funds. 
(Source: P.A. 101-13, eff. 6-12-19; 102-1117, eff. 1-13-23.) (215 ILCS 5/356z.4b)Sec. 356z.4b. Billing for long-acting reversible contraceptives.(a) In this Section, "long-acting reversible contraceptive device" means any intrauterine device or contraceptive implant.(b) Any individual or group policy of accident and health insurance or qualified health plan that is offered through the health insurance marketplace that is amended, delivered, issued, or renewed on or after the effective date of this amendatory Act of the 102nd General Assembly shall allow hospitals separate reimbursement for a long-acting reversible contraceptive device provided immediately postpartum in the inpatient hospital setting before hospital discharge. The payment shall be made in addition to a bundled or Diagnostic Related Group reimbursement for labor and delivery. 
(Source: P.A. 102-665, eff. 10-8-21.) (215 ILCS 5/356z.5)Sec. 356z.5.  Prescription inhalants. A group or individual
policy of
accident and health insurance or managed care plan amended, delivered, issued,
or renewed
after the effective date of this amendatory Act of the 93rd General Assembly
that provides
coverage for prescription drugs may not deny or limit coverage
for prescription inhalants to enable persons to breathe when suffering from
asthma or other life-threatening bronchial ailments based upon any restriction
on the number of days before an inhaler refill may be obtained if, contrary to
those restrictions, the inhalants have been ordered or prescribed by the
treating physician and are medically appropriate.
					(Source: P.A. 95-331, eff. 8-21-07.) (215 ILCS 5/356z.6)Sec. 356z.6. Bone mass measurement; osteoporosis.  A group or individual
policy of
accident and health insurance amended, delivered, issued,
or renewed after the effective date of this amendatory Act of the 93rd General
Assembly must
provide coverage for
medically necessary bone mass measurement and for the diagnosis and treatment
of osteoporosis on
the
same terms and conditions that are generally
applicable
to coverage for other
medical conditions.
(Source: P.A. 93-853, eff. 1-1-05.) (215 ILCS 5/356z.7) (was 215 ILCS 5/370r)Sec. 356z.7. Prescription drugs; cancer treatment. No group policy of
accident or health insurance that provides coverage for prescribed
drugs approved by the federal Food and Drug Administration for the
treatment of certain types of cancer shall exclude coverage of any drug on
the basis that the drug has been prescribed for the treatment of a type of
cancer for which the drug has not been approved by the federal Food and
Drug Administration.  The drug, however, must be approved by the federal
Food and Drug Administration and must be recognized for the treatment of the
specific type of cancer for which the drug has been prescribed in any
one of the following established reference compendia:(a) the American Hospital Formulary Service Drug     Information;(b) National Comprehensive Cancer Network's Drugs &     Biologics Compendium;(c) Thomson Micromedex's Drug Dex;(d) Elsevier Gold Standard's Clinical Pharmacology; or(e) other authoritative compendia as identified from     time to time by the Federal Secretary of Health and Human Services; or if not in the compendia, recommended for that particular type of cancer
in formal clinical studies, the results of which have been published in at
least two peer reviewed professional medical journals published in the
United States or Great Britain.Any coverage required by this Section shall also include those medically
necessary services associated with the administration of a drug.Despite the provisions of this Section, coverage shall
not be required for any experimental or investigational drugs or any drug
that the federal Food and Drug Administration has determined to be
contraindicated for treatment of the specific type of cancer for which the
drug has been prescribed.  This Section shall apply only to cancer drugs.
Nothing in this Section shall be construed, expressly or by implication, to
create, impair, alter, limit, notify, enlarge, abrogate or prohibit
reimbursement for drugs used in the treatment of any other disease or
condition.
(Source: P.A. 95-331, eff. 8-21-07; 96-457, eff. 8-14-09.) (215 ILCS 5/356z.8)Sec. 356z.8. Multiple sclerosis preventative physical therapy. A group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed after the effective date of this amendatory Act of the 94th General Assembly must provide coverage for medically necessary preventative physical therapy for insureds diagnosed with multiple sclerosis. For the purposes of this Section, "preventative physical therapy" means physical therapy that is prescribed by a physician licensed to practice medicine in all of its branches for the purpose of treating parts of the body affected by multiple sclerosis, but only where the physical therapy includes reasonably defined goals, including, but not limited to, sustaining the level of function the person has achieved, with periodic evaluation of the efficacy of the physical therapy against those goals. The coverage required under this Section shall be subject to the same deductible, coinsurance, waiting period, cost sharing limitation, treatment limitation, calendar year maximum, or  other limitations as provided for
other physical or rehabilitative therapy benefits covered by the policy.
(Source: P.A. 94-1076, eff. 12-29-06.) (215 ILCS 5/356z.9)Sec. 356z.9. Human papillomavirus vaccine. A group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed after the effective date of this amendatory Act of the 95th General Assembly must provide coverage for a human papillomavirus vaccine (HPV) that is approved for marketing by the federal Food and Drug Administration.
(Source: P.A. 95-422, eff. 8-24-07; 95-876, eff. 8-21-08.) (215 ILCS 5/356z.10)Sec. 356z.10. Amino acid-based elemental formulas. A group or individual major medical accident and health insurance policy or managed care plan amended, delivered, issued, or renewed after the effective date of this amendatory Act of the 95th General Assembly must provide coverage and reimbursement for amino acid-based elemental formulas, regardless of delivery method, for the diagnosis and treatment of (i) eosinophilic disorders and (ii) short bowel syndrome when the prescribing physician has issued a written order stating that the amino acid-based elemental formula is medically necessary.
(Source: P.A. 95-520, eff. 8-28-07; 95-876, eff. 8-21-08.) (215 ILCS 5/356z.11)Sec. 356z.11. Dependent students; medical leave of absence.  A group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed after the effective date of this amendatory Act of the 95th General Assembly must continue to provide coverage for a dependent college student who takes a medical leave of absence or reduces his or her course load to part-time status because of a catastrophic illness or injury.Continuation of coverage under this Section is subject to all of the policy's terms and
conditions applicable to those forms of insurance. Continuation of insurance under the policy shall terminate  12 months after notice of the illness or injury or until the coverage would have otherwise lapsed pursuant to the terms and conditions of the policy, whichever comes first, provided the need for part-time status or medical leave of absence is supported by a clinical certification of need from a physician licensed to practice medicine in all its branches.The provisions of this Section do not apply to short-term travel, accident-only, limited, or specified disease policies or to policies or contracts designed for issuance to persons eligible for coverage under Title XVIII of the Social Security Act, known as Medicare, or any other similar coverage under State or federal governmental plans.
(Source: P.A. 95-958, eff. 6-1-09; 96-328, eff. 8-11-09.) (215 ILCS 5/356z.12)Sec. 356z.12. Dependent coverage.(a) A group or individual policy of accident and health insurance or managed care plan that provides coverage for dependents and that is amended, delivered, issued, or renewed after the effective date of this amendatory Act of the 95th General Assembly shall not terminate coverage or deny the election of coverage for an unmarried dependent by reason of the dependent's age before the dependent's 26th birthday.(b)  A policy or plan subject to this Section shall, upon amendment, delivery, issuance, or renewal, establish an initial enrollment period of not less than 90 days during which an insured may make a written election for coverage of an unmarried person as a dependent under this Section.  After the initial enrollment period, enrollment by a dependent pursuant to this Section shall be consistent with the enrollment terms of the plan or policy.(c)  A policy or plan subject to this Section shall allow for dependent coverage during the annual open enrollment date or the annual renewal date if the dependent, as of the date on which the insured elects dependent coverage under this subsection, has:(1) a period of continuous creditable coverage of 90     days or more; and(2) not been without creditable coverage for more     than 63 days.An insured may elect coverage for a dependent who does not meet the continuous creditable coverage requirements of this subsection (c) and that dependent shall not be denied coverage due to age.For purposes of this subsection (c), "creditable coverage" shall have the meaning provided under subsection (C)(1) of Section 20 of the Illinois Health Insurance Portability and Accountability Act.(d) Military personnel. A group or individual policy of accident and health insurance or managed care plan that provides coverage for dependents and that is amended, delivered, issued, or renewed after the effective date of this amendatory Act of the 95th General Assembly shall not terminate coverage or deny the election of coverage for an unmarried dependent by reason of the dependent's age before the dependent's 30th birthday if the dependent (i) is an Illinois resident, (ii) served as a member of the active or reserve components of any of the branches of the Armed Forces of the United States, and (iii) has received a release or discharge other than a dishonorable discharge. To be eligible for coverage under this subsection (d), the eligible dependent shall submit to the insurer a form approved by the Illinois Department of Veterans' Affairs stating the date on which the dependent was released from service.(e) Calculation of the cost of coverage provided to an unmarried dependent under this Section shall be identical.(f) Nothing in this Section shall prohibit an employer from requiring an employee to pay all or part of the cost of coverage provided under this Section.(g) No exclusions or limitations may be applied to coverage elected pursuant to this Section that do not apply to all dependents covered under the policy.(h) A policy or plan subject to this Section shall not condition eligibility for dependent coverage provided pursuant to this Section on enrollment in any educational institution.(i) Notice regarding coverage for a dependent as provided pursuant to this Section shall be provided to an insured by the insurer:(1) upon application or enrollment;(2) in the certificate of coverage or equivalent     document prepared for an insured and delivered on or about the date on which the coverage commences; and(3) (blank). 
(Source: P.A. 98-226, eff. 1-1-14.) (215 ILCS 5/356z.13)Sec. 356z.13. Shingles vaccine.  A group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed after the effective date of the amendatory Act of this  95th General Assembly must provide coverage for a vaccine for shingles that is approved for marketing by the federal Food and Drug Administration if the vaccine is ordered by a physician licensed to practice medicine in all its branches and the enrollee is 60 years of age or older.
(Source: P.A. 95-978, eff. 1-1-09; 96-328, eff. 8-11-09.) (215 ILCS 5/356z.14)Sec. 356z.14. Autism spectrum disorders.(a)  A group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed after the effective date of this amendatory Act of the 95th General Assembly must provide individuals under 21 years of age coverage for the diagnosis of autism spectrum disorders and for the treatment of autism spectrum disorders to the extent that the diagnosis and treatment of autism spectrum disorders are not already covered by the policy of accident and health insurance or managed care plan.(b) Coverage provided under this Section shall be subject to a maximum benefit of $36,000 per year, but shall not be subject to any limits on the number of visits to a service provider. After December 30, 2009, the Director of the Division of Insurance shall, on an annual basis, adjust the maximum benefit for inflation using the Medical Care Component of the United States Department of Labor Consumer Price Index for All Urban Consumers.  Payments made by an insurer on behalf of a covered individual for any care, treatment, intervention, service, or item, the provision of which was for the treatment of a health condition not diagnosed as an autism spectrum disorder, shall not be applied toward any maximum benefit established under this subsection.(c) Coverage under this Section shall be subject to copayment, deductible, and coinsurance provisions of a policy of accident and health insurance or managed care plan to the extent that other medical services covered by the policy of accident and health insurance or managed care plan are subject to these provisions.(d)  This Section shall not be construed as limiting benefits that are otherwise available to an individual under a policy of accident and health insurance or managed care plan and benefits provided under this Section may not be subject to dollar limits, deductibles, copayments, or coinsurance provisions that are less favorable to the insured than the dollar limits, deductibles, or coinsurance provisions that apply to physical illness generally.(e) An insurer may not deny or refuse to provide otherwise covered services, or refuse to renew, refuse to reissue, or otherwise terminate or restrict coverage under an individual contract to provide services to an individual because the individual or their dependent is diagnosed with an autism spectrum disorder or due to the individual utilizing benefits in this Section.(e-5) An insurer may not deny or refuse to provide otherwise covered services under a group or individual policy of accident and health insurance or a managed care plan solely because of the location wherein the clinically appropriate services are provided.(f) Upon request of the reimbursing insurer, a provider of treatment for autism spectrum disorders shall furnish medical records, clinical notes, or other necessary data that substantiate that initial or continued medical treatment is medically necessary and is resulting in improved clinical status.  When treatment is anticipated to require continued services to achieve demonstrable progress, the insurer may request a treatment plan consisting of diagnosis, proposed treatment by type, frequency, anticipated duration of treatment, the anticipated outcomes stated as goals, and the frequency by which the treatment plan will be updated.(g) When making a determination of medical necessity for a treatment modality for autism spectrum disorders, an insurer must make the determination in a manner that is consistent with the manner used to make that determination with respect to other diseases or illnesses covered under the policy, including an appeals process.  During the appeals process, any challenge to medical necessity must be viewed as reasonable only if the review includes a physician with expertise in the most current and effective treatment modalities for autism spectrum disorders.(h) Coverage for medically necessary early intervention services must be delivered by certified early intervention specialists, as defined in 89 Ill. Admin. Code 500 and any subsequent amendments thereto.(h-5) If an individual has been diagnosed as having an autism spectrum disorder, meeting the diagnostic criteria in place at the time of diagnosis, and treatment is determined medically necessary, then that individual shall remain eligible for coverage under this Section even if subsequent changes to the diagnostic criteria are adopted by the American Psychiatric Association. If no changes to the diagnostic criteria are adopted after April 1, 2012, and before December 31, 2014, then this subsection (h-5) shall be of no further force and effect.(h-10) An insurer may not deny or refuse to provide covered services, or refuse to renew, refuse to reissue, or otherwise terminate or restrict coverage under an individual contract, for a person diagnosed with an autism spectrum disorder on the basis that the individual declined an alternative medication or covered service when the individual's health care provider has determined that such medication or covered service may exacerbate clinical symptomatology and is medically contraindicated for the individual and the individual has requested and received a medical exception as provided for under Section 45.1 of the Managed Care Reform and Patient Rights Act. For the purposes of this subsection (h-10), "clinical symptomatology" means any indication of disorder or disease when experienced by an individual as a change from normal function, sensation, or appearance.(h-15) If, at any time, the Secretary of the United States Department of Health and Human Services, or its successor agency, promulgates rules or regulations to be published in the Federal Register or publishes a comment in the Federal Register or issues an opinion, guidance, or other action that would  require the State, pursuant to any provision of the Patient Protection and Affordable Care Act (Public Law 111-148), including, but not limited to, 42 U.S.C. 18031(d)(3)(B) or any successor provision, to defray the cost of any coverage outlined in subsection (h-10), then subsection (h-10) is inoperative with respect to all coverage outlined in subsection (h-10) other than that authorized under Section 1902 of the Social Security Act, 42 U.S.C. 1396a, and the State shall not assume any obligation for the cost of the coverage set forth in subsection (h-10).(i)  As used in this Section:"Autism spectrum disorders" means pervasive developmental disorders as defined in the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders, including autism, Asperger's disorder, and pervasive developmental disorder not otherwise specified."Diagnosis of autism spectrum disorders" means one or more tests, evaluations, or assessments to diagnose whether an individual has autism spectrum disorder that is prescribed, performed, or ordered by (A) a physician licensed to practice medicine in all its branches or (B) a licensed clinical psychologist with expertise in diagnosing autism spectrum disorders."Medically necessary" means any care, treatment, intervention, service or item which will or is reasonably expected to do any of the following: (i) prevent the onset of an illness, condition, injury, disease or disability; (ii) reduce or ameliorate the physical, mental or developmental effects of an illness, condition, injury, disease or disability; or (iii) assist to achieve or maintain maximum functional activity in performing daily activities."Treatment for autism spectrum disorders" shall include the following care prescribed, provided, or ordered for an individual diagnosed with an autism spectrum disorder by (A) a physician licensed to practice medicine in all its branches or (B) a certified, registered, or licensed health care professional with expertise in treating effects of autism spectrum disorders when the care is determined to be medically necessary and ordered by a physician licensed to practice medicine in all its branches:(1)  Psychiatric care, meaning direct, consultative,     or diagnostic services provided by a licensed psychiatrist.(2) Psychological care, meaning direct or     consultative services provided by a licensed psychologist.(3)  Habilitative or rehabilitative care, meaning     professional, counseling, and guidance services and treatment programs, including applied behavior analysis, that are intended to develop, maintain, and restore the functioning of an individual. As used in this subsection (i),  "applied behavior analysis" means the design, implementation, and evaluation of environmental modifications using behavioral stimuli and consequences to produce socially significant improvement in human behavior, including the use of direct observation, measurement, and functional analysis of the relations between environment and behavior.(4)  Therapeutic care, including behavioral, speech,     occupational, and physical therapies that provide treatment in the following areas: (i) self care and feeding, (ii) pragmatic, receptive, and expressive language, (iii) cognitive functioning, (iv) applied behavior analysis, intervention, and modification, (v) motor planning, and (vi) sensory processing.(j) Rulemaking authority to implement this amendatory Act of the 95th General Assembly, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized. 
(Source: P.A. 102-322, eff. 1-1-22.) (215 ILCS 5/356z.15)Sec. 356z.15. Habilitative services for children.(a) As used in this Section, "habilitative services" means occupational therapy, physical therapy, speech therapy, and other services prescribed by the insured's treating physician pursuant to a treatment plan to enhance the ability of a child to function with a congenital, genetic, or early acquired disorder. A congenital or genetic disorder includes, but is not limited to, hereditary disorders. An early acquired disorder refers to a disorder resulting from illness, trauma, injury, or some other event or condition suffered by a child prior to that child developing functional life skills such as, but not limited to, walking, talking, or self-help skills. Congenital, genetic, and early acquired disorders may include, but are not limited to, autism or an autism spectrum disorder, cerebral palsy, and other disorders resulting from early childhood illness, trauma, or injury.(b) A group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed after the effective date of this amendatory Act of the 95th General Assembly must provide coverage for habilitative services for children under 19 years of age with a congenital, genetic, or early acquired disorder so long as all of the following conditions are met:(1)  A physician licensed to practice medicine in all     its branches has diagnosed the child's congenital, genetic, or early acquired disorder.(2) The treatment is administered by a licensed     speech-language pathologist, licensed audiologist, licensed occupational therapist, licensed physical therapist, licensed physician, licensed nurse, licensed optometrist, licensed nutritionist, licensed social worker, or licensed psychologist upon the referral of a physician licensed to practice medicine in all its branches.(3) The initial or continued treatment must be     medically necessary and therapeutic and not experimental or investigational.(c)  The coverage required by this Section shall be subject to other general exclusions and limitations of the policy, including coordination of benefits, participating provider requirements, restrictions on services provided by family or household members, utilization review of health care services, including review of medical necessity, case management, experimental, and investigational treatments, and other managed care provisions.(d) Coverage under this Section does not apply to those services that are solely educational in nature or otherwise paid under State or federal law for purely educational services. Nothing in this subsection (d) relieves an insurer or similar third party from an otherwise valid obligation to provide or to pay for services provided to a child with a disability.(e) Coverage under this Section for children under age 19 shall not apply to treatment of mental or emotional disorders or illnesses as covered under Section 370 of this Code as well as any other benefit based upon a specific diagnosis that may be otherwise required by law.(f) The provisions of this Section do not apply to short-term travel, accident-only, limited, or specific disease policies.(g) Any denial of care for habilitative services shall be subject to appeal and external independent review procedures as provided by Section 45 of the Managed Care Reform and Patient Rights Act.(h) Upon request of the reimbursing insurer, the provider under whose supervision the habilitative services are being provided shall furnish medical records,  clinical notes, or other necessary data to allow the insurer to substantiate that initial or continued medical treatment is medically necessary and that the patient's condition is clinically improving.   When the treating provider anticipates that continued treatment is or will be required to permit the patient to achieve demonstrable progress, the insurer may request that the provider furnish a treatment plan consisting of diagnosis, proposed treatment by type, frequency, anticipated duration of treatment, the anticipated goals of treatment, and how frequently the treatment plan will be updated.(i) Rulemaking authority to implement this amendatory Act of the 95th General Assembly, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.(j)  An insurer may not deny or refuse to provide
otherwise covered services under a group or individual policy
of accident and health insurance or a managed care plan solely
because of the location wherein the clinically appropriate
services are provided. (Source: P.A. 102-322, eff. 1-1-22.) (215 ILCS 5/356z.16)Sec. 356z.16. (Repealed).
	 
	 (Source: P.A. 100-386, eff. 1-1-18. Repealed by P.A. 101-456, eff. 8-23-19.) (215 ILCS 5/356z.17)Sec. 356z.17. Wellness coverage.(a) A group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed after January 1, 2010 (the effective date of Public Act 96-639) that provides coverage for hospital or medical treatment on an expense incurred basis may offer a reasonably designed program for wellness coverage that allows for a reward, a contribution, a reduction in premiums or reduced medical, prescription drug, or equipment copayments, coinsurance, or deductibles, or a combination of these incentives, for participation in any health behavior wellness, maintenance, or improvement program approved or offered by the insurer or managed care plan. The insured or enrollee may be required to provide evidence of participation in a program. Individuals unable to participate in these incentives due to an adverse health factor shall not be penalized based upon an adverse health status.(b) For purposes of this Section, "wellness coverage" means health care coverage with the primary purpose to engage and motivate the insured or enrollee through: incentives; provision of health education, counseling, and self-management skills; identification of modifiable health risks; and other activities to influence health behavior changes.For the purposes of this Section, "reasonably designed program" means a program of wellness coverage that has a reasonable chance of improving health or preventing disease; is not overly burdensome; does not discriminate based upon factors of health; and is not otherwise contrary to law.(c) Incentives as outlined in this Section are specific and unique to the offering of wellness coverage and have no application to any other required or optional health care benefit.(d) Such wellness coverage must satisfy the requirements for an exception from the general prohibition against discrimination based on a health factor under the federal Health Insurance Portability and Accountability Act of 1996 (P.L. 104-191; 110 Stat. 1936), including any federal regulations that are adopted pursuant to that Act.(e) A plan offering wellness coverage must do the following:(i) give participants the opportunity to qualify for     offered incentives at least once a year;(ii) allow a reasonable alternative to any individual     for whom it is unreasonably difficult, due to a medical condition, to satisfy otherwise applicable wellness program standards. Plans may seek physician verification that health factors make it unreasonably difficult or medically inadvisable for the participant to satisfy the standards; and(iii) not provide a total incentive that exceeds 30%     of the cost of self-only or employee-only coverage, except that the incentive may be increased by up to an additional 20%, for a total incentive of 50%, to the extent that the additional percentage is in connection with a program designed to prevent or reduce tobacco use. The cost of employee-only or family coverage provided through group health insurance coverage includes both employer and employee contributions. For group or individual plans offering family coverage, the limitation applies to cost of family coverage and applies to the entire family.(f) A reward, contribution, or reduction established under this Section and included in the policy or certificate does not violate Section 151 of this Code. 
(Source: P.A. 102-462, eff. 8-20-21.) (215 ILCS 5/356z.18)Sec. 356z.18. Prosthetic and customized orthotic devices.(a) For the purposes of this Section:"Customized orthotic device" means a supportive device for the body or a part of the body, the head, neck, or extremities, and includes the replacement or repair of the device based on the patient's physical condition as medically necessary, excluding foot orthotics defined as an in-shoe device designed to support the structural components of the foot during weight-bearing activities."Licensed provider" means a prosthetist, orthotist, or pedorthist licensed to practice in this State."Prosthetic device" means an artificial device to replace, in whole or in part, an arm or leg and includes accessories essential to the effective use of the device and the replacement or repair of the device based on the patient's physical condition as medically necessary.(b) This amendatory Act of the 96th General Assembly shall provide benefits to any person covered thereunder for expenses incurred in obtaining a prosthetic or custom orthotic device from any Illinois licensed prosthetist, licensed orthotist, or licensed pedorthist as required under the Orthotics, Prosthetics, and Pedorthics Practice Act.(c) A group or individual major medical policy of accident or health insurance or managed care plan or medical, health, or hospital service corporation contract that provides coverage for prosthetic or custom orthotic care and is  amended, delivered, issued, or renewed 6 months after the effective date of this amendatory Act of the 96th General Assembly must provide coverage for prosthetic and orthotic devices in accordance with this subsection (c). The coverage required under this Section shall be subject to the other general exclusions, limitations, and financial requirements of the policy, including coordination of benefits, participating provider requirements, utilization review of health care services, including review of medical necessity, case management, and experimental and investigational treatments, and other managed care provisions under terms and conditions that are no less favorable than the terms and conditions that apply to substantially all medical and surgical benefits provided under the plan or coverage.(d) The policy or plan or contract may require prior authorization for the prosthetic or orthotic devices in the same manner that prior authorization is required for any other covered benefit.(e) Repairs and replacements of prosthetic and orthotic devices are also covered, subject to the co-payments and deductibles, unless necessitated by misuse or loss.(f) A policy or plan or contract may require that, if coverage is provided through a managed care plan, the benefits mandated pursuant to this Section shall be covered benefits only if the prosthetic or orthotic devices are provided by a licensed provider employed by a provider service who contracts with or is designated by the carrier, to the extent that the carrier provides in-network and out-of-network service, the coverage for the prosthetic or orthotic device shall be offered no less extensively.(g) The policy or plan or contract shall also meet adequacy requirements as established by the Health Care Reimbursement Reform Act of 1985 of the Illinois Insurance Code.(h) This Section shall not apply to accident only, specified disease, short-term hospital or medical, hospital confinement indemnity, credit, dental, vision, Medicare supplement, long-term care, basic hospital and medical-surgical expense coverage, disability income insurance coverage, coverage issued as a supplement to liability insurance, workers' compensation insurance, or automobile medical payment insurance. 
(Source: P.A. 96-833, eff. 6-1-10.) (215 ILCS 5/356z.19)Sec. 356z.19. Cardiovascular disease. Because cardiovascular disease is a  leading cause of death and disability, an insurer providing group or individual policies of accident and health insurance or a managed care plan shall develop and implement a process to communicate with their adult enrollees on an annual basis regarding the importance and value of early detection and proactive management of cardiovascular disease. Nothing in this Section affects any change in the terms, conditions, or benefits of the policies and plans, nor the criteria, standards, and procedures related to the application for, enrollment in, or renewal of coverage or conditions of participation of enrollees in the health plans or policies subject to this Code.
(Source: P.A. 97-282, eff. 8-9-11; 97-813, eff. 7-13-12.) (215 ILCS 5/356z.20)Sec. 356z.20. Cancer drug parity.(a) As used in this Section:"Financial requirement" means deductibles, copayments,
coinsurance, out-of-pocket expenses, aggregate lifetime
limits, and annual limits."Treatment limitation" means limits on the frequency of
treatment, days of coverage, or other similar limits on the
scope or duration of treatment.(b) On and after the effective date of this amendatory Act
of the 97th General Assembly, every insurer that amends,
delivers, issues, or renews an individual or group policy of
accident and health insurance amended, delivered, issued, or
renewed on or after the effective date of this amendatory Act
of the 97th General Assembly that provides coverage for
prescribed orally-administered cancer medications and
intravenously administered or injected cancer medications
shall ensure that:(1) the financial requirements applicable to such     prescribed orally-administered cancer medications are no more restrictive than the financial requirements applied to intravenously administered or injected cancer medications that are covered by the policy and that there are no separate cost-sharing requirements that are applicable only with respect to such prescribed orally-administered cancer medications; and(2) the treatment limitations applicable to such     prescribed orally-administered cancer medications are no more restrictive than the treatment limitations applied to intravenously administered or injected cancer medications that are covered by the policy and that there are no separate treatment limitations that are applicable only with respect to such prescribed orally-administered cancer medications.(c) An insurer cannot achieve compliance with this Section
by increasing financial requirements or imposing more
restrictive treatment limitations on prescribed orally-administered cancer medications or intravenously
administered or injected cancer medications covered under the
policy on the effective date of this amendatory Act of the 97th
General Assembly. 
(Source: P.A. 97-198, eff. 1-1-12; 97-813, eff. 7-13-12.) (215 ILCS 5/356z.21)Sec. 356z.21. Tobacco use cessation programs; coverage offer.(a) Tobacco use is the number one cause of preventable disease and death in Illinois, costing $4.1 billion annually in direct health care costs and an additional $4.35 billion in lost productivity. In Illinois, the smoking rates are highest among African Americans (25.8%). Smoking rates among lesbian, gay, and bisexual adults range from 25% to 44%. The U.S. Public Health Service Clinical Practice Guideline 2008 Update found that tobacco dependence treatments are both clinically effective and highly cost effective. A study in the Journal of Preventive Medicine concluded that comprehensive smoking cessation treatment is one of the 3 most important and cost effective preventive services that can be provided in medical practice. Greater efforts are needed to achieve more of this potential value by increasing current low
levels of performance.(b) In this Section, "tobacco use cessation program" means a program recommended by a physician that follows evidence-based treatment, such as is outlined in the United States Public Health Service guidelines for tobacco use cessation. "Tobacco use cessation program" includes education and medical treatment components designed to assist a person in ceasing the use of tobacco products.  "Tobacco use cessation program" includes education and counseling by physicians or associated medical personnel and all FDA approved medications for the treatment of tobacco dependence irrespective of whether they are available only over the counter, only by prescription, or both over the counter and by prescription.(c) On or after the effective date of this amendatory Act of the 97th General Assembly, every
insurer that amends, delivers, issues, or renews group accident and health policies providing coverage for hospital or medical treatment or services on an expense-incurred basis shall offer, for an additional premium and subject to the insurer's standard of insurability, optional coverage or optional reimbursement of up to $500 annually for a tobacco use cessation program for a person enrolled in the plan who is 18 years of age or older.(d) The coverage required by this Section shall be subject
to other general exclusions and limitations of the policy,
including coordination of benefits, participating provider
requirements, restrictions on services provided by family or household members, utilization review of health care services, including review of medical necessity, case management, experimental and investigational treatments, and other managed care provisions.(e) For the coverage provided under this Section, an insurer may not penalize or reduce or limit the reimbursement of an attending provider or provide incentives, monetary or otherwise, to an attending provider to induce the provider to provide care to an insured in a manner inconsistent with the coverage under this Section.
(Source: P.A. 97-592, eff. 1-1-12; 97-813, eff. 7-13-12.) (215 ILCS 5/356z.22)Sec. 356z.22. Coverage for telehealth services.(a)  For purposes of this Section:"Asynchronous store and forward system" has the meaning given to that term in Section 5 of the Telehealth Act."Distant site" has the meaning given to that term in Section 5 of the Telehealth Act."E-visits" has the meaning given to that term in Section 5 of the Telehealth Act."Facility" means any hospital facility licensed under the Hospital Licensing Act or the University of Illinois Hospital Act, a federally qualified health center, a community mental health center, a behavioral health clinic, a substance use disorder treatment program licensed by the Division of Substance Use Prevention and Recovery of the Department of Human Services, or other building, place, or institution that is owned or operated by a person that is licensed or otherwise authorized to deliver health care services."Health care professional" has the meaning given to that term in Section 5 of the Telehealth Act."Interactive telecommunications system" has the meaning given to that term in Section 5 of the Telehealth Act. As used in this Section, "interactive telecommunications system" does not include virtual check-ins."Originating site" has the meaning given to that term in Section 5 of the Telehealth Act."Telehealth services" has the meaning given to that term in Section 5 of the Telehealth Act. As used in this Section, "telehealth services" do not include asynchronous store and forward systems, remote patient monitoring technologies, e-visits, or virtual check-ins."Virtual check-in" has the meaning given to that term in Section 5 of the Telehealth Act.(b) An individual or group policy of accident or health insurance that is amended, delivered, issued, or renewed on or after the effective date of this amendatory Act of the 102nd General Assembly shall cover telehealth services, e-visits, and virtual check-ins rendered by a health care professional when clinically appropriate and medically necessary to insureds, enrollees, and members in the same manner as any other benefits covered under the policy. An individual or group policy of accident or health insurance may provide reimbursement to a facility that serves as the originating site at the time a telehealth service is rendered.(c) To ensure telehealth service, e-visit, and virtual check-in access is equitable for all patients in receipt of health care services under this Section and health care professionals and facilities are able to deliver medically necessary services that can be appropriately delivered via telehealth within the scope of their licensure or certification, coverage required under this Section shall comply with all of the following:(1)   An individual or group policy of accident or     health insurance shall not:(A)  require that in-person contact occur between         a health care professional and a patient before the provision of a telehealth service;(B)  require patients, health care professionals,         or facilities to prove or document a hardship or access barrier to an in-person consultation for coverage and reimbursement of telehealth services, e-visits, or virtual check-ins;(C)  require the use of telehealth services,         e-visits, or virtual check-ins when the health care professional has determined that it is not appropriate;(D)  require the use of telehealth services when         a patient chooses an in-person consultation;(E) require a health care professional to be         physically present in the same room as the patient at the originating site, unless deemed medically necessary by the health care professional providing the telehealth service;(F)   create geographic or facility restrictions         or requirements for telehealth services, e-visits, or virtual check-ins;(G)   require health care professionals or         facilities to offer or provide telehealth services, e-visits, or virtual check-ins;(H)   require patients to use telehealth         services, e-visits, or virtual check-ins, or require patients to use a separate panel of health care professionals or facilities to receive telehealth service, e-visit, or virtual check-in coverage and reimbursement; or(I)   impose upon telehealth services, e-visits,         or virtual check-ins utilization review requirements that are unnecessary, duplicative, or unwarranted or impose any treatment limitations, prior authorization, documentation, or recordkeeping requirements that are more stringent than the requirements applicable to the same health care service when rendered in-person, except procedure code modifiers may be required to document telehealth.(2)  Deductibles, copayments, coinsurance, or any     other cost-sharing applicable to services provided through telehealth shall not exceed the deductibles, copayments, coinsurance, or any other cost-sharing required by the individual or group policy of accident or health insurance for the same services provided through in-person consultation.(3) An individual or group policy of accident or     health insurance shall notify health care professionals and facilities of any instructions necessary to facilitate billing for telehealth services, e-visits, and virtual check-ins.(d)   For purposes of reimbursement, an individual or group policy of accident or health insurance that is amended, delivered, issued, or renewed on or after the effective date of this amendatory Act of the 102nd General Assembly shall reimburse an in-network health care professional or facility, including a health care professional or facility in a tiered network, for telehealth services provided through an interactive telecommunications system on the same basis, in the same manner, and at the same reimbursement rate that would apply to the services if the services had been delivered via an in-person encounter by an in-network or tiered network health care professional or facility. This subsection applies only to those services provided by telehealth that may otherwise be billed as an in-person service. This subsection is inoperative on and after January 1, 2028, except that this subsection is operative after that date with respect to mental health and substance use disorder telehealth services.(e)   The Department and the Department of Public Health shall commission a report to the General Assembly administered by an established medical college in this State wherein supervised clinical training takes place at an affiliated institution that uses telehealth services, subject to appropriation. The report shall study the telehealth coverage and reimbursement policies established in subsections (b) and (d) of this Section, to determine if the policies improve access to care, reduce health disparities, promote health equity, have an impact on utilization and cost-avoidance, including direct or indirect cost savings to the patient, and to provide any recommendations for telehealth access expansion in the future. An individual or group policy of accident or health insurance shall provide data necessary to carry out the requirements of this subsection upon request of the Department. The Department and the Department of Public Health shall submit the report by December 31, 2026. The established medical college may utilize subject matter expertise to complete any necessary actuarial analysis.(f)   Nothing in this Section is intended to limit the ability of an individual or group policy of accident or health insurance and a health care professional or facility to voluntarily negotiate alternate reimbursement rates for telehealth services. Such voluntary negotiations shall take into consideration the ongoing investment necessary to ensure these telehealth platforms may be continuously maintained, seamlessly updated, and integrated with a patient's electronic medical records.(g) An individual or group policy of accident or health insurance that is amended, delivered, issued, or renewed on or after the effective date of this amendatory Act of the 102nd General Assembly shall provide coverage for telehealth services for licensed dietitian nutritionists and certified diabetes educators who counsel diabetes patients in the diabetes patients' homes to remove the hurdle of transportation for diabetes patients to receive treatment, in accordance with the Dietitian Nutritionist Practice Act.(h) Any policy, contract, or certificate of health insurance coverage that does not distinguish between in-network and out-of-network health care professionals and facilities shall be subject to this Section as though all health care professionals and facilities were in-network.(i) Health care professionals and facilities shall determine the appropriateness of specific sites, technology platforms, and technology vendors for a telehealth service, as long as delivered services adhere to all federal and State privacy, security, and confidentiality laws, rules, or regulations, including, but not limited to, the Health Insurance Portability and Accountability Act of 1996 and the Mental Health and Developmental Disabilities Confidentiality Act.(j) Nothing in this Section shall be deemed as precluding a health insurer from providing benefits for other telehealth services, including, but not limited to, services not required for coverage provided through an asynchronous store and forward system, remote patient monitoring services, other monitoring services, or oral communications otherwise covered under the policy.(k)   There shall be no restrictions on originating site requirements for telehealth coverage or reimbursement to the distant site under this Section other than requiring the telehealth services to be medically necessary and clinically appropriate.(l)   The Department may adopt rules, including emergency rules subject to the provisions of Section 5-45 of the Illinois Administrative Procedure Act, to implement the provisions of this Section. (Source: P.A. 102-104, eff. 7-22-21.) (215 ILCS 5/356z.23)Sec. 356z.23. Coverage for opioid antagonists.(a)  An individual or group policy of accident and health insurance amended, delivered, issued, or renewed in this State after the effective date of this amendatory Act of the 99th General Assembly that provides coverage for prescription drugs must provide coverage for at least one opioid antagonist, including the medication product, administration devices, and any pharmacy administration fees related to the dispensing of the opioid antagonist. This coverage must include refills for expired or utilized opioid antagonists.(a-5) Notwithstanding subsection (a), no individual or group policy of accident and health insurance amended, delivered, issued, or renewed after January 1, 2024 that provides coverage for naloxone hydrochloride shall impose a copayment on the coverage provided, except that this subsection does not apply to coverage of naloxone hydrochloride to the extent such coverage would disqualify a high-deductible health plan from eligibility for a health savings account under Section 223 of the Internal Revenue Code.(b)  As used in this Section, "opioid antagonist"  means a drug that binds to opioid receptors and blocks or inhibits the effect of opioids acting on those receptors, including, but not limited to, naloxone hydrochloride or any other similarly acting drug approved by the U.S. Food and Drug Administration.
(Source: P.A. 102-1038, eff. 1-1-23.) (215 ILCS 5/356z.24)Sec. 356z.24. Immune gamma globulin therapy.(a) A group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed after the effective date of this amendatory Act of the 99th General Assembly may not allow for the delay, discontinuation, or interruption of immune gamma globulin therapy for persons who are diagnosed with a primary immunodeficiency when prescribed as medically necessary by a physician licensed to practice medicine in all of its branches and if provided as a covered benefit under the plan. Nothing in this Section shall prevent an insurer from applying appropriate utilization review standards to the ongoing coverage of immune gamma globulin therapy for persons diagnosed with a primary immunodeficiency by a physician licensed to practice medicine in all of its branches.(b) Upon diagnosis of primary immunodeficiency by the prescribing physician, determination of an initial authorization for immune gamma globulin therapy shall be no less than 3 months.  Reauthorization for immune gamma globulin therapy for patients with a primary immunodeficiency diagnosis may occur every 6 months thereafter.  For patients with a diagnosis of primary immunodeficiency who have been receiving immune gamma globulin therapy for at least 2 years with sustained beneficial response based on the treatment notes or clinical narrative detailing progress to date, reauthorization shall be no less than 12 months unless a more frequent duration has been indicated by the prescribing physician.(c) If, at any time, the Secretary of the United States Department of Health and Human Services, or its successor agency, promulgates rules or regulations to be published in the Federal Register or publishes a comment in the Federal Register or issues an opinion, guidance, or other action that would  require the State, pursuant to any provision of the Patient Protection and Affordable Care Act (Public Law 111-148), including, but not limited to, 42 U.S.C. 18031(d)(3)(B) or any successor provision, to defray the cost of any coverage outlined in subsections (a) and (b), then subsections (a) and (b) are inoperative with respect to all coverage outlined in subsections (a) and (b) other than that authorized under Section 1902 of the Social Security Act, 42 U.S.C. 1396a, and the State shall not assume any obligation for the cost of the coverage set forth in subsections (a) and (b). 
(Source: P.A. 99-788, eff. 8-12-16.) (215 ILCS 5/356z.25)Sec. 356z.25. Coverage for treatment of pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections and pediatric acute onset neuropsychiatric syndrome. A group or individual policy of accident and health insurance or managed care plan that is amended, delivered, issued, or renewed after July 18, 2017 (the effective date of Public Act 100-24) shall provide coverage for treatment of pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections and pediatric acute-onset neuropsychiatric syndrome, including, but not limited to, the use of intravenous immunoglobulin therapy.For billing and diagnosis purposes, pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections and pediatric acute onset neuropsychiatric syndrome shall be coded as autoimmune encephalitis until the American Medical Association and the Centers for Medicare and Medicaid Services create and assign a specific code for pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections and pediatric acute onset neuropsychiatric syndrome. Thereafter, pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections and pediatric acute onset neuropsychiatric syndrome may be coded as autoimmune encephalitis, pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections, or pediatric acute onset neuropsychiatric syndrome.If, at any time, the Secretary of the United States Department of Health and Human Services, or its successor agency, promulgates rules or regulations to be published in the Federal Register or publishes a comment in the Federal Register or issues an opinion, guidance, or other action that would require the State, pursuant to any provision of the Patient Protection and Affordable Care Act (Public Law 111-148), including, but not limited to, 42 U.S.C. 18031(d)(3)(B) or any successor provision, to defray the cost of any coverage for pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections and pediatric acute onset neuropsychiatric syndrome outlined in this Section, then the requirement that an insurer cover pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections and pediatric acute onset neuropsychiatric syndrome is inoperative other than any such coverage authorized under Section 1902 of the Social Security Act, 42 U.S.C. 1396a, and the State shall not assume any obligation for the cost of coverage for pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections and pediatric acute onset neuropsychiatric syndrome. 
(Source: P.A. 100-24, eff. 7-18-17; 100-863, eff. 8-14-18; 101-488, eff. 8-23-19.) (215 ILCS 5/356z.26)Sec. 356z.26. Synchronization.(a) As used in this Section, "synchronization" means the coordination of medication refills for a patient taking 2 or more medications for one or more chronic conditions such that the patient's medications are refilled on the same schedule for a given time period.(b) Every policy of health and accident insurance amended, delivered, issued, or renewed after August 18, 2017 (the effective date of Public Act 100-138) that provides coverage for prescription drugs shall provide for synchronization of prescription drug refills on at least one occasion per insured per year, provided all of the following conditions are met:(1) the prescription drugs are covered by the     policy's clinical coverage policy or have been approved by a formulary exceptions process;(2) the prescription drugs are maintenance     medications as defined by the policy and have available refill quantities at the time of synchronization;(3) the medications are not Schedule II, III, or IV     controlled substances;(4) the insured meets all utilization management     criteria specific to the prescription drugs at the time of synchronization;(5) the prescription drugs are of a formulation that     can be safely split into short-fill periods to achieve synchronization; and(6) the prescription drugs do not have special     handling or sourcing needs as determined by the policy, contract, or agreement that require a single, designated pharmacy to fill or refill the prescription.(c) When necessary to permit synchronization, the policy shall apply a prorated daily cost-sharing rate to any medication dispensed by a network pharmacy pursuant to this Section. No dispensing fees shall be prorated, and all dispensing fees shall be based on the number of prescriptions filled or refilled.
(Source: P.A. 100-138, eff. 8-18-17; 100-863, eff. 8-14-18.) (215 ILCS 5/356z.27)Sec. 356z.27. (Repealed).
	 
	 (Source: P.A. 100-863, eff. 8-14-18. Repealed by P.A. 102-775, eff. 5-13-22.) (215 ILCS 5/356z.28)Sec. 356z.28. Dry needling by a physical therapist. A group or individual policy of accident and health insurance or a qualified health plan offered through the health insurance market place is not required to provide coverage for dry needling performed by a physical therapist as described in Section 1.5 of the Illinois Physical Therapy Act.
(Source: P.A. 100-418, eff. 8-25-17; 100-863, eff. 8-14-18.) (215 ILCS 5/356z.29)Sec. 356z.29. Stage 4 advanced, metastatic cancer.(a)  As used in this Section, "stage 4 advanced, metastatic cancer" means cancer that has spread from the primary or original site of the cancer to nearby tissues, lymph nodes, or other areas or parts of the body.(b)  No individual or group policy of accident and health insurance amended, issued, delivered, or renewed in this State after January 1, 2019 (the effective date of Public Act 100-1057) that, as a provision of hospital, medical, or surgical services, directly or indirectly covers the treatment of stage 4 advanced, metastatic cancer shall limit or exclude coverage for a drug approved by the United States Food and Drug Administration by mandating that the insured shall first be required to fail to successfully respond to a different drug or prove a history of failure of the drug as long as the use of the drug is consistent with best practices for the treatment of stage 4 advanced, metastatic cancer and is supported by peer-reviewed medical literature.(c) If, at any time before or after January 1, 2019 (the effective date of Public Act 100-1057), the Secretary of the United States Department of Health and Human Services, or its successor agency, promulgates rules or regulations to be published in the Federal Register, publishes a comment in the Federal Register, or issues an opinion, guidance, or other action that would require the State, pursuant to any provision of the Patient Protection and Affordable Care Act (Pub. L. 111148), including, but not limited to, 42 U.S.C. 18031(d)(3)(B) or any successor provision,  to defray the cost of the prohibition of coverage restrictions or exclusions contained in subsection (b) of this Section for the treatment of stage 4 advanced, metastatic cancer, then this Section is inoperative with respect to all such coverage other than that authorized under Section 1902 of the Social Security Act, 42 U.S.C. 1396a, and the State shall not assume any obligation for the cost of the prohibition of coverage restrictions or exclusions contained in subsection (b) of this Section for the treatment of stage 4 advanced, metastatic cancer. 
(Source: P.A. 100-1057, eff. 1-1-19; 101-81, eff. 7-12-19.) (215 ILCS 5/356z.30)Sec. 356z.30. Coverage for hearing aids for individuals under the age of 18.(a) As used in this Section:"Hearing care professional" means a person who is a
licensed hearing instrument dispenser, licensed audiologist, or licensed physician."Hearing instrument" or "hearing aid" means any wearable
non-disposable, non-experimental instrument or device designed to aid or
compensate for impaired human hearing and any parts, attachments, or accessories for the instrument or device, including
an ear mold but excluding batteries and cords.(b) An individual or group policy of accident and health
insurance or managed care plan that is amended, delivered,
issued, or renewed after August 22, 2018 (the effective date of Public Act 100-1026) must provide coverage for
medically necessary hearing instruments and related services for all individuals under the age of 18
when a hearing care professional prescribes a hearing instrument to augment communication.(c) An insurer shall provide coverage, subject to all applicable co-payments, co-insurance, deductibles, and out-of-pocket limits, subject to the following restrictions:(1) one hearing instrument shall be covered for each     ear every 36 months;(2) related services, such as audiological exams and     selection, fitting, and adjustment of ear molds to maintain optimal fit shall be covered when deemed medically necessary by a hearing care professional; and(3) hearing instrument repairs may be covered when     deemed medically necessary.(d) If, at any time before or after August 22, 2018 (the effective date of Public Act 100-1026), the Secretary of the United States Department of Health and Human Services, or its successor agency, promulgates rules or regulations to be published in the Federal Register, publishes a comment in the Federal Register, or issues an opinion, guidance, or other action that would require the State, pursuant to any provision of the Patient Protection and Affordable Care Act (Pub. L. 111148), including, but not limited to, 42 U.S.C. 18031(d)(3)(B) or any successor provision,  to defray the cost of coverage for medically necessary hearing instruments and related services for individuals under the age of 18, then this Section is inoperative with respect to all such coverage other than that authorized under Section 1902 of the Social Security Act, 42 U.S.C. 1396a, and the State shall not assume any obligation for the cost of coverage for medically necessary hearing instruments and related services for individuals under the age of 18. 
(Source: P.A. 100-1026, eff. 8-22-18; 101-81, eff. 7-12-19.) (215 ILCS 5/356z.30a)Sec. 356z.30a. Coverage for hearing instruments.(a) As used in this Section:"Hearing care professional" means a person who is a licensed hearing instrument dispenser, licensed audiologist, or a licensed physician."Hearing instrument" means any wearable non-disposable instrument or device designed to aid or compensate for impaired human hearing and any parts, attachments, or accessories for the instrument or device, including an ear mold but excluding batteries and cords."Related services" means those services necessary to assess, select, and adjust or fit the hearing instrument to ensure optimal performance, including, but not limited to: audiological exams, replacement ear molds, and repairs to the hearing instrument.(b) An individual or group policy of accident and health insurance or managed care plan that is amended, delivered, issued, or renewed after the effective date of this amendatory Act of the 101st General Assembly shall offer, for an additional premium and subject to the insurer's standard of insurability, optional coverage or optional reimbursement for hearing instruments and related services for all individuals when a hearing care professional prescribes a hearing instrument to augment communication.(c) This optional coverage shall be subject to all applicable copayments, coinsurance, deductibles, and out-of-pocket limits for the cost of a hearing instrument for each ear, as needed, as well as related services, with a
maximum for the hearing instrument and related services of no
more than $2,500 per hearing instrument every 24 months.(d) Nothing in this Section precludes an insured from selecting a hearing instrument that costs more than the amount covered by a plan of accident and health insurance or a managed care plan and paying the uncovered cost at his or her own expense.(e) Nothing in this Section shall be construed to require a group policy of accident and health insurance to provide coverage if the group is unable to meet mandatory minimum participation requirements set by the insurer. 
(Source: P.A. 101-393, eff. 1-1-20.) (215 ILCS 5/356z.31)Sec. 356z.31. Recovery housing for persons with substance use
disorders.(a) Definitions. As used in this Section:"Substance use disorder" and "case management" have the meanings ascribed to those terms in Section 1-10 of the Substance Use Disorder Act."Hospital" means a facility licensed by the Department of Public Health under the Hospital Licensing Act."Federally qualified health center" means a facility as defined in Section 1905(l)(2)(B) of the federal Social Security Act."Recovery housing" means a residential extended care treatment facility or a recovery home as defined and licensed in 77 Illinois Administrative Code, Part 2060, by the Illinois Department of Human Services, Division of Substance Use Prevention and Recovery.(b) A group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed on or after January 1, 2019 (the effective date of Public Act 100-1065) may provide coverage for residential extended care services and supports for persons recovery housing for persons with substance use disorders who are at risk of a relapse following discharge from a health care clinic, federally qualified health center, hospital withdrawal management program or any other licensed withdrawal management program, or hospital emergency department so long as all of the following conditions are met:(1) A health care clinic, federally qualified health     center, hospital withdrawal management program or any other licensed withdrawal management program, or hospital emergency department has conducted an individualized assessment, using criteria established by the American Society of Addiction Medicine, of the person's condition prior to discharge and has identified the person as being at risk of a relapse and in need of supportive services, including employment and training and case management, to maintain long-term recovery. A determination of whether a person is in need of supportive services shall also be based on whether the person has a history of poverty, job insecurity, and lack of a safe and sober living environment.(2) The recovery housing is administered by a     community-based agency that is licensed by or under contract with the Department of Human Services, Division of Substance Use Prevention and Recovery.(3) The recovery housing is administered by a     community-based agency as described in paragraph (2) upon the referral of a health care clinic, federally qualified health center, hospital withdrawal management program or any other licensed withdrawal management program, or hospital emergency department.(c) Based on the individualized needs assessment, any coverage provided in accordance with this Section may include, but not be limited to, the following:(1) Substance use disorder treatment services that     are in accordance with licensure standards promulgated by the Department of Human Services, Division of Substance Use Prevention and Recovery.(2) Transitional housing services, including food or     meal plans.(3) Individualized case management and referral     services, including case management and social services for the families of persons who are seeking treatment for a substance use disorder.(4)
Job training or placement services.(d) The insurer may rate each community-based agency that is licensed by or under contract with the Department of Human Services, Division of Substance Use Prevention and Recovery to provide recovery housing based on an evaluation of each agency's ability to:(1) reduce health care costs;(2) reduce recidivism rates for persons suffering     from a substance use disorder;(3) improve outcomes;(4) track persons with substance use disorders; and(5) improve the quality of life of persons with     substance use disorders through the utilization of sustainable recovery, education, employment, and housing services.The insurer may publish the results of the ratings on its official website and shall, on an annual basis, update the posted results.(e) The Department of Insurance may adopt any rules necessary to implement the provisions of this Section in accordance with the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized. 
(Source: P.A. 100-1065, eff. 1-1-19; 101-81, eff. 7-12-19.) (215 ILCS 5/356z.32)Sec. 356z.32. Coverage for fertility preservation services.(a) As used in this Section:"Iatrogenic infertility" means an impairment of     fertility by surgery, radiation, chemotherapy, or other medical treatment affecting reproductive organs or processes."May directly or indirectly cause" means the likely     possibility that treatment will cause a side effect of infertility, based upon current evidence-based standards of care established by the American Society for Reproductive Medicine, the American Society of Clinical Oncology, or other national medical associations that follow current evidence-based standards of care."Standard fertility preservation services" means     procedures based upon current evidence-based standards of care established by the American Society for Reproductive Medicine, the American Society of Clinical Oncology, or other national  medical associations that follow current evidence-based standards of care.(b) An individual or group policy of accident and health insurance amended, delivered, issued, or renewed in this State after January 1, 2019 (the effective date of Public Act 100-1102) must provide coverage for medically necessary expenses for standard fertility preservation services when a necessary medical treatment may directly or indirectly cause iatrogenic infertility to an enrollee.(c) In determining coverage pursuant to this Section, an insurer shall not discriminate based on an individual's expected length of life, present or predicted disability, degree of medical dependency, quality of life, or other health conditions, nor based on personal characteristics, including age, sex, sexual orientation, or marital status.(d) If, at any time before or after January 1, 2019 (the effective date of Public Act 100-1102), the Secretary of the United States Department of Health and Human Services, or its successor agency, promulgates rules or regulations to be published in the Federal Register, publishes a comment in the Federal Register, or issues an opinion, guidance, or other action that would require the State, pursuant to any provision of the Patient Protection and Affordable Care Act (Pub. L. 111148), including, but not limited to, 42 U.S.C. 18031(d)(3)(B) or any successor provision,  to defray the cost of coverage for fertility preservation services, then this Section is inoperative with respect to all such coverage other than that authorized under Section 1902 of the Social Security Act, 42 U.S.C. 1396a, and the State shall not assume any obligation for the cost of coverage for fertility preservation services. 
(Source: P.A. 100-1102, eff. 1-1-19; 101-81, eff. 7-12-19.) (215 ILCS 5/356z.33)Sec. 356z.33. Coverage for epinephrine injectors. A group or individual policy of accident and health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after January 1, 2020 (the effective date of Public Act 101-281) shall provide coverage for medically necessary epinephrine injectors for persons 18 years of age or under. As used in this Section, "epinephrine injector" has the meaning given to that term in Section 5 of the Epinephrine Injector Act.
(Source: P.A. 101-281, eff. 1-1-20; 102-558, eff. 8-20-21.) (215 ILCS 5/356z.34)Sec. 356z.34. Coverage for cardiopulmonary monitors. A group or individual policy of accident and health insurance amended, delivered, issued, or renewed after January 1, 2020 (the effective date of Public Act 101-218) shall provide coverage for cardiopulmonary monitors determined to be medically necessary for a person 18 years old or younger who has had a cardiopulmonary event.
(Source: P.A. 101-218, eff. 1-1-20; 102-558, eff. 8-20-21.) (215 ILCS 5/356z.35)Sec. 356z.35. Long-term antibiotic therapy for tick-borne diseases.(a) As used in this Section:"Long-term antibiotic therapy" means the administration of oral, intramuscular, or intravenous antibiotics singly or in combination for periods of time in excess of 4 weeks."Tick-borne disease" means a disease caused when an infected tick bites a person and the tick's saliva transmits an infectious agent (bacteria, viruses, or parasites) that can cause illness, including, but not limited to, the following:(1) a severe infection with borrelia burgdorferi;(2) a late stage, persistent, or chronic infection or     complications related to such an infection;(3) an infection with other strains of borrelia or a     tick-borne disease that is recognized by the United States Centers for Disease Control and Prevention; and(4) the presence of signs or symptoms compatible with     acute infection of borrelia or other tick-borne diseases.(b) An individual or group policy of accident and health insurance or managed care plan that is amended, delivered, issued, or renewed on or after January 1, 2020 (the effective date of Public Act 101-371) shall provide coverage for long-term antibiotic therapy, including necessary office visits and ongoing testing, for a person with a tick-borne disease when determined to be medically necessary and ordered by a physician licensed to practice medicine in all its branches after making a thorough evaluation of the person's symptoms, diagnostic test results, or response to treatment. An experimental drug shall be covered as a long-term antibiotic therapy if it is approved for an indication by the United States Food and Drug Administration. A drug, including an experimental drug, shall be covered for an off-label use in the treatment of a tick-borne disease if the drug has been approved by the United States Food and Drug Administration. 
(Source: P.A. 101-371, eff. 1-1-20; 102-558, eff. 8-20-21.) (215 ILCS 5/356z.36)Sec. 356z.36. Coverage of treatment models for early treatment of serious mental illnesses.(a)  For purposes of early treatment of a serious mental illness in a child or young adult under age 26, a group or individual policy of accident and health insurance, or managed care plan, that is amended, delivered, issued, or renewed after December 31, 2020 shall provide coverage of the following bundled, evidence-based treatment:(1) Coordinated specialty care for first episode     psychosis treatment, covering the elements of the treatment model included in the most recent national research trials conducted by the National Institute of Mental Health in the Recovery After an Initial Schizophrenia Episode (RAISE) trials for psychosis resulting from a serious mental illness, but excluding the components of the treatment model related to education and employment support.(2) Assertive community treatment (ACT) and community     support team (CST) treatment.  The elements of ACT and CST to be covered shall include those covered under Article V of the Illinois Public Aid Code, through 89 Ill. Adm. Code 140.453(d)(4).(b) Adherence to the clinical models. For purposes of ensuring adherence to the coordinated specialty care for first episode psychosis treatment model, only providers contracted with the Department of Human Services' Division of Mental Health to be FIRST.IL providers to deliver coordinated specialty care for first episode psychosis treatment shall be permitted to provide such treatment in accordance with this  Section and such providers must adhere to the fidelity of the treatment model.  For purposes of ensuring fidelity to ACT and CST, only providers certified to provide ACT and CST by the Department of Human Services' Division of Mental Health and approved to provide ACT and CST by the Department of  Healthcare and Family Services, or its designee, in accordance with 89 Ill. Adm. Code 140, shall be permitted to provide such services under this Section and such providers shall be required to adhere to the fidelity of the models.(c) Development of medical necessity criteria for coverage.  Within 6 months after January 1, 2020 (the effective date of Public Act 101-461), the Department of Insurance shall lead and convene a workgroup that includes the Department of Human Services' Division of Mental Health, the Department of Healthcare and Family Services, providers of the treatment models listed in this Section, and insurers operating in Illinois to develop medical necessity criteria for such treatment models for purposes of coverage under this Section.  The workgroup shall use the medical necessity criteria the State and other states use as guidance for establishing medical necessity for insurance coverage.  The Department of Insurance shall adopt a rule that defines medical necessity for each of the 3 treatment models listed in this Section by no later than June 30, 2020 based on the workgroup's recommendations.(d) For purposes of credentialing the mental health professionals and other medical professionals that are part of a coordinated specialty care for first episode psychosis treatment team, an ACT team, or a CST team, the credentialing of the psychiatrist or the licensed clinical leader of the treatment team shall qualify all members of the treatment team to be credentialed with the insurer.(e) Payment for the services performed under the treatment models listed in this Section shall be based on a bundled treatment model or payment, rather than payment for each separate service delivered by a treatment team member. By no later than 6 months after January 1, 2020 (the effective date of Public Act 101-461), the Department of Insurance shall convene a workgroup of Illinois insurance companies and Illinois mental health treatment providers that deliver the bundled treatment approaches listed in this Section to determine a coding solution that allows for these bundled treatment models to be coded and paid for as a bundle of services, similar to intensive outpatient treatment where multiple services are covered under one billing code or a bundled set of billing codes.  The coding solution shall ensure that services delivered using coordinated specialty care for first episode psychosis treatment, ACT, or CST are provided and billed as a bundled service, rather than for each individual service provided by a treatment team member, which would deconstruct the evidence-based practice.  The coding solution shall be reached prior to coverage, which shall begin for plans amended, delivered, issued, or renewed after December 31, 2020, to ensure coverage of the treatment team approaches as intended by this Section.(f)  If, at any time, the Secretary of the United States Department of Health and Human Services, or its successor agency, adopts rules or regulations to be published in the Federal Register or publishes a comment in the Federal Register or issues an opinion, guidance, or other action that would require the State, under any provision of the Patient Protection and Affordable Care Act (P.L. 111-148), including, but not limited to, 42 U.S.C. 18031(d)(3)(b), or any successor provision, to defray the cost of any coverage for serious mental illnesses or serious emotional disturbances outlined in this Section, then the requirement that a group or individual policy of accident and health insurance or managed care plan cover the bundled treatment approaches listed in this Section is inoperative other than any such coverage authorized under Section 1902 of the Social Security Act, 42 U.S.C. 1396a, and the State shall not assume any obligation for the cost of the coverage.(g)  After 5 years following full implementation of this Section, if requested by an insurer, the Department of Insurance shall contract with an independent third party with expertise in analyzing health insurance premiums and costs to perform an independent analysis of the impact coverage of the team-based treatment models listed in this Section has had on insurance premiums in Illinois.  If premiums increased by more than 1% annually solely due to coverage of these treatment models, coverage of these models shall no longer be required.(h) The Department of Insurance shall adopt any rules necessary to implement the provisions of this Section by no later than June 30, 2020. 
(Source: P.A. 101-461, eff. 1-1-20; 102-558, eff. 8-20-21.) (215 ILCS 5/356z.37)Sec. 356z.37. Whole body skin examination. An individual or group policy of accident and health insurance shall cover, without imposing a deductible, coinsurance, copayment, or any other cost-sharing requirement upon the insured patient, one annual office visit, using appropriate routine evaluation and management Current Procedural Terminology codes or any successor codes,  for a whole body skin examination for lesions suspicious for skin cancer.  The whole body skin examination shall be indicated using an appropriate International Statistical Classification of Diseases and Related Health Problems code or any successor codes. The provisions of this Section do not apply to the extent such coverage would disqualify a high-deductible health plan from eligibility for a health savings account pursuant to 26 U.S.C. 223.
(Source: P.A. 101-500, eff. 1-1-20; 102-558, eff. 8-20-21.) (215 ILCS 5/356z.38)Sec. 356z.38. Human breast milk coverage.(a) Notwithstanding any other provision of this Act, pasteurized donated human breast milk, which may include human milk fortifiers if indicated by a prescribing licensed medical practitioner, shall be covered under an individual or group health insurance for persons who are otherwise eligible for coverage under this Act if the covered person is an infant under the age of 6 months, a licensed medical practitioner prescribes the milk for the covered person, and all of the following conditions are met:(1) the milk is obtained from a  human milk bank that     meets quality guidelines established by the Human Milk Banking Association of North America or is licensed by the Department of Public Health;(2) the infant's mother is medically or physically     unable to produce maternal breast milk  or produce maternal breast milk in sufficient quantities to meet the infant's needs or the maternal breast milk is contraindicated;(3) the milk has been determined to be medically     necessary for the infant; and(4) one or more of the following applies:(A) the infant's birth weight is below 1,500         grams;(B) the infant has a congenital or acquired         condition that places the infant at a high risk for development of necrotizing enterocolitis;(C) the infant has infant hypoglycemia;(D) the infant has congenital heart disease;(E) the infant has had or will have an organ         transplant;(F) the infant has sepsis; or(G) the infant has any other  serious congenital         or acquired condition for which the use of donated human breast milk is medically necessary and supports the treatment and recovery of the infant.(b) Notwithstanding any other provision of this Act, pasteurized donated human breast milk, which may include human milk fortifiers if indicated by a prescribing licensed medical practitioner, shall be covered under an individual or group health insurance for persons who are otherwise eligible for coverage under this Act if the covered person is a child 6 months through 12 months of age, a licensed medical practitioner prescribes the milk for the covered person, and all of the following conditions are met:(1) the milk is obtained from a  human milk bank that     meets quality guidelines established by the Human Milk Banking Association of North America or is licensed by the Department of Public Health;(2) the child's mother is medically or physically     unable to produce maternal breast milk  or produce maternal breast milk in sufficient quantities to meet the child's needs or the maternal breast milk is contraindicated;(3) the milk has been determined to be medically     necessary for the child; and(4) one or more of the following applies:(A) the child has spinal muscular atrophy;(B) the child's birth weight was below 1,500         grams and he or she has long-term feeding or gastrointestinal complications related to prematurity;(C) the child has had or will have an organ         transplant; or(D) the child has a  congenital or acquired         condition for which the use of donated human breast milk is medically necessary and supports the treatment and recovery of the child.(Source: P.A. 101-511, eff. 1-1-20; 102-558, eff. 8-20-21.) (215 ILCS 5/356z.39)Sec. 356z.39. Coverage of the psychiatric Collaborative Care Model.(a) As used in this Section, "psychiatric Collaborative Care Model" means the evidence-based, integrated behavioral health service delivery method, which includes a formal collaborative arrangement among a primary care team consisting of a primary care provider, a care manager, and a psychiatric consultant, and includes, but is not limited to, the following elements:(1) care directed by the primary care team;(2) structured care management;(3) regular assessments of clinical status using     validated tools; and(4) modification of treatment as appropriate.(b) An individual or group policy of accident and health insurance amended, delivered, issued, or renewed on or after January 1, 2020 (the effective date of Public Act 101-574) or managed care organization that provides mental health benefits shall provide reimbursement for benefits that are delivered through the psychiatric Collaborative Care Model. The following American Medical Association 2018 current procedural terminology codes and Healthcare Common Procedure Coding System code shall be used to bill for benefits delivered through the psychiatric Collaborative Care Model:(1) 99492;(2) 99493;(3) 99494; and(4) G0512.(c) The Director of Insurance shall update the billing codes in subsection (b) if there are any alterations or additions to the billing codes for the psychiatric  Collaborative Care Model.(d) An individual or group policy or managed care organization that provides benefits under this Section may deny reimbursement of any billing  code listed in this Section on the grounds of medical necessity if such medical necessity determinations are in compliance with the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 and its implementing and related regulations and that such determinations are made in accordance with the utilization review requirements under Section 85 of the Managed Care Reform and Patient Rights Act.
(Source: P.A. 101-574, eff. 1-1-20; 102-558, eff. 8-20-21.) (215 ILCS 5/356z.40)Sec. 356z.40. Pregnancy and postpartum coverage.(a) An individual or group policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed on or after the effective date of this amendatory Act of the 102nd General Assembly shall provide coverage for pregnancy and newborn care in accordance with 42 U.S.C. 18022(b) regarding essential health benefits.(b) Benefits under this Section shall be as follows:(1) An individual who has been identified as     experiencing a high-risk pregnancy by the individual's treating provider shall have access to clinically appropriate case management programs. As used in this subsection, "case management" means a mechanism to coordinate and assure continuity of services, including, but not limited to, health services, social services, and educational services necessary for the individual. "Case management" involves individualized assessment of needs, planning of services, referral, monitoring, and advocacy to assist an individual in gaining access to appropriate services and closure when services are no longer required. "Case management" is an active and collaborative process involving a single qualified case manager, the individual, the individual's family, the providers, and the community. This includes close coordination and involvement with all service providers in the management plan for that individual or family, including assuring that the individual receives the services.  As used in this subsection, "high-risk pregnancy" means a pregnancy in which the pregnant or postpartum individual or baby is at an increased risk for poor health or complications during pregnancy or childbirth, including, but not limited to, hypertension disorders, gestational diabetes, and hemorrhage.(2) An individual shall have access to medically     necessary treatment of a mental, emotional, nervous, or substance use disorder or condition consistent with the requirements set forth in this Section and in Sections 370c and 370c.1 of this Code.(3) The benefits provided for inpatient and     outpatient services for the treatment of a mental, emotional, nervous, or substance use disorder or condition related to pregnancy or postpartum complications shall be provided if determined to be medically necessary, consistent with the requirements of Sections 370c and 370c.1 of this Code. The facility or provider shall notify the insurer of both the admission and the initial treatment plan within 48 hours after admission or initiation of treatment. Nothing in this paragraph shall prevent an insurer from applying concurrent and post-service utilization review of health care services, including review of medical necessity, case management, experimental and investigational treatments, managed care provisions, and other terms and conditions of the insurance policy.(4) The benefits for the first 48 hours of initiation     of services for an inpatient admission, detoxification or withdrawal management program, or partial hospitalization admission for the treatment of a mental, emotional, nervous, or substance use disorder or condition related to pregnancy or postpartum complications shall be provided without post-service or concurrent review of medical necessity, as the medical necessity for the first 48 hours of such services shall be determined solely by the covered pregnant or postpartum individual's provider. Nothing in this paragraph shall prevent an insurer from applying concurrent and post-service utilization review, including the review of medical necessity, case management, experimental and investigational treatments, managed care provisions, and other terms and conditions of the insurance policy, of any inpatient admission, detoxification or withdrawal management program admission, or partial hospitalization admission services for the treatment of a mental, emotional, nervous, or substance use disorder or condition related to pregnancy or postpartum complications received 48 hours after the initiation of such services. If an insurer determines that the services are no longer medically necessary, then the covered person shall have the right to external review pursuant to the requirements of the Health Carrier External Review Act.(5) If an insurer determines that continued inpatient     care, detoxification or withdrawal management, partial hospitalization, intensive outpatient treatment, or outpatient treatment in a facility is no longer medically necessary, the insurer shall, within 24 hours, provide written notice to the covered pregnant or postpartum individual and the covered pregnant or postpartum individual's provider of its decision and the right to file an expedited internal appeal of the determination. The insurer shall review and make a determination with respect to the internal appeal within 24 hours and communicate such determination to the covered pregnant or postpartum individual and the covered pregnant or postpartum individual's provider. If the determination is to uphold the denial, the covered pregnant or postpartum individual and the covered pregnant or postpartum individual's provider have the right to file an expedited external appeal. An independent utilization review organization shall make a determination within 72 hours. If the insurer's determination is upheld and it is determined that continued inpatient care, detoxification or withdrawal management, partial hospitalization, intensive outpatient treatment, or outpatient treatment is not medically necessary, the insurer shall remain responsible for providing benefits for the inpatient care, detoxification or withdrawal management, partial hospitalization, intensive outpatient treatment, or outpatient treatment through the day following the date the determination is made, and the covered pregnant or postpartum individual shall only be responsible for any applicable copayment, deductible, and coinsurance for the stay through that date as applicable under the policy. The covered pregnant or postpartum individual shall not be discharged or released from the inpatient facility, detoxification or withdrawal management, partial hospitalization, intensive outpatient treatment, or outpatient treatment until all internal appeals and independent utilization review organization appeals are exhausted. A decision to reverse an adverse determination shall comply with the Health Carrier External Review Act.(6) Except as otherwise stated in this subsection     (b), the benefits and cost-sharing shall be provided to the same extent as for any other medical condition covered under the policy.(7) The benefits required by paragraphs (2) and (6)     of this subsection (b) are to be provided to all covered pregnant or postpartum individuals with a diagnosis of a mental, emotional, nervous, or substance use disorder or condition. The presence of additional related or unrelated diagnoses shall not be a basis to reduce or deny the benefits required by this subsection (b). (Source: P.A. 102-665, eff. 10-8-21.) (215 ILCS 5/356z.41)Sec. 356z.41. Cost sharing in prescription insulin drugs; limits; confidentiality of rebate information.(a) As used in this Section, "prescription insulin drug" means a prescription drug that contains insulin and is used to control blood glucose levels to treat diabetes but does not include an insulin drug that is
administered to a patient intravenously.(b) This Section applies to a group or individual policy of accident and health insurance amended, delivered, issued, or renewed on or after the effective date of this amendatory Act of the 101st General Assembly.(c) An insurer that provides coverage for prescription insulin drugs pursuant to the terms of a health coverage plan the insurer offers shall limit the total amount that an insured is required to pay for a 30-day supply of covered prescription insulin drugs at an amount not to exceed $100, regardless of the quantity or type of covered prescription insulin drug used to fill the insured's prescription.(d) Nothing in this Section prevents an insurer from reducing an insured's cost sharing by an amount greater than the amount specified in subsection (c).(e) The Director may use any of the Director's enforcement powers to obtain an insurer's compliance with this Section.(f) The Department may adopt rules as necessary to implement and administer this Section and to align it with federal requirements.(g) On January 1 of each year, the limit on the amount that an insured is required to pay for a 30-day supply of a covered prescription insulin drug shall increase by a percentage equal to the percentage change from the preceding year in the medical care component of the Consumer Price Index of the Bureau of Labor Statistics of the United States Department of Labor.
(Source: P.A. 101-625, eff. 1-1-21.) (215 ILCS 5/356z.42)Sec. 356z.42. (Repealed). 
(Source: P.A. 101-625, eff. 1-24-20. Repealed internally, eff. 12-31-20.) (215 ILCS 5/356z.43)Sec. 356z.43. (Repealed).
(Source: P.A. 102-813, eff. 5-13-22. Repealed internally, eff. 1-1-22.) (215 ILCS 5/356z.44)Sec. 356z.44. Vitamin D testing.(a)   As used in this Section, "vitamin D testing" means vitamin D blood testing that measures the level of vitamin D in an individual's blood.(b)   A   group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed on or after the effective date of this amendatory Act of the 102nd General Assembly shall  provide coverage for vitamin D testing recommended by a health care provider in accordance with vitamin D deficiency risk factors identified by the United States Centers for Disease Control and Prevention. Risk factors for vitamin D deficiency include, but are not limited to:(1)   having osteoporosis or other bone-health     problems;(2)   having conditions that affect fat absorption,     including celiac disease or weight loss surgery;(3)   routinely taking medications that interfere     with vitamin D activity, including anticonvulsants and glucocorticoids;(4)   beneficiaries aged 55 and older;(5)   having a darker skin color;(6)   inadequate sunlight exposure;(7)   being obese;(8)   previous diagnosis of diabetes or kidney     disease; and(9)   exhibiting poor muscle strength or constant     tiredness.(Source: P.A. 102-530, eff. 1-1-22.) (215 ILCS 5/356z.45)Sec. 356z.45. Coverage for patient care services provided by a pharmacist. A group or individual policy of accident and health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after January 1, 2023 shall provide coverage for health care or patient care services provided by a pharmacist if:(1)   the pharmacist meets the requirements and scope     of practice as set forth in Section 43 or Section 43.5 of the Pharmacy Practice Act;(2)   the health plan provides coverage for the same     service provided by a licensed physician, an advanced practice registered nurse, or a physician assistant;(3)   the pharmacist is included in the health     benefit plan's network of participating providers; and(4)   a reimbursement has been successfully     negotiated in good faith between the pharmacist and the health plan. (Source: P.A. 102-103, eff. 1-1-23; 102-813, eff. 5-13-22; 102-1051, eff. 1-1-23.) (215 ILCS 5/356z.46)Sec. 356z.46. Biomarker testing.(a) As used in this Section:"Biomarker" means a characteristic that is objectively measured and evaluated as an indicator of normal biological processes, pathogenic processes, or pharmacologic responses to a specific therapeutic intervention. "Biomarker" includes, but is not limited to, gene mutations or protein expression."Biomarker testing" means the analysis of a patient's tissue, blood, or fluid biospecimen for the presence of a biomarker.  "Biomarker testing" includes, but is not limited to, single-analyte tests, multi-plex panel tests, and partial or whole genome sequencing.(b) A group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed on or after January 1, 2022 shall include coverage for biomarker testing as defined in this Section pursuant to criteria established under subsection (d).(c) Biomarker testing shall be covered and conducted in an efficient manner to provide the most complete range of results to the patient's health care provider without requiring multiple biopsies, biospecimen samples, or other delays or disruptions in patient care.(d) Biomarker testing must be covered for the purposes of diagnosis, treatment, appropriate management, or ongoing monitoring of an enrollee's disease or condition when the test is supported by medical and scientific evidence, including, but not limited to:(1)   labeled indications for an FDA-approved test or     indicated tests for an FDA-approved drug;(2)   federal Centers for Medicare and Medicaid     Services National Coverage Determinations;(3)   nationally recognized clinical practice     guidelines;(4)   consensus statements;(5)   professional society recommendations;(6)   peer-reviewed literature, biomedical compendia,     and other medical literature that meet the criteria of the National Institutes of Health's National Library of Medicine for indexing in Index Medicus, Excerpta Medicus, Medline, and MEDLARS database of Health Services Technology Assessment Research; and(7)   peer-reviewed scientific studies published in     or accepted for publication by medical journals that meet nationally recognized requirements for scientific manuscripts and that submit most of their published articles for review by experts who are not part of the editorial staff.(e)   When coverage of biomarker testing for the purpose of diagnosis, treatment, or ongoing monitoring of any medical condition is restricted for use by a group or individual policy of accident and health insurance or managed care plan, the patient and prescribing practitioner shall have access to a clear, readily accessible, and convenient processes to request an exception.  The process shall be made readily accessible on the insurer's website.
(Source: P.A. 102-203, eff. 1-1-22; 102-813, eff. 5-13-22.) (215 ILCS 5/356z.47)Sec. 356z.47. Coverage for pancreatic cancer screening. A group or individual policy of accident and health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after January 1, 2022 shall provide coverage for  medically necessary pancreatic cancer screening.
(Source: P.A. 102-306, eff. 1-1-22; 102-813, eff. 5-13-22.) (215 ILCS 5/356z.48)Sec. 356z.48. Colonoscopy coverage.(a)   A group policy of accident and health insurance that is amended, delivered, issued, or renewed on or after January 1, 2022 shall provide coverage for a colonoscopy that is a follow-up exam based on an initial screen where the colonoscopy was determined to be  medically necessary by a physician licensed to practice medicine in all its branches, an advanced practice registered nurse, or a physician assistant.(b)   A policy subject to this Section shall not impose a deductible, coinsurance, copayment, or any other cost-sharing requirement on the coverage provided; except that this subsection does not apply to coverage of colonoscopies to the extent such coverage would disqualify a high-deductible health plan from eligibility for a health savings account pursuant to Section 223 of the Internal Revenue Code.
(Source: P.A. 102-443, eff. 1-1-22; 102-813, eff. 5-13-22.) (215 ILCS 5/356z.49)Sec. 356z.49. A1C testing.(a)   As used in this Section, "A1C testing" means blood sugar level testing used to diagnose prediabetes, type 1 diabetes, and type 2 diabetes and to monitor management of blood sugar levels.(b)   A   group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed on or after January 1, 2022 (the effective date of Public Act 102-530) shall  provide coverage for A1C testing recommended by a health care provider for prediabetes, type 1 diabetes, and type 2 diabetes in accordance with prediabetes and diabetes risk factors identified by the United States Centers for Disease Control and Prevention.(1)   Risk factors for prediabetes may include, but     are not limited to, being overweight or obese, being aged 35 or older, having an immediate family member with type 2 diabetes, previous diagnosis of gestational diabetes and being African American, Hispanic or Latino American, American Indian, or Alaska Native.(2)   Risk factors for type 1 diabetes may include,     but are not limited to, family history of diabetes.(3)   Risk factors for type 2 diabetes may include,     but are not limited to, having prediabetes, being overweight or obese, being aged 35 or older, having an immediate family member with type 1 or type 2 diabetes, previous diagnosis of gestational diabetes and being African American, Hispanic or Latino American, American Indian, or Alaska Native.(Source: P.A. 102-530, eff. 1-1-22; 102-813, eff. 5-13-22.) (215 ILCS 5/356z.50)Sec. 356z.50. Comprehensive cancer testing.(a)     As used in this Section:"Comprehensive cancer testing" includes, but is not limited to, the following forms of testing:(1)   Targeted cancer gene panels.(2)   Whole-exome genome testing.(3)   Whole-genome sequencing.(4)   RNA sequencing.(5)   Tumor mutation burden."Testing of blood or constitutional tissue for cancer predisposition testing" includes, but is not limited to, the following forms of testing:(1)   Targeted cancer gene panels.(2)   Whole-exome genome testing.(3)   Whole-genome sequencing.(b)     An individual or group policy of accident and health insurance or managed care plan that is amended, delivered, issued, or renewed on or after January 1, 2022 (the effective date of Public Act 102-589) shall provide coverage for medically necessary comprehensive cancer testing and testing of blood or constitutional tissue for cancer predisposition testing as determined by a physician licensed to practice medicine in all of its branches.
(Source: P.A. 102-589, eff. 1-1-22; 102-813, eff. 5-13-22.) (215 ILCS 5/356z.51)Sec. 356z.51. Coverage for port-wine stain treatment.(a)   A group or individual policy of accident and health
insurance or managed care plan amended, delivered, issued, or
renewed on or after January 1, 2022 shall provide coverage for
treatment to eliminate or provide maximum
feasible treatment of nevus flammeus, also known as port-wine
stains, including, but not limited to, port-wine stains caused
by Sturge-Weber syndrome. For purposes of this Section, treatment or maximum feasible treatment shall include early intervention treatment, including topical, intralesional, or systemic medical therapy and surgery, and laser treatments approved by the U.S. Food and Drug Administration in children aged 18 years and younger that are intended to prevent functional impairment related to vision function, oral function, inflammation, bleeding, infection, and other medical complications associated with port-wine stains.(b) Coverage for treatment required under this Section shall not include treatment solely for cosmetic purposes. 
(Source: P.A. 102-642, eff. 1-1-22; 102-813, eff. 5-13-22.) (215 ILCS 5/356z.53)(Text of Section from P.A. 102-731)Sec. 356z.53. Coverage for breast reduction surgery. A group or individual policy of accident and health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after January 1, 2024 shall provide coverage for medically necessary breast reduction surgery.
(Source: P.A. 102-731, eff. 1-1-23.)(Text of Section from P.A. 102-768)Sec. 356z.53. Coverage for cleft lip and cleft palate.(a)   As used in this Section, "medically necessary care and treatment" to address congenital anomalies associated with a cleft lip or palate, or both, includes:(1)   oral and facial surgery, including     reconstructive services and procedures necessary to improve and restore and maintain vital functions;(2)   prosthetic treatment such as obdurators, speech     appliances, and feeding appliances;(3)    orthodontic treatment and management;(4)    prosthodontic treatment and management; and(5)   otolaryngology treatment and management."Medically necessary care and treatment" does not include cosmetic surgery performed to reshape normal structures of the lip, jaw, palate, or other facial structures to improve appearance.(b)    An individual or group policy of accident and health insurance amended, delivered, issued, or renewed on or after the effective date of this amendatory Act of the 102nd General Assembly shall provide coverage for the medically necessary care and treatment of cleft lip and palate for children under the age of 19. Coverage for cleft lip and palate care and treatment may impose the same deductible, coinsurance, or other cost-sharing limitation that is imposed on other related surgical benefits under the policy.(c)      This Section does not apply to a policy that covers only dental care.
(Source: P.A. 102-768, eff. 1-1-24.)(Text of Section from P.A. 102-804)Sec. 356z.53. Coverage for hormone therapy to treat menopause. A group or individual policy of accident and health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after January 1, 2024 shall provide coverage for medically necessary  hormone therapy treatment to treat menopause that has been induced by a hysterectomy.
(Source: P.A. 102-804, eff. 1-1-23.)(Text of Section from P.A. 102-816)Sec. 356z.53. Coverage for home health services. A group or individual policy of accident and health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after January 1, 2024 shall provide coverage for access to home health services for the duration of medically necessary care.
(Source: P.A. 102-816, eff. 1-1-23.)(Text of Section from P.A. 102-860)Sec. 356z.53. Pediatric palliative care.(a) A group or individual policy of accident and health insurance or a managed care plan amended, delivered, issued, or renewed on or after January 1, 2024 shall provide coverage for community-based pediatric palliative care and hospice care. This care shall be delivered to any qualifying child with a serious illness by a trained interdisciplinary team that allows a child to receive community-based pediatric palliative care and hospice care while continuing to pursue curative treatment and disease-directed therapies for the qualifying illness.(b) As used in this Section, "palliative care" and "serious illness" have the same meaning as set forth in the Pediatric Palliative Care Act. 
(Source: P.A. 102-860, eff. 1-1-23.)(Text of Section from P.A. 102-930)Sec. 356z.53. Prenatal vitamins coverage. A group or individual policy of accident and health insurance that is amended, delivered, issued, or renewed on or after January 1, 2024 that provides coverage for prescription drugs shall provide coverage for prenatal vitamins when prescribed by a physician licensed to practice medicine in all of its branches or an advanced practice registered nurse licensed under the Nurse Practice Act.
(Source: P.A. 102-930, eff. 1-1-23.)(Text of Section from P.A. 102-1093)Sec. 356z.53. Coverage for continuous glucose monitors. A group or individual policy of accident and health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after January 1, 2024 shall provide coverage for medically necessary continuous glucose monitors for individuals who are diagnosed with type 1 or type 2 diabetes and require insulin for the management of their diabetes.
(Source: P.A. 102-1093, eff. 1-1-23.) (215 ILCS 5/356z.60)Sec. 356z.60. Coverage for abortifacients, hormonal therapy, and human immunodeficiency virus pre-exposure prophylaxis and post-exposure prophylaxis.(a)   As used in this Section:"Abortifacients" means any medication administered to terminate a pregnancy by a health care professional."Health care professional" means a physician licensed to practice medicine in all of its branches, licensed advanced practice registered nurse, or physician assistant."Hormonal therapy medication" means hormonal treatment administered to treat gender dysphoria."Therapeutic equivalent version" means drugs, devices, or products that can be expected to have the same clinical effect and safety profile when administered to patients under the conditions specified in the labeling and that satisfy the following general criteria:(1)   it is approved as safe and effective;(2)   it is a pharmaceutical equivalent in that it:(A)   contains identical amounts of the same         active drug ingredient in the same dosage form and route of administration; and(B)   meets compendial or other applicable         standards of strength, quality, purity, and identity;(3)   it is bioequivalent in that:(A)   it does not present a known or potential         bioequivalence problem and it meets an acceptable in vitro standard; or(B)   if it does present such a known or         potential problem, it is shown to meet an appropriate bioequivalence standard;(4)   it is adequately labeled; and(5)   it is manufactured in compliance with Current     Good Manufacturing Practice regulations adopted by the United States Food and Drug Administration.(b) An individual or group policy of accident and health insurance amended, delivered, issued, or renewed in this State after January 1, 2024 shall provide coverage for all abortifacients, hormonal therapy medication, human immunodeficiency virus pre-exposure prophylaxis and post-exposure prophylaxis drugs approved by the United States Food and Drug Administration, and follow-up services related to that coverage, including, but not limited to, management of side effects, medication self-management or adherence counseling, risk reduction strategies, and mental health counseling.(c) The coverage required under subsection (b) is subject to the following conditions:(1)   If the United States Food and Drug     Administration has approved one or more therapeutic equivalent versions of an abortifacient drug, a policy is not required to include all such therapeutic equivalent versions in its formulary so long as at least one is included and covered without cost sharing and in accordance with this Section.(2)   If an individual's attending provider     recommends a particular drug approved by the United States Food and Drug Administration based on a determination of medical necessity with respect to that individual, the plan or issuer must defer to the determination of the attending provider and must cover that service or item without cost sharing.(3)   If a drug is not covered, plans and issuers     must have an easily accessible, transparent, and sufficiently expedient process that is not unduly burdensome on the individual or a provider or other individual acting as a patient's authorized representative to ensure coverage without cost sharing.(d)   Except as otherwise provided in this Section, a policy subject to this Section shall not impose a deductible, coinsurance, copayment, or any other cost-sharing requirement on the coverage provided. The provisions of this subsection do not apply to coverage of procedures to the extent such coverage would disqualify a high-deductible health plan from eligibility for a health savings account pursuant to the federal Internal Revenue Code, 26 U.S.C. 223.(e)   Except as otherwise authorized under this Section, a policy shall not impose any restrictions or delays on the coverage required under this Section.(f) The coverage requirements in this Section for
abortifacients do not, pursuant to 42 U.S.C. 18054(a)(6),
apply to a multistate plan that does not provide coverage for
abortion.(g) If the Department concludes that enforcement of any
coverage requirement of this Section for abortifacients may
adversely affect the allocation of federal funds to this
State, the Department may grant an exemption to that
requirement, but only to the minimum extent necessary to ensure the continued receipt of federal funds.
(Source: P.A. 102-1117, eff. 1-13-23.) (215 ILCS 5/357.1) (from Ch. 73, par. 969.1)Sec. 357.1. 
		Accident and health policy provisions required.Except as provided in section 357.26 of this article each accident
and health policy delivered or issued for delivery to any person in this
State shall contain the provisions set forth in sections 357.2 through
357.13 in the words in which the same appear in the specified sections;
provided, however, that the company may, at its option, substitute for
one or more of such provisions corresponding provisions of different
wording approved by the Director which are in each instance not less
favorable in any respect to the insured or the beneficiary. Such
provisions shall be preceded individually by the caption appearing at
the beginning of each such section or, at the option of the company, by
such appropriate individual or group captions or subcaptions as the
Director may approve. 
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.2) (from Ch. 73, par. 969.2)Sec. 357.2. 
		"ENTIRE CONTRACT; CHANGES: 
		This policy, including the
endorsements and the attached papers, if any, constitutes the entire
contract of insurance. No change in this policy shall be valid until
approved by an executive officer of the company and unless such approval
be endorsed hereon or attached hereto.  No agent has authority to change
this policy or to waive any of its provisions."(1) Premium Notice Required.  No policy of accident and health
insurance, as enumerated in class 1(b) or 2(a) of Section 4, shall be
declared forfeited or lapsed within 6 months after default in payment of
any premium installment or interest or any portion thereof, nor shall
any such policy be forfeited or lapsed by reason of nonpayment when due
of any premium, installment or interest, or any portion thereof,
required by the terms of the policy to be paid, within 6 months from the
default in payment of such premium, installment or interest, unless a
written or printed notice stating the amount of such premium,
installment, interest or portion thereof due on such policy, the place
where it shall be paid and the person to whom the same is payable, shall
have been duly addressed and mailed with the required postage affixed,
to the person insured or to the premium payor if other than the insured
at the last known post office address of the insured or premium payor,
at least 15 days and not more than 45 days prior to the day when same is
due and payable before the beginning of the grace period.Such notice shall also state that unless such premium or other sum
due shall be paid to the company or its agent the policy and all
payments thereon will become forfeited and void, except as to any right
to a surrender value or paid up policy as provided for by the policy.
The affidavit of any officer, clerk or agent of the company or of anyone
authorized to mail such notice that the notice required by this Section
bearing the required postage has been duly addressed and mailed shall be
presumptive evidence that such notice has been duly given.If the notice is given in a manner other than mailing, then
physical proof of the receipt of such notice by the proper recipient
shall be maintained by the insurer.(2) Paragraph (1) of this Section shall not apply
to cancellable policies which are renewable at the option of the company
nor shall it apply to group policies, industrial policies, or any
policies upon which premiums are payable monthly or at shorter intervals.
		(Source: P.A. 91-357, eff. 7-29-99.) (215 ILCS 5/357.3) (from Ch. 73, par. 969.3)Sec. 357.3. "TIME LIMIT ON CERTAIN DEFENSES:(1) After 2 years from the
date of issue of this policy no misstatements, except fraudulent
misstatements, made by the applicant in the application for such policy
shall be used to void the policy or to deny a claim for loss incurred or
disability (as defined in the policy) commencing after the expiration of
such 2 year period."(The foregoing policy provision shall not be so construed as to affect
any legal requirement for avoidance of a policy or denial of a claim during
such initial 2 year period, nor to limit the application of section 357.15
through section 357.19 in the event of misstatement with respect to age
or occupation or other insurance.)A policy which the insured has the right to continue in force subject to
its terms by the timely payment of premium (1) until at least age 50 or,
(2) in the case of a policy issued after age 44, for at least 5 years from
its date of issue, may contain in lieu of the foregoing the following
provisions (from which the clause in parentheses may be omitted at the
company's option) under the caption "INCONTESTABLE":"After this policy has been in force for a period of 2 years during the
lifetime of the insured (excluding any period during which the insured is
a person  with a disability), it shall become incontestable as to the statements contained in
the application."(2) "No claim for loss incurred or disability (as defined in the policy)
commencing after 2 years from the date of issue of this policy shall be
reduced or denied on the ground that a disease or physical condition not
excluded from coverage by name or specific description effective on the
date of loss had existed prior to the effective date of coverage of this
policy."
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 5/357.4) (from Ch. 73, par. 969.4)Sec. 357.4. 
		"GRACE PERIOD: 
		A grace period of ....(insert a number not less
than "7" for weekly premium policies, "10" for monthly premium policies and
"31" for all other policies) days will be granted for the payment of each
premium falling due after the first premium, during which grace period the
policy shall continue in force."(A policy which contains a cancellation provision may add, at the end of
the above provision: "Subject to the right of the company to cancel in
accordance with the cancellation provision hereof."A policy in which the company reserves the right to refuse any renewal
shall have, at the beginning of the above provision:"Unless not less than 30 days prior to the premium due date the company
has delivered to the insured or has mailed to his last address as shown by
the records of the company written notice of its intention not to renew
this policy beyond the period for which the premium has been accepted.")
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.5) (from Ch. 73, par. 969.5)Sec. 357.5. 
		"REINSTATEMENT: 
		If any renewal premium be not paid within
the time granted the insured for payment, a subsequent acceptance of
premium by the company or by any agent duly authorized by the company to
accept such premium, without requiring in connection therewith an
application for reinstatement, shall reinstate the policy; provided,
however, that if the company or such agent requires an application for
reinstatement and issues a conditional receipt for the premium tendered,
the policy will be reinstated upon approval of such application by the
company or, lacking such approval, upon the 45th day following the date
of such conditional receipt unless the company has previously notified
the insured in writing of its disapproval of such application. The
reinstated policy shall cover only loss resulting from such accidental
injury as may be sustained after the date of reinstatement and loss due
to such sickness as may begin more than 10 days after such date. In all
other respects the insured and company shall have the same rights
thereunder as they had under the policy immediately before the due date
of the defaulted premium, subject to any provisions endorsed hereon or
attached hereto in connection with the reinstatement.  Any premium
accepted in connection with a reinstatement shall be applied to a period
for which premium has not been previously paid, but not to any period
more than 60 days prior to the date of reinstatement."The last sentence of the above provision may be omitted from any
policy which the insured has the right to continue in force subject to
its terms by the timely payment of premiums (1) until at least age 50
or, (2) in the case of a policy issued after age 44, for at least 5
years from its date of issue.For the purpose of this Section, the phrase "loss resulting from such
accidental injury as may be sustained after the date of reinstatement and
loss due to such sickness as may begin more than 10 days
after such date" shall mean that the reinstated policy shall not cover a
loss resulting from accidental injury sustained after the date of lapse
of the policy and prior to the date of reinstatement or a loss resulting
from sickness which is first manifested after the date of lapse of the policy
but not after a date more than 10 days after the date of
reinstatement.  An accidental injury and a sickness as described in this
Section shall be subject to the requirements of Section 357.3 with the
exception that references to date of issue and application shall mean date
of reinstatement and reinstatement application.  All other accidental
injuries and sicknesses will be subject to the requirements of 357.3.
Provisions endorsed or attached to the policy in connection with the
reinstatement shall relate to a disease or physical condition of an insured
under the policy.
		(Source: P.A. 84-1308.) (215 ILCS 5/357.6) (from Ch. 73, par. 969.6)Sec. 357.6. 
		"NOTICE OF CLAIM: 
		Written notice of claim must be given to the
company within 20 days after the occurrence or commencement of any loss
covered by the policy, or as soon thereafter as is reasonably possible.
Notice given by or on behalf of the insured or the beneficiary to the
company at ....(insert the location of such office as the company may
designate for the purpose), or to any authorized agent of the company, with
information sufficient to identify the insured, shall be deemed notice to
the company."In a policy providing a loss-of-time benefit which may be payable for at
least 2 years, a company may at its option insert the following between the
first and second sentences of the above provision:"Subject to the qualifications set forth below, if the insured suffers
loss of time on account of disability for which indemnity may be payable
for at least 2 years, he shall, at least once in every 6 months after
having given notice of claim, give to the company notice of continuance of
said disability, except in the event of legal incapacity. The period of 6
months following any filing of proof by the insured or any payment by the
company on account of such claim or any denial of liability in whole or in
part by the company shall be excluded in applying this provision. Delay in
the giving of such notice shall not impair the insured's right to any
indemnity which would otherwise have accrued during the period of 6 months
preceding the date on which such notice is actually given."
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.7) (from Ch. 73, par. 969.7)Sec. 357.7. 
		"CLAIM FORMS: 
		The company, upon receipt of a notice of claim,
will furnish to the claimant such forms as are usually furnished by it for
filing proofs of loss. If such forms are not furnished within 15 days after
the giving of such notice the claimant shall be deemed to have complied
with the requirements of this policy as to proof of loss upon submitting,
within the time fixed in the policy for filing proofs of loss, written
proof covering the occurrence, the character and the extent of the loss for
which claim is made."
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.8) (from Ch. 73, par. 969.8)Sec. 357.8. 
		"PROOFS OF LOSS: 
		Written proof of loss must be furnished to the
company at its said office in case of claim for loss for which this policy
provides any periodic payment contingent upon continuing loss within 90
days after the termination of the period for which the company is liable
and in case of claim for any other loss within 90 days after the date of
such loss. Failure to furnish such proof within the time required shall not
invalidate nor reduce any claim if it was not reasonably possible to give
proof within such time, provided such proof is furnished as soon as
reasonably possible and in no event, except in the absence of legal
capacity, later than one year from the time proof is otherwise required."
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.9) (from Ch. 73, par. 969.9)Sec. 357.9. 
		"TIME OF PAYMENT OF CLAIMS: 
		Indemnities
payable under
this policy for any loss other than loss for which this policy provides
any periodic payment will be paid immediately upon receipt of due
written proof of such loss.
Subject
to due written proof of loss, all
accrued indemnities for loss for which this policy provides periodic
payment will be paid ....
(insert period for payment which must not be
less frequently than monthly) and any balance remaining unpaid upon the
termination of liability, will be paid immediately upon receipt of due
written proof."All claims and indemnities payable under the terms of
a policy of accident and health insurance shall be paid within 30 days
following receipt by the insurer of due proof of loss.
Failure to pay
within such period shall entitle the insured
to interest at the rate of 9
per cent per annum from the 30th day after receipt of such proof of loss to
the date of late payment, provided that interest amounting to less than one
dollar need not be paid.
An insured or an insured's assignee shall be
notified by the insurer, health maintenance organization, managed care plan,
health care plan, preferred provider organization, or third party administrator
of any known failure to provide sufficient documentation for a
due proof of
loss within 30 days after receipt of the claim.
Any
required interest payments shall be made within 30 days after the payment.The requirements of this Section shall apply to any policy of accident
and health insurance delivered, issued for delivery, renewed or amended on
or after 180 days following the effective date of this amendatory Act of 1985.
The requirements of this Section also shall specifically apply to
any group policy of dental insurance only, delivered, issued for
delivery, renewed or amended on or after 180 days following the effective
date of this amendatory Act of 1987.
		(Source: P.A. 91-605, eff. 12-14-99.) (215 ILCS 5/357.9a) (from Ch. 73, par. 969.9a)Sec. 357.9a. 
		Delay in payment of claims. 
		Periodic payments
of accrued indemnities for loss-of-time coverage under accident
and health policies shall commence not later than 30 days after
the receipt by the company of the required written proofs of loss.
An insurer which violates this Section if liable under said policy, shall
pay to the insured, in addition to any other penalty provided for in this Code,
interest at the rate of 9% per annum from the 30th day after
receipt of such proofs of loss to the date of late payment of the
accrued indemnities, provided that interest amounting to less than
one dollar need not be paid.
		(Source: P.A. 92-139, eff. 7-24-01.) (215 ILCS 5/357.10) (from Ch. 73, par. 969.10)Sec. 357.10. 
		"PAYMENT OF CLAIMS: 
		Indemnity for loss of life will be payable
in accordance with the beneficiary designation and the provisions
respecting such payment which may be prescribed herein and effective at the
time of payment. If no such designation or provision is then effective,
such indemnity shall be payable to the estate of the insured. Any other
accrued indemnities unpaid at the insured's death may, at the option of the
company, be paid either to such beneficiary or to such estate. All other
indemnities will be payable to the insured."The following provisions, or either of them, may be included with the
foregoing provision at the option of the company:"If any indemnity of this policy shall be payable to the estate of the
insured, or to an insured or beneficiary who is a minor or otherwise not
competent to give a valid release, the company may pay such indemnity, up
to an amount not exceeding $....(insert an amount which shall not exceed
$1000), to any relative by blood or connection by marriage of the insured
or beneficiary who is deemed by the company to be equitably entitled
thereto. Any payment made by the company in good faith pursuant to this
provision shall fully discharge the company to the extent of such payment."Subject to any written direction of the insured in the application or
otherwise all or a portion of any indemnities provided by this policy on
account of hospital, nursing, medical, or surgical services may, at the
company's option and unless the insured requests otherwise in writing not
later than the time of filing proofs of such loss, be paid directly to the
hospital or person rendering such services; but it is not required that the
service be rendered by a particular hospital or person. Nothing in this
provision shall prohibit an insurer from providing incentives for insureds
to utilize the services of a particular hospital or person."
		(Source: P.A. 84-618.) (215 ILCS 5/357.11) (from Ch. 73, par. 969.11)Sec. 357.11. 
		"PHYSICAL EXAMINATIONS AND AUTOPSY: 
		The company at its own
expense shall have the right and opportunity to examine the person of the
insured when and as often as it may reasonably require during the pendency
of a claim hereunder and to make an autopsy in case of death where it is
not forbidden by law."
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.12) (from Ch. 73, par. 969.12)Sec. 357.12. 
		"LEGAL ACTIONS: 
		No civil action shall be brought
to recover on this policy prior to the expiration of 60 days after written
proof of loss has been furnished in accordance with the requirements of
this policy.  No such action shall be brought after the expiration of 3
years after the time written proof of loss is required to be furnished."
		(Source: P.A. 79-1362.) (215 ILCS 5/357.13) (from Ch. 73, par. 969.13)Sec. 357.13. 
		"CHANGE OF BENEFICIARY: 
		Unless the insured makes an
irrevocable designation of beneficiary, the right to change of beneficiary
is reserved to the insured and the consent of the beneficiary or
beneficiaries shall not be requisite to surrender or assignment of this
policy or to any change of beneficiary or beneficiaries, or to any other
changes in this policy."(The first clause of this provision, relating to the irrevocable
designation of beneficiary, may be omitted at the company's option.)
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.14) (from Ch. 73, par. 969.14)Sec. 357.14. Except as provided in section 357.26, no such policy delivered
or issued for delivery to any person in this State shall contain provisions
respecting the matters set forth in sections 357.15 through 357.24 unless
such provisions are in the words in which the same appear in this article;
provided, however, that the company may, at its option, use in lieu of any
such provision a corresponding provision of different wording approved by
the Director which is not less favorable in any respect to the insured or
the beneficiary. Any such provision contained in the policy shall be
preceded individually by the appropriate caption appearing in the following
sections or, at the option of the company, by such appropriate individual
or group captions or subcaptions as the Director may approve.
					(Source: P.A. 95-230, eff. 1-1-08.) (215 ILCS 5/357.15) (from Ch. 73, par. 969.15)Sec. 357.15. 
		"CHANGE OF OCCUPATION: 
		If the insured be injured or contract
sickness after having changed his occupation to one classified by the
company as more hazardous than that stated in this policy or while doing
for compensation anything pertaining to an occupation so classified, the
company will pay only such portion of the indemnities provided in this
policy as the premium paid would have purchased at the rates and within the
limits fixed by the company for such more hazardous occupation. If the
insured changes his occupation to one classified by the company as less
hazardous than that stated in this policy, the company, upon receipt of
proof of such change of occupation, will reduce the premium rate
accordingly, and will return the excess pro-rata unearned premium from the
date of change of occupation or from the policy anniversary date
immediately preceding receipt of such proof, whichever is the more recent.
In applying this provision, the classification of occupational risk and the
premium rates shall be such as have been last filed by the company prior to
the occurrence of the loss for which the company is liable or prior to date
of proof of change in occupation with the state official having supervision
of insurance in the state where the insured resided at the time this policy
was issued; but if such filing was not required, then the classification of
occupational risk and the premium rates shall be those last made effective
by the company in such state prior to the occurrence of the loss or prior
to the date of proof of change in occupation."
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.16) (from Ch. 73, par. 969.16)Sec. 357.16. 
		"MISSTATEMENT OF AGE: 
		If the age of the insured has been
misstated, all amounts payable under this policy shall be such as the
premium paid would have purchased at the correct age."
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.17) (from Ch. 73, par. 969.17)Sec. 357.17. 
		"OTHER INSURANCE IN THIS COMPANY: 
		If an accident or health or
accident and health policy or policies previously issued by the company to
the insured be in force concurrently herewith, making the aggregate
indemnity for ....(insert type of coverage or coverages) in excess of
$....(insert maximum limit of indemnity or indemnities) the excess
insurance shall be void and all premiums paid for such excess shall be
returned to the insured or to his estate."
or, in lieu thereof:"Insurance effective at any one time on the insured under a like policy
or policies in this company is limited to the one such policy elected by
the insured, his beneficiary or his estate, as the case may be, and the
company will return all premiums paid for all other such policies."
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.18) (from Ch. 73, par. 969.18)Sec. 357.18. 
		"INSURANCE WITH OTHER COMPANIES: 
		If there be other valid
coverage, not with this company, providing benefits for the same loss on
a provision of service basis or on an expense incurred basis and of
which this company has not been given written notice prior to the
occurrence or commencement of loss, the only liability under any expense
incurred coverage of this policy shall be for such proportion of the
loss as the amount which would otherwise have been payable hereunder
plus the total of the like amounts under all such other valid coverages
for the same loss of which this company had notice bears to the total
like amounts under all valid coverages for such loss, and for the return
of such portion of the premiums paid as shall exceed the pro-rata
portion for the amount so determined. For the purpose of applying this
provision when other coverage is on a provision of service basis, the
"like amount" of such other coverage shall be taken as the amount which
the services rendered would have cost in the absence of such coverage."(If the foregoing policy provision is included in a policy which also
contains the next following policy provision there shall be added to the
caption of the foregoing provision the phrase "--EXPENSE INCURRED
BENEFITS". The company may, at its option, include in this provision a
definition of "other valid coverage", approved as to form by the
Director, which definition shall be limited in subject matter to
coverage provided by organizations subject to regulation by insurance
law or by insurance authorities of this or any other state of the United
States or any province of Canada, and by hospital or medical service
organizations, and to any other coverage the inclusion of which may be
approved by the Director. In the absence of such definition such term
does not include group insurance, automobile medical payments insurance,
or coverage provided by hospital or medical service organizations or by
union welfare plans or employer or employee benefit organizations. For
the purpose of applying the foregoing policy provision with respect to
any insured, any amount of benefit provided for such insured pursuant to
any compulsory benefit statute (including any workers' compensation or
employer's liability statute) whether provided by a governmental agency
or otherwise is "other valid coverage" of which the company has had
notice. In applying the foregoing policy provision no third party
liability coverage shall be included as "other valid coverage".)
		(Source: P.A. 91-357, eff. 7-29-99.) (215 ILCS 5/357.19) (from Ch. 73, par. 969.19)Sec. 357.19. 
		"INSURANCE WITH OTHER COMPANIES: 
		If there be other valid
coverage, not with this company, providing benefits for the same loss on
other than an expense incurred basis and of which this company has not
been given written notice prior to the occurrence or commencement of
loss, the only liability for such benefits under this policy shall be
for such proportion of the indemnities otherwise provided hereunder for
such loss as the like indemnities of which the company had notice
(including the indemnities under this policy) bear to the total amount
of all like indemnities for such loss, and for the return of such
portion of the premium paid as shall exceed the pro-rata portion for the
indemnities thus determined."(If the foregoing policy provision is included in a policy which also
contains the next preceding policy provision there shall be added to the
caption of the foregoing provision the phrase "--OTHER BENEFITS". The
company may, at its option, include in this provision a definition of
"other valid coverage", approved as to form by the Director, which
definition shall be limited in subject matter to coverage provided by
organizations subject to regulation by insurance law or by insurance
authorities of this or any other state of the United States or any
province of Canada, and to any other coverage the inclusion of which may
be approved by the Director. In the absence of such definition such term
does not include group insurance, or benefits provided by union welfare
plans or by employer or employee benefit organizations. For the purpose
of applying the foregoing policy provision with respect to any insured,
any amount of benefit provided for such insured pursuant to any
compulsory benefit statute (including any workers' compensation or
employer's liability statute) whether provided by a governmental agency
or otherwise is "other valid coverage" of which the company has had
notice. In applying the foregoing policy provision no third party liability
coverage shall be included as "other valid coverage".)
		(Source: P.A. 91-357, eff. 7-29-99.) (215 ILCS 5/357.20) (from Ch. 73, par. 969.20)Sec. 357.20. 
		"RELATION OF EARNINGS TO INSURANCE: 
		If the total monthly
amount of loss of time benefits promised for the same loss under all
valid loss of time coverage upon the insured, whether payable on a
weekly or monthly basis, shall exceed the monthly earnings of the
insured at the time disability commenced or his average monthly earnings
for the period of 2 years immediately preceding a disability for which
claim is made, whichever is the greater, the company will be liable only
for such proportionate amount of such benefits under this policy as the
amount of such monthly earnings or such average monthly earnings of the
insured bears to the total amount of monthly benefits for the same loss
under all such coverage upon the insured at the time such disability
commences and for the return of such part of the premiums paid during
such 2 years as shall exceed the pro-rata amount of the premiums for the
benefits actually paid hereunder; but this shall not operate to reduce
the total monthly amount of benefits payable under all such coverage
upon the insured below the sum of $200.00 or the sum of the monthly
benefits specified in such coverages, whichever is the lesser, nor shall
it operate to reduce benefits other than those payable for loss of
time."(The foregoing policy provision may be inserted only in a policy
which the insured has the right to continue in force subject to its
terms by the timely payment of premiums (1) until at least age 50 or,
(2) in the case of a policy issued after age 44, for at least 5 years
from its date of issue. The company may, at its option, include in this
provision a definition of "valid loss of time coverage", approved as to
form by the Director, which definition shall be limited in subject
matter to coverage provided by governmental agencies or by organizations
subject to regulation by insurance law or by insurance authorities of
this or any other state of the United States or any province of Canada,
or to any other coverage the inclusion of which may be approved by the
Director or any combination of such coverages. In the absence of such
definition such term does not include any coverage provided for such
insured pursuant to any compulsory benefit statute (including any
workers' compensation or employer's liability statute), or benefits
provided by union welfare plans or by employer or employee benefit
organizations.)
		(Source: P.A. 91-357, eff. 7-29-99.) (215 ILCS 5/357.21) (from Ch. 73, par. 969.21)Sec. 357.21. 
		"UNPAID PREMIUM: 
		Upon the payment of a claim under this
policy, any premium then due and unpaid or covered by any note or written
order may be deducted therefrom."
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.22) (from Ch. 73, par. 969.22)Sec. 357.22. 
		"CANCELLATION: 
		The company may cancel this policy at any time
by written notice delivered to the insured, or mailed to his last address
as shown by the records of the company, stating when, not less than 30 days
thereafter, such cancellation shall be effective; and after the policy has
been continued beyond its original term the insured may cancel this policy
at any time by written notice delivered or mailed to the company, effective
upon receipt or on such later date as may be specified in such notice. In
the event of cancellation, the company will return promptly the unearned
portion of any premium paid. If the insured cancels, the earned premium
shall be computed by the use of the short-rate table last filed with the
state official having supervision of insurance in the state where the
insured resided when the policy was issued. If the company cancels, the
earned premium shall be computed pro-rata. Cancellation shall be without
prejudice to any claim originating prior to the effective date of
cancellation." (Notice to the policy holder of the cancellable nature of
his policy shall be set forth on the face of the policy.)
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.23) (from Ch. 73, par. 969.23)Sec. 357.23. 
		"CONFORMITY WITH STATE STATUTES: 
		Any provision of this policy
which, on its effective date, is in conflict with the statutes of the state
in which the insured resides on such date is hereby amended to conform to
the minimum requirements of such statutes."
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.24) (from Ch. 73, par. 969.24)Sec. 357.24. 
		"ILLEGAL OCCUPATION: 
		The company shall not be liable for any
loss to which a contributing cause was the insured's commission of or
attempt to commit a felony or to which a contributing cause was the
insured's being engaged in an illegal occupation."
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.25)Sec. 357.25. (Repealed).
	 
	 (Source: Laws 1967, p. 1735. Repealed by P.A. 95-230, eff. 1-1-08.) (215 ILCS 5/357.26) (from Ch. 73, par. 969.26)Sec. 357.26. 
		
		If any provision of the preceding sections is in whole
or in part inapplicable to or inconsistent with the coverage provided by
a particular form of policy the company, with the approval of the
Director, shall omit from such policy any inapplicable provision or part
of a provision, and shall modify any inconsistent provision or part of
the provision in such manner as to make the provision as contained in the
policy consistent with the coverage provided by the policy.
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.27) (from Ch. 73, par. 969.27)Sec. 357.27. 
		
		The provisions which are the subject of Sections 357.2 through
357.25, or any corresponding provisions which are used in lieu thereof in
accordance with such sections, shall be printed in the consecutive order of
the provisions in such sections or, at the option of the company, any such
provision may appear as a unit in any part of the policy, with other
provisions to which it may be logically related, provided the resulting
policy shall not be in whole or in part unintelligible, uncertain,
ambiguous, abstruse, or likely to mislead a person to whom the policy is
offered, delivered or issued.
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.28) (from Ch. 73, par. 969.28)Sec. 357.28. 
		
		The word "insured", as used in this article, shall not be
construed as preventing a person other than the insured with a proper
insurable interest from making application for and owning a policy covering
the insured or from being entitled under such a policy to any indemnities,
benefits and rights provided therein.
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.29) (from Ch. 73, par. 969.29)Sec. 357.29. 
		
		Any policy of a foreign or alien company, when delivered or
issued for delivery to any person in this State, may contain any provision
which is not less favorable to the insured or the beneficiary than the
provisions of this article and which is prescribed or required by the law
of the state under which the company is organized.Any policy of a domestic company may, when issued for delivery in any
other state or country, contain any provision permitted or required by the
laws of such other state or country.
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.30) (from Ch. 73, par. 969.30)Sec. 357.30. 
		
		The Director may make such reasonable rules and regulations
concerning the procedure for the filing or submission of policies subject
to this article as are necessary, proper or advisable to the administration
of this article. This provision shall not abridge any other authority
granted the Director by law. The effective date of the new provisions added
by this amendatory Act shall be January 1, 1968.
		(Source: Laws 1967, p. 1735.) (215 ILCS 5/357.31) (from Ch. 73, par. 969.31)Sec. 357.31. 
		
		In the event of the death of a policyholder of an
individual accident and health insurance policy, the insurance company,
upon receipt of notice of the policyholder's death and a request for a
pro-rata refund, supported by a valid death certificate supplied by a party
entitled to claim such refund, shall refund the unearned premium pro-rated
to the month of the policyholder's death.  In no event shall such refund of
premium be computed by the use of a short-rate table.  Refund of the
premium and termination of the coverage shall be without prejudice to any
claim originating prior to the date of the policyholder's
death.  Coverage of persons insured under the same policy other than the
policyholder shall not be affected by the premium refund provided for in
this Section nor shall the obligation of such other insureds to pay
required premiums be diminished pursuant to this Section.
		(Source: P.A. 86-665.) (215 ILCS 5/358a) (from Ch. 73, par. 970a)Sec. 358a. 
		Conforming to statute.(1) Other Policy ProvisionsNo policy provision which is not subject to section 357a of this act
shall make a policy, or any portion thereof, less favorable in any respect
to the insured or the beneficiary than the provisions thereof which are
subject to this act.(2) Policy Conflicting with this ArticleA policy delivered or issued for delivery to any person in this state in
violation of this article shall be held valid but shall be construed as
provided in this article. When any provision in a policy subject to this
article is in conflict with any provision of this article, the rights,
duties and obligations of the insurer, the insured and the beneficiary
shall be governed by the provisions of this article.(3) Operating under Old ProvisionsSubsection (3) of Section 356a of this Act is hereby incorporated into
and made a part of this section by express reference.
		(Source: Laws 1951, p. 611.) (215 ILCS 5/359a) (from Ch. 73, par. 971a)Sec. 359a. 
		Application.(1) No policy of insurance except an Industrial Accident and Health
Policy provided for by this article shall be issued, except upon the
signed application of the person or persons sought to be insured. Any
information or statement of the applicant shall plainly appear upon such
application in the form of interrogatories by the insurer and answers by
the applicant. The insured shall not be bound by any statement made in an
application for any policy, including an Industrial Accident and Health
Policy, unless a copy of such application is attached to or endorsed on the
policy when issued as a part thereof. If any such policy delivered or
issued for delivery to any person in this state shall be reinstated or
renewed, and the insured or the beneficiary or assignee of such policy
shall make written request to the insurer for a copy of the application, if
any, for such reinstatement or renewal, the insurer shall within fifteen
days after the receipt of such request at its home office or any branch
office of the insurer, deliver or mail to the person making such request, a
copy of such application. If such copy shall not be so delivered or mailed,
the insurer shall be precluded from introducing such application as
evidence in any action or proceeding based upon or involving such policy or
its reinstatement or renewal.(2) No alteration of any written application for any such policy shall
be made by any person other than the applicant without his written consent,
except that insertions may be made by the insurer, for administrative
purposes only, in such manner as to indicate clearly that such insertions
are not to be ascribed to the applicant.(3) The falsity of any statement in the application for any policy
covered by this act may not bar the right to recovery thereunder unless
such false statement materially affected either the acceptance of the risk
or the hazard assumed by the insurer.
		(Source: Laws 1951, p. 611.) (215 ILCS 5/359b)Sec. 359b. (Repealed).
(Source: P.A. 96-857, eff. 1-5-10. Repealed by P.A. 98-969, eff. 1-1-15.) (215 ILCS 5/359c)Sec. 359c. (Repealed).
(Source: P.A. 97-524, eff. 1-1-12. Repealed by P.A. 98-969, eff. 1-1-15.) (215 ILCS 5/360a) (from Ch. 73, par. 972a)Sec. 360a. 
		
		Notice,
waiver.The acknowledgement by any insurer of the receipt of notice given under
any policy covered by this article, or the furnishing of forms for filing
proofs of loss, or the acceptance of such proofs, or the investigation of
any claim thereunder shall not operate as a waiver of any of the rights of
the insurer in defense of any claim arising under such policy.
		(Source: Laws 1951, p. 611.) (215 ILCS 5/361a) (from Ch. 73, par. 973a)Sec. 361a. 
		
		Age
limit.If any such policy contains a provision establishing, as an age limit or
otherwise, a date after which the coverage provided by the policy will not
be effective, and if such date falls within a period for which premium is
accepted by the insurer or if the insurer accepts a premium after such
date, the coverage provided by the policy will continue in force subject to
any right of cancellation until the end of the period for which premium has
been accepted. In the event the age of the insured has been misstated and
if, according to the correct age of the insured, the coverage provided by
the policy would not have become effective, or would have ceased prior to
the acceptance of such premium or premiums, then the liability of the
insurer shall be limited to the refund, upon request, of all premiums paid
for the period not covered by the policy.
		(Source: Laws 1951, p. 611.) (215 ILCS 5/362a) (from Ch. 73, par. 974a)Sec. 362a. Non-application to certain policies. The provisions of sections 356a to 359a, both inclusive, shall not
apply to or affect (1) any policy of workers' compensation insurance or
any policy of liability insurance with or without supplementary expense
coverage therein; or (2) any policy or contract of reinsurance; or (3)
any group policy of insurance (unless otherwise specifically provided);
or (4) life insurance, endowment or annuity contracts, or contracts
supplemental thereto which contain only such provisions relating to
accident and sickness insurance as (a) provide additional benefits in
case of death or dismemberment or loss of sight by accident, or as (b)
operate to safeguard such contracts against lapse, or to give a special
surrender value or special benefit or an annuity in the event that the
insured or annuitant shall become a person with a total and permanent disability, as
defined by the contract or supplemental contract.
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 5/363) (from Ch. 73, par. 975)Sec. 363. Medicare supplement policies; minimum standards.(1) Except as otherwise specifically provided therein, this
Section and Section 363a of this Code shall apply to:(a) all Medicare supplement policies and subscriber     contracts delivered or issued for delivery in this State on and after January 1, 1989; and(b) all certificates issued under group Medicare     supplement policies or subscriber contracts, which certificates are issued or issued for delivery in this State on and after January 1, 1989.This Section shall not apply to "Accident Only" or "Specified Disease"
types of policies.  The provisions of this Section are not intended to prohibit
or apply to policies or health care benefit plans, including group
conversion policies, provided to Medicare eligible persons, which policies
or plans are not marketed or purported or held to be Medicare supplement
policies or benefit plans.(2) For the purposes of this Section and Section 363a, the following
terms have the following meanings:(a) "Applicant" means:(i) in the case of individual Medicare supplement         policy, the person who seeks to contract for insurance benefits, and(ii) in the case of a group Medicare policy or         subscriber contract, the proposed certificate holder.(b) "Certificate" means any certificate delivered or     issued for delivery in this State under a group Medicare supplement policy.(c) "Medicare supplement policy" means an individual     policy of accident and health insurance, as defined in paragraph (a) of subsection (2) of Section 355a of this Code, or a group policy or certificate delivered or issued for delivery in this State by an insurer, fraternal benefit society, voluntary health service plan, or health maintenance organization, other than a policy issued pursuant to a contract under Section 1876 of the federal Social Security Act (42 U.S.C. Section 1395 et seq.) or a policy issued under a demonstration project specified in 42 U.S.C. Section 1395ss(g)(1), or any similar organization, that is advertised, marketed, or designed primarily as a supplement to reimbursements under Medicare for the hospital, medical, or surgical expenses of persons eligible for Medicare.(d) "Issuer" includes insurance companies, fraternal     benefit societies, voluntary health service plans, health maintenance organizations, or any other entity providing Medicare supplement insurance, unless the context clearly indicates otherwise.(e) "Medicare" means the Health Insurance for the     Aged Act, Title XVIII of the Social Security Amendments of 1965.(3) No Medicare supplement insurance policy, contract, or
certificate,
that provides benefits that duplicate benefits provided by Medicare, shall
be issued or issued for delivery in this State after December 31, 1988.  No
such policy, contract, or certificate shall provide lesser benefits than
those required under this Section or the existing Medicare Supplement
Minimum Standards Regulation, except where duplication of Medicare benefits
would result.(4) Medicare supplement policies or certificates shall have a
notice
prominently printed on the first page of the policy or attached thereto
stating in substance that the policyholder or certificate holder shall have
the right to return the policy or certificate within 30 days of its
delivery and to have the premium refunded directly to him or her in a
timely manner if, after examination of the policy or certificate, the
insured person is not satisfied for any reason.(5) A Medicare supplement policy or certificate may not deny a
claim
for losses incurred more than 6 months from the effective date of coverage
for a preexisting condition. The policy may not define a preexisting
condition more restrictively than a condition for which medical advice was
given or treatment was recommended by or received from a physician within 6
months before the effective date of coverage.(6) An issuer of a Medicare supplement policy shall:(a) not deny coverage to an applicant under 65 years     of age who meets any of the following criteria:(i) becomes eligible for Medicare by reason of         disability if the person makes application for a Medicare supplement policy within 6 months of the first day on which the person enrolls for benefits under Medicare Part B; for a person who is retroactively enrolled in Medicare Part B due to a retroactive eligibility decision made by the Social Security Administration, the application must be submitted within a 6-month period beginning with the month in which the person received notice of retroactive eligibility to enroll;(ii) has Medicare and an employer group health         plan (either primary or secondary to Medicare) that terminates or ceases to provide all such supplemental health benefits;(iii) is insured by a Medicare Advantage plan         that includes a Health Maintenance Organization, a Preferred Provider Organization, and a Private Fee-For-Service or Medicare Select plan and the applicant moves out of the plan's service area; the insurer goes out of business, withdraws from the market, or has its Medicare contract terminated; or the plan violates its contract provisions or is misrepresented in its marketing; or(iv) is insured by a  Medicare supplement policy         and the insurer goes out of business, withdraws from the market, or the insurance company or agents misrepresent the plan and the applicant is without coverage;(b) make available to persons eligible for Medicare     by reason of disability each type of Medicare supplement policy the issuer makes available to persons eligible for Medicare by reason of age;(c) not charge individuals who become eligible for     Medicare by reason of disability and who are under the age of 65 premium rates for any medical supplemental insurance benefit plan offered by the issuer that exceed the issuer's highest rate on the current rate schedule filed with the Division of Insurance for that plan to individuals who are age 65 or older; and(d) provide the rights granted by items (a) through     (d), for 6 months after the effective date of this amendatory Act of the 95th General Assembly, to any person who had enrolled for benefits under Medicare Part B prior to this amendatory Act of the 95th General Assembly who otherwise would have been eligible for coverage under item (a).(7) The Director shall issue reasonable rules and regulations
for the
following purposes:(a) To establish specific standards for policy     provisions of Medicare policies and certificates.  The standards shall be in accordance with the requirements of this Code.  No requirement of this Code relating to minimum required policy benefits, other than the minimum standards contained in this Section and Section 363a, shall apply to Medicare  supplement policies and certificates.  The standards may cover, but are not limited to the following:(A) Terms of renewability.(B) Initial and subsequent terms of eligibility.(C) Non-duplication of coverage.(D) Probationary and elimination periods.(E) Benefit limitations, exceptions and         reductions.(F) Requirements for replacement.(G) Recurrent conditions.(H) Definition of terms.(I) Requirements for issuing rebates or credits         to policyholders if the policy's loss ratio does not comply with subsection (7) of Section 363a.(J) Uniform methodology for the calculating and         reporting of loss ratio information.(K) Assuring public access to loss ratio         information of an issuer of Medicare supplement insurance.(L) Establishing a process for approving or         disapproving proposed premium increases.(M) Establishing a policy for holding public         hearings prior to approval of premium increases.(N) Establishing standards for Medicare Select         policies.(O) Prohibited policy provisions not otherwise         specifically authorized by statute that, in the opinion of the Director, are unjust, unfair, or unfairly discriminatory to any person insured or proposed for coverage under a medicare supplement policy or certificate.(b) To establish minimum standards for benefits and     claims payments, marketing practices, compensation arrangements, and reporting practices for Medicare supplement policies.(c) To implement transitional requirements of     Medicare supplement insurance benefits and premiums of Medicare supplement policies and certificates to conform to Medicare program revisions.(8) If an individual is at least 65 years of age but no more than 75 years of age and has an existing Medicare supplement policy, the individual is entitled to an annual open enrollment period lasting 45 days, commencing with the individual's birthday, and the individual may purchase any Medicare supplement policy with the same issuer that offers benefits equal to or lesser than those provided by the previous coverage. During this open enrollment period, an issuer of a Medicare supplement policy shall not deny or condition the issuance or effectiveness of Medicare supplemental coverage, nor discriminate in the pricing of coverage, because of health status, claims experience, receipt of health care, or a medical condition of the individual. An issuer shall provide notice of this annual open enrollment period for eligible Medicare supplement policyholders at the time that the application is made for a Medicare supplement policy or certificate. The notice shall be in a form that may be prescribed by the Department. (Source: P.A. 102-142, eff. 1-1-22.) (215 ILCS 5/363a) (from Ch. 73, par. 975a)Sec. 363a. 
		Medicare supplement policies; disclosure, advertising, loss
ratio standards.(1) Scope. This Section pertains to disclosure requirements of
companies and agents and mandatory and prohibited practices of agents
when selling a policy to supplement the Medicare program or any other
health insurance policy sold to individuals eligible for Medicare.  No policy
shall be referred to or labeled as a Medicare
supplement policy if it does not comply with the minimum standards
required by regulation pursuant to Section 363 of this Code.  Except as
otherwise specifically provided in paragraph (d) of subsection (6), this
Section shall not apply to accident only or specified disease type of
policies or hospital confinement indemnity or other type policies clearly
unrelated to Medicare.(2) Advertising. An advertisement that describes or offers to provide
information concerning the federal Medicare program shall comply with all
of the following:(a) It may not include any reference to that program     on the envelope, the reply envelope, or the address side of the reply postal card, if any, nor use any language to imply that failure to respond to the advertisement might result in loss of Medicare benefits.(b) It must include a prominent statement to the     effect that in providing supplemental coverage the insurer and agent involved in the solicitation are not in any manner connected with that program.(c) It must prominently disclose that it is an     advertisement for insurance or is intended to obtain insurance prospects.(d) It must prominently identify and set forth the     actual address of the insurer or insurers that issue the coverage.(e) It must prominently state that any material or     information offered will be delivered in person by a representative of the insurer, if that is the case.The Director may issue reasonable rules and regulations for the
purpose of establishing criteria and guidelines for the advertising of
Medicare supplement insurance.(3) Mandatory agent practices.  For the purpose of this Act, "home
solicitation sale by an agent" means a sale or attempted sale of an
insurance policy at the purchaser's residence, agent's transient quarters,
or away from the agent's home office when the initial contact is personally
solicited by the agent or insurer.  Any agent involved in any home
solicitation sale of a Medicare supplement policy or other policy of
accident and health insurance, subject to subsection (1) of this Section,
sold to individuals eligible for Medicare shall promptly do the following:(a) Identify himself as an insurance agent.(b) Identify the insurer or insurers for which he is     a licensed agent.(c) Provide the purchaser with a clearly printed or     typed identification of his name, address, telephone number, and the name of the insurer in which the insurance is to be written.(d) Determine what, if any, policy is appropriate,     suitable, and nonduplicative for the purchaser considering existing coverage and be able to provide proof to the company that such a determination has been made.(e) Fully and completely disclose the purchaser's     medical history on the application if required for issue.(f) Complete a Policy Check List in duplicate as     follows:
		POLICY CHECK LISTApplicant's Name:Policy Number:Name of Existing Insurer:Expiration Date of Existing Insurance:
		

Medicare
Existing
Supplement
Insured's


Pays
Coverage
Pays
Responsibility

ServiceHospitalSkilledNursingHome CarePrescriptionDrugsThis policy does/does not (circle one) comply with     the minimum standards for Medicare supplements set forth in Section 363 of the Illinois Insurance Code.Signature of ApplicantSignature of AgentThis Policy Check List is to be completed in the     presence of the purchaser at the point of sale, and copies of it, completed and duly signed, are to be provided to the purchaser and to the company.(g) Except in the case of refunds of premium made     pursuant to subsection (5) of Section 363 of this Code, send by mail to an insured or an applicant for insurance, when the insurer follows a practice of having agents return premium refund drafts issued by the insurer, a premium refund draft within 2 weeks of its receipt by the agent from the insurer making such refund.(h) Deliver to the purchaser, along with every policy     issued pursuant to Section 363 of this Code, an Outline of Coverage as described in paragraph (b) of subsection (6) of this Section.(4) Prohibited agent practices.(a) No insurance agent engaged in a home solicitation     sale of a Medicare supplement policy or other policy of accident and health insurance, subject to subsection (1) of this Section, sold to individuals eligible for Medicare shall use any false, deceptive, or misleading representation to induce a sale, or use any plan, scheme, or ruse, that misrepresents the true status or mission of the person making the call, or represent directly or by implication that the agent:(i) Is offering insurance that is approved or         recommended by the State or federal government to supplement Medicare.(ii) Is in any way representing, working for, or         compensated by a local, State, or federal government agency.(iii) Is engaged in an advisory business in which         his compensation is unrelated to the sale of insurance by the use of terms such as Medicare consultant, Medicare advisor, Medicare Bureau, disability insurance consultant, or similar expression in a letter, envelope, reply card, or other.(iv) Will provide a continuing service to the         purchaser of the policy unless he does provide services to the purchaser beyond the sale and renewal of policies.(b) No agent engaged in a home solicitation sale of a     Medicare supplement policy or other policy of accident and health insurance sold to individuals eligible for Medicare shall misrepresent, directly or by implication, any of the following:(i) The identity of the insurance company or         companies he represents.(ii) That the assistance programs of the State or         county or the federal Medicare programs for medical insurance are to be discontinued or are increasing in cost to the prospective buyer or are in any way endangered.(iii) That an insurance company in which the         prospective purchaser is insured is financially unstable, cancelling its outstanding policies, merging, or withdrawing from the State.(iv) The coverage of the policy being sold.(v) The effective date of coverage under the         policy.(vi) That any pre-existing health condition of         the purchaser is irrelevant.(vii) The right of the purchaser to cancel the         policy within 30 days after receiving it.(5) Mandatory company practices.  Any company involved in the sale of
Medicare supplement policies or any policies of accident and health insurance
(subject to subsection (1) of this Section) sold to individuals eligible
for Medicare shall do the following:(a) Be able to readily determine the number of     accident and health policies in force with the company on each insured eligible for Medicare.(b) Make certain that policies of Medicare supplement     insurance are not issued, and any premium collected for those policies is refunded, when they are deemed duplicative, inappropriate, or not suitable considering existing coverage with the company.(c) Maintain copies of the Policy Check List as     completed by the agent at the point of sale of a Medicare supplement policy or any policy of accident and health insurance (subject to subsection (1) of this Section) sold to individuals eligible for Medicare on file at the company's regional or other administrative office.(6) Disclosures.  In order to provide for full and fair disclosure in
the sale of Medicare supplement policies, there must be compliance with the following:(a) No Medicare supplement policy or certificate     shall be delivered in this State unless an outline of coverage is delivered to the applicant at the time application is made and, except for direct response policies, an acknowledgement from the applicant of receipt of the outline is obtained.(b) Outline of coverage requirements for Medicare     supplement policies.(i) Insurers issuing Medicare supplement policies         or certificates for delivery in this State shall provide an outline of coverage to all applicants at the time application is made and, except for direct response policies, shall obtain an acknowledgement of receipt of the outline from the applicant.(ii) If an outline of coverage is provided at the         time of application and the Medicare supplement policy or certificate is issued on a basis that would require revision of the outline, a substitute outline of coverage properly describing the policy or certificate must accompany the policy or certificate when it is delivered and shall contain immediately above the company name, in no less than 12 point type, the following statement:"NOTICE: Read this outline of coverage carefully.          It is not identical to the outline of coverage provided upon application and the coverage originally applied for has not been issued.".(iii) The outline of coverage provided to         applicants shall be in the form prescribed by rule by the Department.(c) Insurers issuing policies that provide hospital     or medical expense coverage on an expense incurred or indemnity basis, other than incidentally, to a person or persons eligible for Medicare shall provide to the policyholder a buyer's guide approved by the Director. Delivery of the buyer's guide shall be made whether or not the policy qualifies as a "Medicare Supplement Coverage" in accordance with Section 363 of this Code.  Except in the case of direct response insurers, delivery of the buyer's guide shall be made at the time of application, and acknowledgement of receipt of certification of delivery of the buyer's guide shall be provided to the insurer.  Direct response insurers shall deliver the buyer's guide upon request, but not later than at the time the policy is delivered.(d) Outlines of coverage delivered in connection with     policies defined in subsection (4) of Section 355a of this Code as Hospital confinement Indemnity (Section 4c), Accident Only Coverage (Section 4f), Specified Disease (Section 4g) or Limited Benefit Health Insurance Coverage to persons eligible for Medicare shall contain, in addition to other requirements for those outlines, the following language that shall be printed on or attached to the first page of the outline of coverage:"This policy, certificate or subscriber contract IS     NOT A MEDICARE SUPPLEMENT policy or certificate.  It does not fully supplement your federal Medicare health insurance.  If you are eligible for Medicare, review the Guide to Health Insurance for People with Medicare available from the company.".(e) In the case wherein a policy, as defined in     paragraph (a) of subsection (2) of Section 355a of this Code, being sold to a person eligible for Medicare provides one or more but not all of the minimum standards for Medicare supplements set forth in Section 363 of this Code, disclosure must be provided that the policy is not a Medicare supplement and does not meet the minimum benefit standards set for those policies in this State.(7) Loss ratio standards.(a) Every issuer of Medicare supplement policies or     certificates in this State, as defined in Section 363 of this Code, shall file annually its rates, rating schedule, and supporting documentation demonstrating that it is in compliance with the applicable loss ratio standards of this State.  All filings of rates and rating schedules shall demonstrate that the actual and anticipated losses in relation to premiums comply with the requirements of this Code.(b) Medicare supplement policies shall, for the     entire period for which rates are computed to provide coverage, on the basis of incurred claims experience and earned premiums for the period and in accordance with accepted actuarial principles and practices, return to policyholders in the form of aggregate benefits the following:(i) In the case of group policies, at least 75%         of the aggregate amount of premiums earned.(ii) In the case of individual policies, at least         60% of the aggregate amount of premiums earned; and beginning November 5, 1991, at least 65% of the aggregate amount of premiums earned.(iii) In the case of sponsored group policies in         which coverage is marketed on an individual basis by direct response to eligible individuals in that group only, at least 65% of the aggregate amount of premiums earned.(c) For the purposes of this Section, the insurer     shall be deemed to comply with the loss ratio standards if:  (i) for the most recent year, the ratio of the incurred losses to earned premiums for policies or certificates that have been in force for 3 years or more is greater than or equal to the applicable percentages contained in this Section; and (ii) the anticipated losses in relation to premiums over the entire period for which the policy is rated comply with the requirements of this Section.  An anticipated third-year loss ratio that is greater than or equal to the applicable percentage shall be demonstrated for policies or certificates in force less than 3 years.(8) Applicability.  This Section shall apply to those companies
writing
the kind or kinds of business enumerated in Classes 1(b) and 2(a) of
Section 4 of this Code and to those entities organized and operating under
the Voluntary Health Services
Plans Act and the Health Maintenance Organization Act.(9) Penalties.(a) Any company or agent who is found to have     violated any of the provisions of this Section may be required by order of the Director of Insurance to forfeit by civil penalty not less than $500 nor more than $5,000 for each offense.  Written notice will be issued and an opportunity for a hearing will be granted pursuant to subsection (2) of Section 403A of this Code.(b) In addition to any other applicable penalties for     violations of this Code, the Director may require insurers violating any provision of this Code or regulations promulgated pursuant to this Code to cease marketing in this State any Medicare supplement policy or certificate that is related directly or indirectly to a violation and may require the insurer to take actions as are necessary to comply with the provisions of Sections 363 and 363a of this Code.(c) After June 30, 1991, no person may advertise,     solicit for the sale or purchase of, offer for sale, or deliver a Medicare supplement policy that has not been approved by the Director.  A person who knowingly violates, directly or through an agent, the provisions of this paragraph commits a Class 3 felony.  Any person who violates the provisions of this paragraph may be subjected to a civil penalty not to exceed $10,000.   The civil penalty authorized in this paragraph shall be enforced in the manner provided in Section 403A of this Code.(10) Replacement.  Application forms shall include a question
designed
to elicit information as to whether a Medicare supplement policy or
certificate is intended to replace any similar accident and sickness policy
or certificate presently in force. A supplementary application or other
form to be signed by the applicant containing the question may be used.
Upon determining that a sale of Medicare supplement coverage will involve
replacement, an insurer, other than a direct response insurer, or its
agent, shall furnish the applicant, prior to issuance or delivery of the
Medicare supplement policy or certificate, a notice regarding replacement
of Medicare supplement coverage. One copy of the notice shall be provided
to the applicant, and an additional copy signed by the applicant shall be
retained by the insurer. A direct response insurer shall deliver to the
applicant at the time of the issuance of the policy the notice regarding
replacement of Medicare supplement coverage.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/364) (from Ch. 73, par. 976)Sec. 364. Discrimination prohibited. Discrimination between
individuals of the same class of risk in the issuance of its policies
or in the amount of premiums or rates charged
for any insurance covered by this article, or in the benefits
payable thereon, or in any of the terms or conditions of such policy, or
in any other manner whatsoever is prohibited. Nothing in this provision
shall prohibit an insurer from providing incentives for insureds to utilize
the services of a particular hospital or person. It is hereby expressly
provided that whenever the terms "physician" or "doctor" appear or are
used in any way in any policy of accident or health insurance issued in
this state, said terms shall include within their meaning persons
licensed to practice dentistry under the Illinois Dental Practice Act with
regard to benefits payable for services performed by a person so
licensed, which such services are within the coverage provided by the
particular policy or contract of insurance and are within the
professional services authorized to be performed by such person under
and in accordance with the said Act.No company, in any policy of accident or health insurance issued in this
State, shall make or permit any distinction or discrimination against
individuals solely because of the individuals' disabilities in the amount of
payment of premiums or rates charged for policies of insurance, in the
amount of any dividends or other benefits payable thereon, or in any other
terms and conditions of the contract it makes, except where the distinction
or discrimination is based on sound actuarial principles or is related to
actual or reasonably anticipated experience.No company shall refuse to insure, or refuse to continue to insure,
or limit the amount or extent or kind of coverage available to an
individual, or charge an individual a different rate for the same coverage
solely because of blindness or partial blindness.  With respect to all
other conditions, including the underlying cause of the blindness or
partial blindness, persons who are blind or partially blind shall be
subject to the same standards of sound actuarial principles or actual or
reasonably anticipated experience as are sighted persons. Refusal to
insure includes denial by an insurer of disability insurance coverage on
the grounds that the policy defines "disability" as being presumed in the
event that the insured loses his or her eyesight.
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 5/364.01)Sec. 364.01. Qualified clinical cancer trials.(a) No individual or group policy of accident and health insurance issued or renewed in this State may be cancelled or non-renewed for any individual based on that individual's participation in a qualified clinical cancer trial.(b) Qualified clinical cancer trials must meet the following criteria:(1) the effectiveness of the treatment has not been     determined relative to established therapies;(2) the trial is under clinical investigation as part     of an approved cancer research trial in Phase II, Phase III, or Phase IV of investigation;(3) the trial is:(A) approved by the Food and Drug Administration;         or(B) approved and funded by the National         Institutes of Health, the   Centers for Disease Control and Prevention, the Agency for Healthcare Research and Quality, the United States Department of Defense, the United States Department of Veterans Affairs, or the United States Department of Energy in the form of an investigational new drug application, or a cooperative group or center of any entity described in this subdivision (B); and(4) the patient's primary care physician, if any, is     involved in the coordination of care.(c) No group policy of accident and health insurance shall exclude coverage for any routine patient care administered to an insured who is a qualified individual participating in a qualified clinical cancer trial, if the policy covers that same routine patient care of insureds not enrolled in a qualified clinical cancer trial.(d) The coverage that may not be excluded under subsection (c) of this Section is subject to all terms, conditions, restrictions, exclusions, and limitations that apply to the same routine patient care received by an insured not enrolled in a qualified clinical cancer trial, including the application of any authorization requirement, utilization review, or medical management practices. The insured or enrollee shall incur no greater out-of-pocket liability than had the insured or enrollee not enrolled in a qualified clinical cancer trial.(e) If the group policy of accident and health insurance uses a preferred provider program and a preferred provider provides routine patient care in connection with a qualified clinical cancer trial, then the insurer may require the insured to use the preferred provider if the preferred provider agrees to provide to the insured that routine patient care.(f) A qualified clinical cancer trial may not pay or refuse to pay for routine patient care of an individual participating in the trial, based in whole or in part on the person's having or not having coverage for routine patient care under a group policy of accident and health insurance.(g) Nothing in this Section shall be construed to limit an insurer's coverage with respect to clinical trials.(h) Nothing in this Section shall require coverage for out-of-network services where the underlying health benefit plan does not provide coverage for out-of-network services.(i) As used in this Section, "routine patient care" means all health care services provided in the qualified clinical cancer trial that are otherwise generally covered under the policy if those items or services were not provided in connection with a qualified clinical cancer trial consistent with the standard of care for the treatment of cancer, including the type and frequency of any diagnostic modality, that a provider typically provides to a cancer patient who is not enrolled in a qualified clinical cancer trial. "Routine patient care" does not include, and  a group policy of accident and health insurance may exclude, coverage for:(1) a health care service, item, or drug that is the     subject of the cancer clinical trial;(2) a health care service, item, or drug provided     solely to satisfy data collection and analysis needs for the qualified clinical cancer trial that is not used in the direct clinical management of the patient;(3) an investigational drug or device that has not     been approved for market by the United States Food and Drug Administration;(4) transportation, lodging, food, or other expenses     for the patient or a family member or companion of the patient that are associated with the travel to or from a facility providing the qualified clinical cancer trial, unless the policy covers these expenses for a cancer patient who is not enrolled in a qualified clinical cancer trial;(5) a health care service, item, or drug customarily     provided by the qualified clinical cancer trial sponsors free of charge for any patient;(6) a health care service or item, which except for     the fact that it is being provided in a qualified clinical cancer trial, is otherwise specifically excluded from coverage under the insured's policy, including:(A) costs of extra treatments, services,         procedures, tests, or drugs that would not be performed or administered except for the fact that the insured is participating in the cancer clinical trial; and(B) costs of nonhealth care services that the         patient is required to receive as a result of participation in the approved cancer clinical trial;(7) costs for services, items, or drugs that are     eligible for reimbursement from a source other than a patient's contract or policy providing for third-party payment or prepayment of health or medical expenses, including the sponsor of the approved cancer clinical trial;(8) costs associated with approved cancer clinical     trials designed exclusively to test toxicity or disease pathophysiology, unless the policy covers these expenses for a cancer patient who is not enrolled in a qualified clinical cancer trial; or(9) a health care service or item that is eligible     for reimbursement by a source other than the insured's policy, including the sponsor of the qualified clinical cancer trial.The definitions of the terms "health care services", "Non-Preferred Provider", "Preferred Provider", and "Preferred Provider Program", stated in 50 IL Adm. Code Part 2051 Preferred Provider Programs apply to these terms in this Section.(j) The external review procedures established under the Health Carrier External Review Act shall apply to the provisions under this Section.(Source: P.A. 97-91, eff. 1-1-12; 97-813, eff. 7-13-12.) (215 ILCS 5/364.1) (from Ch. 73, par. 976.1)Sec. 364.1. 
		
		Every policy of accident and health insurance
delivered or issued for delivery to any person in this State after the
effective date of this amendatory Act of 1979 which provides coverage
for services coming within the practice of
optometry as defined in the Illinois Optometric Practice Act of
1987, as now or hereafter amended shall, upon
issuance or delivery, be accompanied by a written notice to the
policyholder that such policyholder may elect for optometric services
received to be reimbursed to either a physician licensed to practice
medicine in all its branches or to an optometrist licensed in this State.
		(Source: P.A. 85-1209.) (215 ILCS 5/364.2)Sec. 364.2. Purchase of ophthalmic goods or services. An insurer may not require a provider, as a condition of participation by the provider, to purchase ophthalmic goods or services, including but not limited to eyeglass frames, in a quantity or dollar amount in excess of the quantity or dollar amount an enrollee purchases under the terms of the policy.
(Source: P.A. 93-1077, eff. 1-18-05.) (215 ILCS 5/364.3)Sec. 364.3. Insurer uniform electronic prior authorization form; prescription benefits.(a) As used in this Section, "prescribing provider" includes a provider authorized to write a prescription, as described in subsection (e) of Section 3 of the Pharmacy Practice Act, to treat a medical condition of an insured.(b) Notwithstanding any other provision of law to the contrary, on and after July 1, 2021, an insurer that provides prescription drug benefits shall utilize and accept the uniform electronic prior authorization form developed pursuant to subsection (c) when requiring prior authorization for prescription drug benefits.(c) On or before July 1, 2020, the Department shall develop a uniform electronic prior authorization form that shall be used by commercial insurers.  Notwithstanding any other provision of law to the contrary, on and after July 1, 2021, every prescribing provider must use the uniform electronic prior authorization form to request prior authorization for coverage of prescription drug benefits and every insurer shall accept the uniform electronic prior authorization form as sufficient to request prior authorization for prescription drug benefits.(d)  The Department  shall develop the uniform electronic prior authorization form with input from interested parties, including, but not limited to, the following individuals appointed by the Director: 2 psychiatrists recommended by a State organization that represents psychiatrists, 2 pharmacists recommended by a State organization that represents pharmacists, 2 physicians recommended by a State organization that represents physicians, 2 family physicians recommended by a State organization that represents family physicians, 2 pediatricians recommended by a State organization that represents pediatricians, and 2 representatives of the association that represents commercial insurers, from at least one public meeting.(e)  The Department, in development of the uniform electronic prior authorization form, shall take into consideration the following:(1) existing prior authorization forms established by     the federal Centers for Medicare and Medicaid Services and the Department; and(2) national standards pertaining to electronic prior     authorization.(f) If, upon receipt of a completed and accurate electronic prior authorization request from a prescribing provider pursuant to the submission of a uniform electronic prior authorization form, an insurer fails to use or accept the uniform electronic prior authorization form or fails to respond within 24 hours (if the patient has urgent medication needs) or within 72 hours (if the patient has regular medication needs), then the prior authorization request shall be deemed to have been granted. 
(Source: P.A. 101-463, eff. 1-1-20.) (215 ILCS 5/367) (from Ch. 73, par. 979)Sec. 367. Group accident and health insurance.(1) Group accident and health insurance is hereby declared to be that
form of accident and health insurance covering not less than 2
employees,
members, or employees of members, written under a
master policy issued to any governmental corporation, unit, agency or
department thereof, or to any corporation, copartnership, individual
employer, or to any association upon application of an executive officer or
trustee of such association having a constitution or bylaws and formed in
good faith for purposes other than that of obtaining insurance, where
officers, members, employees, employees of members or classes or department
thereof, may be insured for their individual benefit.  In addition a group
accident and health policy may be written to insure any group which may be
insured under a group life insurance policy.  The term "employees" shall
include the officers, managers and employees of subsidiary or affiliated
corporations, and the individual proprietors, partners and employees of
affiliated individuals and firms, when the business of such subsidiary or
affiliated corporations, firms or individuals, is controlled by a common
employer through stock ownership, contract or otherwise.(2) Any insurance company authorized to write accident and health
insurance in this State shall have power to issue group accident and
health policies.  No policy of group accident and health insurance may
be issued or delivered in this State unless a copy of the form thereof
shall have been filed with the department and approved by it in
accordance with Section 355, and it contains in substance those
provisions contained in Sections 357.1 through 357.30 as may be applicable
to group accident and health insurance and the following provisions:(a) A provision that the policy, the application of     the employer, or executive officer or trustee of any association, and the individual applications, if any, of the employees, members or employees of members insured shall constitute the entire contract between the parties, and that all statements made by the employer, or the executive officer or trustee, or by the individual employees, members or employees of members shall (in the absence of fraud) be deemed representations and not warranties, and that no such statement shall be used in defense to a claim under the policy, unless it is contained in a written application.(b) A provision that the insurer will issue to the     employer, or to the executive officer or trustee of the association, for delivery to the employee, member or employee of a member, who is insured under such policy, an individual certificate setting forth a statement as to the insurance protection to which he is entitled and to whom payable.(c) A provision that to the group or class thereof     originally insured shall be added from time to time all new employees of the employer, members of the association or employees of members eligible to and applying for insurance in such group or class.(3) Anything in this code to the contrary notwithstanding, any group
accident and health policy may provide that all or any portion of any
indemnities provided by any such policy on account of hospital, nursing,
medical or surgical services, may, at the insurer's option, be paid
directly to the hospital or person rendering such services; but the
policy may not require that the service be rendered by a particular
hospital or person.  Payment so made shall discharge the insurer's
obligation with respect to the amount of insurance so paid. Nothing in this
subsection (3) shall prohibit an insurer from providing incentives for
insureds to utilize the services of a particular hospital or person.(4) Special group policies may be issued to school districts
providing medical or hospital service, or both, for pupils of the
district injured while participating in any athletic activity under the
jurisdiction of or sponsored or controlled by the district or the
authorities of any school thereof.  The provisions of this Section
governing the issuance of group accident and health insurance shall,
insofar as applicable, control the issuance of such policies issued to
schools.(5) No policy of group accident and health insurance may be issued
or delivered in this State unless it provides that upon the death of the
insured employee or group member the dependents' coverage, if any,
continues for a period of at least 90 days subject to any other policy
provisions relating to termination of dependents' coverage.(6) No group hospital policy covering miscellaneous hospital
expenses issued or delivered in this State shall contain any exception
or exclusion from coverage which would preclude the payment of expenses
incurred for the processing and administration of blood and its
components.(7) No policy of group accident and health insurance, delivered in
this State more than 120 days after the effective day of the Section,
which provides inpatient hospital coverage for sicknesses shall exclude
from such coverage the treatment of alcoholism.  This subsection shall
not apply to a policy which covers only specified sicknesses.(8) No policy of group accident and health insurance, which
provides benefits for hospital or medical expenses based upon the actual
expenses incurred, issued or delivered  in this State shall contain any
specific exception to coverage which would preclude the payment of
actual expenses incurred in the examination and testing of a victim of
an offense defined in Sections 11-1.20 through 11-1.60 or 12-13 through 12-16 of the Criminal Code
of 1961 or the Criminal Code of 2012, or an attempt to commit such offense,
to establish that sexual contact did occur or did not occur, and to
establish the presence or absence of sexually transmitted
disease or infection, and
examination and treatment of injuries and trauma sustained by the victim of
such offense, arising out of the offense.  Every group policy of accident
and health insurance which specifically provides benefits for routine
physical examinations shall provide full coverage for expenses incurred in
the examination and testing of a victim of an offense defined in Sections
11-1.20 through 11-1.60 or 12-13 through 12-16 of the Criminal Code of 1961 or the Criminal Code of 2012, or an attempt to commit such
offense, as set forth in this
Section. This subsection shall not apply to a policy which covers hospital
and medical expenses for specified illnesses and injuries only.(9) For purposes of enabling the recovery of State funds, any insurance
carrier subject to this Section shall upon reasonable demand by the Department
of Public Health disclose the names and identities of its insureds entitled
to benefits under this provision to the Department of Public Health whenever
the Department of Public Health has determined that it has paid, or is about
to pay, hospital or medical expenses for which an insurance carrier is liable
under this Section. All information received by the Department of Public
Health under this provision shall be held on a confidential basis and shall
not be subject to subpoena and shall not be made public by the Department
of Public Health or used for any purpose other than that authorized by this
Section.(10) Whenever the Department of Public Health finds that it has paid all
or part of any hospital or medical expenses which an insurance carrier is
obligated to pay under this Section, the Department of Public Health shall
be entitled to receive reimbursement for its payments from such insurance
carrier provided that the Department of Public Health has notified the
insurance carrier of its claim before the carrier has paid the benefits to
its insureds or the insureds' assignees.(11) (a) No group hospital, medical or surgical expense     policy shall contain any provision whereby benefits otherwise payable thereunder are subject to reduction solely on account of the existence of similar benefits provided under other group or group-type accident and sickness insurance policies where such reduction would operate to reduce total benefits payable under these policies below an amount equal to 100% of total allowable expenses provided under these policies.(b) When dependents of insureds are covered under 2     policies, both of which contain coordination of benefits provisions, benefits of the policy of the insured whose birthday falls earlier in the year are determined before those of the policy of the insured whose birthday falls later in the year.  Birthday, as used herein, refers only to the month and day in a calendar year, not the year in which the person was born.  The Department of Insurance shall promulgate rules defining the order of benefit determination pursuant to this paragraph (b).(12) Every group policy under this Section shall be subject to the
provisions of Sections 356g and 356n of this Code.(13) No accident and health insurer providing coverage for hospital
or medical expenses on an expense incurred basis shall deny
reimbursement for an otherwise covered expense incurred for any organ
transplantation procedure solely on the basis that such procedure is deemed
experimental or investigational unless supported by the determination of
the Office of Health Care Technology Assessment within the Agency for
Health Care Policy and Research within the federal Department of Health and
Human Services that such procedure is either experimental or investigational or
that there is insufficient data or experience to determine whether an organ
transplantation procedure is clinically acceptable. If an accident and
health insurer has made written request, or had one made on its behalf by a
national organization, for determination by the Office of Health Care
Technology Assessment within the Agency for Health Care Policy and Research
within the federal Department of Health and Human Services as to whether a
specific organ transplantation procedure is clinically acceptable and said
organization fails to respond to such a request within a period of 90 days,
the failure to act may be deemed a determination that the procedure is
deemed to be experimental or investigational.(14) Whenever a claim for benefits by an insured under a dental
prepayment program is denied or reduced, based on the review of x-ray
films, such review must be performed by a dentist.
(Source: P.A. 96-1551, eff. 7-1-11; 97-1150, eff. 1-25-13.) (215 ILCS 5/367.2) (from Ch. 73, par. 979.2)Sec. 367.2. 
		Spousal continuation privilege; group contracts.A.  No policy of group accident or health insurance, nor any
certificate thereunder shall be delivered or issued for delivery in this
State after December 1, 1985, unless the policy provides for a continuation
of the existing insurance benefits for an employee's spouse and dependent
children who are insured under the provisions of that group policy or
certificate thereunder, notwithstanding that the marriage is dissolved by
judgment or terminated by the death of the employee or, after the
effective date of this amendatory Act of the 93rd General Assembly, notwithstanding the
retirement of the employee provided that
the employee's
spouse is at
least 55 years of age, in each case without any other eligibility
requirements.  The provisions of this amendatory Act of the 93rd General
Assembly apply to every
group policy of accident or health insurance and every certificate issued
thereunder delivered or issued for delivery after the effective date of
this amendatory Act of the 93rd General Assembly.B. Within 30 days of the entry of judgment or the death or
retirement of the employee, the spouse of an employee insured under
the policy who seeks a continuation of coverage thereunder shall give the
employer or the insurer written notice of the dissolution of the
marriage
or the death or retirement of the employee.  The employer, within 15
days of receipt of the notice
shall give written notice
of the dissolution of the employee's marriage or the death or retirement of
the employee and that former spouse's or retired employee's spouse's
residence
to the insurance
company issuing the policy.The employer shall immediately send a copy of the notice to the former
spouse of the employee or the spouse of the retired employee at the retired
employee's spouse's residence or at the former spouse's residence.  For
purposes of this Act, the term "former spouse" includes "widow" or "widower".C. Within 30 days after the date of receipt of a notice from the
employer, retired employee's spouse or former spouse or of the initiation
of a new group policy, the insurance company, by certified mail, return
receipt requested, shall notify the retired employee's spouse or former
spouse at his or her residence that the policy may be continued for that
retired employee's spouse or former spouse and covered dependents, and the
notice shall include:(i) a form for election to continue the insurance     coverage;(ii) the amount of periodic premiums to be charged     for continuation coverage and the method and place of payment; and(iii) instructions for returning the election form     within 30 days after the date it is received from the insurance company.Failure of the retired employee's spouse or former spouse to exercise the
election to continue insurance coverage by notifying the insurance company
in writing within such 30
day period
shall terminate the continuation of benefits and the right to continuation.If the insurance company fails to notify the retired employee's spouse
or former spouse as provided for in subsection C hereof, all premiums shall
be waived from the date the notice was required until notice is sent, and
the benefits shall continue under the terms and provisions of the policy,
from the date the notice was required until the notice is sent,
notwithstanding any other provision hereof, except where the benefits in
existence at the time the company's notice was to be sent pursuant to
subsection C are terminated as to all employees.D. With respect to a former spouse who has not attained the age of 55
at the time continuation coverage begins, the monthly premium
for
continuation shall be computed as follows:(i) an amount, if any, that would be charged an     employee if the former spouse were a current employee of the employer, plus;(ii) an amount, if any, that the employer would     contribute toward the premium if the former spouse were a current employee.Failure to pay the initial monthly premium within 30 days after the date of
receipt of notice required in subsection C of this Section terminates
the continuation benefits and the right to continuation benefits.The continuation coverage for former
spouses who have not attained the
age of 55 at the time coverage begins shall terminate upon the
earliest to happen of the following:(i) The failure to pay premiums when due, including     any grace period allowed by the policy; or(ii) When coverage would terminate under the terms of     the existing policy if the employee and former spouse were still married to each other; however, the existing coverage shall not be modified or terminated during the first 120 consecutive days subsequent to the employee spouse's death or to the entry of the judgment dissolving the marriage existing between the employee and the former spouse unless the master policy in existence at the time is modified or terminated as to all employees; or(iii) the date on which the former spouse first     becomes, after the date of election, an insured employee under any other group health plan; or(iv) the date on which the former spouse remarries; or(v) the expiration of 2 years from the date     continuation coverage began.Upon the termination of continuation coverage, the former
spouse shall be
entitled to convert the coverage to an individual policy.The continuation rights granted to former spouses who have not attained age
55
shall also
include eligible dependents insured prior to the dissolution of marriage or the
death of the
employee.E. With respect to a retired employee's spouse or former spouse who
has attained the age of 55 at the time continuation coverage begins, the
monthly premium for the continuation shall be computed as follows:(i) an amount, if any, that would be charged an     employee if the retired employee's spouse or former spouse were a current employee of the employer, plus;(ii) an amount, if any, that the employer would     contribute toward the premium if the retired employee's spouse or former spouse were a current employee.Beginning 2 years after coverage begins under this paragraph, the
monthly premium shall be computed as follows:(i) an amount, if any, that would be charged an     employee if the retired employee's spouse or former spouse were a current employee of the employer, plus;(ii) an amount, if any, that the employer would     contribute toward the premium if the retired employee's spouse or former spouse were a current employee.(iii) an additional amount, not to exceed 20% of (i)     and (ii) above, for costs of administration.Failure to pay the initial monthly premium within 30 days after the date
of receipt of the notice required in subsection C of this Section
terminates the continuation benefits and the right to continuation benefits.The continuation coverage for retired employees'
spouses and former spouses
who have attained the age of 55 at the time coverage begins shall
terminate upon the earliest to happen of the following:(i) The failure to pay premiums when due, including     any grace period allowed by the policy; or(ii) When coverage would terminate, except due to the     retirement of an employee, under the terms of the existing policy if the employee and former spouse were still married to each other; however, the existing coverage shall not be modified or terminated during the first 120 consecutive days subsequent to the employee spouse's death or retirement to the entry of the judgment dissolving the marriage existing between the employee and the former spouse unless the master policy in existence at the time is modified or terminated as to all employees; or(iii) the date on which the retired employee's spouse     or former spouse first becomes, after the date of election, an insured employee under any other group health plan; or(iv) the date on which the former spouse remarries; or(v) the date that person reaches the qualifying age     or otherwise establishes eligibility under the Medicare Program pursuant to Title XVIII of the federal Social Security Act.Upon the termination of continuation coverage, the former
spouse shall be
entitled to convert the coverage to an individual policy.The continuation rights granted to former spouses who have attained age 55
shall also
include eligible dependents insured prior to the dissolution of marriage, the
death of the
employee, or the retirement of the employee.F. The renewal, amendment, or extension of any group policy affected by
this Section shall be deemed to be delivery or issuance for delivery of a
new policy or contract of insurance in this State.G. If (i) the policy is canceled, and (ii) another
insurance company
contracts to provide group health and accident insurance to the employer,
and (iii) continuation coverage is in effect for the retired employee's
spouse or former spouse at the time of cancellation and (iv) the employee
is or would have been included under the new group policy, then the new
insurer must also offer continuation coverage to the retired employee's
spouse and to an employee's former spouse under the same terms and
conditions as contained in this Section.H. This Section shall not limit the right of the retired employee's spouse
or any former spouse to exercise
the privilege to convert to an individual policy as contained in this Code.I. No person who obtains coverage under this Section shall be required
to pay a rate greater than that applicable to any employee or member
covered under that group except as provided in clause (iii) of the
second paragraph of subsection E.
		(Source: P.A. 93-477, eff. 1-1-04.) (215 ILCS 5/367.2-5)Sec. 367.2-5. 
		Dependent child continuation privilege; group contracts.(a) No policy of group accident or health insurance, nor any certificate
thereunder
shall be amended, renewed, delivered, or issued for delivery in this State
after
July 1,
2004, unless the policy provides for a continuation of the existing insurance
benefits for
an employee's dependent child who is insured under the provisions of that group
policy
or certificate in the event of the death of the employee and the child is not
eligible for
coverage as a dependent under the provisions of Section 367.2 or the dependent
child has
attained the limiting age under the policy.(b) In the event of the death of the employee, if continuation coverage is
desired,
the dependent child or a responsible adult acting on behalf of the dependent
child shall
give the employer or the insurer written notice of the death of employee within
30 days of
the date the coverage terminates. The employer, within 15 days of receipt of
the notice,
shall give written notice to the insurance company issuing the policy of the
death of the
employee and the dependent child's residence. The employer shall immediately
send a
copy of the notice to the dependent child or responsible adult at the dependent
child's
residence.(c) In the event of the dependent child attaining the limiting age under the
policy,
if continuation coverage is desired, the dependent child shall give the
employer or the
insurer written notice of the attainment of the limiting age within 30 days of
the date the
coverage terminates. The employer, within 15 days of receipt of the notice,
shall give
written notice to the insurance company issuing the policy of the attainment
of the
limiting age by the dependent child and of the dependent child's residence.(d) Within 30 days after the date of receipt of a notice from the employer,
dependent child, or responsible adult acting on behalf of the dependent child,
or of the
initiation of a new group policy, the insurance company, by certified mail,
return receipt
requested, shall notify the dependent child or responsible adult at the
dependent child's
residence that the policy may be continued for the dependent child.  The
notice shall
include:(1) a form for election to continue the insurance     coverage;(2) the amount of periodic premiums to be charged for     continuation coverage and the method and place of payment; and(3) instructions for returning the election form     within 30 days after the date it is received from the insurance company.Failure of the dependent child or the responsible adult acting on behalf of
the dependent
child to exercise the election to continue insurance coverage by notifying the
insurance
company in writing within such 30 day period shall terminate the continuation
of benefits
and the right to continuation.If the insurance company fails to notify the dependent child or responsible
adult acting on
behalf of the dependent child as provided for in this subsection (d), all
premiums shall
be waived from the date the notice was required until notice was sent, and the
benefits shall
continue under the terms and provisions of the policy, from the date the notice
was
required until the notice was sent, notwithstanding any other provision hereof,
except where
the benefits in existence at the time the company's notice was to be sent
pursuant to
this subsection (d) are terminated as to all employees.(e) The monthly premium for continuation shall be computed as follows:(1) an amount, if any, that would be charged an     employee if the dependent child were a current employee of the employer, plus;(2) an amount, if any, that the employer would     contribute toward the premium if the dependent child were a current employee.Failure to pay the initial monthly premium within 30 days after the date of
receipt of
notice required in subsection (d) of this Section terminates the continuation
benefits and
the right to continuation benefits.Continuation coverage provided under this Act shall terminate upon the
earliest to happen
of the following:(1) the failure to pay premiums when due, including     any grace period allowed by the policy;(2) when coverage would terminate under the terms of     the existing policy if the dependent child was still an eligible dependent of the employee;(3) the date on which the dependent child first     becomes, after the date of election, an insured employee under any other group health plan; or(4) the expiration of 2 years from the date     continuation coverage began.Upon the termination of continuation coverage, the dependent child shall be
entitled to
convert the coverage to an individual policy.(f) The renewal, amendment, or extension of any group policy affected by
this
Section shall be deemed to be delivery or issuance for delivery of a new policy
or
contract of insurance in this State.(g) If (1) the policy is cancelled, and (2) another insurance company
contracts to
provide group health and accident insurance to the employer, and (3)
continuation
coverage is in effect for the dependent child at the time of cancellation, and
(4) the
employee is or would have been included under the new group policy, then the
new
insurer must also offer continuation coverage to the dependent child under the
same
terms and conditions as contained in this Section.(h) This Section shall not limit the right of any dependent child to
exercise the
privilege to convert to an individual policy as contained in this Code.(i) No person who obtains coverage under this Section shall be required to
pay a
rate greater than that applicable to any employee or member covered under that
group.
		(Source: P.A. 93-477, eff. 1-1-04.) (215 ILCS 5/367.3) (from Ch. 73, par. 979.3)Sec. 367.3. 
		Group accident and health insurance; discretionary groups.(a) No group health insurance offered to a resident of this State under
a policy issued to a group, other than one specifically described in
Section 367(1), shall be delivered or issued for delivery in this State
unless the Director determines that:(1) the issuance of the policy is not contrary to the     public interest;(2) the issuance of the policy will result in     economies of acquisition and administration; and(3) the benefits under the policy are reasonable in     relation to the premium charged.(b) No such group health insurance may be offered in this State under a
policy issued in another state unless this State or the state in which the
group policy is issued has made a determination that the requirements of
subsection (a) have been met.Where insurance is to be offered in this State under a policy described
in this subsection, the insurer shall file for informational review purposes:(1) a copy of the group master contract;(2) a copy of the statute authorizing the issuance of     the group policy in the state of situs, which statute has the same or similar requirements as this State, or in the absence of such statute, a certification by an officer of the company that the policy meets the Illinois minimum standards required for individual accident and health policies under authority of Section 401 of this Code, as now or hereafter amended, as promulgated by rule at 50 Illinois Administrative Code, Ch. I, Sec. 2007, et seq., as now or hereafter amended, or by a successor rule;(3) evidence of approval by the state of situs of the     group master policy; and(4) copies of all supportive material furnished to     the state of situs to satisfy the criteria for approval.(c) The Director may, at any time after receipt of the information
required under subsection (b) and after finding that the standards of
subsection (a) have not been met, order the insurer to cease the issuance
or marketing of that coverage in this State.(d) Group accident and health insurance subject to the provisions of
this Section is also subject to the provisions of Section 367i of this Code.
		(Source: P.A. 90-655, eff. 7-30-98.) (215 ILCS 5/367a) (from Ch. 73, par. 979a)Sec. 367a. 
		
		Blanket
accident and health insurance.(1) Blanket accident and health insurance is that form of accident and
health insurance covering special groups of persons as enumerated in one of
the following paragraphs (a) to (g), inclusive:(a) Under a policy or contract issued to any carrier for hire, which
shall be deemed the policyholder, covering a group defined as all persons
who may become passengers on such carrier.(b) Under a policy or contract issued to an employer, who shall be
deemed the policyholder, covering all employees or any group of employees
defined by reference to exceptional hazards incident to such employment.(c) Under a policy or contract issued to a college, school, or other
institution of learning or to the head or principal thereof, who or which
shall be deemed the policyholder, covering students or teachers.(d) Under a policy or contract issued in the name of any volunteer fire
department, first aid, or other such volunteer group, which shall be deemed
the policyholder, covering all of the members of such department or group.(e) Under a policy or contract issued to a creditor, who shall be deemed
the policyholder, to insure debtors of the creditors; Provided, however,
that in the case of a loan which is subject to the Small Loans Act, no
insurance premium or other cost shall be directly or indirectly charged or
assessed against, or collected or received from the borrower.(f) Under a policy or contract issued to a sports team or to a camp,
which team or camp sponsor shall be deemed the policyholder, covering
members or campers.(g) Under a policy or contract issued to any other substantially similar
group which, in the discretion of the Director, may be subject to the
issuance of a blanket accident and health policy or contract.(2) Any insurance company authorized to write accident and health
insurance in this state shall have the power to issue blanket accident and
health insurance. No such blanket policy may be issued or delivered in this
State unless a copy of the form thereof shall have been filed in accordance
with Section 355, and it contains in substance such of those provisions
contained in Sections 357.1 through 357.30 as may be applicable to blanket accident and
health insurance and the following provisions:(a) A provision that the policy and the application shall constitute the
entire contract between the parties, and that all statements made by the
policyholder shall, in absence of fraud, be deemed representations and not
warranties, and that no such statements shall be used in defense to a claim
under the policy, unless it is contained in a written application.(b) A provision that to the group or class thereof originally insured
shall be added from time to time all new persons or individuals eligible
for coverage.(3) An individual application shall not be required from a person
covered under a blanket accident or health policy or contract, nor shall it
be necessary for the insurer to furnish each person a certificate.(4) All benefits under any blanket accident and health policy shall be
payable to the person insured, or to his designated beneficiary or
beneficiaries, or to his or her estate, except that if the person insured be a
minor or person under legal disability, such
benefits may be made payable to his or her
parent, guardian, or other person actually supporting him or her. Provided
further, however, that the policy may provide that all or any portion of
any indemnities provided by any such policy on account of hospital,
nursing, medical or surgical services may, at the insurer's option, be paid
directly to the hospital or person rendering such services; but the policy
may not require that the service be rendered by a particular hospital or
person. Payment so made shall discharge the insurer's obligation with
respect to the amount of insurance so paid.(5) Nothing contained in this section shall be deemed to affect the
legal liability of policyholders for the death of or injury to, any such
member of such group.
		(Source: P.A. 83-1362.) (215 ILCS 5/367b) (from Ch. 73, par. 979b)Sec. 367b. (a) This Section applies to the hospital and medical expense
provisions of a group accident or health insurance policy.(b) If a policy
provides that coverage of a dependent of an employee or other member of the
covered group terminates upon attainment of the limiting age for dependent
persons specified in the policy, the
attainment of such limiting age does not operate to terminate the hospital
and medical coverage of a person who, because of a disabling 
condition that occurred before attainment of the limiting age, is incapable of
self-sustaining employment and is dependent on his or her parents or other
care providers for lifetime care and supervision.(c) For purposes of subsection (b), "dependent on other care providers" is
defined as requiring a Community Integrated Living Arrangement, group home,
supervised apartment, or other residential services licensed or certified by
the Department of Human Services (as successor to the Department of Mental
Health and Developmental Disabilities), the Department
of Public Health, or the Department of Healthcare and Family Services (formerly Department of Public Aid).(d) The insurer may inquire of the person insured 2 months prior to
attainment by a dependent of the limiting age set forth in the policy, or
at any reasonable time thereafter, whether such dependent is in fact a
person who has a disability and is dependent and, in the absence of proof submitted within
31 days of such inquiry that such dependent is a person who has a disability and is dependent may terminate coverage of such person at or after attainment of the
limiting age. In the absence of such inquiry, coverage of any person who has a disability and is dependent shall continue through the term of such policy or any
extension or renewal.(e) This amendatory Act of 1969 is applicable to policies issued or
renewed
more than 60 days after the effective date of this amendatory Act of 1969.
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 5/367c) (from Ch. 73, par. 979c)Sec. 367c.No claim shall be denied, under any group accident and health policy
delivered or renewed in this State after the effective date of this
Amendatory Act, for treatment or services for mental illness rendered in a
hospital solely because such hospital lacks surgical facilities.
		(Source: P.A. 78-708.) (215 ILCS 5/367d) (from Ch. 73, par. 979d)Sec. 367d. 
		
		No claim shall be denied, under any group accident and health
policy delivered or renewed in this State after the effective date of this
amendatory Act, for treatment or services for rehabilitation following either a
physical or mental illness, rendered in a hospital solely because such hospital
lacks surgical facilities.
		(Source: P.A. 79-303.) (215 ILCS 5/367d.1) (from Ch. 73, par. 979d.1)Sec. 367d.1. 
After the effective date of this amendatory Act of 1992,
no group policy of accident and health insurance that provides coverage for
the treatment of alcoholism or other drug abuse or dependency on both an
inpatient and outpatient basis may be issued, delivered or amended in this
State if it excludes from coverage services provided by persons or entities
licensed by the Department of Human Services to provide
substance use disorder treatment, provided however that (a)
the charges are otherwise eligible for reimbursement under the policy and
(b) the services provided are medically necessary and within the scope of
the licensure of the provider.  This Section shall not apply to
arrangements, agreements or policies authorized under the Health Care
Reimbursement Reform Act of 1985; the Limited
Health Service Organization Act; or the
Health Maintenance Organization Act.
(Source: P.A. 100-759, eff. 1-1-19.) (215 ILCS 5/367e) (from Ch. 73, par. 979e)Sec. 367e. Continuation of Group Hospital, Surgical and Major Medical
Coverage After Termination of Employment or Membership.
A group policy delivered, issued for delivery, renewed or amended in this
state which insures employees or members
for hospital, surgical or major medical insurance on an expense incurred
or service basis, other than for specific diseases or for accidental injuries
only, shall provide that employees or members whose insurance under the
group policy would otherwise terminate because of termination of employment
or membership or because of a reduction in hours below the minimum required
by the group plan shall be entitled to continue their hospital, surgical and
major medical insurance under that group policy, for themselves and their
eligible dependents, subject to all of the group policy's terms and conditions
applicable to those forms of insurance and to the following conditions:1.  Continuation shall only be available to an     employee or member who has been continuously insured under the group policy (and for similar benefits under any group policy which it replaced) during the entire 3 months period ending with such termination or reduction in hours below the minimum required by the group plan. With respect to an employee or member who is involuntarily terminated between September 1, 2008 and the end of the period set forth in Section 3001(a)(3)(A) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, as now or hereafter amended, continuation shall be available if the employee or member was insured under the group policy on the day prior to the termination.2. Continuation shall not be available for any person     who is covered by Medicare, except for those individuals who have been covered under a group Medicare supplement policy.  Neither shall continuation be available for any person who is covered by any other insured or uninsured plan which provides hospital, surgical or medical coverage for individuals in a group and under which the person was not covered immediately prior to such termination or reduction in hours below the minimum required by the group plan or who exercises his conversion privilege under the group policy.3. Continuation need not include dental, vision care,     prescription drug benefits, disability income, specified disease, or similar supplementary benefits which are provided under the group policy in addition to its hospital, surgical or major medical benefits.4. Within 10 days after the employee's or member's     termination or reduction in hours below the minimum required by the group plan written notice of continuation shall be presented to the employee or member by the employer.  If the employee or member is unavailable, written notice shall be mailed by the employer to the last known address of the employee or member within 10 days after the employee's or member's termination or reduction in hours below the minimum required by the group plan.  The employer shall also send a copy of the notice to the insurer. An employee or member who wishes continuation of coverage must request such continuation in writing within the 30 day period following the later of: (i) the date of such termination or reduction in hours below the minimum required by the group plan, or (ii) the date the employee is presented or mailed written notice of the right of continuation by either the employer or the group policyholder.  In no event, however, may the employee or member elect continuation more than 60 days after the date of such termination or reduction in hours below the minimum required by the group plan. Written notice of continuation presented to the employee or member by the policyholder, or mailed by the policyholder to the last known address of the employee, shall constitute the giving of notice for the purpose of this provision.The insurer shall not deny coverage to the employee     or member due to the employer's failure to provide notice pursuant to this Section to the employee or member.  Until the end of the period set forth in Section 3001(a)(3)(A) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, as now or hereafter amended, in the event the employee or member contacts the insurer regarding continuation rights and advises that notice has not been provided by the employer or group policyholder, the insurer shall provide a written explanation to the employee or member of the employee's or member's continuation rights pursuant to this Section.4a. Unless contrary to the provisions of, or any     rules promulgated pursuant to, the federal American Recovery and Reinvestment Act of 2009, with respect to employees or members of health plans that are subject solely to State continuation coverage and who are terminated or whose reduction in hours below the minimum required by the group occurs between the effective date of this amendatory Act of the 96th General Assembly and the end of the period set forth in Section 3001(a)(3)(A) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, as now or hereafter amended, the notice requirements of this Section are not satisfied unless notice is presented or mailed to the employee or member by the insurer informing the employee or member of the availability of premium reduction with respect to such coverage under the American Recovery and Reinvestment Act of 2009.  Such written notice shall conform to all applicable requirements set forth in the federal American Recovery and Reinvestment Act of 2009.  The Department shall publish models for the notification that shall be provided by insurers pursuant to this paragraph 4a.4b. Unless contrary to the provisions of, or any     rules promulgated pursuant to, Section 3001(a)(7) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, with respect to employees or members of health plans that are subject solely to State continuation coverage who were terminated or whose reduction in hours below the minimum required by the group occurred between September 1, 2008 and the effective date of this amendatory Act of the 96th General Assembly and who have an election of continuation of coverage pursuant to this Section in effect, notice shall be presented or mailed to the employee or member by the insurer informing the employee or member of the availability of premium reduction with respect to such coverage under the federal American Recovery and Reinvestment Act of 2009.  Such written notice shall conform to all applicable requirements set forth in Section 3001(a)(7) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009 and shall be presented or mailed to the employee or member within 14 days of the effective date of this amendatory Act of the 96th General Assembly.  The Department shall publish models for the notification that shall be provided by insurers pursuant to this paragraph 4b.5. An employee or member electing continuation must     pay to the group policyholder or his employer, on a monthly basis in advance, the total amount of premium required by the insurer, including that portion of the premium contributed by the policyholder or employer, if any, but not more than the group rate for the insurance being continued with appropriate reduction in premium for any supplementary benefits which have been discontinued under paragraph (3) of this Section.  The premium rate required by the insurer shall be the applicable premium required on the due date of each payment.6. Continuation of insurance under the group policy     for any person shall terminate when he becomes eligible for Medicare or is covered by any other insured or uninsured plan which provides hospital, surgical or medical coverage for individuals in a group and under which the person was not covered immediately prior to such termination or reduction in hours below the minimum required by the group plan as provided in condition 2 above or, if earlier, at the first to occur of the following:(a) The date 12 months after the date the         employee's or member's insurance under the policy would otherwise have terminated because of termination of employment or membership or reduction in hours below the minimum required by the group plan or, with respect to an employee or member who is an assistance eligible individual as defined in Section 3001(a)(3) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, the date that the individual ceases to be eligible for premium assistance under Section 3001(a)(2)(A)(ii)(I) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, as now or hereafter amended.(b) If the employee or member fails to make         timely payment of a required contribution, the end of the period for which contributions were made.(c) The date on which the group policy is         terminated or, in the case of an employee, the date his employer terminates participation under the group policy.  However, if this (c) applies and the coverage ceasing by reason of such termination is replaced by similar coverage under another group policy, the following shall apply:(i) The employee or member shall have the             right to become covered under that other group policy, for the balance of the period that he would have remained covered under the prior group policy in accordance with condition 6 had a termination described in this (c) not occurred.(ii) The prior group policy shall continue to             provide benefits to the extent of its accrued liabilities and extensions of benefits as if the replacement had not occurred.7. A notification of the continuation privilege shall     be included in each certificate of coverage.8. Continuation shall not be available for any     employee who was discharged because of the commission of a felony in connection with his work, or because of theft in connection with his work, for which the employer was in no way responsible; provided the employee admitted his commission of the felony or theft or such act has resulted in a conviction or order of supervision by a court of competent jurisdiction.9. An employee or member without an election of     continuation of coverage pursuant to this Section in effect on the effective date of this amendatory Act of the 96th General Assembly may elect continuation pursuant to this paragraph 9 if the employee or member: (i) would be an assistance eligible individual as defined in Section 3001(a)(3) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, if such an election were in effect and (ii) at the time of termination was eligible for continuation pursuant to paragraphs 1 and 2 of this Section.Unless contrary to the provisions of, or any rules     promulgated pursuant to, Section 3001(a)(7) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009, written notice of continuation pursuant to this paragraph 9 shall be presented to the employee or member by the insurer or mailed by the insurer to the last known address of the employee or member within 30 days after the effective date of this amendatory Act of the 96th General Assembly. Such written notice shall conform to all applicable requirements set forth in Section 3001(a)(7) of Title III of Division B of the federal American Recovery and Reinvestment Act of 2009. The Department shall publish models for the notification that shall be provided by insurers pursuant to this paragraph 9.An employee or member electing continuation of     coverage under this paragraph 9 must request such continuation in writing within 60 days after the date the employee or member receives written notice of the right of continuation by the insurer.Continuation of coverage elected pursuant to this     paragraph 9 shall commence with the first period of coverage beginning on or after February 17, 2009, the effective date of the federal American Recovery and Reinvestment Act of 2009, and shall not extend beyond the period of continuation that would have been required if the coverage had been elected pursuant to paragraph 4 of this Section.With respect to an employee or member who elects     continuation of coverage under this paragraph 9, the period beginning on the date of the employee's or member's involuntary termination of employment and ending on the date of the first period of coverage on or after February 17, 2009 shall be disregarded for purposes of determining the 63-day period referred to in Section 20 of the Illinois Health Insurance Portability and Accountability Act.The requirements of this amendatory Act of 1983 shall apply to any group
policy as defined in this Section, delivered or issued for delivery on or after
180 days following the effective date of this amendatory Act of 1983.The requirements of this amendatory Act of 1985 shall apply to any
group policy as defined in this Section, delivered, issued for delivery,
renewed or amended on or after 180 days following the effective date of
this amendatory Act of 1985.
(Source: P.A. 96-13, eff. 6-18-09; 96-894, eff. 5-17-10.) (215 ILCS 5/367e.1)Sec. 367e.1. 
		Group Accident and Health Insurance Conversion Privilege.(A) A group policy which provides hospital, medical, or major
medical expense insurance, or any combination of these coverages, on an
expense-incurred basis, but not including a policy which provides
benefits for specific diseases or for accidental injuries only, shall
provide that an employee or member (i) whose insurance under the group
policy has been terminated for any reason other than discontinuance of
the group policy in its entirety where there is a succeeding carrier, or
failure of the employee or member to pay any required contribution; and
(ii) who has been continuously insured under the group policy (and under
any group policy providing similar benefits which it replaces) for at
least three months immediately prior to termination, shall be entitled
to have issued to him by the insurer a policy of health insurance
(hereafter referred to as the converted policy), subject to the
following conditions:(1) Written application for the converted policy     shall be made and the first premium paid to the insurer not later than the latter of (i) thirty-one days after such termination or (ii) 15 days after the employee or member has been given written notice of the existence of the conversion privilege, but in no event later than 60 days after such termination.Written notice presented to the employee or member by     the policyholder, or mailed by the policyholder to the last known address of the employee or member, shall constitute the giving of notice for the purpose of this provision.(2) The converted policy shall be issued without     evidence of insurability.(3) The initial premium for the converted policy     shall be determined in accordance with the insurer's table of premium rates applicable to the age and class of risk of each person to be covered under the converted policy and to the type and amount of the insurance provided. Conditions pertaining to health shall not be an acceptable basis of classification for the purposes of this subsection.  The frequency of premium payment shall be the frequency customarily required by the insurer for the policy form and plan selected, provided that the insurer shall not require premium payments less frequently than quarterly without the consent of the insured.(4) The effective date of the converted policy shall     be the day following the termination of insurance under the group policy.(5) The converted policy shall cover the employee or     member and his dependents who were covered by the group policy on the date of termination of insurance.  At the option of the insurer, a separate converted policy may be issued to cover any dependent.(6) The insurer shall not be required to issue a     converted policy covering any person if such person is or could be covered by Medicare (Title XVIII of the United States Social Security Act as added by the Social Security Amendments of 1965 or as later amended or superseded). Furthermore, the insurer shall not be required to issue a converted policy covering any person if (i) such person is covered for similar benefits by another hospital, surgical, medical, or major medical expense insurance policy or hospital or medical service subscriber contract or medical practice or other prepayment plan or by any other plan or program; or (ii) such person is eligible for similar benefits (whether or not covered therefor) under any arrangement of coverage for individuals in a group, whether on an insured or uninsured basis; or (iii) similar benefits are provided for or available to such person, pursuant to or in accordance with the requirements of any statute, and the benefits provided or available under the sources referred to in (i), (ii), (iii) above for such person together with the converted policy would result in overinsurance according to the insurer's standards.(7) In the event that coverage would be continued     under the group policy on an employee following his retirement prior to the time he is or could be covered by Medicare, he may elect, in lieu of such continuation of such group insurance, to have the same conversion rights as would apply had his insurance terminated at retirement by reason of termination of employment or membership.(8) Subject to the conditions set forth above, the     conversion privilege shall also be available (i) to the surviving spouse, if any, at the death of the employee or member, with respect to the spouse and such children whose coverage under the group policy terminates by reason of such death, otherwise to each surviving child whose coverage under the group policy terminates by reason of such death, or, if the group policy provides for continuation of dependents' coverage following the employee's or member's death, at the end of such continuation; (ii) to the spouse of the employee or member upon termination of coverage of the spouse, while the employee or member remains insured under the group policy, by reason of ceasing to be a qualified family member under the group policy, with respect to the spouse and such children whose coverage under the group policy terminates at the same time; or (iii) to a child solely with respect to himself upon termination of his coverage by reason of ceasing to be a qualified family member under the group policy, if a conversion privilege is not otherwise provided above with respect to such termination.(9) A notification of the conversion privilege shall     be included in each certificate.(10) The insurer may elect to provide group insurance     coverage in lieu of the issuance of a converted policy.(B) A converted policy issued upon the exercise of the conversion
privilege required by subsection (A) of this Section shall conform to
the following minimum standards:(1) If the group policy provided hospital, surgical,     or medical expense insurance, or a combination thereof, the converted policy shall provide benefits on an expense-incurred basis equal to the lesser of (i) the hospital room and board, miscellaneous hospital, surgical and medical benefits provided under the group policy; and (ii) the corresponding benefits described below:(a) Hospital room and board benefits in an amount         per day elected by the group policyholder, but in no event less than 60% of the then average semi-private hospital room and board charge in the State, such benefits to be payable for a maximum of not less than 70 days for any period of hospital confinement, as defined in the converted policy.(b) Miscellaneous hospital benefits for any one         period of hospital confinement in an amount up to twenty times the hospital room and board daily benefit provided under the converted policy.(c) Surgical benefits according to a surgical         schedule providing a benefit amount elected by the group policy holder, but in no event less than 60% of the then average surgical charge in the State and with a maximum amount appropriate thereto.  The maximum surgical benefit shall be applicable to all surgical operations of an individual resulting from or contributed to by the same and all related causes occurring in one period of disability.  Two or more surgical procedures performed in the course of a single operation through the same incision, or in the same natural body orifice, may be treated as one surgical procedure with the payment determined by the scheduled benefit for the most expensive procedure performed.  The surgical schedule shall be consistent with the schedule of operations customarily offered by the insurer under group or individual health insurance policies.(d) Non-surgical medical attendance benefits for         in-hospital services in an amount elected by the group policyholder, but in no event less than 60% of the then average in-hospital physician's visit charge in the State, such benefits may be limited to one visit per day of hospitalization and a maximum number of visits numbering not less than seventy for any period of hospital confinement as defined in the converted policy.(2) If the group policy provided major medical     insurance, the insurer may offer the insurance described in (1) above only, major medical insurance only, or a combination of the insurance described in (1) above and major medical insurance.  If the insurer elects to provide major medical insurance, the converted policy shall provide:(a) A maximum benefit at least equal to (i) or         (ii) below:(i) A maximum payment of twenty-five thousand             dollars for all covered medical expenses incurred during the covered person's lifetime with an annual restoration of the lesser of, while coverage is in force, one thousand dollars and the amount counted against the maximum benefit which was not previously restored; or(ii) A maximum payment of twenty-five             thousand dollars for each unrelated injury or illness.(b) Payment of benefits for covered medical         expenses, in excess of the deductible, at a rate not less than 80% except as otherwise permitted below.(c) A deductible for each benefit period which,         at the option of the insurer, shall be (i) the greater of $500 and the benefits deductible; (ii) the sum of the benefits deductible and $100; or (iii) the corresponding deductible in the group policy.  The term "benefit period," as used herein, means, when the maximum payment is determined by (a) (i) above, either a calendar year or a period of twelve consecutive months; and, when the maximum payment is determined by (a) (ii) above, a period of twenty-four consecutive months.  The term "benefits deductible," as used herein, means the value of any benefits provided on an expense-incurred basis which are provided with respect to covered medical expenses by any other hospital, surgical, or medical insurance policy or hospital or medical service subscriber contract of medical practice or other prepayment plan, or any other plans or program whether on an insured or uninsured basis, or of any similar benefits which are provided or made available pursuant to or in accordance with the requirements of any statute and, if, pursuant to the provisions of this subsection, the converted policy provides both the coverage described in (1) above and major medical insurance, the value of the coverage described in (1) above.  The insurer may require that the deductible be satisfied during a period of not less than three months. If the maximum payment is determined by (a) (i) above, and if no benefits become payable during the preceding benefit period due to the cash deductible not being satisfied; credit shall be given, in the succeeding benefit period, to any expense applied toward the cash deductible of the preceding benefit period and incurred during the last three months of such preceding benefit period, subject to any requirement that the deductible be satisfied during a specified period of time.(d) The term "covered medical expenses," as used         above, may be limited (i) in the case of hospital room and board benefits, maximum surgical schedule, and non-surgical medical attendance benefits to amounts not less than the amounts provided in (1) (a), (1) (c) and (1) (d) above; and (ii) in the case of mental and nervous condition treatments while the patient is not a hospital in-patient, to co-insurance of 50%, a maximum benefit of $500 per calendar year or twelve consecutive month periods subject to the inclusion by the insurer of reasonable limits on the number of visits and the maximum permissible expense per visit.(3) The converted policy may contain any exclusion,     reduction, or limitation contained in the group policy and any exclusion, reduction, or limitation customarily used in individual accident and health policies delivered or issued for delivery in this state.  It is not required that the converted policy contain all of the covered medical expenses or the same level of benefits as provided in the group policy.(4) The insurer may, at its option, also offer     alternative plans for group accident and health conversion.(5) The converted policy may only exclude a     pre-existing condition excluded by the group policy.   Any hospital, surgical, medical or major medical benefits payable under the converted policy may be reduced by the amount of any such benefits payable under the group policy after the termination of the individual's insurance thereunder and, during the first policy year of such converted policy, the benefits payable under the converted policy may be so reduced so that they are not in excess of the benefits that would have been payable had the individual's insurance under the group policy remained in force and effect.(6) The converted policy may provide for the     termination of coverage thereunder of any person when he is or could be covered by Medicare (Title XVIII of the United States Social Security Act as added by the Social Security Amendments of 1965 or as later amended or superseded).(7) The converted policy may provide that the insurer     may request information from the converted policyholder, in advance of any premium due date of the converted policy, to determine whether any person covered thereunder (i) is covered for similar benefits by another hospital, surgical, medical, or major medical expense insurance policy or hospital or medical service subscriber contract or medical practice or other prepayment plan or by any other plan or program; or (ii) is eligible for similar benefits (whether or not covered therefor) under any arrangement of coverage for individuals in a group, whether on an insured or uninsured basis; or (iii) has similar benefits provided for or available to such person, pursuant to or in accordance with the requirements of any statute.  The converted policy may also provide that the insurer need not renew the converted policy or the coverage of any person insured thereunder if either the benefits provided or available under the sources referred to in (i), (ii), (iii) above for such person, together with the converted policy, would result in overinsurance according to the  insurer's standards, or if the converted policyholder refuses to provide the requested information.(8) The converted policy shall not contain any     provision allowing the insurer to non-renew due to a change in the health of an insured.(9) The converted policy may contain any provisions     permitted herein and may also include any other provisions not expressly prohibited by law. Any provisions required or permitted herein may be made a part of the converted policy by means of an endorsement or rider.(10) In the conversion of group health insurance in     accordance with the provisions of subsection (A) above, the insurer may, at its option, accomplish the conversion by issuing one or more converted policies.(11) With respect to any person who was covered by     the group policy, the period specified in the Time Limit on Certain Defenses provisions of the converted policy shall commence with the date the person's insurance became effective under the group policy.(12) If the insurer elects to provide group insurance     coverage in lieu of a converted policy, the benefit levels required for a converted policy must be applicable to such group insurance coverage.(C) The requirements of this Section shall apply to any group policy
of accident and health insurance delivered, issued for delivery, renewed
or amended on or after 180 days following the effective date of this
Section.
		(Source: P.A. 93-477, eff. 1-1-04.) (215 ILCS 5/367f) (from Ch. 73, par. 979f)Sec. 367f. Firemen's continuance privilege. As used in this Section:1.  The terms "municipality", "deferred pensioner" and "creditable service"
shall have the meaning ascribed to such terms by Sections 4-103, 4-105a and
4-108, respectively, of the Illinois Pension Code, as now or hereafter amended.2.  The terms "fireman" and "firemen" shall have the meaning ascribed
to the term "firefighter" by Section 4-106 of the Illinois
Pension Code, and include those persons under the coverage of Article 4 of
that Code, as heretofore or hereafter amended.3.  The "retirement or disability period" of a fireman means the period:a.  which begins on the day the fireman is removed     from a municipality's fire department payroll because of the occurrence of any of the following events, to wit:  (i) the fireman retires as a deferred pensioner under Section 4-105a of the Illinois Pension Code, (ii) the fireman retires from active service as a fireman with an attained age and accumulated creditable service which together qualify the fireman for immediate receipt of retirement pension benefits under Section 4-109 of the Illinois Pension Code, or (iii) the fireman's disability is established under Section 4-112 of the Illinois Pension Code; andb. which ends on the first to occur of any of the     following events, to wit:  (i) the fireman's reinstatement or reentry into active service on the municipality's fire department as provided for under Article 4 of the Illinois Pension Code, (ii) the fireman's exercise of any refund option available under Section 4-116 of the Illinois Pension Code, (iii) the fireman's loss pursuant to Section 4-138 of the Illinois Pension Code of any benefits provided for in Article 4 of that Code, or (iv) the fireman's death or -- if at the time of the fireman's death the fireman is survived by a spouse who, in that capacity, is entitled to receive a surviving spouse's monthly pension pursuant to Article 4 of the Illinois Pension Code -- then the death or remarriage of that spouse.No policy of group accident and health insurance under which firemen
employed by a municipality are insured for their individual benefit shall
be issued or delivered in this State to any municipality unless such group
policy provides for the election of continued group insurance coverage for
the retirement or disability period of each fireman who is insured under the
provisions of the group policy on the day immediately preceding the day
on which the retirement or disability period of such fireman begins.  So
long as any required premiums for continued group insurance coverage are
paid in accordance with the provisions of the group policy, an election
made pursuant to this Section shall provide continued group insurance
coverage for a fireman throughout the retirement or disability period of
the fireman and, unless the fireman otherwise elects and subject to any
other provisions of the group policy which relate either to the provision
or to the termination of dependents' coverage and which are not
inconsistent with this Section, for any dependents of the fireman who are
insured under the group policy on the day immediately preceding the day on
which the retirement or disability period of the fireman begins; provided,
however, that when such continued group insurance coverage is in effect
with respect to a fireman on the date
of the fireman's death but the retirement or disability period of the fireman
does not end with such fireman's death, then the deceased fireman's surviving
spouse upon whose death or remarriage such retirement or disability period
will end shall be entitled, without further election and upon payment of
any required premiums in accordance with the provisions of the group policy,
to maintain such continued group
insurance coverage in effect until the end of such retirement or disability
period.  Continued group insurance coverage shall be provided in accordance
with this Section at the same premium rate from time to time charged for
equivalent coverage provided under the group policy with respect to covered
firemen whose retirement or disability period has not begun, and no distinction
or discrimination in the amount or rate of premiums or in any waiver of premium
or other benefit provision shall be made between continued group insurance
coverage elected pursuant to this Section and equivalent coverage provided
to firemen under the group policy other than pursuant to the provisions
of this Section; provided that no municipality shall be required by reason
of any provision of this Section to pay any group insurance premium other
than one that may be negotiated in a collective bargaining agreement.
If a person electing continued coverage under this Section becomes
eligible for medicare coverage, benefits under the group policy may
continue as a supplement to the medicare coverage upon payment of any
required premiums to maintain the benefits of the group policy as
supplemental coverage.Within 15 days of the beginning of the retirement or disability period
of any fireman entitled to elect continued group insurance coverage under any
group policy affected by this Section, the municipality last employing such
fireman shall give written notice of such beginning by certified mail, return
receipt requested to the insurance company issuing such policy.  The notice
shall include the fireman's name and last known place of residence and the
beginning date of the fireman's retirement or disability period.Within 15 days of the date of receipt of such notice from the municipality,
the insurance company by certified mail, return receipt requested, shall
give written notice to the fireman at the fireman's last known place of
residence that coverage under the group policy may be continued for the
retirement or disability period of the fireman as provided in this Section.
Such notice shall set forth:  (i) a statement of election to be filed by
the fireman if the fireman wishes to continue such group insurance coverage,
(ii) the amount of monthly premium, including a statement of the portion
of such monthly premium attributable to any dependents' coverage which the
fireman may elect, and (iii) instructions as to the return of the election
form to the insurance company issuing such policy.  Election shall be made,
if at all, by returning the statement of election to the insurance company by
certified mail, return receipt requested within 15 days after having received it.If the fireman elects to continue coverage, it shall be the obligation
of the fireman to pay the monthly premium directly to the municipality which
shall forward it to the insurance company
issuing the group insurance policy, or as otherwise directed by the insurance
company; provided, however, that the fireman shall be entitled to designate
on the statement of election required to be filed with the insurance company
that the total monthly premium, or such portion thereof as is not
contributed by a municipality, be deducted by a Firefighter's Pension
Fund from any monthly pension payment otherwise payable
to or on behalf of the fireman pursuant to Article 4 of the Illinois Pension
Code, and be remitted by such Pension Fund to the insurance company.  The
portion, if any, of the monthly premium contributed by a
municipality for such continued group insurance coverage shall be paid by
the municipality directly to the insurance company issuing the group insurance
policy, or as otherwise directed by the insurance company.  Such continued
group insurance coverage shall relate back to the beginning of the fireman's
retirement or disability period.The amendment, renewal or extension of any group insurance policy affected
by this Section shall be deemed to be the issuance of a new policy of insurance
for purposes of this Section.In the event that a municipality makes a program of accident, health,
hospital or medical benefits available to its firemen through
self-insurance, or by participation in a pool or reciprocal insurer, or by
contract in a form other than a policy of group insurance with one or more
medical service plans, health care service corporations, health maintenance
organizations, or any other professional corporations or plans under which
health care or reimbursement for the costs thereof is
provided, whether the cost of such benefits is borne by the municipality or
the firemen or both, such firemen and their surviving spouses shall have
the same right to elect continued coverage under such program of benefits
as they would have if such benefits were provided by a policy of group
accident and health insurance.  In such cases, the notice of right to elect
continued coverage shall be sent by the municipality; the statement of
election shall be sent to the municipality; and references to the required
premium shall refer to that portion of the cost of such benefits which is not
borne by the municipality, either voluntarily or pursuant to the provisions
of a collective bargaining agreement.  In the case of a municipality
providing such benefits through self-insurance or participation in a pool or
reciprocal insurer, the right to elect continued coverage which is provided
by this paragraph shall be implemented and made available to the firemen of
the municipality and qualifying surviving spouses not later than July 1, 1985.The amendment, renewal or extension of any such contract in a form other
than a policy of group insurance policy shall be deemed the formation of a
new contract for the purposes of this Section.This Section shall not limit the exercise of any conversion privileges
available under Section 367e.Pursuant to paragraphs (h) and (i) of Section 6 of Article VII of the
Illinois Constitution, this Section specifically denies and limits the
exercise by a home rule unit of any power which is inconsistent with this
Section and all existing laws and ordinances which are inconsistent with
this Section are hereby superseded.  This Section does not preempt the
concurrent exercise by home rule units of powers consistent herewith.The Division of Insurance of the Department of Financial and Professional Regulation shall enforce the provisions of this Section, including provisions relating to municipality self-insured benefit plans.
					
					(Source: P.A. 94-858, eff. 6-15-06.) (215 ILCS 5/367g) (from Ch. 73, par. 979g)Sec. 367g. 
		Police officer's continuance privilege. 
		As used in this Section:1.  The terms "municipality" and "creditable service"
shall have the meaning ascribed to such terms by Sections 3-103
and 3-110, respectively, of the Illinois Pension Code, as now or hereafter amended.The term "deferred pensioner" means a police officer who has retired,
having accumulated enough creditable service to qualify for a pension, but
who has not attained the required age.2.  The term "police officer" shall have the meaning ascribed
to it by Section 3-106 of the Illinois Pension Code, and include those
persons under the coverage of Article 3 of that Code, as heretofore or hereafter
amended.3.  The "retirement or disability period" of a police officer means the period:a. which begins on the day the police officer is removed from a municipality's
police department payroll because of the occurrence of any of the following
events, to wit:  (i) the police officer retires as a deferred pensioner,
(ii) the police officer retires from active
service as a police officer with an attained age and accumulated creditable service
which together qualify the police officer for immediate receipt of retirement pension
benefits under Section 3-111 of the Illinois Pension Code, or (iii) the
police officer's disability is established under Section 3-115 of the Illinois
Pension Code; andb. which ends on the first to occur of any of the following events,
to wit:  (i) the police officer's reinstatement or reentry into active service
on the municipality's police department as provided for under Article 3 of
the Illinois Pension Code, (ii) the police officer's exercise of any refund option
available under Section 3-124 of the Illinois Pension Code, (iii) the police officer's
loss pursuant to Section 3-147 of the Illinois Pension Code of any benefits
provided for in Article 3 of that Code, or (iv) the police officer's death or --
if at the time of the police officer's death the police officer is survived by a spouse
who, in that capacity, is entitled to receive a surviving spouse's monthly
pension pursuant to Article 3 of the Illinois Pension Code -- the death
or remarriage of that spouse.No policy of group accident and health insurance under which policemen
employed by a municipality are insured for their individual benefit shall
be issued or delivered in this State to any municipality unless such group
policy provides for the election of continued group insurance coverage for
the retirement or disability period of each police officer who is insured under the
provisions of the group policy on the day immediately preceding the day
on which the retirement or disability period of such police officer begins.  So
long as any required premiums for continued group insurance coverage are
paid in accordance with the provisions of the group policy, an election
made pursuant to this Section shall provide continued group insurance coverage
for a police officer throughout the retirement or disability period of the
police officer and, unless
the police officer otherwise elects and subject to any other provisions of the
group policy which relate either to the provision or to the termination
of dependents' coverage and which are not inconsistent with this Section,
for any dependents of the police officer who are insured under the group policy on the
day immediately preceding the day on which the retirement or disability
period of the police officer begins; provided, however, that when such continued
group insurance coverage is in effect with respect to a police officer on the date
of the police officer's death but the retirement or disability period of
the police officer
does not end with such police officer's death, then the deceased police
officer's surviving
spouse upon whose death or remarriage such retirement or disability period
will end shall be entitled, without further election and upon payment of
any required premiums in accordance with the provisions of the group policy,
to maintain such continued group
insurance coverage in effect until the end of such retirement or disability
period.  Continued group insurance coverage shall be provided in accordance
with this Section at the same premium rate from time to time charged for
equivalent coverage provided under the group policy with respect to covered
policemen whose retirement or disability period has not begun, and no distinction
or discrimination in the amount or rate of premiums or in any waiver of premium
or other benefit provision shall be made between continued group insurance
coverage elected pursuant to this Section and equivalent coverage provided
to policemen under the group policy other than pursuant to the provisions
of this Section; provided that no municipality shall be required by reason
of any provision of this Section to pay any group insurance premium other
than one that may be negotiated in a collective bargaining agreement.
If the group policy provides for a reduction in benefits and premium for
insureds who become eligible for medicare, such provision shall apply to
persons electing continued coverage under this Section.Within 15 days of the beginning of the retirement or disability period
of any police officer entitled to elect continued group insurance coverage under any
group policy affected by this Section, the municipality last employing such
police officer shall give written notice of such beginning by certified mail, return
receipt requested to the insurance company issuing such policy.  The notice
shall include the police officer's name and last known place of residence and the
beginning date of the police officer's retirement or disability period.Within 15 days of the date of receipt of such notice from the municipality,
the insurance company by certified mail, return receipt requested, shall
give written notice to the police officer at the police officer's last known place of
residence that coverage under the group policy may be continued for the
retirement or disability period of the police officer as provided in this Section.
Such notice shall set forth:  (i) a statement of election to be filed by
the police officer if the police officer wishes to continue such group insurance
coverage,
(ii) the amount of monthly premium, including a statement of the portion
of such monthly premium attributable to any dependents' coverage which the
police officer may elect, and (iii) instructions as to the return of the election
form to the insurance company issuing such policy.  Election shall be made,
if at all, by returning the statement of election to the insurance company
by certified mail, return receipt requested within 15 days after having received it.If the police officer elects to continue coverage, it shall be the obligation
of the police officer to pay the monthly premium directly to the municipality which
shall forward it to the insurance company
issuing the group insurance policy, or as otherwise directed by the insurance
company; provided, however, that the police officer shall be entitled to designate
on the statement of election required to be filed with the insurance company
that the total monthly premium, or such portion thereof as is not
contributed by a municipality, be deducted by a Police Pension Fund
from any monthly pension payment otherwise payable
to or on behalf of the police officer pursuant to Article 3 of the Illinois Pension
Code, and be remitted by such Pension Fund to the insurance company.  The
portion, if any, of the monthly premium contributed by a
municipality for such continued group insurance coverage shall be paid by
the municipality directly to the insurance company issuing the group insurance
policy, or as otherwise directed by the insurance company.  Such continued
group insurance coverage shall relate back to the beginning of the police officer's
retirement or disability period.The amendment, renewal or extension of any group insurance policy affected
by this Section shall be deemed to be the issuance of a new policy of insurance
for purposes of this Section.In the event that a municipality makes a program of accident, health,
hospital or medical benefits available to its police officers through
self-insurance, or by participation in a pool or reciprocal insurer, or by
contract in a form other than a policy of group insurance with one or more
medical service plans, health care service corporations, health maintenance
organizations, or any other professional corporations or plans under which
health care or reimbursement for the costs thereof is
provided, whether the cost of such benefits is borne by the municipality or
the police officers or both, such police officers and their surviving spouses shall have
the same right to elect continued coverage under such program of benefits
as they would have if such benefits were provided by a policy of group
accident and health insurance.  In such cases, the notice of right to elect
continued coverage shall be sent by the municipality; the statement of
election shall be sent to the municipality; and references to the required
premium shall refer to that portion of the cost of such benefits which is not
borne by the municipality, either voluntarily or pursuant to the provisions
of a collective bargaining agreement.  In the case of a municipality
providing such benefits through self-insurance or participation in a pool or
reciprocal insurer, the right to elect continued coverage which is provided
by this paragraph shall be implemented and made available to the police officers of
the municipality and qualifying surviving spouses not later than July 1, 1986.The amendment, renewal or extension of any such contract in a form other
than a policy of group insurance policy shall be deemed the formation of a
new contract for the purposes of this Section.This Section shall not limit the exercise of any conversion privileges
available under Section 367e.
		(Source: P.A. 84-1010.) (215 ILCS 5/367h) (from Ch. 73, par. 979h)Sec. 367h. 
		Deputy's continuance privilege. 
		As used in this Section:1. The terms "municipality" and "creditable service"
shall have the meaning ascribed to such terms by Sections 7-105
and 7-113, respectively, of the Illinois Pension Code, as now or hereafter
amended.The term "deferred pensioner" means a deputy who has retired,
having accumulated enough creditable service to qualify for a pension, but
who has not attained the required age.2. The term "deputy" shall mean a "sheriff's
law enforcement employee" as defined in Section 7-109.3 of the Illinois
Pension Code, and include only
persons under the coverage of Article 7 of that Code, as heretofore or
hereafter
amended.3. The "retirement or disability period" of a deputy means the period:a. which begins on the day the deputy is removed from     a sheriff's police department payroll because of the occurrence of any of the following events, to wit:  (i) the deputy retires as a deferred pensioner, (ii) the deputy retires from active service as a deputy with an attained age and accumulated creditable service which together qualify the deputy for immediate receipt of retirement pension benefits under Section 7-142.1 of the Illinois Pension Code, or (iii) the deputy's disability is established under Article 7 of the Illinois Pension Code; andb. which ends on the first to occur of any of the     following events, to wit:  (i) the deputy's reinstatement or reentry into active service in the sheriff's police department as provided for under Article 7 of the Illinois Pension Code, (ii) the deputy's exercise of any refund option or acceptance of any separation benefit available under Article 7 of the Illinois Pension Code, (iii) the deputy's loss pursuant to Section 7-219 of the Illinois Pension Code of any benefits provided for in Article 7 of that Code, or (iv) the deputy's death or -- if at the time of the deputy's death the deputy is survived by a spouse who, in that capacity, is entitled to receive a surviving spouse's monthly pension pursuant to Article 7 of the Illinois Pension Code -- the death or remarriage of that spouse.No policy of group accident and health insurance under which deputies
employed by a municipality are insured for their individual benefit shall
be issued or delivered in this State to any municipality unless such group
policy provides for the election of continued group insurance coverage for
the retirement or disability period of each deputy who is insured under the
provisions of the group policy on the day immediately preceding the day
on which the retirement or disability period of such deputy begins.  So
long as any required premiums for continued group insurance coverage are
paid in accordance with the provisions of the group policy, an election
made pursuant to this Section shall provide continued group insurance coverage
for a deputy throughout the retirement or disability period of the
deputy and, unless
the deputy otherwise elects and subject to any other provisions of the
group policy which relate either to the provision or to the termination
of dependents' coverage and which are not inconsistent with this Section,
for any dependents of the deputy who are insured under the group policy on the
day immediately preceding the day on which the retirement or disability
period of the deputy begins; provided, however, that when such continued
group insurance coverage is in effect with respect to a deputy on the date
of the deputy's death but the retirement or disability period of
the deputy
does not end with such deputy's death, then the deceased deputy's surviving
spouse upon whose death or remarriage such retirement or disability period
will end shall be entitled, without further election and upon payment of
any required premiums in accordance with the provisions of the group policy,
to maintain such continued group insurance coverage in effect until the end of
such retirement or disability period.  Continued group insurance coverage shall
be provided in accordance with this Section at the same premium rate from time
to time charged for equivalent coverage provided under the group policy with
respect to covered deputies whose retirement or disability period has not
begun, and no distinction or discrimination in the amount or rate of premiums
or in any waiver of premium
or other benefit provision shall be made between continued group insurance
coverage elected pursuant to this Section and equivalent coverage provided
to deputies under the group policy other than pursuant to the provisions
of this Section; provided that no municipality shall be required by reason
of any provision of this Section to pay any group insurance premium other
than one that may be negotiated in a collective bargaining agreement.
If the group policy provides for a reduction in benefits and premium for
insureds who become eligible for medicare, such provision shall apply to
persons electing continued coverage under this Section.Within 15 days of the beginning of the retirement or disability period
of any deputy entitled to elect continued group insurance coverage under any
group policy affected by this Section, the municipality last employing such
deputy shall give written notice of such beginning by certified mail, return
receipt requested, to the insurance company issuing such policy.  The notice
shall include the deputy's name and last known place of residence and the
beginning date of the deputy's retirement or disability period.Within 15 days of the date of receipt of such notice from the municipality,
the insurance company by certified mail, return receipt requested, shall
give written notice to the deputy at the deputy's last known place of
residence that coverage under the group policy may be continued for the
retirement or disability period of the deputy as provided in this Section.
Such notice shall set forth:  (i) a statement of election to be filed by
the deputy if the deputy wishes to continue such group insurance
coverage,
(ii) the amount of monthly premium, including a statement of the portion
of such monthly premium attributable to any dependents' coverage which the
deputy may elect, and (iii) instructions as to the return of the election
form to the insurance company issuing such policy.  Election shall be made,
if at all, by returning the statement of election to the insurance company
by certified mail, return receipt requested, within 15 days after having
received it.If the deputy elects to continue coverage, it shall be the obligation
of the deputy to pay the monthly premium directly to the municipality which
shall forward it to the insurance company issuing the group insurance
policy, or as otherwise
directed by the insurance company; provided, however, that the deputy
shall be entitled to designate on the statement of election
required to be filed with the insurance company that the total
monthly premium, or such portion thereof as is not contributed by
a municipality, be deducted by the Illinois Municipal Retirement Fund
from the monthly pension payment otherwise payable
to or on behalf of the deputy pursuant to Article 7 of the Illinois Pension Code, and be remitted by such Fund to
the insurance company.  The portion, if any, of the monthly premium
contributed by a municipality for such continued group insurance
coverage shall be paid by
the directly to the insurance company issuing the group insurance
policy, or as directed by the insurance company.  Such continued
group insurance coverage shall relate back to the beginning of the deputy's
retirement or disability period.The amendment, renewal or extension of any group insurance policy affected
by this Section shall be deemed to be the issuance of a new policy of insurance
for purposes of this Section.In the event that a municipality makes a program of accident, health,
hospital or medical benefits available to its deputies through
self-insurance, or by participation in a pool or reciprocal insurer, or by
contract in a form other than a policy of group insurance with one or more
medical service plans, health care service corporations, health maintenance
organizations, or any other professional corporations or plans under which
health care or reimbursement for the costs thereof is
provided, whether the cost of such benefits is borne by the municipality or
the deputies or both, such deputies and their surviving spouses shall have
the same right to elect continued coverage under such program of benefits
as they would have if such benefits were provided by a policy of group
accident and health insurance.  In such cases, the notice of right to elect
continued coverage shall be sent by the municipality; the statement of
election shall be sent to the municipality; and references to the required
premium shall refer to that portion of the cost of such benefits which is not
borne by the municipality, either voluntarily or pursuant to the provisions
of a collective bargaining agreement.  In the case of a municipality
providing such benefits through self-insurance or participation in a pool or
reciprocal insurer, the right to elect continued coverage which is provided
by this paragraph shall be implemented and made available to the deputies of
the municipality and qualifying surviving spouses not later than July 1, 1986.The amendment, renewal or extension of any such contract in a form other
than a policy of group insurance policy shall be deemed the formation of a
new contract for the purposes of this Section.This Section shall not limit the exercise of any conversion privileges
available under Section 367e.
		(Source: P.A. 90-655, eff. 7-30-98.) (215 ILCS 5/367i) (from Ch. 73, par. 979i)Sec. 367i. Discontinuance and replacement of coverage. Group health
insurance policies issued, amended, delivered or renewed on and after the
effective date of this amendatory Act of 1989, shall provide a reasonable
extension of benefits in the event of total disability on the date the
policy is discontinued for any reason.Any applicable extension of benefits or accrued liability shall be
described in the policy and group certificate.  Benefits payable during any
extension of benefits may be subject to the policy's regular benefit limits.Any insurer discontinuing a group health insurance policy shall provide
to the policyholder for delivery to covered employees or members a notice
as to the date such discontinuation is to be effective and urging them to
refer to their group certificates to determine what contract rights, if
any, are available to them.In the event a discontinued policy is replaced by another group policy,
the prior insurer or plan shall be liable only to the extent of its accrued
liabilities and extension of benefits.  Persons eligible for coverage
under the succeeding insurer's plan shall include all
employees and dependents covered under the prior insurer's plan, including
individuals with disabilities covered under the prior plan but absent from work on the
effective date and thereafter.  The prior insurer shall provide extension of
benefits for an insured's disabling condition when no coverage is available
under the succeeding insurer's plan whether due to the absence of coverage in
the contract or lack of required creditable coverage for a preexisting
condition.The Director shall promulgate reasonable rules as necessary to carry
out this Section.
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 5/367j) (from Ch. 73, par. 979j)Sec. 367j. 
		Municipal employee's continuance privilege.(a) As used in this Section:(1) The term "creditable service" shall have the     meaning ascribed to it by Section 7-113 of the Illinois Pension Code.(2) The term "municipality" means any municipality,     instrumentality, or participating instrumentality (as those terms are defined in Sections 7-105, 7-107 and 7-108, respectively, of the Illinois Pension Code) that participates in the Illinois Municipal Retirement Fund pursuant to Section 7-132 of the Illinois Pension Code.(3) The term "employee" shall mean an employee as     defined in Section 7-109 of the Illinois Pension Code, but does not include any person who is a deputy as defined in Section 367h of this Code.(4) The "retirement or disability period" of an     employee means the period:(A) which begins on the day the employee is         removed from the municipality payroll because of the occurrence of either of the following events:  (i) the employee retires from active service as an employee with an attained age and accumulated creditable service which together qualify the employee for immediate receipt of retirement pension benefits under Article 7 of the Illinois Pension Code, or (ii) the employee's disability is established under Article 7 of the Illinois Pension Code; and(B) which ends on the first to occur of any of         the following events: (i) the employee's reinstatement or reentry into active service as provided for under Article 7 of the Illinois Pension Code, (ii) the employee's exercise of any refund option or acceptance of any separation benefit available under Article 7 of the Illinois Pension Code, (iii) the employee's loss pursuant to Section 7-219 of the Illinois Pension Code of any benefits provided for in Article 7 of that Code, or (iv) the employee's death or, if at the time of the employee's death the employee is survived by a spouse who, in that capacity, is entitled to receive a surviving spouse's monthly pension pursuant to Article 7 of the Illinois Pension Code, the death or remarriage of that spouse.(b) No policy of group accident and health insurance under which
employees of a municipality are insured for their individual benefit shall
be issued or delivered in this State to a municipality unless such group
policy provides for the election of continued group insurance coverage for
the retirement or disability period of each employee who is insured under
the provisions of the group policy on the day immediately preceding the day
on which the retirement or disability period of such employee begins.  So
long as any required premiums for continued group insurance coverage are
paid in accordance with the provisions of the group policy, an election
made pursuant to this Section shall provide continued group insurance
coverage for an employee throughout the retirement or disability period of
the employee and, unless the employee otherwise elects and subject to any
other provisions of the group policy which relate either to the provision
or to the termination of dependents' coverage and which are not
inconsistent with this Section, for any dependents of the employee who are
insured under the group policy on the day immediately preceding the day on
which the retirement or disability period of the employee begins; provided,
however, that when such continued group insurance coverage is in effect
with respect to an employee on the date of the employee's death but the
retirement or disability period of the employee does not end with the
employee's death, then the deceased employee's surviving spouse upon whose
death or remarriage such retirement or disability period will end shall be
entitled, without further election and upon payment of any required
premiums in accordance with the provisions of the group policy, to maintain
such continued group insurance coverage in effect until the end of the
retirement or disability period.  Continued group insurance coverage shall
be provided in accordance with this Section at the same premium rate from
time to time charged for equivalent coverage provided under the group
policy with respect to covered employees whose retirement or disability
period has not begun, and no distinction or discrimination in the amount or
rate of premiums or in any waiver of premium or other benefit provision
shall be made between continued group insurance coverage elected pursuant
to this Section and equivalent coverage provided to employees under the
group policy other than pursuant to the provisions of this Section;
provided that no municipality shall be required by reason of any provision
of this Section to pay any group insurance premium other than one that may
be negotiated in a collective bargaining agreement. If the group policy
provides for a reduction in benefits and premium for insureds who become
eligible for medicare, such provision shall apply to persons electing
continued coverage under this Section.Within 15 days of the beginning of the retirement or disability period of
any employee entitled to elect continued group insurance coverage under any
group policy affected by this Section, the municipality last employing such
employee shall give written notice of such beginning by certified mail,
return receipt requested, to the insurance company issuing such policy.
The notice shall include the employee's name and last known place of
residence and the beginning date of the employee's retirement or disability
period.Within 15 days of the date of receipt of such notice from the municipality,
the insurance company by certified mail, return receipt requested, shall
give written notice to the employee at the employee's last known place of
residence that coverage under the group policy may be continued for the
retirement or disability period of the employee as provided in this
Section.  Such notice shall set forth:  (i) a statement of election to be
filed by the employee if the employee wishes to continue such group
insurance coverage, (ii) the amount of monthly premium, including a
statement of the portion of such monthly premium attributable to any
dependents' coverage which the employee may elect, and (iii) instructions
as to the return of the election form to the insurance company issuing such
policy.  Election shall be made, if at all, by returning the statement of
election to the insurance company by certified mail, return receipt
requested, within 15 days after having received it.If the employee elects to continue coverage, it shall be the obligation
of the employee to pay the monthly premium directly to the municipality
which shall forward it to the insurance company issuing the group insurance
policy, or as otherwise directed by the insurance company; provided,
however, that the employee shall be entitled to designate on the statement
of election required to be filed with the insurance company that the total
monthly premium, or such portion thereof as is not contributed by a
municipality, be deducted by the Illinois Municipal Retirement Fund from
the monthly pension payment otherwise payable to or on behalf of the
employee pursuant to Article 7 of the Illinois Pension Code, and be
remitted by such Fund to the insurance company.  The portion, if any, of
the monthly premium contributed by a municipality for such continued group
insurance coverage shall be paid by the municipality directly to the
insurance company issuing the group insurance policy, or as directed by the
insurance company.  Such continued group insurance coverage shall relate
back to the beginning of the employee's retirement or disability period.The amendment, renewal or extension of any group insurance policy affected
by this Section shall be deemed to be the issuance of a new policy of insurance
for purposes of this Section.(c) In the event that a municipality makes a program of accident,
health, hospital or medical benefits available to its employees through
self-insurance, or by participation in a pool or reciprocal insurer, or by
contract in a form other than a policy of group insurance with one or more
medical service plans, health care service corporations, health maintenance
organizations, or any other professional corporations or plans under which
health care or reimbursement for the costs thereof is provided, whether the
cost of such benefits is borne by the municipality or the employees or
both, such employees and their surviving spouses shall have the same
right to elect continued coverage under such program of benefits
as they would have if such benefits were provided by a policy of group
accident and health insurance.  In such cases, the notice of right to elect
continued coverage shall be sent by the municipality; the statement of
election shall be sent to the municipality; and references to the required
premium shall refer to that portion of the cost of such benefits which is not
borne by the municipality, either voluntarily or pursuant to the provisions
of a collective bargaining agreement.  In the case of a municipality
providing such benefits through self-insurance or participation in a pool or
reciprocal insurer, the right to elect continued coverage which is provided
by this paragraph shall be implemented and made available to the employees
of the municipality and qualifying surviving spouses not later than July 1,
1991.The amendment, renewal or extension of any such contract in a form other
than a policy of group insurance policy shall be deemed the formation of a
new contract for the purposes of this Section.(d) This Section shall not limit the exercise of any conversion
privileges available under Section 367e.
		(Source: P.A. 86-1444; 87-435.) (215 ILCS 5/367k)Sec. 367k. Intoxication and narcotics; exclusion of coverage prohibited.(a) A  group or individual major medical policy of accident or health insurance or managed care plan amended, delivered, issued, or renewed after January 1, 2008 shall not, solely on the basis of the insured being intoxicated or under the influence of a narcotic, exclude coverage for any emergency or other medical, hospital, or surgical expenses incurred by an insured as a result of and related to an injury acquired while the insured is intoxicated or under the influence of any narcotic, regardless of whether the intoxicant or narcotic is administered on the advice of a health care practitioner.(b) Coverage required under this Section may be subject to deductibles, copayments, coinsurance, or annual or maximum payment limits that are consistent with deductibles, copayments, coinsurance, or annual or maximum payment limits applicable to other similar coverage under the plan.
(Source: P.A. 95-230, eff. 1-1-08.) (215 ILCS 5/367m)Sec. 367m. Early intervention services. A policy of accident and health insurance that provides coverage for early intervention services must conform to the following criteria:(1) The use of private health insurance to pay for     early intervention services under Part C of the federal Individuals with Disabilities Education Act may not count towards or result in a loss of benefits due to annual or lifetime insurance caps for an infant or toddler with a disability, the infant's or toddler's parent, or the infant's or toddler's family members who are covered under that health insurance policy.(2) The use of private health insurance to pay for     early intervention services under Part C of the federal Individuals with Disabilities Education Act may not negatively affect the availability of health insurance to an infant or toddler with a disability, the infant's or toddler's parent, or the infant's or toddler's family members who are covered under that health insurance policy, and health insurance coverage may not be discontinued for these individuals due to the use of the health insurance to pay for services under Part C of the federal Individuals with Disabilities Education Act.(3) The use of private health insurance to pay for     early intervention services under Part C of the federal Individuals with Disabilities Education Act may not be the basis for increasing the health insurance premiums of an infant or toddler with a disability, the infant's or toddler's parent, or the infant's or toddler's family members covered under that health insurance policy.For the purposes of this Section, "early intervention services" has the same meaning as in the Early Intervention Services System Act. 
(Source: P.A. 98-41, eff. 6-28-13.) (215 ILCS 5/368) (from Ch. 73, par. 980)Sec. 368. 
		
		Industrial
accident and health insurance.(1) Industrial accident and health insurance is hereby declared to be
that form of accident and health insurance in which the premium is payable
weekly.(2) Any insurance company authorized to write accident and health
insurance in this State shall have power to issue industrial accident and
health policies. No policy of industrial accident and health insurance may
be issued or delivered in this State unless it has printed thereon the
words "Industrial Policy," a copy of the form thereof shall have been filed
with the department and approved by it in accordance with section 355.
		(Source: Laws 1951, p. 611.) (215 ILCS 5/368a)Sec. 368a. Timely payment for health care services.(a) This Section applies to insurers, health maintenance organizations,
managed care plans, health care plans, preferred provider organizations, third
party
administrators, independent practice associations, and physician-hospital
organizations (hereinafter referred to as "payors") that
provide
periodic payments, which are payments not requiring a claim, bill, capitation
encounter
data, or capitation reconciliation reports, such as
prospective capitation payments, to
health care professionals and health care facilities
to provide medical or health care services for insureds or enrollees.(1) A payor shall make periodic payments in     accordance with item (3).  Failure to make periodic payments within the period of time specified in item (3) shall entitle the health care professional or health care facility to interest at the rate of 9% per year from the date payment was required to be made to the date of the late payment, provided that interest amounting to less than $1 need not be paid.  Any required interest payments shall be made within 30 days after the payment.(2) When a payor requires selection of a health care     professional or health care facility, the selection shall be completed by the insured or enrollee no later than 30 days after enrollment.  The payor shall provide written notice of this requirement to all insureds and enrollees. Nothing in this Section shall be construed to require a payor to select a health care professional or health care facility for an insured or enrollee.(3) A payor shall provide the health care     professional or health care facility with notice of the selection as a health care professional or health care facility by an insured or enrollee and the effective date of the selection within 60 calendar days after the selection.  No later than the 60th day following the date an insured or enrollee has selected a health care professional or health care facility or the date that selection becomes effective, whichever is later, or in cases of retrospective enrollment only, 30 days after notice by an employer to the payor of the selection, a payor shall begin periodic payment of the required amounts to the insured's or enrollee's health care professional or health care facility, or the designee of either, calculated from the date of selection or the date the selection becomes effective, whichever is later. All subsequent payments shall be made in accordance with a monthly periodic cycle.(b) Notwithstanding any other provision of this Section,
independent practice associations and physician-hospital organizations shall
make periodic payment of the required amounts in
accordance with a monthly periodic schedule after
an insured or enrollee has selected a health care professional or health care
facility or after that selection becomes effective, whichever
is later.Notwithstanding any other provision of this Section, independent
practice associations and physician-hospital organizations shall make all
other payments for health services within 30 days after receipt of
due proof
of loss.  Independent
practice associations and physician-hospital organizations shall notify the
insured, insured's assignee, health care professional, or health care facility
of any failure to provide sufficient documentation for a due proof of
loss within 30 days after receipt of the claim for health services.Failure to pay within the required time period shall entitle the payee to
interest at the rate of 9% per year from the date the payment is due to the
date of the late payment, provided that interest amounting to less than $1
need not be paid.  Any required interest payments shall be made within 30
days after the payment.(c) All insurers, health maintenance
organizations, managed care plans, health care plans, preferred provider
organizations, and third party administrators
shall ensure that all claims and indemnities
concerning health care services
other than for
any periodic payment shall be paid within 30 days after receipt of due
written proof of such loss. An insured, insured's assignee, health care
professional, or health care facility shall be
notified of any known failure to provide sufficient documentation for a
due proof of
loss within 30 days after receipt of the claim for health care
services.
Failure to pay
within such period shall entitle the payee
to interest at the rate of 9% per year from the 30th day after
receipt of such proof of loss to
the date of late payment, provided that interest amounting to less than one
dollar need not be paid.  Any
required interest payments shall be made within 30 days after the payment.(d) The Department shall enforce the provisions of this Section pursuant to
the enforcement powers granted to it by law.(e) The Department is hereby granted specific authority to issue a
cease and desist order, fine, or otherwise penalize independent practice
associations and physician-hospital organizations that violate this Section.
The Department shall adopt reasonable rules to enforce compliance with this
Section by
independent practice associations and physician-hospital organizations.
(Source: P.A. 97-813, eff. 7-13-12.) (215 ILCS 5/368b)Sec. 368b. Contracting procedures.(a) A health care professional or health care provider offered a contract by
an
insurer, health maintenance organization,
independent practice association, or physician
hospital organization for signature after the effective date of this amendatory
Act of the
93rd General Assembly shall be provided with a proposed health care
professional or
health care provider
services contract including, if any, exhibits and attachments that the contract
indicates are
to be attached. Within 35 days after a written request, the health care
professional or health
care provider offered a contract shall be given the opportunity to review and
obtain a
copy of the following: a specialty-specific fee schedule sample based on a
minimum of
the 50 highest volume fee schedule codes with the rates applicable to the
health care
professional or health care provider to whom the contract is offered, the
network
provider
administration manual, and a summary capitation schedule, if payment is made on
a
capitation basis. If 50 codes do not exist for a particular specialty, the
health care
professional or health care provider offered a contract shall be given the
opportunity to
review or obtain a copy of a fee schedule sample with the codes applicable to
that
particular specialty. This information may be provided electronically. An
insurer, health
maintenance organization, independent practice
association, or physician hospital
organization may substitute the fee schedule sample with a document providing
reference
to the information needed to calculate the fee schedule that is available to
the public at no
charge and the percentage or conversion factor at which the insurer, health
maintenance
organization, preferred provider organization, independent practice
association, or physician hospital organization sets its rates.(b) The fee schedule, the capitation schedule, and
the network provider
administration manual constitute confidential, proprietary, and trade secret
information and are subject to the provisions of the Illinois Trade Secrets
Act.
The health
care professional or health care provider receiving such protected information
may disclose
the information on a need to know basis and only to individuals and entities
that provide
services directly related to the health care professional's or health care
provider's decision
to enter into the contract or keep the contract in force. Any person or entity
receiving or
reviewing such protected information pursuant to this Section shall not
disclose
the
information to any other person, organization, or entity, unless the disclosure
is requested
pursuant to a valid court order or required by a state or federal government
agency.
Individuals or entities receiving such information from a health care
professional
or health care provider as delineated in this subsection are subject to the
provisions of the
Illinois Trade Secrets Act.(c) The health care professional or health care provider shall be allowed at
least
30 days to review the health care professional or health care provider services
contract, including
exhibits and
attachments, if any, before signing. The 30-day review period begins upon
receipt of the
health care
 professional or health care provider services contract, unless the information
available
upon request
in subsection (a) is not included. If information is not included in the
professional
services contract and is requested pursuant to subsection (a), the 30-day
review period
begins on the date of receipt of the information. Nothing in this subsection
shall prohibit
a health care professional or health care provider from signing a contract
prior to the
expiration of the 30-day review period.(d) As used in this subsection:"Change" means an increase or decrease in the fee schedule referred to in subsection (a)."Nonroutine change" means any proposed change to the fee schedule except a change that is otherwise required by law, regulation, or an applicable regulatory authority or that is required as a result of changes in fee schedules, reimbursement methodology, or payment policies established by a government agency or by the American Medical Association's current procedural terminology codes, reporting guidelines, and conventions, or a change that is expressly provided for under the terms of the contract by the inclusion of or reference to a specific fee or fee schedule, reimbursement methodology, or payment policy indexing mechanism.The insurer, health maintenance organization,
independent practice
association, or physician hospital organization shall provide all contracted
health care
professionals or health care providers with any changes to the fee schedule
provided
under subsection (a) not later than 35 days after the effective date of the
changes,
unless such
changes are specified in the contract and the health care professional or
health care
provider is able to calculate the changed rates based on information in the
contract and
information available to the public at no charge. Beginning January 1, 2023, with respect to nonroutine changes to the fee schedule, the insurer, health maintenance organization, independent practice association, or physician hospital organization shall provide all contracted health care professionals or health care providers impacted by the nonroutine change with notice of the change at least 60 days before the effective date of the change. The right to advance notice of nonroutine changes to the fee schedule may not be waived by the health care professional or health care provider. For the purposes of this subsection (d), health maintenance organizations that provide or arrange for and pay or reimburse for the cost of any health care services for persons who are enrolled in the medical assistance programs under the Illinois Public Aid Code shall comply with provider notification requirements established by the Department of Healthcare and Family Services.This information may be made available by mail, e-mail, newsletter, website
listing, or
other reasonable method. For nonroutine changes, the information directing the health care professional or health care provider to the information provided by newsletter, website listing, or other reasonable method shall be provided by email or, if requested by the health care professional or health care provider, by mail. Upon request, a health care professional or health
care provider
may request an updated copy of the fee schedule referred to in subsection (a)
every
calendar quarter.(e) Upon termination of a contract with an insurer, health maintenance
organization, independent practice
association, or physician hospital
organization and at
the request of the patient, a health care professional or health care provider
shall transfer
copies of the patient's medical records. Any other provision of law
notwithstanding, the
costs for copying and transferring copies of medical records shall be assigned
per the
arrangements agreed upon, if any, in the health care professional or health
care provider services
contract.
(Source: P.A. 102-957, eff. 1-1-23.) (215 ILCS 5/368c)Sec. 368c. 
		Remittance advice and procedures.(a) A remittance advice shall be furnished to a health care professional or
health
care provider that identifies the disposition of each claim.  The remittance
advice shall identify the services billed; the patient responsibility, if any;
the actual payment, if any, for the services billed; and the reason for any
reduction to the amount for
which the claim was submitted.  For any reductions to the amount for which the
claim was submitted, the remittance shall identify any withholds and the reason
for any denial or reduction.A remittance advice for capitation or prospective payment arrangements shall
be
furnished to a health care professional or health care provider pursuant to a
contract with
an insurer, health maintenance organization,
independent practice association,
or
physician hospital organization in accordance with the terms of the contract.(b) When health care services are provided by a non-participating
health care
professional or health care provider, an insurer, health maintenance
organization,
independent practice association, or physician hospital organization may pay
for covered
services either to a patient directly or to the non-participating health care
professional or
health care provider.(c) When a person presents a
benefits information card,
a health care professional or health care provider shall make a good faith
effort
to inform the
person if the
health care professional or health care provider has a participation contract
with the
insurer,
health maintenance organization, or other
entity identified on the card.
		(Source: P.A. 93-261, eff. 1-1-04.) (215 ILCS 5/368d)Sec. 368d. Recoupments.(a) A health care professional or health care provider shall be provided a
remittance advice, which must include an explanation of a
recoupment or
offset taken by an insurer, health maintenance organization,
independent practice association, or physician hospital
organization, if any. The recoupment explanation shall, at a minimum, include
the name
of the patient; the date of service; the service code or if no service code is
available a service description;
the recoupment amount; and the reason for the recoupment or offset. In
addition,
an insurer,
health maintenance organization, independent
practice association, or physician
hospital organization shall provide with the remittance advice, or with any demand for recoupment or offset, a telephone
number or mailing address to initiate an appeal of the recoupment or offset together with the deadline for initiating an appeal. Such information shall be prominently displayed on the remittance advice or written document containing the demand for recoupment or offset. Any appeal of a recoupment or offset by a health care professional or health care provider must be made within 60 days after receipt of the remittance advice.(b) It is not a recoupment when a health care professional or health care
provider
is paid an amount prospectively or concurrently under a contract with an
insurer, health
maintenance organization, independent practice
association, or physician
hospital
organization that requires a retrospective reconciliation based upon specific
conditions
outlined in the contract.(c) No recoupment or offset may be requested or withheld from future payments 12 months or more after the original payment is made, except in cases in which:(1) a court, government administrative agency, other     tribunal, or independent third-party arbitrator makes or has made a formal finding of fraud or material misrepresentation;(2) an insurer is acting as a plan administrator for     the Comprehensive Health Insurance Plan under the Comprehensive Health Insurance Plan Act;(3) the provider has already been paid in full by any     other payer, third party, or workers' compensation insurer; or(4) an insurer contracted with the Department of     Healthcare and Family Services is required by the Department of Healthcare and Family Services to recoup or offset payments due to a federal Medicaid requirement.  No contract between an insurer and a health care professional or health care provider may provide for recoupments in violation of this Section. Nothing in this Section shall be construed to preclude insurers, health maintenance organizations, independent practice associations, or physician hospital organizations from resolving coordination of benefits between or among each other, including, but not limited to, resolution of workers' compensation and third-party liability cases, without recouping payment from the provider beyond the 18-month time limit provided in this subsection (c). (Source: P.A. 102-632, eff. 1-1-22.) (215 ILCS 5/368e)Sec. 368e. 
		Administration and enforcement.(a) Other than the duties specifically created in Sections 368b, 368c, and
368d,
nothing in those Sections is intended to preclude, prevent, or require the
adoption,
modification, or termination of any utilization management, quality management,
or
claims processing methodologies or other provisions of a contract applicable to
services provided under a
contract
between an insurer, health maintenance organization,
independent practice
association, or
physician hospital organization and a health care professional or health care
provider.(b) Nothing in Sections 368b, 368c, and 368d precludes, prevents, or
requires
the
adoption, modification, or termination of any health plan term, benefit,
coverage or
eligibility provision, or payment methodology.(c) The provisions of Sections 368b, 368c, and 368d are deemed incorporated
into health care professional and health care provider service contracts
entered into on or before the
effective date of
this amendatory Act of the 93rd General Assembly and do not require an insurer,
health
maintenance organization, independent practice
association, or physician
hospital
organization to renew or renegotiate the contracts with a health care
professional or health
care provider.(d) The Department shall enforce the provisions of this Section and
Sections 368b, 368c, and 368d pursuant to the enforcement powers granted to it
by law.(e) The Department is hereby granted specific authority to issue a cease and
desist order against, fine, or otherwise penalize independent practice
associations and
physician-hospital organizations for violations.(f) The Department shall adopt reasonable rules to enforce compliance with
this Section and Sections 368b, 368c, and 368d.
		(Source: P.A. 93-261, eff. 1-1-04.) (215 ILCS 5/368f)Sec. 368f. Military service member insurance reinstatement.(a) No Illinois resident activated for military service and no spouse or dependent of the resident who becomes eligible for a federal government-sponsored health insurance program, including the  TriCare program providing coverage for civilian dependents of military personnel, as a result of the activation shall be denied reinstatement into the same individual health insurance coverage with the health insurer that the resident lapsed as a result of activation or becoming covered by the federal government-sponsored health insurance program. The resident shall have the right to reinstatement in the same individual health insurance coverage without medical underwriting, subject to payment of the current premium charged to other persons of the same age and gender that are covered under the same individual health coverage. Except in the case of birth or adoption that occurs during the period of activation, reinstatement must be into the same coverage type as the resident held prior to lapsing the individual health insurance coverage and at the same or, at the option of the resident, higher deductible level. The reinstatement rights provided under this subsection (a) are not available to a resident or dependents if the activated person is discharged from the military under other than honorable conditions.(b) The health insurer with which the reinstatement is being requested must receive a request for reinstatement no later than 63 days following the later of (i) deactivation or (ii) loss of coverage under the federal government-sponsored health insurance program. The health insurer may request proof of loss of coverage and the timing of the loss of coverage of the government-sponsored coverage in order to determine eligibility for reinstatement into the individual coverage. The effective date of the reinstatement  of individual health coverage shall be the first of the month following receipt of the notice requesting reinstatement.(c) All insurers must provide written notice to the policyholder of individual health coverage of the rights described in subsection (a) of this Section. In lieu of the inclusion of the notice in the individual health insurance policy, an insurance company may satisfy the notification requirement by providing a single written notice:(1) in conjunction with the enrollment process for a     policyholder initially  enrolling in the individual coverage on or after the effective date of this amendatory Act of the 94th General Assembly; or(2) by mailing written notice to policyholders whose     coverage was effective prior to the effective date of this amendatory Act of the 94th General Assembly no later than 90 days following the effective date of this amendatory Act of the 94th General Assembly.(d) The provisions of subsection (a) of this Section do not apply to any policy or certificate providing coverage for any specified disease, specified accident or accident-only coverage, credit, dental, disability income, hospital indemnity, long-term care, Medicare supplement, vision care, or short-term nonrenewable health policy or other limited-benefit supplemental insurance, or any coverage issued as a supplement to any liability insurance, workers' compensation or similar insurance, or any insurance under which benefits are payable with or without regard to fault, whether written on a group, blanket, or individual basis.(e) Nothing in this Section shall require an insurer to reinstate the resident if the insurer requires residency in an enrollment area and those residency requirements are not met after deactivation or loss of coverage under the government-sponsored health insurance program.(f) All terms, conditions, and limitations of the individual coverage into which reinstatement is made apply equally to all insureds enrolled in the coverage.(g) The Secretary may adopt rules as may be necessary to carry out the provisions of this Section.
(Source: P.A. 94-1037, eff. 7-20-06.) (215 ILCS 5/368g)Sec. 368g. Time-based billing.(a) As used in this Section, "CPT code" means the medical billing code set contained in the most recent version of the Current Procedural Terminology code book published by the American Medical Association.(b) A health care plan requiring a health care provider to use a time-based CPT code to bill for health care services shall not apply a time measurement standard that results in fewer units billed than allowed by the CPT code book, except as required by federal law for federally funded patients. 
(Source: P.A. 101-119, eff. 7-22-19; 102-558, eff. 8-20-21.) (215 ILCS 5/369) (from Ch. 73, par. 981)Sec. 369. 
		
		Rights of
minors.Any minor of the age of fifteen years or more may, notwithstanding such
minority, contract for health and accident insurance on his own life for
his own benefit or for the benefit of his father, mother, husband, wife,
child, brother or sister, and may exercise all such contractual rights and
powers with respect to any such contract of insurance as might be exercised
by a person of full legal age, and may exercise with like effect all rights
and privileges under such contract, including the surrender of his interest
therein and the giving of a valid discharge for any benefit accruing or
money payable thereunder. Such minor shall not, by reason of his minority,
be entitled to rescind, avoid, or repudiate such contract, or any exercise
of a right or privilege thereunder.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/370) (from Ch. 73, par. 982)Sec. 370. 
		
		Policies
issued in violation of article-Penalty.(1) Any company, or any officer or agent thereof, issuing or delivering
to any person in this State any policy in wilful violation of the provision
of this article shall be guilty of a petty offense.(2) The Director may revoke the license of any foreign or alien company,
or of the agent thereof wilfully violating any provision of this article or
suspend such license for any period of time up to, but not to exceed, two
years; or may by order require such insurance company or agent to pay to
the people of the State of Illinois a penalty in a sum not exceeding $1,000,
and upon the failure of such insurance company or agent to
pay such penalty within twenty days after the mailing of such order,
postage prepaid, registered, and addressed to the last known place of
business of such insurance company or agent, unless such order is stayed by
an order of a court of competent jurisdiction, the Director of Insurance
may revoke or suspend the license of such insurance company or agent for
any period of time up to, but not exceeding a period of, two years.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/370a) (from Ch. 73, par. 982a)Sec. 370a. 
		Assignability of Accident and Health Insurance.No provision of the Illinois Insurance Code, or any other law, prohibits
an insured under any policy of accident and health insurance or any other
person who may be the owner of any rights under such policy from making an
assignment of all or any part of his rights and privileges under the policy
including but not limited to the right to designate a beneficiary and to
have an individual policy issued in accordance with its terms. Subject to
the terms of the policy or any contract relating thereto, an assignment by
an insured or by any other owner of rights under the policy, made before or
after the effective date of this amendatory Act of 1969 is valid for the
purpose of vesting in the assignee, in accordance with any provisions
included therein as to the time at which it is effective, all rights and
privileges so assigned. However, such assignment is without prejudice to
the company on account of any payment it makes or individual policy it
issues before receipt of notice of the assignment. This amendatory Act of
1969 acknowledges, declares and codifies the existing right of assignment
of interests under accident and health insurance policies.
If an enrollee or insured of an insurer, health maintenance organization,
managed care plan, health care plan, preferred provider organization, or third
party administrator assigns a claim to a health care professional or health
care facility, then payment
shall be made directly to the health care professional or health care facility
including any interest
required under Section 368a, of this Code for failure to pay
claims
within 30
days after receipt by the insurer of due proof of loss.  Nothing in this
Section shall be construed to prevent any parties from reconciling duplicate
payments.
		(Source: P.A. 91-605, eff. 12-14-99; 91-788, eff. 6-9-00.) (215 ILCS 5/370b) (from Ch. 73, par. 982b)Sec. 370b. 
		Reimbursement on equal basis. 
		Notwithstanding any provision
of any individual or group
policy of accident and health insurance, or any provision of a policy,
contract, plan or agreement for hospital or medical service or indemnity,
wherever such policy, contract, plan or agreement provides for
reimbursement for any service provided by persons licensed under the Medical Practice Act of 1987 or the Podiatric Medical
Practice
Act of 1987, the person entitled to benefits or person performing services
under such policy, contract, plan or agreement is entitled to reimbursement
on an equal basis for such service, when the service is performed by a
person licensed under the Medical Practice Act of 1987 or the
Podiatric Medical Practice Act of 1987.  The provisions of this Section do
not apply to any policy, contract, plan or agreement in effect prior to
September 19, 1969 or to
preferred provider arrangements or benefit agreements.
		(Source: P.A. 90-14, eff. 7-1-97.) (215 ILCS 5/370b.1)Sec. 370b.1. Surgical assistant payments. Payment for services rendered by a registered surgical assistant, as defined in the Registered Surgical Assistant and Registered Surgical Technologist Title Protection Act, who is neither an employee of an ambulatory surgical treatment center, as defined in the Ambulatory Surgical Treatment Center Act, nor an employee of a hospital shall be paid at the appropriate non-physician modifier rate if the payor would have made payment had the same services been provided by a physician.
(Source: P.A. 99-100, eff. 1-1-16.) (215 ILCS 5/370c) (from Ch. 73, par. 982c)Sec. 370c. Mental and emotional disorders.(a)(1) On and after January 1, 2022 (the effective date of Public Act 102-579),
every insurer that amends, delivers, issues, or renews
group accident and health policies providing coverage for hospital or medical treatment or
services for illness on an expense-incurred basis shall provide coverage for the medically necessary treatment of mental, emotional, nervous, or substance use disorders or conditions consistent with the parity requirements of Section 370c.1 of this Code.(2) Each insured that is covered for mental, emotional, nervous, or substance use
disorders or conditions shall be free to select the physician licensed to
practice medicine in all its branches, licensed clinical psychologist,
licensed clinical social worker, licensed clinical professional counselor, licensed marriage and family therapist, licensed speech-language pathologist, or other licensed or certified professional at a program licensed pursuant to the Substance Use Disorder Act of
his or her choice to treat such disorders, and
the insurer shall pay the covered charges of such physician licensed to
practice medicine in all its branches, licensed clinical psychologist,
licensed clinical social worker, licensed clinical professional counselor, licensed marriage and family therapist, licensed speech-language pathologist, or other licensed or certified professional at a program licensed pursuant to the Substance Use Disorder Act up
to the limits of coverage, provided (i)
the disorder or condition treated is covered by the policy, and (ii) the
physician, licensed psychologist, licensed clinical social worker, licensed
clinical professional counselor, licensed marriage and family therapist, licensed speech-language pathologist, or other licensed or certified professional at a program licensed pursuant to the Substance Use Disorder Act is
authorized to provide said services under the statutes of this State and in
accordance with accepted principles of his or her profession.(3) Insofar as this Section applies solely to licensed clinical social
workers, licensed clinical professional counselors, licensed marriage and family therapists, licensed speech-language pathologists, and other licensed or certified professionals at programs licensed pursuant to the Substance Use Disorder Act, those persons who may
provide services to individuals shall do so
after the licensed clinical social worker, licensed clinical professional
counselor, licensed marriage and family therapist, licensed speech-language pathologist, or other licensed or certified professional at a program licensed pursuant to the Substance Use Disorder Act has informed the patient of the
desirability of the patient conferring with the patient's primary care
physician.(4) "Mental, emotional, nervous, or substance use disorder or condition" means a condition or disorder that involves a mental health condition or substance use disorder that falls under any of the diagnostic categories listed in the mental and behavioral disorders chapter of the current edition of the World Health Organization's International Classification of Disease or that is listed in the most recent version of the American Psychiatric Association's Diagnostic and Statistical Manual of Mental Disorders. "Mental, emotional, nervous, or substance use disorder or condition" includes any mental health condition that occurs during pregnancy or during the postpartum period and includes, but is not limited to, postpartum depression.(5)   Medically necessary treatment and medical necessity determinations shall be interpreted and made in a manner that is consistent with and pursuant to subsections (h) through (t).(b)(1) (Blank).(2) (Blank).(2.5) (Blank).(3) Unless otherwise prohibited by federal law and consistent with the parity requirements of Section 370c.1 of this Code, the reimbursing insurer that amends, delivers, issues, or renews a group or individual policy of accident and health insurance, a qualified health plan offered through the health insurance marketplace, or a provider of treatment of mental, emotional, nervous,
 or  substance use disorders or conditions shall furnish medical records or other necessary data
that substantiate that initial or continued treatment is at all times medically
necessary.  An insurer shall provide a mechanism for the timely review by a
provider holding the same license and practicing in the same specialty as the
patient's provider, who is unaffiliated with the insurer, jointly selected by
the patient (or the patient's next of kin or legal representative if the
patient is unable to act for himself or herself), the patient's provider, and
the insurer in the event of a dispute between the insurer and patient's
provider regarding the medical necessity of a treatment proposed by a patient's
provider.  If the reviewing provider determines the treatment to be medically
necessary, the insurer shall provide reimbursement for the treatment.  Future
contractual or employment actions by the insurer regarding the patient's
provider may not be based on the provider's participation in this procedure.
Nothing prevents
the insured from agreeing in writing to continue treatment at his or her
expense.  When making a determination of the medical necessity for a treatment
modality for mental, emotional, nervous, or  substance use disorders or conditions, an insurer must make the determination in a
manner that is consistent with the manner used to make that determination with
respect to other diseases or illnesses covered under the policy, including an
appeals process. Medical necessity determinations for substance use disorders shall be made in accordance with appropriate patient placement criteria established by the American Society of Addiction Medicine. No additional criteria may be used to make medical necessity determinations for substance use disorders.(4) A group health benefit plan amended, delivered, issued, or renewed on or after January 1, 2019 (the effective date of Public Act 100-1024) or an individual policy of accident and health insurance or a qualified health plan offered through the health insurance marketplace amended, delivered, issued, or renewed on or after January 1, 2019 (the effective date of Public Act 100-1024):(A) shall provide coverage based upon medical     necessity for the treatment of a mental, emotional, nervous, or substance use disorder or condition consistent with the parity requirements of Section 370c.1 of this Code; provided, however, that in each calendar year coverage shall not be less than the following:(i) 45 days of inpatient treatment; and(ii) beginning on June 26, 2006 (the effective         date of Public Act 94-921), 60 visits for outpatient treatment including group and individual outpatient treatment; and(iii) for plans or policies delivered, issued for         delivery, renewed, or modified after January 1, 2007 (the effective date of Public Act 94-906), 20 additional outpatient visits for speech therapy for treatment of pervasive developmental disorders that will be in addition to speech therapy provided pursuant to item (ii) of this subparagraph (A); and(B) may not include a lifetime limit on the number of     days of inpatient treatment or the number of outpatient visits covered under the plan.(C) (Blank).(5) An issuer of a group health benefit plan or an individual policy of accident and health insurance or a qualified health plan offered through the health insurance marketplace may not count toward the number
of outpatient visits required to be covered under this Section an outpatient
visit for the purpose of medication management and shall cover the outpatient
visits under the same terms and conditions as it covers outpatient visits for
the treatment of physical illness.(5.5)  An individual or group health benefit plan amended, delivered, issued, or renewed on or after September 9, 2015 (the effective date of Public Act 99-480) shall offer coverage for medically necessary acute treatment services and medically necessary clinical stabilization services. The treating provider shall base all treatment recommendations and the health benefit plan shall base all medical necessity determinations for substance use disorders in accordance with the most current edition of the Treatment Criteria for Addictive, Substance-Related, and Co-Occurring Conditions established by the American Society of Addiction Medicine. The treating provider shall base all treatment recommendations and the health benefit plan shall base all medical necessity determinations for medication-assisted treatment in accordance with the most current Treatment Criteria for Addictive, Substance-Related, and Co-Occurring Conditions established by the American Society of Addiction Medicine.As used in this subsection:"Acute treatment services" means 24-hour medically supervised addiction treatment that provides evaluation and withdrawal management and may include biopsychosocial assessment, individual and group counseling, psychoeducational groups, and discharge planning."Clinical stabilization services" means 24-hour treatment, usually following acute treatment services for substance abuse, which may include intensive education and counseling regarding the nature of addiction and its consequences, relapse prevention, outreach to families and significant others, and aftercare planning for individuals beginning to engage in recovery from addiction.(6) An issuer of a group health benefit
plan may provide or offer coverage required under this Section through a
managed care plan.(6.5) An individual or group health benefit plan amended, delivered, issued, or renewed on or after January 1, 2019 (the effective date of Public Act 100-1024):(A) shall not impose prior authorization     requirements, other than those established under the Treatment Criteria for Addictive, Substance-Related, and Co-Occurring Conditions established by the American Society of Addiction Medicine, on a prescription medication approved by the United States Food and Drug Administration that is prescribed or administered for the treatment of substance use disorders;(B) shall not impose any step therapy requirements,     other than those established under the Treatment Criteria for Addictive, Substance-Related, and Co-Occurring Conditions established by the American Society of Addiction Medicine, before authorizing coverage for a prescription medication approved by the United States Food and Drug Administration that is prescribed or administered for the treatment of substance use disorders;(C) shall place all prescription medications approved     by the United States Food and Drug Administration prescribed or administered for the treatment of substance use disorders on, for brand medications,  the lowest tier of the drug formulary developed and maintained by the individual or group health benefit plan that covers brand medications and, for generic medications, the lowest tier of the drug formulary developed and maintained by the individual or group health benefit plan that covers generic medications; and(D) shall not exclude coverage for a prescription     medication approved by the United States Food and Drug Administration for the treatment of substance use disorders and any associated counseling or wraparound services on the grounds that such medications and services were court ordered.(7) (Blank).(8)
(Blank).(9) With respect to all mental, emotional, nervous, or substance use disorders or conditions, coverage for inpatient treatment shall include coverage for treatment in a residential treatment center certified or licensed by the Department of Public Health or the Department of Human  Services.(c) This Section shall not be interpreted to require coverage for speech therapy or other habilitative services for those individuals covered under Section 356z.15
 of this Code.(d) With respect to a group or individual policy of accident and health insurance or a qualified health plan offered through the health insurance marketplace, the Department and, with respect to medical assistance, the Department of Healthcare and Family Services shall each enforce the requirements of this Section and Sections 356z.23 and 370c.1 of this Code, the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, 42 U.S.C. 18031(j), and any amendments to, and federal guidance or regulations issued under, those Acts, including, but not limited to, final regulations issued under the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 and final regulations applying the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 to Medicaid managed care organizations, the Children's Health Insurance Program, and alternative benefit plans. Specifically, the Department and the Department of Healthcare and Family Services shall take action:(1) proactively ensuring compliance by individual and     group policies, including by requiring that insurers submit comparative analyses, as set forth in paragraph (6) of subsection (k) of Section 370c.1, demonstrating how they design and apply nonquantitative treatment limitations, both as written and in operation, for mental, emotional, nervous, or substance use disorder or condition benefits as compared to how they design and apply nonquantitative treatment limitations, as written and in operation, for medical and surgical benefits;(2) evaluating all consumer or provider complaints     regarding mental, emotional, nervous, or substance use disorder or condition coverage for possible parity violations;(3) performing parity compliance market conduct     examinations or, in the case of the Department of Healthcare and Family Services, parity compliance audits of individual and group plans and policies, including, but not limited to, reviews of:(A) nonquantitative treatment limitations,         including, but not limited to, prior authorization requirements, concurrent review, retrospective review, step therapy, network admission standards, reimbursement rates, and geographic restrictions;(B) denials of authorization, payment, and         coverage; and(C) other specific criteria as may be determined         by the Department.The findings and the conclusions of the parity compliance market conduct examinations and audits shall be made public.The Director may adopt rules to effectuate any provisions of the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 that relate to the business of insurance.(e) Availability of plan information.(1) The criteria for medical necessity determinations     made under a group health plan, an individual policy of accident and health insurance, or a qualified health plan offered through the health insurance marketplace with respect to mental health or substance use disorder benefits (or health insurance coverage offered in connection with the plan with respect to such benefits) must be made available by the plan administrator (or the health insurance issuer offering such coverage) to any current or potential participant, beneficiary, or contracting provider upon request.(2) The reason for any denial under a group health     benefit plan, an individual policy of accident and health insurance, or a qualified health plan offered through the health insurance marketplace (or health insurance coverage offered in connection with such plan or policy) of reimbursement or payment for services with respect to mental, emotional, nervous, or substance use disorders or conditions benefits in the case of any participant or beneficiary must be made available within a reasonable time and in a reasonable manner and in readily understandable language by the plan administrator (or the health insurance issuer offering such coverage) to the participant or beneficiary upon request.(f)    As used in this Section, "group policy of accident and health insurance" and "group health benefit plan" includes (1) State-regulated employer-sponsored group health insurance plans written in Illinois or which purport to provide coverage for a resident of this State; and (2) State employee health plans.(g) (1) As used in this subsection:"Benefits", with respect to insurers, means
the benefits provided for treatment services for inpatient and outpatient treatment of substance use disorders or conditions at American Society of Addiction Medicine levels of treatment 2.1 (Intensive Outpatient), 2.5 (Partial Hospitalization), 3.1 (Clinically Managed Low-Intensity Residential), 3.3 (Clinically Managed Population-Specific High-Intensity Residential), 3.5 (Clinically Managed High-Intensity Residential), and 3.7 (Medically Monitored Intensive Inpatient) and OMT (Opioid Maintenance Therapy) services."Benefits", with respect to managed care organizations, means the benefits provided for treatment services for inpatient and outpatient treatment of substance use disorders or conditions at American Society of Addiction Medicine levels of treatment 2.1 (Intensive Outpatient), 2.5 (Partial Hospitalization), 3.5 (Clinically Managed High-Intensity Residential), and 3.7 (Medically Monitored Intensive Inpatient) and OMT (Opioid Maintenance Therapy) services."Substance use disorder treatment provider or facility" means a licensed physician, licensed psychologist, licensed psychiatrist, licensed advanced practice registered nurse, or licensed, certified, or otherwise State-approved facility or provider of substance use disorder treatment.(2) A group health insurance policy, an individual health benefit plan, or qualified health plan that is offered through the health insurance marketplace, small employer group health plan, and large employer group health plan that is amended, delivered, issued, executed, or renewed in this State, or approved for issuance or renewal in this State, on or after January 1, 2019 (the effective date of Public Act 100-1023) shall comply with  the requirements of this Section and Section  370c.1.  The services for the treatment and the ongoing assessment of the patient's progress in treatment shall follow the requirements of 77 Ill. Adm. Code 2060.(3) Prior authorization shall not be utilized for the benefits under this subsection.  The substance use disorder treatment provider or facility shall notify the insurer of the initiation of treatment.  For an insurer that is not a managed care organization, the substance use disorder treatment provider or facility notification shall occur for the initiation of treatment of the covered person within 2 business days.  For managed care organizations, the substance use disorder treatment provider or facility notification shall occur in accordance with the protocol set forth in the provider agreement for initiation of treatment within 24 hours.  If the managed care organization is not capable of accepting the notification in accordance with the contractual protocol during the 24-hour period following admission, the substance use disorder treatment provider or facility shall have one additional business day to provide the notification to the appropriate managed care organization. Treatment plans shall be developed in accordance with the requirements and timeframes established in 77 Ill. Adm. Code 2060.  If the substance use disorder treatment provider or facility fails to notify the insurer of the initiation of treatment in accordance with these provisions, the insurer may follow its normal prior authorization processes.(4) For an insurer that is not a managed care organization, if an insurer determines that benefits are no longer medically necessary, the insurer shall notify the covered person, the covered person's authorized representative, if any, and the covered person's health care provider in writing of the covered person's right to request an external review pursuant to the Health Carrier External Review Act.  The notification shall occur within 24 hours following the adverse determination.Pursuant to the requirements of the Health Carrier External Review Act, the covered person or the covered person's authorized representative may request an expedited external review.
An expedited external review may not occur if the substance use disorder treatment provider or facility determines that continued treatment is no longer medically necessary. Under this subsection, a request for expedited external review must be initiated within 24 hours following the adverse determination notification by the insurer.  Failure to request an expedited external review within 24 hours shall preclude a covered person or a covered person's authorized representative from requesting an expedited external review.If an expedited external review request meets the criteria of the Health Carrier External Review Act, an independent review organization shall make a final determination of medical necessity within 72 hours. If an independent review organization upholds an adverse determination, an insurer shall remain responsible to provide coverage of benefits through the day following the determination of the independent review organization.  A decision to reverse an adverse determination shall comply with the Health Carrier External Review Act.(5) The substance use disorder treatment provider or facility shall provide the insurer with 7 business days' advance notice of the planned discharge of the patient from the substance use disorder treatment provider or facility and notice on the day that the patient is discharged from the substance use disorder treatment provider or facility.(6) The benefits required by this subsection shall be provided to all covered persons with a diagnosis of substance use disorder or conditions. The presence of additional related or unrelated diagnoses shall not be a basis to reduce or deny the benefits required by this subsection.(7) Nothing in this subsection shall be construed to require an insurer to provide coverage for any of the benefits in this subsection.(h)     As used in this Section:"Generally accepted standards of mental, emotional, nervous, or substance use disorder or condition care" means standards of care and clinical practice that are generally recognized by health care providers practicing in relevant clinical specialties such as psychiatry, psychology, clinical sociology, social work, addiction medicine and counseling, and behavioral health treatment. Valid, evidence-based sources reflecting generally accepted standards of mental, emotional, nervous, or substance use disorder or condition care include peer-reviewed scientific studies and medical literature, recommendations of nonprofit health care provider professional associations and specialty societies, including, but not limited to, patient placement criteria and clinical practice guidelines, recommendations of federal government agencies, and drug labeling approved by the United States Food and Drug Administration."Medically necessary treatment of mental, emotional, nervous, or substance use disorders or conditions" means a service or product addressing the specific needs of that patient, for the purpose of screening, preventing, diagnosing, managing, or treating an illness, injury, or condition or its symptoms and comorbidities, including minimizing the progression of an illness, injury, or  condition or its symptoms and comorbidities in a manner that is all of the following:(1)   in accordance with the generally accepted     standards of mental, emotional, nervous, or substance use disorder or condition care;(2)   clinically appropriate in terms of type,     frequency, extent, site, and duration; and(3)   not primarily for the economic benefit of the     insurer, purchaser, or for the convenience of the patient, treating physician, or other health care provider."Utilization review" means either of the following:(1)   prospectively, retrospectively, or concurrently     reviewing and approving, modifying, delaying, or denying, based in whole or in part on medical necessity, requests by health care providers, insureds, or their authorized representatives for coverage of health care services before, retrospectively, or concurrently with the provision of health care services to insureds.(2)   evaluating the medical necessity,     appropriateness, level of care, service intensity, efficacy, or efficiency of health care services, benefits, procedures, or settings, under any circumstances, to determine whether a health care service or benefit subject to a medical necessity coverage requirement in an insurance policy is covered as medically necessary for an insured."Utilization review criteria" means patient placement criteria or any criteria, standards, protocols, or guidelines used by an insurer to conduct utilization review.(i)(1)   Every insurer that amends, delivers, issues, or renews a group or individual policy of accident and health insurance or a qualified health plan offered through the health insurance marketplace in this State and Medicaid managed care organizations providing coverage for hospital or medical treatment on or after January 1, 2023 shall, pursuant to subsections (h) through (s), provide coverage for medically necessary treatment of mental, emotional, nervous, or substance use disorders or conditions.(2)   An insurer shall not set a specific limit on the duration of benefits or coverage of medically necessary treatment of mental, emotional, nervous, or substance use disorders or conditions or limit coverage only to alleviation of the insured's current symptoms.(3)   All medical necessity determinations made by the insurer concerning service intensity, level of care placement, continued stay, and transfer or discharge of insureds diagnosed with mental, emotional, nervous, or substance use disorders or conditions shall be conducted in accordance with the requirements of subsections (k) through (u).(4)   An insurer that authorizes a specific type of treatment by a provider pursuant to this Section shall not rescind or modify the authorization after that provider renders the health care service in good faith and pursuant to this authorization for any reason, including, but not limited to, the insurer's subsequent cancellation or modification of the insured's or policyholder's contract, or the insured's or policyholder's eligibility. Nothing in this Section shall require the insurer to cover a treatment when the authorization was granted based on a material misrepresentation by the insured, the policyholder, or the provider. Nothing in this Section shall require Medicaid managed care organizations to pay for services if the individual was not eligible for Medicaid at the time the service was rendered. Nothing in this Section shall require an insurer to pay for services if the individual was not the insurer's enrollee at the time services were rendered. As used in this paragraph, "material" means a fact or situation that is not merely technical in nature and results in or could result in a substantial change in the situation.(j)  An insurer shall not limit benefits or coverage for medically necessary services on the basis that those services should be or could be covered by a public entitlement program, including, but not limited to, special education or an individualized education program, Medicaid, Medicare, Supplemental Security Income, or Social Security Disability Insurance, and shall not include or enforce a contract term that excludes otherwise covered benefits on the basis that those services should be or could be covered by a public entitlement program. Nothing in this subsection shall be construed to require an insurer to cover benefits that have been authorized and provided for a covered person by a public entitlement program. Medicaid managed care organizations are not subject to this subsection.(k)   An insurer shall base any medical necessity determination or the utilization review criteria that the insurer, and any entity acting on the insurer's behalf, applies to determine the medical necessity of health care services and benefits for the diagnosis, prevention, and treatment of mental, emotional, nervous, or substance use disorders or conditions on current generally accepted standards of mental, emotional, nervous, or substance use disorder or condition care. All denials and appeals shall be reviewed by a professional with experience or expertise comparable to the provider requesting the authorization.(l)   For medical necessity determinations relating to level of care placement, continued stay, and transfer or discharge of insureds diagnosed with mental, emotional, and nervous disorders or conditions, an insurer shall apply  the patient placement criteria set forth in the most recent version of the treatment criteria developed by an unaffiliated nonprofit professional association for the relevant clinical specialty or, for Medicaid managed care organizations, patient placement criteria determined by the Department of Healthcare and Family Services that are consistent with generally accepted standards of mental, emotional, nervous or substance use disorder or condition care. Pursuant to subsection (b), in conducting utilization review of all covered services and benefits for the diagnosis, prevention, and treatment of substance use disorders an insurer shall use the most recent edition of the patient placement criteria established by the American Society of Addiction Medicine.(m)   For medical necessity determinations relating to  level of care placement, continued stay, and transfer or discharge that are within the scope of the sources specified in subsection (l), an insurer shall not apply different, additional, conflicting, or more restrictive utilization review criteria than the criteria set forth in those sources. For all level of care placement decisions, the insurer shall authorize placement at the level of care consistent with the assessment of the insured using the relevant patient placement criteria as specified in subsection (l). If that level of placement is not available, the insurer shall authorize the next higher level of care. In the event of disagreement, the insurer shall provide full detail of its assessment using the relevant criteria as specified in subsection (l) to the provider of the service and the patient.Nothing in this subsection or subsection (l) prohibits an insurer from applying utilization review criteria that were developed in accordance with subsection (k) to health care services and benefits for mental, emotional, and nervous disorders or conditions that are not related to medical necessity determinations for level of care placement, continued stay, and transfer or discharge. If an insurer purchases or licenses utilization review criteria pursuant to this subsection, the insurer shall verify and document before use that the criteria were developed in accordance with subsection (k).(n)   In conducting utilization review that is outside the scope of the criteria as specified in subsection (l) or relates to the advancements in technology or in the types or levels of care that are not addressed in the most recent versions of the sources specified in subsection (l), an insurer shall conduct utilization review in accordance with subsection (k).(o)   This Section does not in any way limit the rights of a patient under the Medical Patient Rights Act.(p)   This Section does not in any way limit early and periodic screening, diagnostic, and treatment benefits as defined under 42 U.S.C. 1396d(r).(q)   To ensure the proper use of the criteria described in subsection (l), every insurer shall do all of the following:(1)   Educate the insurer's staff, including any     third parties contracted with the insurer to review claims, conduct utilization reviews, or make medical necessity determinations about the utilization review criteria.(2)   Make the educational program available to other     stakeholders, including the insurer's participating or contracted providers and potential participants, beneficiaries, or covered lives. The education program must be provided at least once a year, in-person or digitally, or recordings of the education program must be made available to the aforementioned stakeholders.(3)   Provide, at no cost, the utilization review     criteria and any training material or resources to providers and insured patients upon request. For utilization review criteria not concerning level of care placement, continued stay, and transfer or discharge used by the insurer pursuant to subsection (m), the insurer may place the criteria on a secure, password-protected website so long as the access requirements of the website do not unreasonably restrict access to insureds or their providers. No restrictions shall be placed upon the insured's or treating provider's access right to utilization review criteria obtained under this paragraph at any point in time, including before an initial request for authorization.(4)   Track, identify, and analyze how the     utilization review criteria are used to certify care, deny care, and support the appeals process.(5)   Conduct interrater reliability testing to     ensure consistency in utilization review decision making that covers how medical necessity decisions are made; this assessment shall cover all aspects of utilization review as defined in subsection (h).(6)   Run interrater reliability reports about how     the clinical guidelines are used in conjunction with the utilization review process and parity compliance activities.(7)   Achieve interrater reliability pass rates of at     least 90% and, if this threshold is not met, immediately provide for the remediation of poor interrater reliability and interrater reliability testing for all new staff before they can conduct utilization review without supervision.(8)   Maintain documentation of interrater     reliability testing and the remediation actions taken for those with pass rates lower than 90% and submit to the Department of Insurance or, in the case of Medicaid managed care organizations, the Department of Healthcare and Family Services the testing results and a summary of remedial actions as part of parity compliance reporting set forth in subsection (k) of Section 370c.1.(r)   This Section applies to all health care services and benefits for the diagnosis, prevention, and treatment of mental, emotional, nervous, or substance use disorders or conditions covered by an insurance policy, including prescription drugs.(s)   This Section applies to an insurer that amends, delivers, issues, or renews a group or individual policy of accident and health insurance or a qualified health plan offered through the health insurance marketplace in this State providing coverage for hospital or medical treatment and conducts utilization review as defined in this Section, including Medicaid managed care organizations, and any entity or contracting provider that performs utilization review or utilization management functions on an insurer's behalf.(t)   If the Director determines that an insurer has violated this Section, the Director may, after appropriate notice and opportunity for hearing, by order, assess a civil penalty between $1,000 and $5,000 for each violation. Moneys collected from penalties shall be deposited into the Parity Advancement Fund established in subsection (i) of Section 370c.1.(u)   An insurer shall not adopt, impose, or enforce terms in its policies or provider agreements, in writing or in operation, that undermine, alter, or conflict with the requirements of this Section.(v)   The provisions of this Section are severable. If any provision of this Section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (Source: P.A. 101-81, eff. 7-12-19; 101-386, eff. 8-16-19; 102-558, eff. 8-20-21; 102-579, eff. 1-1-22; 102-813, eff. 5-13-22.) (215 ILCS 5/370c.1)Sec. 370c.1. Mental, emotional, nervous, or substance use disorder or condition parity.(a) On and after July 23, 2021 (the effective date of Public Act 102-135), every insurer that amends, delivers, issues, or renews a group or individual policy of accident and health insurance or a qualified health plan offered through the Health Insurance Marketplace in this State providing coverage for hospital or medical treatment and for the treatment of mental, emotional, nervous, or substance use disorders or conditions shall ensure prior to policy issuance that:(1) the financial requirements applicable to such     mental, emotional, nervous, or substance use disorder or condition benefits are no more restrictive than the predominant financial requirements applied to substantially all hospital and medical benefits covered by the policy and that  there are no separate cost-sharing requirements that are applicable only with respect to mental, emotional, nervous, or substance use disorder or condition benefits; and(2) the treatment limitations applicable to such     mental, emotional, nervous, or substance use disorder or condition benefits are no more restrictive than the predominant treatment limitations applied to substantially all hospital and medical benefits covered by the policy and that  there are no separate treatment limitations that are applicable only with respect to mental, emotional, nervous, or substance use disorder or condition benefits.(b) The following provisions shall apply concerning aggregate lifetime limits:(1) In the case of a group or individual policy of     accident and health insurance or a qualified health plan offered through the Health Insurance Marketplace amended, delivered, issued, or renewed in this State on or after September 9, 2015 (the effective date of Public Act 99-480) that provides coverage for hospital or medical treatment and for the treatment of mental, emotional, nervous, or substance use disorders or conditions the following provisions shall apply:(A) if the policy does not include an aggregate         lifetime limit on substantially all hospital and medical benefits, then the policy may not impose any aggregate lifetime limit on mental, emotional, nervous, or substance use disorder or condition benefits; or(B) if the policy includes an aggregate lifetime         limit on substantially all hospital and medical benefits (in this subsection referred to as the "applicable lifetime limit"), then the policy shall either:(i) apply the applicable lifetime limit both             to the hospital and medical benefits to which it otherwise would apply and to mental, emotional, nervous, or substance use disorder or condition benefits and not distinguish in the application of the limit between the hospital and medical benefits and mental, emotional, nervous, or substance use disorder or condition benefits; or(ii) not include any aggregate lifetime limit             on mental, emotional, nervous, or substance use disorder or condition benefits that is less than the applicable lifetime limit.(2) In the case of a policy that is not described in     paragraph (1) of subsection (b) of this Section and that includes no or different aggregate lifetime limits on different categories of hospital and medical benefits, the Director shall establish rules under which subparagraph (B) of paragraph (1) of subsection (b) of this Section is applied to such policy with respect to mental, emotional, nervous, or substance use disorder or condition benefits by substituting for the applicable lifetime limit an average aggregate lifetime limit that is computed taking into account the weighted average of the aggregate lifetime limits applicable to such categories.(c) The following provisions shall apply concerning annual limits:(1) In the case of a group or individual policy of     accident and health insurance or a qualified health plan offered through the Health Insurance Marketplace amended, delivered, issued, or renewed in this State on or after September 9, 2015 (the effective date of Public Act 99-480) that provides coverage for hospital or medical treatment and for the treatment of mental, emotional, nervous, or substance use disorders or conditions the following provisions shall apply:(A) if the policy does not include an annual         limit on substantially all hospital and medical benefits, then the policy may not impose any annual limits on mental, emotional, nervous, or substance use disorder or condition benefits; or(B) if the policy includes an annual limit on         substantially all hospital and medical benefits (in this subsection referred to as the "applicable annual limit"), then the policy shall either:(i) apply the applicable annual limit both to             the hospital and medical benefits to which it otherwise would apply and to mental, emotional, nervous, or substance use disorder or condition benefits and not distinguish in the application of the limit between the hospital and medical benefits and mental, emotional, nervous, or substance use disorder or condition benefits; or(ii) not include any annual limit on mental,             emotional, nervous, or substance use disorder or condition benefits that is less than the applicable annual limit.(2) In the case of a policy that is not described in     paragraph (1) of subsection (c) of this Section and that includes no or different annual limits on different categories of hospital and medical benefits, the Director shall establish rules under which subparagraph (B) of paragraph (1) of subsection (c) of this Section is applied to such policy with respect to mental, emotional, nervous, or substance use disorder or condition benefits by substituting for the applicable annual limit an average annual limit that is computed taking into account the weighted average of the annual limits applicable to such categories.(d) With respect to mental, emotional, nervous, or substance use disorders or conditions, an insurer shall use policies and procedures for the election and placement of mental, emotional, nervous, or substance use disorder or condition treatment drugs on their formulary that are no less favorable to the insured as those policies and procedures the insurer uses for the selection and placement of drugs for medical or surgical conditions and shall follow the expedited coverage determination requirements for substance abuse treatment drugs set forth in Section 45.2 of the Managed Care Reform and Patient Rights Act.(e) This Section shall be interpreted in a manner consistent with all applicable federal parity regulations including, but not limited to, the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, final regulations issued under the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 and final regulations applying the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 to Medicaid managed care organizations, the Children's Health Insurance Program, and alternative benefit plans.(f) The provisions of subsections (b) and (c) of this Section shall not be interpreted to allow the use of lifetime or annual limits otherwise prohibited by State or federal law.(g) As used in this Section:"Financial requirement" includes deductibles, copayments, coinsurance, and out-of-pocket maximums, but does not include an aggregate lifetime limit or an annual limit subject to subsections (b) and (c)."Mental, emotional, nervous, or substance use disorder or condition" means a condition or disorder that involves a mental health condition or substance use disorder that falls under any of the diagnostic categories listed in the mental and behavioral disorders chapter of the current edition of the International Classification of Disease or that is listed in the most recent version of the Diagnostic and Statistical Manual of Mental Disorders."Treatment limitation" includes limits on benefits based on the frequency of treatment, number of visits, days of coverage, days in a waiting period, or other similar limits on the scope or duration of treatment.  "Treatment limitation" includes both quantitative treatment limitations, which are expressed numerically (such as 50 outpatient visits per year), and nonquantitative treatment limitations, which otherwise limit the scope or duration of treatment.  A permanent exclusion of all benefits for a particular condition or disorder shall not be considered a treatment limitation. "Nonquantitative treatment" means those limitations as described under federal regulations (26 CFR 54.9812-1). "Nonquantitative treatment limitations" include, but are not limited to, those limitations described under federal regulations 26 CFR 54.9812-1, 29 CFR 2590.712, and 45 CFR 146.136.(h) The Department of Insurance shall implement the following education initiatives:(1)  By January 1, 2016, the Department shall develop     a plan for a Consumer Education Campaign on parity.  The Consumer Education Campaign shall focus its efforts throughout the State and include trainings in the northern, southern, and central regions of the State, as defined by the Department, as well as each of the 5 managed care regions of the State as identified by the Department of Healthcare and Family Services.  Under this Consumer Education Campaign, the Department shall:  (1) by January 1, 2017, provide at least one live training in each region on parity for consumers and providers and one webinar training to be posted on the Department website and (2) establish a consumer hotline to assist consumers in navigating the parity process by March 1, 2017.  By January 1, 2018 the Department shall issue a report to the General Assembly on the success of the Consumer Education Campaign, which shall indicate whether additional training is necessary or would be recommended.(2)  The Department, in coordination with the     Department of Human Services and the Department of Healthcare and Family Services, shall convene a working group of health care insurance carriers, mental health advocacy groups, substance abuse patient advocacy groups, and mental health physician groups for the purpose of discussing issues related to the treatment and coverage of mental, emotional, nervous, or substance use disorders or conditions and compliance with parity obligations under State and federal law.  Compliance shall be measured, tracked, and shared during the meetings of the working group.  The working group shall meet once before January 1, 2016 and shall meet semiannually thereafter.  The Department shall issue an annual report to the General Assembly that includes a list of the health care insurance carriers, mental health advocacy groups, substance abuse patient advocacy groups, and mental health physician groups that participated in the working group meetings, details on the issues and topics covered, and any legislative recommendations developed by the working group.(3) Not later than January 1 of each year, the     Department, in conjunction with the Department of Healthcare and Family Services, shall issue a joint report to the General Assembly and provide an educational presentation to the General Assembly. The report and presentation shall:(A) Cover the methodology the Departments use to         check for compliance with the federal Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, 42 U.S.C. 18031(j), and any federal regulations or guidance relating to the compliance and oversight of the federal Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 and 42 U.S.C. 18031(j).(B) Cover the methodology the Departments use to         check for compliance with this Section and Sections 356z.23 and 370c of this Code.(C) Identify market conduct examinations or, in         the case of the Department of Healthcare and Family Services, audits conducted or completed during the preceding 12-month period regarding compliance with parity in mental, emotional, nervous, and substance use disorder or condition benefits under State and federal laws and summarize the results of such market conduct examinations and audits. This shall include:(i) the number of market conduct examinations             and audits initiated and completed;(ii) the benefit classifications examined by             each market conduct examination and audit;(iii) the subject matter of each market             conduct examination and audit, including quantitative and nonquantitative treatment limitations; and(iv) a summary of the basis for the final             decision rendered in each market conduct examination and audit.Individually identifiable information shall be         excluded from the reports consistent with federal privacy protections.(D) Detail any educational or corrective actions         the Departments have taken to ensure compliance with the federal Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, 42 U.S.C. 18031(j), this Section, and Sections 356z.23 and 370c of this Code.(E) The report must be written in non-technical,         readily understandable language and shall be made available to the public by, among such other means as the Departments find appropriate, posting the report on the Departments' websites.(i)  The Parity Advancement Fund is created as a special fund in the State treasury.  Moneys from fines and penalties collected from insurers for violations of this Section shall be deposited into the Fund. Moneys deposited into the Fund for appropriation by the General Assembly to the Department shall be used for the purpose of providing financial support of the Consumer Education Campaign, parity compliance advocacy, and other initiatives that support parity implementation and enforcement on behalf of consumers.(j) The Department of Insurance and the Department of Healthcare and Family Services shall convene and provide technical support to a workgroup of 11 members that shall be comprised of 3 mental health parity experts recommended by an organization advocating on behalf of mental health parity appointed by the President of the Senate; 3 behavioral health providers recommended by an organization that represents behavioral health providers appointed by the Speaker of the House of Representatives; 2 representing Medicaid managed care organizations recommended by an organization that represents Medicaid managed care plans appointed by the Minority Leader of the House of Representatives; 2 representing commercial insurers recommended by an organization that represents insurers appointed by the Minority Leader of the Senate; and a representative of an organization that represents Medicaid managed care plans appointed by the Governor.The workgroup shall provide recommendations to the General Assembly on  health plan data reporting requirements that separately break out data on mental, emotional, nervous, or substance use disorder or condition benefits and data on other medical benefits, including physical health and related health services no later than December 31, 2019. The recommendations to the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate in electronic form only, in the manner that the Clerk and the Secretary shall direct. This workgroup shall take into account federal requirements and recommendations on mental health parity reporting for the Medicaid program. This workgroup shall also develop the format and provide any needed definitions for reporting requirements in subsection (k). The research and evaluation of the working group shall include, but not be limited to:(1) claims denials due to benefit limits, if     applicable;(2) administrative denials for no prior authorization;(3) denials due to not meeting medical necessity;(4) denials that went to external review and whether     they were upheld or overturned for medical necessity;(5) out-of-network claims;(6) emergency care claims;(7) network directory providers in the outpatient     benefits classification who filed no claims in the last 6 months, if applicable;(8) the impact of existing and pertinent limitations     and restrictions related to approved services, licensed providers, reimbursement levels, and reimbursement methodologies within the Division of Mental Health, the Division of Substance Use Prevention and Recovery  programs, the Department of Healthcare and Family Services, and, to the extent possible, federal regulations and law; and(9) when reporting and publishing should begin.Representatives from the Department of Healthcare and Family Services, representatives from the Division of Mental Health, and representatives from the Division of Substance Use Prevention and Recovery shall provide technical advice to the workgroup.(k) An insurer that amends, delivers, issues, or renews a group or individual policy of accident and health insurance or a qualified health plan offered through the health insurance marketplace in this State providing coverage for hospital or medical treatment and for the treatment of mental, emotional, nervous, or substance use disorders or conditions shall submit an annual report, the format and definitions for which will be developed by the workgroup in subsection (j), to the Department, or, with respect to medical assistance, the Department of Healthcare and Family Services starting on or before July 1, 2020 that contains the following information separately for inpatient in-network benefits, inpatient out-of-network benefits, outpatient in-network benefits, outpatient out-of-network benefits, emergency care benefits, and prescription drug benefits in the case of accident and health insurance or qualified health plans, or inpatient, outpatient, emergency care, and prescription drug benefits in the case of medical assistance:(1) A summary of the plan's pharmacy management     processes for mental, emotional, nervous, or substance use disorder or condition benefits compared to those for other medical benefits.(2) A summary of the internal processes of review for     experimental benefits and unproven technology for mental, emotional, nervous, or substance use disorder or condition benefits and those for other medical benefits.(3) A summary of how the plan's policies and     procedures for utilization management for mental, emotional, nervous, or substance use disorder or condition benefits compare to those for other medical benefits.(4) A description of the process used to develop or     select the medical necessity criteria for mental, emotional, nervous, or substance use disorder or condition benefits and the process used to develop or select the medical necessity criteria for medical and surgical benefits.(5) Identification of all nonquantitative treatment     limitations that are applied to both mental, emotional, nervous, or substance use disorder or condition benefits and medical and surgical benefits within each classification of benefits.(6) The results of an analysis that demonstrates that     for the medical necessity criteria described in subparagraph (A) and for each nonquantitative treatment limitation identified in subparagraph (B), as written and in operation, the processes, strategies, evidentiary standards, or other factors used in applying the medical necessity criteria and each nonquantitative treatment limitation to mental, emotional, nervous, or substance use disorder or condition benefits within each classification of benefits are comparable to, and are applied no more stringently than, the processes, strategies, evidentiary standards, or other factors used in applying the medical necessity criteria and each nonquantitative treatment limitation to medical and surgical benefits within the corresponding classification of benefits; at a minimum, the results of the analysis shall:(A) identify the factors used to determine that a         nonquantitative treatment limitation applies to a benefit, including factors that were considered but rejected;(B) identify and define the specific evidentiary         standards used to define the factors and any other evidence relied upon in designing each nonquantitative treatment limitation;(C) provide the comparative analyses, including         the results of the analyses, performed to determine that the processes and strategies used to design each nonquantitative treatment limitation, as written, for mental, emotional, nervous, or substance use disorder or condition benefits are comparable to, and are applied no more stringently than, the processes and strategies used to design each nonquantitative treatment limitation, as written, for medical and surgical benefits;(D) provide the comparative analyses, including         the results of the analyses, performed to determine that the processes and strategies used to apply each nonquantitative treatment limitation, in operation, for mental, emotional, nervous, or substance use disorder or condition benefits are comparable to, and applied no more stringently than, the processes or strategies used to apply each nonquantitative treatment limitation, in operation, for medical and surgical benefits; and(E) disclose the specific findings and         conclusions reached by the insurer that the results of the analyses described in subparagraphs (C) and (D) indicate that the insurer is in compliance with this Section and the Mental Health Parity and Addiction Equity Act of 2008 and its implementing regulations, which includes 42 CFR Parts 438, 440, and 457 and  45 CFR 146.136 and any other related federal regulations found in the Code of Federal Regulations.(7) Any other information necessary to clarify data     provided in accordance with this Section requested by the Director, including information that may be proprietary or have commercial value, under the requirements of Section 30 of the Viatical Settlements Act of 2009.(l) An insurer that amends, delivers, issues, or renews a group or individual policy of accident and health insurance or a qualified health plan offered through the health insurance marketplace in this State providing coverage for hospital or medical treatment and for the treatment of mental, emotional, nervous, or substance use disorders or conditions on or after January 1, 2019 (the effective date of Public Act 100-1024) shall, in advance of the plan year, make available to the Department or, with respect to medical assistance, the Department of Healthcare and Family Services and to all plan participants and beneficiaries the information required in subparagraphs (C) through (E) of paragraph (6) of subsection (k). For plan participants and medical assistance beneficiaries, the information required in subparagraphs (C) through (E) of paragraph (6) of subsection (k) shall be made available on a publicly-available website whose web address is prominently displayed in plan and managed care organization informational and marketing materials.(m) In conjunction with its compliance examination program conducted in accordance with the Illinois State Auditing Act, the Auditor General shall undertake a review of
compliance by the Department and the Department of Healthcare and Family Services with Section 370c and this Section. Any
findings resulting from the review conducted under this Section shall be included in the applicable State agency's compliance examination report. Each compliance examination report shall be issued in accordance with Section 3-14 of the Illinois State
Auditing Act. A copy of each report shall also be delivered to
the head of the applicable State agency and posted on the Auditor General's website. (Source: P.A. 102-135, eff. 7-23-21; 102-579, eff. 8-25-21; 102-813, eff. 5-13-22.) (215 ILCS 5/370c.2)Sec. 370c.2. (Repealed).
(Source: P.A. 102-304, eff. 8-6-21. Repealed internally, eff. 1-1-23.) (215 ILCS 5/370d) (from Ch. 73, par. 982d)Sec. 370d. 
		
		Companies which issue insurance policies under this Article
containing business overhead expense coverage shall make available to persons
whose occupation is that of homemaker and who are not otherwise gainfully
employed, coverage which provides for reimbursement of certain specified
expenses ordinarily incurred by members of the household due to the incapacity
of the homemaker during periods of his or her total disability resulting
from injury or sickness, provided that such companies shall be required
to offer coverage which is at least 80% of total eligible expenses or $300
per month, whichever provides the lesser coverage.
		(Source: P.A. 81-916.) (215 ILCS 5/370d.1)Sec. 370d.1. Group policies; chambers of commerce. Companies that issue group policies of accident and health insurance under this Article must offer such policies to local chambers of commerce.
(Source: P.A. 102-611, eff. 1-1-22.) (215 ILCS 5/370e) (from Ch. 73, par. 982e)Sec. 370e. 
		
		Companies which issue group accident and health policies
or blanket accident and health plans to employer groups in this State shall
provide the employer with notice of termination of a group or blanket accident
and health plan because of the employer's failure to pay the premium when
due.  The insurance company shall send a copy of such notice to the Department.
		(Source: P.A. 83-1006.)
(215 ILCS 5/Art. XXII heading) ARTICLE XXII.  
		CASUALTY INSURANCE, FIDELITY BONDS AND SURETY CONTRACTS (215 ILCS 5/378) (from Ch. 73, par. 990)Sec. 378. 
		
		Scope of
article.This article shall apply to all companies authorized in this State to
transact the kind or kinds of business enumerated in Class 2 of section
4.Every such company shall, at all times, maintain reserves in an amount
estimated in the aggregate to provide for the payment of all losses and
claims incurred, whether reported or unreported, which are unpaid and for
which such company may be liable, and to provide for the expenses of
adjustment or settlement of such losses and claims. Such reserves shall be
computed in accordance with regulations made from time to time by the
Director after notice and hearing, upon reasonable consideration of the
ascertained experience and the character of such kinds of business for the
purpose of adequately protecting the insured and securing the solvency of
such company.Whenever the loss and loss expense experience of such company shows the
reserves, calculated in accordance with such regulations, to be inadequate,
the Director may require such company to maintain additional reserves.Each company that writes liability or compensation policies shall
include in the annual statement required by law, a schedule of its
experience thereunder in such form as the Director may prescribe.
		(Source: Laws 1967, p. 1812.) (215 ILCS 5/379.1) (from Ch. 73, par. 991.1)Sec. 379.1. 
		Unearned premium reserve.Every insurance company authorized to transact in this State any of the
kind or kinds of business enumerated in Class 2 of Section 4 except
accident and health insurance shall maintain an unearned premium reserve on
all policies and bonds in force which shall be calculated in the manner
described in Section 393.1 of this Code.
		(Source: Laws 1967, p. 1745.) (215 ILCS 5/388) (from Ch. 73, par. 1000)Sec. 388. 
		Standard provision for liability policies - Provisions forbidden. 
		No policy of insurance against liability or indemnity for loss or damage
to any person other than the insured, or to the property of any person
other than the insured, for which any insured is liable, shall be issued or
delivered in this State after July 1, 1937, by any
company subject to this Article unless it contains in substance a provision
that the insolvency or bankruptcy of the insured shall not release the
company from the payment of damages for injuries sustained or death
resulting therefrom, or loss occasioned during the term of such policy, and
stating that in case a certified copy of a judgment against the
insured is returned unsatisfied
in any action brought by the injured person or his or her personal
representative in case death results from the accident because of such
insolvency or bankruptcy, then an action may be maintained by the injured
person or his or her personal representative against such company under the
terms of the policy and subject to all of the conditions thereof for the
amount of the judgment in such action not exceeding the amount of the
policy.No policy of insurance against liability or indemnity for loss or damage
arising as a result of the operation of Section 6-21 of "An Act
relating to alcoholic liquors", approved January 31, 1934, as amended,
shall contain a provision or provisions which exempt the company from
liability if the damage sustained was the result of the sale or giving away
of alcoholic liquor to a minor.
		(Source: P.A. 84-546.) (215 ILCS 5/388-1) (from Ch. 73, par. 1000-1)Sec. 388-1. 
		
		No company selling insurance defined in clause (b) of class 2 of
Section 4 may require a policyholder to take a physical examination as a
condition for renewal of such policy if the policyholder has been
insured by the company for 5 years or longer, unless the company pays
the cost of such physical examination, and the physical examination is
given by a physician chosen by the policyholder.
		(Source: P.A. 78-703.) (215 ILCS 5/388a) (from Ch. 73, par. 1000a)Sec. 388a. 
		
		Group
vehicle insurance defined.(a) Group vehicle insurance is declared to be that form of vehicle
insurance
covering not less than 10 employees, members, or employees of members,
written under a master policy issued to any governmental corporation, unit,
agency or department thereof, or to any corporation, co-partnership,
individual employer, or to any association upon application of an executive
officer or trustee of such association having a constitution or by-laws and
formed in good faith for purposes other than that of obtaining insurance,
where officers, members, employees, employees of members or classes or
department thereof, may be insured for their individual benefit. In
addition a group vehicle policy may be written to insure any group which
may be insured under a group life insurance policy. The term "employees"
shall include the officers, managers and employees of subsidiary or
affiliated corporations, and the individual proprietors, partners and
employees of affiliated individuals and firms, when the business of such
subsidiary or affiliated corporations, firms or individuals, is controlled
by a common employer through stock ownership, contract or otherwise.(b) A group vehicle insurance policy may provide physical damage coverage,
liability coverage, or a combination of physical damage and
liability
coverage.  A group
physical damage policy and a certificate incidental to that policy, issued
in accordance with this Section, does not meet the mandatory insurance
requirements under the Illinois Vehicle Code and must contain a warning to the
consumer
that the policy does not comply with those requirements.
		(Source: P.A. 88-313.) (215 ILCS 5/388b) (from Ch. 73, par. 1000b)Sec. 388b. 
		
		Group
vehicle insurance authorized.Any insurance company authorized to write vehicle insurance in this
State, as authorized by clause (b) of Class 2 and clause (e) of Class 3 of
Section 4, shall have
power to issue group vehicle policies.  Group vehicle insurance policies
shall be subject to the filing requirements of Section 143 and shall include
the provisions required by Sections 388c through 388f of this Code.  A group
vehicle insurance policy that provides liability coverage shall comply with the
requirements of Section 7-317 of the Illinois Vehicle Code. 
		(Source: P.A. 88-313.) (215 ILCS 5/388c) (from Ch. 73, par. 1000c)Sec. 388c. 
		
		"Entire
contract" specified.Each group vehicle insurance policy shall provide that the policy, the
application of the employer, or executive officer or trustee of any
association, and the individual applications, if any, of the employees,
members or employees of members insured shall constitute the entire
contract between the parties, and that all statements made by the employer,
or the executive officer or trustee, or by the individual employees,
members or employees of members shall, in the absence of fraud, be deemed
representations and not warranties, and that no such statement shall be
used in defense to a claim under the policy, unless it is contained in a
written application.
		(Source: P.A. 77-1576.) (215 ILCS 5/388d) (from Ch. 73, par. 1000d)Sec. 388d. 
		Certificates required.Each group vehicle insurance policy shall provide that the insurer will
issue to the employer, or to the executive officer or trustee of the
association, for delivery to the employee, member or employee of a member,
who is insured under such policy, an individual certificate setting forth a
statement as to the insurance protection to which he is entitled and to
whom payable and, at the request of any participating member or employee
that has liability insurance coverage, will issue a certificate of his
vehicle
insurance to the Secretary of State
as proof of the insured's financial
responsibility in compliance with the Illinois Vehicle Code.
		(Source: P.A. 88-313.) (215 ILCS 5/388e) (from Ch. 73, par. 1000e)Sec. 388e. 
		
		New
members of group.Each group vehicle insurance policy shall provide that to the group or
class thereof originally insured shall be added from time to time all new
employees of the employer, members of the association or employees of
members eligible to and applying for insurance in such group or class but
participation in the group plan shall not be required as a condition of
employment, nor shall any member not participating in the plan be coerced
or discriminated against.
		(Source: P.A. 77-1576.) (215 ILCS 5/388f) (from Ch. 73, par. 1000f)Sec. 388f. 
		Conversion rights.Each group vehicle insurance policy shall provide that any member of the
group shall have the right to convert his group policy to an individual
standard policy of insurance in the same company as offered by the insurer
to the non-group insureds upon termination of his connection with the group
extending to him the same limits of coverage.
		(Source: P.A. 77-1576.) (215 ILCS 5/388g) (from Ch. 73, par. 1000g)Sec. 388g. 
		Cancellation restricted.An insurer may not cancel the insurance of an individual member of a
group covered by a group vehicle insurance policy except for the
non-payment of premium by such member or unless the insurance for the
entire group is cancelled. In such cases notice of cancellation as provided
in like non-group policies shall be given to each member and, when
appropriate, to the Secretary of State.
		(Source: P.A. 77-1576.) (215 ILCS 5/389) (from Ch. 73, par. 1001)Sec. 389. 
		Definition.Fidelity and surety business specified in paragraph (g) of Class 2 of
section 4 shall be known as surety business, and the obligations
connected therewith as suretyship obligations notwithstanding any other
designation or classification contained in this Code to the contrary.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/390) (from Ch. 73, par. 1002)Sec. 390. 
		Corporate bonds satisfy legal requirement. 
		Whenever a bond, undertaking, recognizance, guaranty or other
obligation is required, permitted, authorized or allowed; or whenever
the performance of any act, duty or obligation, or forbearance, is
required, permitted, authorized or allowed to be secured or guaranteed,
such bond, undertaking, recognizance or other obligation, or such
security or guaranty, may be executed by a company authorized in this
State to do the kinds of business described in clause (g) of Class 2 of
section 4; and such companies are authorized and empowered to execute all
such instruments; and in case two or more of such companies execute any
such instrument each of such companies is hereby authorized and
empowered to limit its liability therein to an amount less than the
aggregate penalty of such instrument and also to limit its liability to
a pro rata part of any and all losses under such instrument; and the
execution by any such company of such bond, undertaking, recognizance,
guaranty or other obligation by an officer, attorney-in-fact or other
authorized representative shall be sufficient and be accepted as and be
a full compliance with every law or other requirement now in force or
that may hereafter be enacted or made that such bond, undertaking,
recognizance, guaranty or like obligation be required or permitted or be
executed by a surety or sureties, or that such surety or sureties be
residents, householders or owners or life tenants of real estate,
or possess any other qualifications.
		(Source: P.A. 84-551.) (215 ILCS 5/391) (from Ch. 73, par. 1003)Sec. 391. 
		Trustee may have corporate surety. 
		A party of whom a bond or
other undertaking is required or permitted or by law allowed may agree with
his sureties for the deposit or safekeeping of any or all moneys, assets
and other property for which he, she or it is or may be held responsible,
with a bank, savings bank, safe deposit, savings and loan association or
trust company authorized by law to do business as such, and in such manner
as to prevent the withdrawal
or alienation thereof without the written consent of such sureties or an
order of the court having jurisdiction of such fiduciary made on such notice
to such sureties as such court may direct. It shall be lawful for such sureties
to enter into contracts for their indemnity or security with any person, partnership,
association or corporation, provided that such contracts are not prohibited
by law or against public policy.
		(Source: P.A. 83-1362.) (215 ILCS 5/392) (from Ch. 73, par. 1004)Sec. 392. 
		Estoppel.Any company which shall execute any bond, recognizance, obligation,
stipulation or undertaking as surety shall be estopped, in any proceeding
to enforce the liability which it shall have assumed to incur, to deny its
power to execute the same or assume such liability.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/392.1) (from Ch. 73, par. 1004.1)Sec. 392.1. 
		Casualty and surety companies exempted from filing appeal  bonds upon proof of liability - Taxable costs. 
		Whenever an appeal is taken from any judgment in any case wherein it
appears to the court that all of the particular liability of the
appellant thereunder is insured against in and by a liability insurance
policy or surety bond issued by any insurance company authorized to do
business in the State of Illinois, and the court is satisfied of the
applicable coverage of such policy or bond, it shall not be required of the
appellant to provide any appeal bond or bond to stay enforcement pending such
appeal, but such insurance company may be required by the court, and is
hereby given authority, to execute its written recognizance of the adverse
party or parties for the payment of the taxable costs of such appeal.
Such company shall deposit with the court a copy of the
insurance policy or bond and shall admit its liability thereunder, and
agree to pay such judgment against its insured, if any, as shall be
affirmed by the appellate court; and in such case the court having
jurisdiction thereof, on its own motion, may enter judgment against the
insurance company to such extent without further proceedings.
		(Source: P.A. 84-546.)
(215 ILCS 5/Art. XXIII heading) ARTICLE XXIII.  
		FIRE AND MARINE INSURANCE (215 ILCS 5/393) (from Ch. 73, par. 1005)Sec. 393. 
		Scope of
article.
This article shall apply to all companies authorized to transact the
kind or kinds of business enumerated in Class 3 of Section 4.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/393.1) (from Ch. 73, par. 1005.1)Sec. 393.1. 
		Unearned premium reserve. 
		(1) Every insurance company authorized in this State to transact any of
the kinds of business described in Class 3 of Section 4 shall maintain an
unearned premium reserve on all policies in force which reserve shall be
charged as a liability. The portions of the gross premiums in force, after
deducting bona fide reinsurance in authorized companies, which shall be
held as a premium reserve, shall never be less in the aggregate than the
company's actual liability to all its insureds for the return of gross
unearned premiums. In the calculation of the company's actual liability to
all its insureds, the reserve shall be computed pursuant to the method
commonly referred to as the monthly pro rata method; provided, however,
that the Director may require that such reserve shall be equal to the
unearned portions of the gross premiums in force, after deducting
reinsurance in authorized companies, in which case the reserve shall be
computed on each respective risk from the date of the issuance of the
policy.(2) Before any reinsurance may qualify as a deduction from a company's
unearned premium reserve, the accepting company shall assume full liability
for the amount of coverage which the ceding company guaranteed for the
portions of premiums which it ceded to the accepting company.
		(Source: Laws 1967, p. 1745.) (215 ILCS 5/393a) (from Ch. 73, par. 1005a)Sec. 393a. 
		
		Group professional liability insurance defined.)  Group
professional liability insurance is declared to be that form of liability
insurance covering not less than 10 employees of any public school
district, nonprofit organization or other organization operating an
elementary or secondary school, including, but not limited to, nursery and
kindergarten programs, or of any public, nonprofit or other institution of
higher education for all sums for which such employees may become liable
for rendering, failing to render, or as a consequence of rendering or
failing to render professional services in such employment.
However, such coverage shall not include intentional acts or omissions
in violation of any law or court order.
Such coverage shall
be written under a master policy issued to
any governmental corporation, unit, agency or department thereof, or to
any corporation, copartnership,
individual employer, or to any association upon application of an executive
officer or trustee of such
association having a constitution or by-laws and formed in good faith for
purposes other than that of
obtaining insurance, where officers, members, employees of members or classes
or departments thereof,
may be insured for their individual benefit.
		(Source: P.A. 79-685.) (215 ILCS 5/393b) (from Ch. 73, par. 1005b)Sec. 393b. 
		
		Group
professional liability insurance authorized.)
Any insurance company authorized to write group professional liability insurance in this
State shall have power to issue group professional liability policies.
No policy of group
professional liability insurance may be issued or delivered in this State unless
a copy of the form thereof shall have been filed with the Director of
Insurance and approved by it
and it contains in substance
the provisions required by Sections 393c through 393f of this
Article.
		(Source: P.A. 79-685.) (215 ILCS 5/393c) (from Ch. 73, par. 1005c)Sec. 393c. 
		
		"Entire contract" specified.)
Each group professional liability insurance policy shall provide that the policy, the
application of the employer, or executive officer or trustee of any
association, and the individual applications, if any, of the employees,
members or employees of members insured shall constitute the entire
contract between the parties, and that all statements made by the employer,
or the executive officer or trustee, or by the individual employees,
members or employees of members shall, in the absence of fraud, be deemed
representations and not warranties, and that no such statement shall be
used in defense to a claim under the policy, unless it is contained in a
written application.
		(Source: P.A. 79-685.) (215 ILCS 5/393d) (from Ch. 73, par. 1005d)Sec. 393d. 
		
		Certificates required.)
Each group professional liability insurance policy shall provide that the insurer will
issue to the employer, or to the executive officer or trustee of the
association, for delivery to the employee, member or employee of a member,
who is insured under such policy, an individual certificate setting forth a
statement as to the insurance protection to which he is entitled and to
whom payable.
		(Source: P.A. 79-685.) (215 ILCS 5/393e) (from Ch. 73, par. 1005e)Sec. 393e. 
		
		New
members of group.)
Each group professional liability insurance policy shall provide that to the group or
class thereof originally insured shall be added from time to time all new
employees of the employer, members of the association or employees of
members eligible to and applying for insurance in such group or class but
participation in the group plan shall not be required as a condition of
employment, nor shall any member not participating in the plan be coerced
or discriminated against.
		(Source: P.A. 79-685.) (215 ILCS 5/393f) (from Ch. 73, par. 1005f)Sec. 393f. 
		
		Conversion rights.)
Each group professional liability insurance policy shall provide that any member of the
group shall have the right to convert his group policy to an individual
standard policy of insurance in the same company as offered by the insurer
to the non-group insureds upon termination of his connection with the group
extending to him the same limits of coverage.
		(Source: P.A. 79-685.) (215 ILCS 5/393g) (from Ch. 73, par. 1005g)Sec. 393g. 
		
		Cancellation restricted.)
An insurer may not cancel the insurance of an individual member of a
group covered by a group professional liability insurance policy except for the
non-payment of premium by such member or unless the insurance for the
entire group is cancelled.  In such cases notice of cancellation as provided
in like non-group policies shall be given to each member.
		(Source: P.A. 79-685.) (215 ILCS 5/395) (from Ch. 73, par. 1007)Sec. 395. 
		Reserves for marine and inland marine. 
		In the case of policies
of marine or inland navigation or transportation insurance the unearned
premium reserve, to be charged as a liability, shall be fifty per centum of
the amount of the premiums upon risks covering not more than one passage
not terminated and shall be upon a pro rata basis for all other policies.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/396) (from Ch. 73, par. 1008)Sec. 396. 
		
		Loss and
loss expense reserves.(1) Every company authorized to transact in this State any of the kinds
of business described in Class 3 of Section 4 shall, at all times, maintain
reserves in an amount estimated in the aggregate to provide for the payment
of all losses and claims incurred, whether reported or unreported, which
are unpaid and for which such company may be liable, and to provide for the
expenses of adjustment or settlement of such losses and claims. For the
purpose of such reserves, the company shall keep a complete and itemized
record showing all losses and claims on which it has received notice,
including all notices received by it of the occurrence of any event which
may result in a loss. Such record shall be opened in chronological receipt
order, with each notice of loss or claim identified by appropriate number
or coding.(2) Whenever the loss and loss expense experience of such company shows
the reserves, calculated in accordance with the foregoing provisions, to be
inadequate, the Director may require such company to maintain additional
reserves.
		(Source: Laws 1967, p. 1819.) (215 ILCS 5/397) (from Ch. 73, par. 1009)Sec. 397. 
		
		Standard fire policy.) The Director of Insurance shall
promulgate such rules and regulations as may be necessary to effect
uniformity in all basic policies of fire and lightning insurance issued
in this State, to the end that there be concurrency of contract where
two or more companies insure the same risk.
		(Source: P.A. 80-1441.) (215 ILCS 5/397.05) (from Ch. 73, par. 1009.05)Sec. 397.05. 
		Standard fire policy; appraisal. 
		When an insured
requests an appraisal under a policy of fire and extended coverage
insurance, as defined in subsection (b) of Section 143.13, and the
insured's full amount of appraised loss is upheld by agreement of the
appraisers or the umpire, then the insured's appraisal fee and umpire's
appraisal fee shall be paid by the insurer.
		(Source: P.A. 87-681.) (215 ILCS 5/397.1) (from Ch. 73, par. 1009.1)Sec. 397.1. 
		
		Certificate regarding payment of taxes and expenses on
property sustaining loss.(a) It shall be unlawful for any company transacting insurance business
in this State to pay a claim of an insured property owner for loss by fire
or explosion to a structure located in this State where the amount
recoverable for loss to the structure under a policy exceeds $25,000, until
the insurance company receives the certificate required by this Section. A
notice, to the State's Attorney of the county where the structure is
located, of the insurers intent to pay a claim shall include the name of
the property owner, the address of the property, its legal description, the
permanent real estate index number that identifies the property for
purposes of taxation, and the amount of the claim to be paid.(b) For purposes of this Section, the following definitions are
applicable:(1) "Insured property owner" is a person named as an     insured who is the owner, title-holder or mortgagee of a structure, the holder of an interest secured by the structure, the beneficiary of a land trust owning or holding title to a structure, the lessee of a structure with a contractual obligation for property taxes, or the assignee of any such person.(2) "Amount recoverable" is the dollar amount payable     under all insurance policies for loss to the structure.(3) "Proceeds" is the dollar amount payable for loss     to the structure under an insurance policy.(4) "Delinquent property taxes" are those property     taxes on the property which are delinquent pursuant to Section 21-15, 21-20, or 21-25 of the Property Tax Code, including those delinquent taxes on property forfeited under Section 21-225 of the Property Tax Code, as of the date of loss.In determining delinquent property taxes under this     Section, the amount of property taxes for which a certificate of error has been issued pursuant to Section 14-10 or 14-20 of the Property Tax Code shall not be considered delinquent.(5) "Incurred demolition expense" is:  a. the cost of     demolishing or removing a structure from property by or at the expense of a unit of local government if the demolition or removal occurs on a date preceding the later of (i) the acceptance by the insurance company of a Proof of Loss for an agreed amount of proceeds, or  (ii) the date of receipt by the unit of local government of a request for execution of the certificate required by this Section; or b. the amount estimated by the unit of local government when it receives a request to execute the certificate required by this Section; or c. the amount ordered to be withheld by a court within 28 days after a unit of local government receives a request for execution of the certificate required by this Section.  The unit of local government must be a party to such proceeding.Incurred demolition expense shall be determined under     subparagraph a. whenever possible.  In determining the incurred demolition expense under subparagraph b., the unit of local government shall make its estimate and execute the certificate within 30 days after receiving a request for execution.  If the unit of local government shall fail within 30 days to execute the certificate, as required by subparagraph a., the company can proceed to make payment of the claim as if the certificate had been received showing no unpaid demolition costs. The request for execution may be served personally, and may be proven by a written receipt signed by the local official as of the date the request was made or by service on the local official by certified mail, return receipt requested. A court order under subparagraph c. shall supersede an estimate under subparagraph b.(6) "Property" is the lot on which the structure is     located.(7) "Structure" is a building.(8) "Claim" is the demand by an insured for payment     under an insurance policy or policies.(9) "Proof of Loss" is the document on which an     insured formally presents his claim to an insurance company.(10) "Certificate" is the executed form prescribed by     the Director of Insurance.(11) "Executed" means signed by the appropriate     official or unit of government.(c) For any claim to which this Section is applicable, an insured
property owner must submit one of the following to the insurance
company:(1) a certificate that with respect to the property     there are:a. no delinquent property taxes, andb. no unpaid incurred demolition expenses;(2) a certificate setting forth with respect to the     property:a. the amount of unpaid delinquent property taxes,b. the amount of unpaid incurred demolition         expense, andc. a direction by an insured property owner to         the insurance company to pay the unpaid delinquent property taxes and unpaid incurred demolition expenses.(d) (1) Except as provided in paragraph (2) of this     subsection (d), if a certificate is submitted pursuant to paragraph (2) of subsection (c) of this Section, the insurance company shall pay the unpaid delinquent property taxes and unpaid incurred demolition expense from the proceeds payable by issuing  a draft or check payable to the appropriate tax collector or unit of local government.Any proceeds remaining shall be paid to the insured     property owner.(2) In the event incurred demolition expense is     determined by estimation under paragraph (5) of subsection (b) of this Section in cities of over 2,000,000, the insurance company shall hold the amount estimated until an amended certificate executed by the appropriate local government official is submitted stating (i) that no demolition expense will be incurred or (ii) the actual unpaid incurred demolition expense. The insurance company shall then issue a draft or check payable to the unit of local government for the actual unpaid incurred demolition expense. Any proceeds remaining shall be paid to the insured property owner.In determining the amount of proceeds remaining under     this paragraph, the insured property owner shall receive interest on the amount withheld from the date the certificate is executed as provided in Section 2 of the Interest Act.(e) If, under this Section, the proceeds payable are less than the
amount of the unpaid delinquent property taxes and unpaid incurred
demolition expense, unpaid property taxes shall be paid first.(f) If incurred demolition expense withheld pursuant to
subparagraphs b. or c. of paragraph 5 of subsection (b) of this Section
exceeds the ultimate cost of demolition, the excess shall first be
applied to unpaid delinquent property taxes.  Any amount of proceeds
remaining shall be paid to the insured property owner.(g) Nothing in this Section shall be construed as:(1) making an insurance company liable for any amount     in excess of the proceeds payable under its insurance policy unless the insurance company shall have made payment to the named insured without satisfying the requirements of this Section;(2) making a unit of local government or tax     collector an insured under an insurance policy; or(3) creating an obligation for an insurance company     to pay unpaid delinquent property taxes or unpaid incurred demolition expense other than as provided in subsection (d) of this Section.(h) An insurance company making a payment of proceeds under this
Section for unpaid delinquent taxes or unpaid incurred demolition
expense shall be entitled to the full benefit of such payment, including
subrogation rights and other rights of assignment.(i) Unpaid property taxes and unpaid incurred demolition expense for
a claim for loss to a structure occurring after the issuance of a tax
deed pursuant to Section 22-40 of the Property Tax Code shall not include any
unpaid property tax or unpaid demolition expense arising before the issuance of
the tax deed.(j) The county collector shall be designated as the local
official who shall execute the certificate required by this Section regarding
delinquent property taxes.  The village clerk or city clerk in incorporated
areas and the official in charge of the county building department in
unincorporated areas shall be designated as
the local official who shall execute the certificate required by this Section
regarding demolition expenses.(k) A fee not to exceed $5 may be charged by a unit of local
government for execution of the certificate required by this Section.(l) This Section shall retroactively apply to any policy issued or renewed
on or after January 1, 1978 for which a claim subject to this Section remains
unpaid as of the effective date of this amendatory Act of 1978.
		(Source: P.A. 87-507; 88-667, eff. 9-16-94; 88-670, eff. 12-2-94.) (215 ILCS 5/399) (from Ch. 73, par. 1011)Sec. 399. 
		Combination policies. 
		Two or more companies authorized to transact business in this State
may issue a combination or group form of policy, using a distinctive
title therefor, which title shall appear at the head of such policy
followed by the titles of the companies obligated thereupon, and which
policy shall be executed by the officers of each such companies;
provided, that before such companies shall issue such combination or
group policy, the title of such proposed policy and the terms of the
additional provisions thereof, hereby authorized, shall have been filed
with the Director, which terms, in addition to the provisions of the
standard policy and not inconsistent therewith, shall provide
substantially under a separate title therein, as follows:(a) that each company executing such policy shall be liable for the
full amount of any loss or damage, according to the terms of the policy,
or a specific percentage thereof;(b) that service of process, or of any notice or proof of loss
required by the said policy, upon any of the companies executing the
same shall be deemed to be service upon all; and provided further that
the unearned premium liability on each policy so issued shall be
maintained by each of such companies on the basis of the liability of
each to the insured thereunder.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/400) (from Ch. 73, par. 1012)Sec. 400. 
		Supplemental or comprehensive contracts. 
		Forms for supplemental contracts or comprehensive contracts whereby
the property described may be insured against one or more risks
specified in Class 2 or Class 3 of Section 4, in addition to the risk of
direct loss or damage by fire, and forms of fire policies on farm
property may be approved by the Director and their use in connection
with or in lieu of a standard fire insurance policy may be authorized by
the Director.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/400.1) (from Ch. 73, par. 1012.1)Sec. 400.1. Group or master policy-certificate inland marine
insurance authorized.(1)  Any insurance company authorized to write inland
marine insurance in this State may issue group or master policy-certificate inland
marine policies which may include coverages incidental or supplemental to the
inland marine policy, if the insurer is authorized to write the class of coverage
which is incidental or supplemental.  No policy, certificate of insurance, memorandum
of insurance, application for insurance, endorsement or rider, may be issued
for delivery
in this State unless a copy of the form thereof shall have been filed with the Director
of Insurance and approved, or unless exempted from filing by such
rules and regulations as may be promulgated by the Director.(2) The Director shall within 90 days after the filing of such forms disapprove
any such
form if the benefits provided therein are not reasonable in relation to
the premium charged, or
if it contains provisions that are unjust, unfair, inequitable, misleading,
deceptive, or
encourage misrepresentation of the coverage, or are contrary to any provision
of this 
Code, or any rule or regulation promulgated thereunder.  The Director may,
upon written notice
within such waiting period to the company which made the filing, extend
such waiting period for
an additional 30 days.  A filing shall be deemed to meet the requirements
of this Section unless
disapproved by the Director within the waiting period or the extension thereof.(3) If the Director notifies the insurer that the form is disapproved,
the insurer shall not
issue or use such form.  In such notice the Director shall specify the reason
for his disapproval.
The company may request a hearing on such disapproval within 30 days after
receipt of such
disapproval.  The Director shall grant a hearing subsequent to the receipt
of such request.(4) The Director may, at any time after a hearing held not less than 20
days after written
notice to the insurer, withdraw his approval of any such form on any ground set forth in
subsection (2) above.  The written notice of such hearing shall state the
reason for the proposed
withdrawal.(5) It is not lawful for the insurer to issue such forms or use them after
the effective
date of such withdrawal.(6) The Director may at any time require the filing of the schedules of premium rates
used or to be used in connection with the specific policy filings required.(7) The Director shall promulgate such rules and regulations as he may
deem necessary to
provide for the filing and review of premium rates schedules, and for the
disapproval of those
he may deem to be inadequate, excessive or unfairly discriminatory.(8) Any order or final determination of the Director under the provisions
of this Section
shall be subject to judicial review.
(Source: P.A. 100-863, eff. 8-14-18.)
(215 ILCS 5/Art. XXIV heading) ARTICLE XXIV.  
		DIRECTOR OF INSURANCE, HEARINGS AND REVIEW (215 ILCS 5/401) (from Ch. 73, par. 1013)Sec. 401. General powers of the director. The Director is charged with the rights, powers and duties appertaining
to the enforcement and execution of all the insurance laws of this State.
He shall have the power(a) to make reasonable rules and regulations as may     be necessary for making effective such laws;(b) to conduct such investigations as may be     necessary to determine whether any person has violated any provision of such insurance laws;(c) to conduct such examinations, investigations and     hearings in addition to those specifically provided for, as may be necessary and proper for the efficient administration of the insurance laws of this State; and(d) to institute such actions or other lawful     proceedings as he may deem necessary for the enforcement of the Illinois Insurance Code or of any Order or action made or taken by him under this Code. The Attorney General, upon request of the Director, may proceed in the courts of this State to enforce an Order or decision in any court proceeding or in any administrative proceeding before the Director.Whenever the Director is authorized or
required by law to consider some aspect of criminal history record
information for the purpose of carrying out his statutory powers and
responsibilities, then, upon request and payment of fees in conformance
with the requirements of Section 2605-400 of the Illinois State Police Law, the Illinois State Police is
authorized to furnish, pursuant to positive identification, such
information contained in State files as is necessary to meet the
requirements of such authorization or statutes.
(Source: P.A. 102-538, eff. 8-20-21.) (215 ILCS 5/401.1) (from Ch. 73, par. 1013.1)Sec. 401.1. 
		
		(1) This Section applies to all companies and persons subject to
examination by the Director, or purporting to do insurance business in
this State, or in the process of organization with intent to do such
business therein, or for whom a Certificate of Authority is required for
the transaction of business, or whose Certificate of Authority is
revoked or suspended.(2) Whenever it appears to the Director that any person or company
subject to this Code is conducting its business and affairs in such a
manner as to threaten to render it insolvent, or that it is in a
hazardous condition, or is conducting its business and affairs in a
manner which is hazardous to its policyholders, creditors or the public,
or that it has committed or engaged in, or is committing or engaging in,
any unlawful act, or any act, practice or transaction which under any
provision of this Code would constitute ground rendering the person
subject to conservation, liquidation or rehabilitation proceedings and
that irreparable loss and injury to the property and business of a
person or company has occurred or may occur unless the Director acts
immediately, the Director may, without notice, and before hearing, issue
and cause to be served upon such person or company an order requiring
such person or company to forthwith cease and desist from engaging
further in the acts, practices or transactions which are causing such
conduct, condition or ground to exist.(3) At the same time an order is served pursuant to paragraph (2) of
this Section, the Director must issue and also serve upon the person or
company a notice of hearing to be held at a time and place fixed therein
which may not be less than 20 or more than 30 days after the service
thereof. The notice must contain a statement of the conduct, condition
or ground which the Director deems violative of the provisions of this
Section.(4) If, after hearing as provided by paragraph (3) of this Section,
any of the statements as to conduct, conditions or grounds in the notice
are found to be true, the Director may make such order or orders as may
be reasonably necessary to correct, eliminate or remedy such conduct,
conditions or grounds.(5) Any person or company subject to an order pursuant
to this Article is entitled to judicial review of the order in accordance
with the provisions of the Administrative Review Law.(6) If any person or company violates or fails to comply with any
order of the Director or any part thereof which as to such person has
become final and is still in effect, the Director may, after a hearing
and notice at which it is determined that a violation of such order has
been committed, further order that:(a) Such person shall forfeit and pay to the State of Illinois a sum
not to exceed $100 per day for each and every day that such violation or
failure to comply shall continue, but in no event to exceed a maximum
amount of $5,000. Such liability shall be enforced in an action brought
in any court of competent jurisdiction by the Director in the name of
the people of the State of Illinois; and(b) Proceedings be commenced to revoke or suspend any license or
Certificate of Authority held by such person under this Code, in
accordance with the procedures provided therefor.(7) The powers vested in the Director by this Section are additional
to any and all other powers and remedies vested in the Director by law,
and nothing herein shall be construed as requiring that the Director
shall employ the powers conferred herein instead of or as a condition
precedent to the exercise of any other power or remedy vested in the
Director.(8) Any order or notice of the Director hereunder may be served on
any person, in the same manner and with the same effect as provided for
in civil actions in a Circuit Court of this State.
		(Source: P.A. 82-783.) (215 ILCS 5/401.3)Sec. 401.3. Advisory council; powers and duties. There is created within the Department an advisory council to review and make recommendations to the Department regarding rules to be adopted with respect to continuing education courses for which the approval of the Department is required under the provisions of this Code.  In addition, the advisory council shall make recommendations to the Department regarding rules with respect to course materials, curriculum, and credentials of instructors.The advisory council shall be  comprised of 7 members appointed by the Director. One member shall be an educational instructor who has regularly provided educational offerings for more than 5 out of the last 10 years to individuals licensed under this Code.  Three members shall be recommended by the leadership of 3 statewide trade organizations whose memberships are primarily composed of individuals licensed under this Code, none of which may come from the same organization.  Three members shall represent a domestic company.The members' terms shall be 3 years or until their successors are appointed, and the expiration of their terms shall be staggered.  No individual may serve more than 3 consecutive terms.The Director shall appoint an employee of the Department to serve as the chairperson of the advisory council, ex officio, without a vote.Four voting advisory council members shall constitute a quorum.  A quorum is necessary for all advisory council decisions and recommendations.
(Source: P.A. 100-876, eff. 8-14-18.) (215 ILCS 5/401.5)Sec. 401.5. 
		Investigation of insurance law violations.(a) If the Director of Insurance has cause to
believe that a person has engaged in, or is engaging in, an act,
activity, or practice that constitutes a business offense,
misdemeanor, or felony violation of the Illinois Insurance Code or related
insurance laws, he or she shall designate appropriate investigators or
agents to investigate the violations.  For purposes of carrying
out investigations under this Section, the Department of Insurance is deemed a
criminal justice agency under all federal and State laws
and regulations, and as such shall have access to any information that concerns
or relates to a violation of the Illinois Insurance Code or
related insurance laws and that is available to criminal justice
agencies.(b) The Director of Insurance may
transmit or receive written or oral information relating to possible violations
of the insurance laws of this State received by or from any other criminal
justice agencies, whether federal, State, or local, if, in the opinion of
the Director, the transmittal is appropriate and may further the
effective prevention of criminal activities.(c) The Department of Insurance's papers, documents, reports,
or evidence relevant to the subject of an investigation under this Section
is not subject to public inspection for so long as the
Department deems reasonably necessary to complete the investigation, to protect
the person investigated
from unwarranted injury, or to be in the public interest.  Further, the papers,
documents, reports, or evidence relevant to the subject of an
investigation under this Section is not subject to
subpoena until opened for public inspection by the Department, unless the
Department consents, or until, after notice to the Department and a hearing,
the court determines the Department would not be unnecessarily hindered by
the subpoena.  No officer, agent, or employee of the
Department is subject to subpoena in civil actions by a court of this State to
testify concerning a matter of which
they have knowledge under a pending insurance fraud
investigation by the Department.(d) No insurer, or employees or agents of an
insurer, are subject
to civil liability for libel or otherwise by virtue of furnishing information
required by the insurance laws of this State or required by the Department
of Insurance as a result of its investigation.  No cause of action exists and
no liability may be imposed, either civil or criminal,
against the State, the Director, any officer, agent, or employee of the
Department of Insurance, or individuals employed or retained by the Director,
for an act or omission by them in the performance of a
power or duty authorized by this Section, unless the act or
omission
was performed in bad faith and with intent to injure a particular person.(e) The powers vested in the Director by this Section are
additional to other powers and remedies vested in the Director
by law, and nothing in this Section shall be construed as
requiring that the Director shall employ the powers conferred in this
Section instead of or as a condition precedent to the exercise of
any other power or remedy vested in the Director.  The Director may establish
systems and procedures for carrying out investigations under this Section as
are necessary to avoid the impairment or compromise of his or her authority
under this Section or any other law relating to the regulation of insurance.
		(Source: P.A. 89-234, eff. 1-1-96.) (215 ILCS 5/402) (from Ch. 73, par. 1014)Sec. 402. 
		Examinations, investigations and hearings. 
		(1) All examinations, investigations and hearings provided for by this
Code may be conducted either by the Director personally, or by one or more
of the actuaries, technical advisors, deputies, supervisors or examiners
employed or retained by the Department and designated by the Director for
such purpose. When necessary to supplement its examination procedures, the
Department may retain independent actuaries deemed competent by the
Director, independent certified public accountants, or qualified
examiners of insurance companies deemed competent by the Director, or any
combination of the foregoing, the cost of which shall be borne by the
company or person being examined. The Director may compensate independent
actuaries, certified public accountants and qualified examiners retained
for supplementing examination procedures in amounts not to exceed the
reasonable and customary charges for such services. The Director
may also accept as a part of the Department's examination of any company or
person (a) a report by an independent actuary deemed competent by the
Director or (b) a report of an audit made by an independent certified
public accountant. Neither those persons so designated nor any members of
their immediate families shall be officers of, connected with, or
financially interested in any company other than as policyholders, nor
shall they be financially interested in any other corporation or person
affected by the examination, investigation or hearing.(2) All hearings provided for in this Code shall, unless otherwise
specially provided, be held at such time and place as shall be designated
in a notice which shall be given by the Director in writing to the person
or company whose interests are affected, at least 10 days before the date
designated therein. The notice shall state the subject of inquiry and the
specific charges, if any. The hearings shall be held in the City of
Springfield, the City of Chicago, or in the county where the principal
business address of the person or company affected is located.
		(Source: P.A. 87-757.) (215 ILCS 5/403) (from Ch. 73, par. 1015)Sec. 403. 
		Power to subpoena and examine witnesses.(1) In the conduct of any examination, investigation or hearing provided
for by this Code, the Director or other officer designated by him or her to
conduct the same, shall have power to compel the attendance of any person
by subpoena, to administer oaths and to examine any person under oath
concerning the business, conduct or affairs of any company or person
subject to the provisions of this Code, and in connection therewith to
require the production of any books, records or papers relevant to the
inquiry.(2) If a person subpoenaed to attend such inquiry fails to obey the
command of the subpoena without reasonable excuse, or if a person in
attendance upon such inquiry shall, without reasonable cause, refuse to be
sworn or to be examined or to answer a question or to produce a book or
paper when ordered to do so by any officer conducting such inquiry, or if
any person fails to perform any act required hereunder to be performed,
he or she shall be required to pay a penalty of not more than $2,000
to be recovered in the name of the People of the State of Illinois by the
State's Attorney
of the county in which the violation occurs, and the penalty so recovered
shall be paid into the county treasury.(3) When any person neglects or refuses without reasonable cause to obey
a subpoena issued by the Director, or refuses without reasonable cause to
testify, to be sworn or to produce any book or paper described in the
subpoena, the Director may file a petition against such person in the
circuit court of the county in which the testimony is desired to be or has
been taken or has been attempted to be taken, briefly setting forth the
fact of such refusal or neglect and attaching a copy of the subpoena and
the return of service thereon and applying for an order requiring such
person to attend, testify or produce the books or papers before the
Director or his or her actuary, supervisor, deputy or examiner, at such
time or place as may be specified in such order. Any circuit court of this
State, upon the filing of such petition, either before or after
notice to such person, may, in the judicial discretion of such court, order
the attendance of such person, the production of books
and papers and the giving of testimony before the Director or any of his
or her actuaries, supervisors, deputies or examiners. If such person shall fail or
refuse to obey the order of the court and it shall appear to the court that
the failure or refusal of such person to obey its order is wilful, and
without lawful excuse, the court shall punish such person by fine or
imprisonment in the county jail, or both, as the nature of the case may
require, as is now, or as may hereafter be lawful for the court to do in
cases of contempt of court.(4) The fees of witnesses for attendance and travel shall be the same as
the fees of witnesses before the circuit courts of this State. When a
witness is subpoenaed by or testifies at the instance of the Director or
other officer designated by him or her, such fees shall be paid in the
same manner as other expenses of the Department. When a witness is subpoenaed
or
testifies at the instance of any other party to any such proceeding, the
cost of the subpoena or subpoenas duces tecum and the fee of the witness
shall be borne by the party at whose instance a witness is summoned. In
such case, the Department in its discretion, may require a deposit to cover
the cost of such service and witness fees.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/403A) (from Ch. 73, par. 1015A)Sec. 403A. 
		
		Violations; Notice of Apparent Liability; Limitation
of Forfeiture Liability.(1) Any company or person, agent or broker,
officer or director and any other person subject to this Code and as may
be defined in Section 2 of this Code, who willfully or repeatedly fails
to observe or who otherwise violates any of the provisions of this Code
or any rule or regulation promulgated by the Director under authority
of this Code or any final order of the Director entered under the authority
of this Code shall by civil penalty forfeit to the State of Illinois a sum
not to exceed $2,000.  Each day during which a violation occurs
constitutes
a separate offense.  The civil penalty provided for in this Section shall
apply only to those Sections of this Code or administrative regulations
thereunder that do not otherwise provide for a monetary civil penalty.(2) No forfeiture liability under paragraph (1) of this Section
may attach unless a written notice of apparent liability has been issued
by the Director and received by the respondent, or the Director sends written
notice of apparent liability by registered or certified mail, return receipt
requested, to the last known address of the respondent.  Any respondent so
notified must be granted an opportunity to request a
hearing within 10 days from receipt of notice, or to show in writing,
why he should not be held liable.  A notice issued under this Section must
set forth the date, facts and nature of the act or omission with which the
respondent is charged and must specifically identify the particular
provision of the Code, rule, regulation or order of which a violation is
charged.(3) No forfeiture liability under paragraph (1) of this Section
may attach for any violation occurring more than 2 years prior to the date
of issuance of the notice of apparent liability and in no event may the total
civil penalty forfeiture imposed for the acts or omissions set forth in any
one notice of apparent liability exceed $500,000.(4) The civil penalty forfeitures provided for in this Section
are payable to the General Revenue Fund of the State of Illinois, and
may be recovered in a civil suit in the name of the State of Illinois brought
in the Circuit Court in Sangamon County, or in the Circuit Court of the
county where the respondent is domiciled or has its principal operating
office.(5) In any case where the Director issues a notice of apparent
liability looking toward the imposition of a civil penalty forfeiture
under this Section, that fact may not be used in any other proceeding before
the Director to the prejudice of the respondent to whom the notice was issued,
unless (a) the civil penalty forfeiture has been paid, or (b) a court has
ordered payment of the civil penalty
forfeiture and that order has become final.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/404) (from Ch. 73, par. 1016)Sec. 404. Office of Director; a public office; destruction or
disposal of records, papers, documents, and memoranda.(1)(a)  The office of the Director shall be a public office and the
records,
books, and papers thereof on file
therein, except those records
or documents containing or disclosing any analysis, opinion, calculation,
ratio, recommendation, advice, viewpoint, or estimation by any Department staff
regarding the financial or market condition of an insurer not otherwise made
part of the public record by the Director,
shall be accessible to the
inspection of the public, except as the Director, for good reason, may
decide otherwise, or except as may be otherwise provided in this Code or as otherwise provided in Section 7 of the Freedom of Information Act.(b) Except where another provision of this Code expressly prohibits a
disclosure of confidential information to the specific officials or
organizations described in this subsection, the Director may disclose or share
any confidential records or information in his custody and control with any
insurance regulatory officials of any state or country, with the law
enforcement officials of this State, any other state, or the federal
government, or with the National Association of Insurance Commissioners, upon
the written agreement of the official or organization receiving the information
to hold the information or records confidential and in a manner consistent with
this Code.(c) The Director shall maintain as confidential any records or
information received from the National Association of Insurance Commissioners
or insurance regulatory officials of other states which is confidential in that
other jurisdiction.(2) Upon the filing of the examination to which they relate, the Director
is authorized to destroy or otherwise dispose of all working papers relative
to any company which has been examined at any time prior to that last
examination by the Department, so that in such circumstances only current
working papers of that last examination may be retained by the Department.(3) Five years after the conclusion of the transactions to
which they relate, the Director is authorized to destroy or otherwise
dispose of all books, records, papers, memoranda and correspondence
directly related to consumer complaints or inquiries.(4) Two years after the conclusion of the transactions to which they
relate, the Director is authorized to destroy or otherwise dispose of all
books, records, papers, memoranda, and correspondence directly related to
all void, obsolete, or superseded rate filings and schedules required to be
filed by statute; and all individual company rating experience data and all
records, papers, documents and memoranda in the possession of the Director
relating thereto.(5) Five years after the conclusion of the transactions to which
they relate, the Director is authorized to destroy or otherwise dispose
of all examination reports of companies made by the insurance supervisory
officials of states other than Illinois; applications, requisitions, and
requests for licenses; all records of hearings; and all similar records,
papers, documents, and memoranda in the possession of the Director.(6) Ten years after the conclusion of the transactions to which they
relate, the Director is authorized to destroy or otherwise dispose of all
official correspondence of foreign and alien companies, all foreign
companies' and alien companies' annual statements, valuation reports, tax
reports, and all similar records, papers, documents and memoranda in the
possession of the Director.(7) Whenever any records, papers, documents or memoranda are
destroyed or otherwise disposed of pursuant to the provisions of this
section, the Director shall execute and file in a separate, permanent
office file a certificate listing and setting forth by summary
description the records, papers, documents or memoranda so destroyed or
otherwise disposed of, and the Director may, in his discretion, preserve
copies of any such records, papers, documents or memoranda by means of
microfilming or photographing the same.(8) This Section shall apply to records, papers, documents, and
memoranda presently in the possession of the Director as well as to
records, papers, documents, and memoranda hereafter coming into his
possession.
(Source: P.A. 97-1004, eff. 8-17-12.) (215 ILCS 5/404.1) (from Ch. 73, par. 1016.1)Sec. 404.1. 
		Safekeeping of deposits. 
		The Director may maintain with
a corporation qualified to administer trusts in this State under the
Corporate Fiduciary Act for the securities deposited with the
Director, a limited agency, custodial, or depository account, or other type
of account for the safekeeping of those securities, and for collecting the
income from those securities and providing supportive accounting services
relating to such safekeeping and collection.  Such a corporation, in
safekeeping
such securities, shall have all the powers, rights, duties and responsibilities
that it has for holding securities in its fiduciary accounts under the
Securities in Fiduciary Accounts Act.
The Director shall arrange with any depository institution that has been
authorized to accept and execute trusts to provide for
collateralization of any cash accounts resulting from the failure of any
depositing company to give instruction regarding the investment of any such
cash amounts as provided for by Section 6 of the Public Funds Investment Act.
		(Source: P.A. 93-477, eff. 1-1-04.) (215 ILCS 5/405) (from Ch. 73, par. 1017)Sec. 405. 
		Certificates and certified copies as evidence.All certificates issued by the Director in accordance with the
provisions of the insurance laws and all copies of documents filed in his
office in accordance with the provisions of this Code when certified by
him, shall be taken and received in all courts, public offices, and
official bodies as prima facie evidence of the facts therein stated. A
certificate by the Director under the seal of the Department, as to the
existence or non-existence of the facts relating to companies which would
not appear from a certified copy of any of the foregoing documents or
certificates shall be taken and received in all courts, public offices, and
official bodies as prima facie evidence of the existence or non-existence
of the facts therein stated.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/406) (from Ch. 73, par. 1018)Sec. 406. 
		
		Annual
report.The Director shall report annually, or oftener at the request of the
Governor, to the Governor his official transactions, and shall include in
such report abstracts of the annual statements of the several companies and
an exhibit of the financial condition and business transactions of the said
companies as disclosed by official examinations of the same or by their
annual statements. He shall also include therein a statement of the
receipts and expenditures of the Department for the preceding year and such
other information and recommendations relative to insurance and the
insurance laws of the State as he shall deem proper.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/407) (from Ch. 73, par. 1019)Sec. 407. 
		Court review of orders and decisions. 
		Except as to those
orders or decisions of the Director to make good an impairment of capital
or surplus or a deficiency in the amount of admitted assets, the provisions
of the Administrative Review Law, and all amendments and modifications
thereof, and the rules adopted pursuant thereto, shall apply to and govern
all proceedings for the judicial review of final administrative decisions
of the Department.  The term "administrative decision" is defined as in
Section 3-101 of the Code of Civil Procedure.The Department shall not be required to certify any record to the court
or file any answer in court or otherwise appear in any court in a judicial
review proceeding, unless there is filed in the court with the complaint
a receipt from the Department acknowledging payment of the costs of furnishing
and certifying the record, which costs shall be computed at the rate of $1
per page of such record.  Failure on the part of the plaintiff to file such
receipt in Court shall be grounds for dismissal of the action.
		(Source: P.A. 84-989.) (215 ILCS 5/407.1) (from Ch. 73, par. 1019.1)Sec. 407.1. 
		
		The provisions of "The Illinois Administrative
Procedure Act", as now or hereafter amended, are hereby
expressly adopted and incorporated herein as though a part
of this Act, and shall apply to all administrative rules
and procedures of the Department of Insurance under this Act.
		(Source: P.A. 80-960.) (215 ILCS 5/407.2) (from Ch. 73, par. 1019.2)Sec. 407.2. 
		
		(1) When any person or company has a license or certificate of authority
under this Code and knowingly fails or refuses to comply with a lawful
Order of the Director, entered after notice and hearing, within the period
of time specified in the Order, the Director may, in addition to any other
penalty or authority provided, refuse to renew or revoke the license or
certificate of authority of such person or company, or may suspend the
license or certificate of authority of such person or company until
compliance with such order has been obtained.(2) When any person or company has a license or certificate of authority
under this Code and knowingly fails or refuses to comply with any provision
of this Code, the Director may, after notice and hearing, in addition to
any other penalty provided, refuse to renew or revoke the license or
certificate of authority of such person or company, or may suspend the
license or certificate of authority of such person or company, until
compliance with such provision of the Code has been obtained.(3) No suspension or revocation under this Section may become effective
until 5 days from the date that the Notice of suspension or revocation has
been personally delivered or delivered by registered or certified mail to
the company or person. A suspension or revocation under this Section is
stayed upon the filing, by the company or person, of a petition for
judicial review under the Administrative Review Law.
		(Source: P.A. 82-783.)
(215 ILCS 5/Art. XXIX heading) ARTICLE XXIX.  
		WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY RATES. (215 ILCS 5/454) (from Ch. 73, par. 1065.1)Sec. 454. 
		Purpose of Article. 
		The purpose of this Article is to promote the public welfare by
regulating workers' compensation and employer's liability insurance
rates to the end that they shall not be excessive, inadequate or
unfairly discriminatory, or erroneously applied and to authorize and
regulate co-operative
action among companies in rate making and in other matters within the
scope of this Article. Nothing in this Article is intended (1) to
prohibit or discourage reasonable competition, or (2) to prohibit, or
encourage except to the extent necessary to accomplish the
aforementioned purpose, uniformity in insurance rates, rating systems,
rating plans or practices. This Article shall be liberally interpreted
to carry into effect the provisions of this Section.  Section 462b of
this Article is a codification of existing law and practice.
		(Source: P.A. 83-1002.) (215 ILCS 5/455) (from Ch. 73, par. 1065.2)Sec. 455. 
		Scope of article. 
		This Article applies to workers' compensation and employers'
liability insurance incidental thereto and written in connection
therewith but shall not apply to reinsurance thereon.
		(Source: P.A. 81-992.) (215 ILCS 5/456) (from Ch. 73, par. 1065.3)Sec. 456. Making of rates.(1) All rates shall be made in accordance with the following provisions:(a) Due consideration shall be given to past and     prospective loss experience within and outside this state, to catastrophe hazards, if any, to a reasonable margin for profit and contingencies, to dividends, savings or unabsorbed premium deposits allowed or returned by companies to their policyholders, members or subscribers, to past and prospective expenses both countrywide and those specially applicable to this state, to underwriting practice and judgment and to all other relevant factors within and outside this state;(b) The systems of expense provisions included in the     rates for use by any company or group of companies may differ from those of other companies or groups of companies to reflect the requirements of the operating methods of any such company or group with respect to any kind of insurance, or with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable;(c) Risks may be grouped by classifications for the     establishment of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans which measure variation in hazards or expense provisions, or both. Such rating plans may measure any differences among risks that have a probable effect upon losses or expenses;(d) Rates shall not be excessive, inadequate or     unfairly discriminatory.A rate is excessive if it is likely to produce a     profit that is unreasonably high for the insurance provided or if expenses are unreasonably high in relation to the services rendered.A rate is not inadequate unless such rate is clearly     insufficient to sustain projected losses and expenses in the class of business to which it applies and the use of such rate has or, if continued, will have the effect of substantially lessening competition or the tendency to create monopoly in any market.Unfair discrimination exists if, after allowing for     practical limitations, price differentials fail to reflect equitably the differences in expected losses and expenses.  A rate is not unfairly discriminatory because different premiums result for policyholders with like exposures but different expenses, or like expenses but different loss exposures, so long as the rate reflects the differences with reasonable accuracy.(e) The rating plan shall contain a mandatory offer     of a deductible applicable only to the medical benefit under the Workers' Compensation Act. Such deductible offer shall be in a minimum amount of at least $1,000 per accident.(f) Any rating plan or program shall include a rule     permitting 2 or more employers with similar risk characteristics, who participate in a loss prevention program or safety group, to pool their premium and loss experience in determining their rate or premium for such participation in the program.(2) Except to the extent necessary to meet the provisions of
subdivision (d) of subsection (1) of this Section, uniformity among
companies in any matters within the scope of this Section is neither
required nor prohibited.
(Source: P.A. 100-1118, eff. 2-1-19.) (215 ILCS 5/457) (from Ch. 73, par. 1065.4)Sec. 457. Rate filings.(1) Every company
shall prefile with the Director every manual of classifications, every manual
of rules and rates, every rating plan and every modification of the foregoing
which it intends to use. Such filings shall be made at least 30 days before
 they become effective.
A company may satisfy its obligation to make such filings by adopting the
filing of a licensed rating organization of which it is a member or subscriber,
filed pursuant to subsection (2) of this Section, in total or, with the approval of the Director, deviate from such filing. If a company intends to deviate from the filing of a licensed rating organization of which it is a member, the company shall provide the Director with supporting information that specifies the basis for the requested deviation and provides justification for the deviation. Any
company adopting a pure premium filed by a rating organization pursuant to subsection
(2) must file with the Director the modification factor it is using for
expenses and profit so that the final rates in use by such company can be determined.(2) Each licensed rating organization must prefile
 with the Director every manual of classification, every manual of rules
and advisory rates, every pure premium which has been fully adjusted and
fully developed, every rating plan and every modification of any of the
foregoing which it intends to recommend for use to its members and subscribers,
at least 30 days before such manual, premium, plan or modification
thereof takes effect. Every licensed rating organization shall also file
with the Director the rate classification system, all rating rules, rating
plans, policy forms, underwriting rules or similar materials, and each modification
of any of the foregoing which it requires its members and subscribers to
adhere to not later than 30 days before such filings or modifications thereof
are to take effect. Every such filing shall state the proposed effective
date thereof and shall indicate the character and extent of the coverage contemplated.(3) A filing and any supporting information made pursuant to this Section
shall be open to public inspection as soon as filed.(4) A filing shall not be effective nor used until approved by the Director.  A filing shall be deemed approved and legally effective if the Director fails to disapprove within 30 days after the filing. (Source: P.A. 100-1118, eff. 2-1-19.) (215 ILCS 5/458) (from Ch. 73, par. 1065.5)Sec. 458. Disapproval of filings.(1) If within 30 days of any filing the Director
finds that such filing does not meet the requirements of this Article, he
shall send to the company or rating organization which made such filing a
written notice of disapproval of such filing, specifying therein in what
respects he finds that such filing fails to meet the requirements of this
Article. A company or rating organization whose filing has been disapproved shall be given a hearing upon a written request made within 30 days after the disapproval order.(2) If at any time subsequent to the applicable review period provided
for in subsection (1) of this Section, the Director finds that a
filing does not meet the requirements of this Article, he shall, after a
hearing held upon not less than ten days written notice, specifying the
matters to be considered at such hearing, to every company and rating
organization which made such filing, issue an order specifying in what
respects he finds that such filing fails to meet the requirements of this
Article, and stating when, within a reasonable period thereafter, such
filings shall be deemed no longer effective. Copies of said order shall be
sent to every such company and rating organization. Said order shall not
affect any contract or policy made or issued prior to the expiration of the
period set forth in said order.(3) Any person or organization aggrieved with respect to any filing
which is in effect may make written application to the Director for a
hearing thereon, provided, however, that the company or rating organization
that made the filing shall not be authorized to proceed under this
subsection. Such application shall specify the grounds to be relied upon by
the applicant. If the Director shall find that the application is made in
good faith, that the applicant would be so aggrieved if his grounds are
established, and that such grounds otherwise justify holding such a
hearing, he shall, within thirty days after receipt of such application,
hold a hearing upon not less than ten days written notice to the applicant
and to every company and rating organization which made such filing.If, after such hearing, the Director finds that the filing does not meet
the requirements of this Article, he shall issue an order specifying in
what respects he finds that such filing fails to meet the requirements of
this Article, and stating when, within a reasonable period thereafter, such
filing shall be deemed no longer effective. Copies of said order shall be
sent to the applicant and to every such company and rating organization.
Said order shall not affect any contract or policy made or issued prior to
the expiration of the period set forth in said order.(4) Whenever an insurer has no legally effective rates as a result of the Director's disapproval of rates or other act, the Director shall on request of the insurer specify interim rates for the insurer that are high enough to protect the interests of all parties and may order that a specified portion of the premiums be placed in an escrow account approved by him or her. When new rates become legally effective, the Director shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately, except that refunds to policyholders that are de minimis shall not be required.(Source: P.A. 100-1118, eff. 2-1-19.) (215 ILCS 5/459) (from Ch. 73, par. 1065.6)Sec. 459. 
		Rating organizations. 
		(1) A corporation, an unincorporated association, a partnership or an
individual, whether located within or outside this state, may make
application to the Director for license as a rating organization for such
kinds of insurance or subdivisions thereof as are specified in its
application and shall file therewith (a) a copy of its constitution, its
articles of agreement or association or its certificate of incorporation,
and of its bylaws, rules and regulations governing the conduct of its
business, (b) a list of its members and subscribers, (c) the name and
address of a resident of this state upon whom notices or orders of the
Director or process affecting such rating organization may be served and
(d) a statement of its qualifications as a rating organization. If the
Director finds that the applicant is competent, trustworthy and otherwise
qualified to act as a rating organization and that its constitution,
articles of agreement or association or certificate of incorporation, and
its bylaws, rules and regulations governing the conduct of its business
conform to the requirements of law, he shall issue a license specifying the
kinds of insurance or subdivisions thereof for which the applicant is
authorized to act as a rating organization. Every such application shall be
granted or denied in whole or in part by the Director within sixty days of
the date of its filing with him. Licenses issued pursuant to this Section
shall remain in effect for three years unless sooner suspended or revoked
by the Director. The fee for said license shall be twenty-five dollars.
Licenses issued pursuant to this Section may be suspended or revoked by the
Director, after hearing upon notice, in the event the rating organization
ceases to meet the requirements of this subsection. Every rating
organization shall notify the Director promptly of every change in (a) its
constitution, its articles of agreement or association or its certificate
of incorporation, and its bylaws, rules and regulations governing the
conduct of its business, (b) its list of members and subscribers and (c)
the name and address of the resident of this state designated by it upon
whom notices or orders of the Director or process affecting such rating
organization may be served.(2) Subject to rules and regulations which have been approved by the
Director as reasonable, each rating organization shall permit any company,
not a member, to be a subscriber to its rating services for any kind of
insurance or subdivision thereof for which it is authorized to act as a
rating organization. Notice of proposed changes in such rules and
regulations shall be given to subscribers. Each rating organization shall
furnish its rating services without discrimination to its members and
subscribers. The reasonableness of any rule or regulation in its
application to subscribers, or the refusal of any rating organization to
admit a company as a subscriber, shall, at the request of any subscriber or
any such company, be reviewed by the Director at a hearing held upon at
least ten days' written notice to such rating organization and to such
subscriber or company. If the Director finds that such rule or regulation
is unreasonable in its application to subscribers, he shall order that such
rule or regulation shall not be applicable to subscribers. If the rating
organization fails to grant or reject a company's application for
subscribership within thirty days after it was made, the company may
request a review by the Director as if the application had been rejected.
If the Director finds that the company has been refused admittance to the
rating organization as a subscriber without justification, he shall order
the rating organization to admit the company as a subscriber. If he finds
that the action of the rating organization was justified, he shall make an
order affirming its action.(3) No rating organization shall adopt any rule the effect of which
would be to prohibit or regulate the payment of dividends, savings or
unabsorbed premium deposits allowed or returned by companies to their
policyholders, members or subscribers.(4) Cooperation among rating organizations or among rating organizations
and companies in matters within the scope of this
Article is hereby authorized, provided the filings resulting from such
cooperation are subject to all the provisions of this Article which are
applicable to filings generally. The Director may review such cooperative
activities and practices and if, after a hearing, he finds that any such
activity or practice is unfair or unreasonable or otherwise inconsistent
with the provisions of this Article, he may issue a written order
specifying in what respects such activity or practice is unfair or
unreasonable or otherwise inconsistent with the provisions of this Article,
and requiring the discontinuance of such activity or practice.(5) A rating organization may require members and subscribers to adhere
to a rate classification system, rating rules, rating plans, policy forms,
and underwriting rules or similar materials; however, no insurer may agree
with any other insurer or with a rating organization to adhere to or use
any rate or schedule rating plan. For the purposes of this Article, "rate"
means the charge for insurance per unit of exposure, prior to any application
of individual risk variations based on loss or expense considerations, or
a consideration of both, and does not include minimum premiums.(6) Two or more insurers having a common ownership or operating in this
State under common management or control may act in concert between or among
themselves with respect to those activities authorized in this Article as
if they were a single insurer.(7) The fact that 2 or more insurers consistently or intermittently
use the same rates is not sufficient in itself to support a finding that
an illegal agreement exists, and may be used only for the purpose of supplementing
or explaining other direct evidence of the existence of any such agreement.
		(Source: P.A. 82-939.) (215 ILCS 5/460) (from Ch. 73, par. 1065.7)Sec. 460. (Repealed). 
(Source: P.A. 99-642, eff. 7-28-16. Repealed by P.A. 100-1118, eff. 2-1-19.) (215 ILCS 5/461) (from Ch. 73, par. 1065.8)Sec. 461. 
		
		Appeal
by minority.Any member of or subscriber to a rating organization may appeal to the
Director from the action or decision of such rating organization in
approving or rejecting any proposed change in or addition to the filings of
such rating organization and the Director shall, after a hearing held upon
not less than ten days' written notice to the appellant and to such rating
organization, issue an order approving the action or decision of such
rating organization or directing it to give further consideration to such
proposal, or, if such appeal is from the action or decision of the rating
organization in rejecting a proposed addition to its filings, he may, in
the event he finds that such action or decision was unreasonable, issue an
order directing the rating organization to make an addition to its filings,
on behalf of its members and subscribers, in a manner consistent with his
findings, within a reasonable time after the issuance of such order.If such appeal is based upon the failure of the rating organization to
make a filing on behalf of such member or subscriber which is based on a
system of expense provisions which differs, in accordance with the right
granted in subdivision (b) of subsection (1) of Section 456, from the
system of expense provisions included in a filing made by the rating
organization, the Director shall, if he grants the appeal, order the rating
organization to make the requested filing for use by the appellant. In
deciding such appeal the Director shall apply the standards set forth in
Section 456.
		(Source: Laws 1947, p. 1098.) (215 ILCS 5/462) (from Ch. 73, par. 1065.9)Sec. 462. 
		
		Information to be furnished insureds - Hearings and appeals of
insureds. Every rating organization, and every company which does
not adopt the rates of a rating organization,
shall, within a reasonable time after receiving written request therefor, furnish to
any insured affected by a rate made by it, or to the authorized
representative of such insured, in readily understandable language,
all pertinent information as to such rate as specified in rules adopted
by the Department.Every rating organization, and every company which does not adopt
the rates of a rating organization,
shall provide within this state reasonable means whereby any person
aggrieved by the application of its rating system may be heard, in
person or by his authorized representative, on his written request to
review the manner in which such rating system has been applied in
connection with the insurance afforded him. If the rating organization
or company fails to grant or reject such request within thirty days
after it is made, the applicant may proceed in the same manner as if his
application had been rejected. Any party affected by the action of such
rating organization or such company on such request may, within thirty
days after written notice of such action, appeal to the Director, who,
after a hearing held upon not less than ten days' written notice to the
appellant and to such rating organization or company, may affirm or
reverse such action.
		(Source: P.A. 82-939.) (215 ILCS 5/462a)Sec. 462a. Premium increase notice. A policy of workers' compensation insurance issued, delivered, amended, or renewed on or after January 1, 2019 shall remain in full force and effect subject to the same terms and conditions, loss cost multipliers, and classification of the employer with regard to the payment of dividends, unless written notice is mailed or delivered by the insurer to the employer, at the address shown on the policy, and to the employer's authorized agent or broker, indicating the insurer's intention to condition renewal upon issuance of a policy that supersedes the policy previously issued and that will result in a premium in  excess of 5% above the rate recommendation filed with the Department, exclusive of any premium increase generated as a result of increased loss costs or increased exposure units or as a result of experience rating, contractor credit adjustment program, large deductible, retrospective rating, or audit. The notice shall be delivered at least 30 days in advance of the expiration date of the policy, and shall set forth: (1) the amount of the premium increase or, if the amount cannot reasonably be determined as of the time the notice is provided, a reasonable estimate of the premium increase based upon the information available to the insurer at that time; and (2) the reason for the increased premium in excess of the rate recommendation filed with the Department. Nothing in this Section requires the insurer to provide notice when the employer, an agent or broker authorized by the employer, or another insurer of the employer has delivered written notice that the policy has been replaced or is no longer desired.
(Source: P.A. 100-1118, eff. 11-27-18.) (215 ILCS 5/462b) (from Ch. 73, par. 1065.9b)Sec. 462b. 
		
		Insurance companies shall apply correct classifications,
payrolls and other factors of a rating system to compute premiums.  If the
application of incorrect classifications, payrolls or any other factors
of a rating system results in the payment by an insured of premiums in excess
of the premiums that would have been paid utilizing the correct applications
of classifications, payrolls or other factors of a rating system, the insurer
shall refund to the insured the excessive premium paid for the period during
which the incorrect application of classifications, payrolls or other factors
of a rating system were applied.  This Section is intended to codify existing
law and practice.
		(Source: P.A. 83-1002.) (215 ILCS 5/463) (from Ch. 73, par. 1065.10)Sec. 463. 
		Advisory organizations. 
		(1) Every group, association or other organization of companies whether
located within or outside this state, which assists companies which make
their own filings or rating organizations in rate making, by the collection
and furnishing of loss or expense statistics, or by the submission of
recommendations, but which does not make filings under this Article, shall
be known as an advisory organization.(2) Every advisory organization shall file with the Director (a) a copy
of its constitution, its articles of agreement or association or its
certificate of incorporation and of its by-laws, rules and regulations
governing its activities, (b) a list of its members, (c) the name and
address of a resident of this state upon whom notices or orders of the
Director or process issued at his direction may be served, and (d) an
agreement that the Director may examine such advisory organization in
accordance with the provisions of Section 465 of this Article.(3) If, after a hearing, the Director finds that the furnishing of such
information or assistance involves any act or practice which is unfair or
unreasonable or otherwise inconsistent with the provisions of this Article,
he may issue a written order specifying in what respects such act or
practice is unfair or unreasonable or otherwise inconsistent with the
provisions of this Article, and requiring the discontinuance of such act or
practice.(4) No company which makes its own filings nor any rating organization
shall support its filings by statistics or adopt rate making
recommendations, furnished to it by an advisory organization which has not
complied with this Section or with an order of the Director involving such
statistics or recommendations issued under subsection (3) of this Section.
If the Director finds such company or rating organization to be in
violation of this subsection he may issue an order requiring the
discontinuance of such violation.
		(Source: Laws 1947, p. 1098.) (215 ILCS 5/464) (from Ch. 73, par. 1065.11)Sec. 464. 
		Joint underwriting or joint reinsurance. 
		(1) Every group,
association or other organization of companies which
engages in joint underwriting or joint reinsurance, shall be subject to
regulation with respect thereto as herein provided, subject, however, with
respect to joint underwriting, to all provisions of this Article, and with
respect to joint reinsurance, to Sections 465, 467, 469, 470 and 471 of
this Article.(2) If, after a hearing, the Director finds that any activity or
practice of any such group, association or other organization is unfair or
unreasonable or otherwise inconsistent with the provisions of this Article,
he may issue a written order specifying in what respects such activity or
practice is unfair or unreasonable or otherwise inconsistent with the
provisions of this Article, and requiring the discontinuance of such
activity or practice.
		(Source: Laws 1947, p. 1098.) (215 ILCS 5/464a) (from Ch. 73, par. 1065.11a)Sec. 464a. 
		(Repealed). 
		(Source: P.A. 81-1482.  Repealed by P.A. 91-757, eff. 1-1-01.) (215 ILCS 5/465) (from Ch. 73, par. 1065.12)Sec. 465. 
		Examinations. 
		The Director shall, at least once in five years, make or cause to be
made an examination of each rating organization licensed in this state as
provided in Section 459 and he may, as often as he may deem it expedient,
make or cause to be made an examination of each advisory organization
referred to in Section 463 and of each group, association or other
organization referred to in Section 464. The reasonable costs of any such
examination shall be paid by the rating organization, advisory
organization, or group, association or other organization examined upon
presentation to it of a detailed account of such costs. The officers,
manager, agents and employees of such rating organization, advisory
organization or group, association or other organization may be examined at
any time under oath and shall exhibit all books, records, accounts,
documents, or agreements governing its method of operation. In lieu of any
such examination the Director may accept the report of an examination made
by the insurance supervisory official of another state, pursuant to the
laws of such state. The provisions of Sections 132 through 132.7, 402,
and 403 shall be
applicable to the examinations hereunder.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/466) (from Ch. 73, par. 1065.13)Sec. 466. 
		Rate administration. 
		(1) Recording and Reporting of Loss and Expense Experience.The Director shall promulgate reasonable rules and shall approve statistical
plans, reasonably adapted to each of the rating systems on file with him, which
may be modified from time to time and which shall be used thereafter by
each company in the recording and reporting of its loss and countrywide
expense experience, in order that the experience of all companies may be
made available at least annually in such form and detail as may be
necessary to aid him in determining whether rating systems comply with the
standards set forth in Section 456. An approved statistical plan need not
be adopted as a rule, but shall be made available for public inspection at
the Department's principal office and a copy of the plan shall be filed
with the Secretary of State. Such rules and plans may also provide
for the recording and reporting of expense experience items which are
specially applicable to this state and are not susceptible of determination
by a prorating of countrywide expense experience. In promulgating such rules
and approving plans, the Director shall give due consideration to the rating
systems on file with him and in order that such rules and plans may be as
uniform as is practicable among the several states, to the rules and to the
form of the plans used for such rating systems in other states. No company
shall be required to record or report any experience on an experience
classification which it does not use in the making of its rates or to
record or report its experience on any basis or statistical plan that
differs from that which is regularly employed and used in the usual course
of such company's business, nor shall any company be required to record or
report its loss experience on a classification basis that is inconsistent
with the rating system filed by it, nor shall it be required to report such
experience to any rating organization of which it is not a member or
subscriber, or to an agency operated by or subject to the control of such a
rating organization, nor shall the Department's rules state that the
insurer must record or report its experience in accordance with a uniform
statistical plan which differs from that which is regularly employed and
used in the usual course of such company's business. Any
company not reporting such experience to a rating
organization or other agency designated by the Director, shall report such
experience to the Director. The Director may designate one or more rating
organizations or other agencies to assist him in gathering all such
experience and in making compilations thereof. The experience of any
company filed with the Director shall be deemed confidential and shall not
be revealed by the Director to any other company or other person, provided,
however, that the Director may make compilations of all experience,
including the experience of any such company, or of such experience and the
compilation made by the designated rating organization or other agency. All
such compilations, whether made by the Director or by any designated rating
organization or other agency, shall be made available, subject to
reasonable rules promulgated by the Director, to companies and rating
organizations.(2) Interchange of Rating Plan DataReasonable rules and plans may be promulgated by the Director for the
interchange of data necessary for the application of rating plans.(3) Consultation with Other StatesIn order to further uniform administration of rate regulatory laws, the
Director and every company and rating organization may exchange information
and experience data with insurance supervisory officials, companies and
rating organizations in other states and may consult with them with respect
to rate making and the application of rating systems.(4) Rules and RegulationsThe Director may make reasonable rules and regulations necessary to
effect the purpose of this Article.
		(Source: P.A. 84-427.) (215 ILCS 5/467) (from Ch. 73, par. 1065.14)Sec. 467. 
		False or misleading information. 
		No person, company or
organization shall wilfully withhold information
from, or knowingly give false or misleading information to the Director,
any statistical agency designated by the Director, any rating organization,
or, any company which will affect the rates or premiums chargeable under
this Article. A violation of this Section shall subject the one guilty of
such violation to the penalties provided in Section 470 of this Article.
		(Source: Laws 1947, p. 1098.) (215 ILCS 5/468) (from Ch. 73, par. 1065.15)Sec. 468. 
		Residual Market Mechanism. 
		All companies licensed to write
workers' compensation and employers' liability insurance in this State shall
participate in a plan providing for the equitable apportionment among them
of insurance which may be afforded applicants who are in good faith entitled
to but who are unable to procure such insurance through ordinary methods.
Companies must submit such a plan for the Director's approval within 60
days of the effective date of this amendatory Act of 1982.  The rates to be used
in such a plan and any future modification thereof must be submitted to
the Director for approval at least 30 days prior to their effective date.
Such rates shall reflect residual market experience to the extent it is
actuarially appropriate.  The Director shall disapprove any filing that
does not meet the requirements
of subparagraph (d) of paragraph (1) of Section 456 of this Article.  A
filing shall be deemed to meet such requirements unless disapproved by the
Director within 30 days after the filing is made.  In disapproving a filing
made under this Section, the Director shall have the same authority and
shall follow the same procedure as in disapproving a filing under Section
458.  Notwithstanding any other provisions of this Article, rating organizations
may make and file rates under this Section. 
		(Source: P.A. 82-939.) (215 ILCS 5/469) (from Ch. 73, par. 1065.16)Sec. 469. Rebates prohibited. No broker or agent shall knowingly charge, demand, or receive a premium
for any policy of insurance except in accordance with the provisions of
this Article. No company or employee thereof, and no broker or agent shall
pay, allow, or give, or offer to pay, allow, or give, directly or indirectly,
as an inducement to insurance, or after insurance has been effected, any
rebates, discount, abatement, credit, or reduction of the premium named in a
policy of insurance, or any special favor or advantage in the dividends or
other benefits to accrue thereon, or any valuable consideration or
inducement whatever, not specified in the policy of insurance, except to
the extent provided for in an applicable filing. No insured named in a
policy of insurance, nor any employee of such insured shall knowingly
receive or accept, directly or indirectly, any such rebate, discount,
abatement, credit, or reduction of premium, or any such special favor or
advantage or valuable consideration or inducement. Nothing in this Section
shall be construed as prohibiting the payment of commissions or other
compensation to duly licensed agents and brokers, nor as prohibiting any
company from allowing or returning to its participating policyholders,
members, or subscribers, dividends, savings, or unabsorbed premium deposits.Sections 151 and 152 of this Code shall not apply to any kind
of insurance subject to this Article.
(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 5/470) (from Ch. 73, par. 1065.17)Sec. 470. 
		Penalties. 
		Any person, company or organization violating any provision of this
Article shall be guilty of a petty offense for each such violation,
provided that a series of acts or events based upon the same alleged
violation shall be treated and considered as a single violation.The Director may suspend the license of any rating organization or
company which fails to comply with an order of the Director within the time
limited by such order, or any extension thereof which the Director may
grant. The Director shall not suspend the license of any rating
organization or company for failure to comply with an order until the time
prescribed for filing a petition for review thereof as provided in Section
471 has expired or if such petition for review has been filed until such
order has been affirmed. The Director may determine when a suspension of
license shall become effective and it shall remain in effect for the period
fixed by him, unless he modifies or rescinds such suspension, or until the
order upon which such suspension is based is modified, rescinded or
reversed.No license shall be suspended or revoked except upon a written order of
the Director, stating his findings, made after a hearing held upon not less
than ten days' written notice to such person or organization specifying the
alleged violation.
		(Source: P.A. 77-2699.) (215 ILCS 5/471) (from Ch. 73, par. 1065.18)Sec. 471. 
		Hearing procedure and judicial review. 
		(1) Any company or rating
organization aggrieved by any order or
decision of the Director made without a hearing, may, within 30 days
after notice of the order to the company or organization, make written
request to the Director for a hearing thereon. The Director shall hear
such party or parties within 20 days after receipt of such request
and shall give not less than 10 days' written notice of the time and
place of the hearing. Within 15 days after such hearing the
Director shall affirm, reverse or modify his previous action, specifying
his reasons therefor. Pending such hearing and decision thereon the
Director may suspend or postpone the effective date of his previous
action.(2) Nothing contained in this Article shall require the observance
at any hearing of formal rules of pleading or evidence.(3) The Administrative Review Law shall apply to and govern all
proceedings for the judicial review of orders and decisions of the
Director under this Article.  Provided, however, that, in the review of
any order or decision of the Director under this Article, such order or
decision shall not be deemed prima facie to be correct and proper, and
provided further that a rating organization aggrieved by an order or
decision under this Article may initiate such proceedings for its
review.
		(Source: P.A. 82-783.)
(215 ILCS 5/Art. XXV heading) ARTICLE XXV.  
		FEES, CHARGES AND TAXES (215 ILCS 5/408) (from Ch. 73, par. 1020)Sec. 408. Fees and charges.(1) The Director shall charge, collect and
give proper acquittances for the payment of the following fees and charges:(a) For filing all documents submitted for the     incorporation or organization or certification of a domestic company, except for a fraternal benefit society, $2,000.(b) For filing all documents submitted for the     incorporation or organization of a fraternal benefit society, $500.(c) For filing amendments to articles of     incorporation and amendments to declaration of organization, except for a fraternal benefit society, a mutual benefit association, a burial society or a farm mutual, $200.(d) For filing amendments to articles of     incorporation of a fraternal benefit society, a mutual benefit association or a burial society, $100.(e) For filing amendments to articles of     incorporation of a farm mutual, $50.(f) For filing bylaws or amendments thereto, $50.(g) For filing agreement of merger or consolidation:(i) for a domestic company, except for a         fraternal benefit society, a mutual benefit association, a burial society, or a farm mutual, $2,000.(ii) for a foreign or alien company, except for a         fraternal benefit society, $600.(iii) for a fraternal benefit society, a mutual         benefit association, a burial society, or a farm mutual, $200.(h) For filing agreements of reinsurance by a     domestic company, $200.(i) For filing all documents submitted by a foreign     or alien company to be admitted to transact business or accredited as a reinsurer in this State, except for a fraternal benefit society, $5,000.(j) For filing all documents submitted by a foreign     or alien fraternal benefit society to be admitted to transact business in this State, $500.(k) For filing declaration of withdrawal of a foreign     or alien company, $50.(l) For filing annual statement by a domestic     company, except a fraternal benefit society, a mutual benefit association, a burial society, or a farm mutual, $200.(m) For filing annual statement by a domestic     fraternal benefit society, $100.(n) For filing annual statement by a farm mutual, a     mutual benefit association, or a burial society, $50.(o) For issuing a certificate of authority or renewal     thereof except to a foreign fraternal benefit society, $400.(p) For issuing a certificate of authority or renewal     thereof to a foreign fraternal benefit society, $200.(q) For issuing an amended certificate of authority,     $50.(r) For each certified copy of certificate of     authority, $20.(s) For each certificate of deposit, or valuation, or     compliance or surety certificate, $20.(t) For copies of papers or records per page, $1.(u) For each certification to copies of papers or     records, $10.(v) For multiple copies of documents or certificates     listed in subparagraphs (r), (s), and (u) of paragraph (1) of this Section, $10 for the first copy of a certificate of any type and $5 for each additional copy of the same certificate requested at the same time, unless, pursuant to paragraph (2) of this Section, the Director finds these additional fees excessive.(w) For issuing a permit to sell shares or increase     paid-up capital:(i) in connection with a public stock offering,         $300;(ii) in any other case, $100.(x) For issuing any other certificate required or     permissible under the law, $50.(y) For filing a plan of exchange of the stock of a     domestic stock insurance company, a plan of demutualization of a domestic mutual company, or a plan of reorganization under Article XII, $2,000.(z) For filing a statement of acquisition of a     domestic company as defined in Section 131.4 of this Code, $2,000.(aa) For filing an agreement to purchase the business     of an organization authorized under the Dental Service Plan Act or the Voluntary Health Services Plans Act or of a health maintenance organization or a limited health service organization, $2,000.(bb) For filing a statement of acquisition of a     foreign or alien insurance company as defined in Section 131.12a of this Code, $1,000.(cc) For filing a registration statement as required     in Sections 131.13 and 131.14, the notification as required by Sections 131.16, 131.20a, or 141.4, or an agreement or transaction required by Sections 124.2(2), 141, 141a, or 141.1, $200.(dd) For filing an application for licensing of:(i) a religious or charitable risk pooling trust         or a workers' compensation pool, $1,000;(ii) a workers' compensation service company,         $500;(iii) a self-insured automobile fleet, $200; or(iv) a renewal of or amendment of any license         issued pursuant to (i), (ii), or (iii) above, $100.(ee) For filing articles of incorporation for a     syndicate to engage in the business of insurance through the Illinois Insurance Exchange, $2,000.(ff) For filing amended articles of incorporation for     a syndicate engaged in the business of insurance through the Illinois Insurance Exchange, $100.(gg) For filing articles of incorporation for a     limited syndicate to join with other subscribers or limited syndicates to do business through the Illinois Insurance Exchange, $1,000.(hh) For filing amended articles of incorporation for     a limited syndicate to do business through the Illinois Insurance Exchange, $100.(ii) For a permit to solicit subscriptions to a     syndicate or limited syndicate, $100.(jj) For the filing of each form as required in     Section 143 of this Code, $50 per form. Informational and advertising filings shall be $25 per filing.  The fee for advisory and rating organizations shall be $200 per form.(i) For the purposes of the form filing fee,         filings made on insert page basis will be considered one form at the time of its original submission. Changes made to a form subsequent to its approval shall be considered a new filing.(ii) Only one fee shall be charged for a form,         regardless of the number of other forms or policies with which it will be used.(iii) Fees charged for a policy filed as it will         be issued regardless of the number of forms comprising that policy shall not exceed $1,500. For advisory or rating organizations, fees charged for a policy filed as it will be issued regardless of the number of forms comprising that policy shall not exceed $2,500.(iv) The Director may by rule exempt forms from         such fees.(kk) For filing an application for licensing of a     reinsurance intermediary, $500.(ll) For filing an application for renewal of a     license of a reinsurance intermediary, $200.(mm)   For filing a plan of division of a domestic     stock company under Article IIB, $10,000.(nn)   For filing all documents submitted by a     foreign or alien company to be a certified reinsurer in this State, except for a fraternal benefit society, $1,000.(oo) For filing a renewal by a foreign or alien          company to be a certified reinsurer in this State, except for a fraternal benefit society, $400.(pp)   For filing all documents submitted by a     reinsurer domiciled in a reciprocal jurisdiction, $1,000.(qq)   For filing a renewal by a reinsurer domiciled     in a reciprocal jurisdiction, $400.(rr)   For registering a captive management company     or renewal thereof, $50.(2) When printed copies or numerous copies of the same paper or records
are furnished or certified, the Director may reduce such fees for copies
if he finds them excessive.  He may, when he considers it in the public
interest, furnish without charge to state insurance departments and persons
other than companies, copies or certified copies of reports of examinations
and of other papers and records.(3) The expenses incurred in any performance
examination authorized by law shall be paid by the company or person being
examined. The charge shall be reasonably related to the cost of the
examination including but not limited to compensation of examiners,
electronic data processing costs, supervision and preparation of an
examination report and lodging and travel expenses.
All lodging and travel expenses shall be in accord
with the applicable travel regulations as published by the Department of
Central Management Services and approved by the Governor's Travel Control
Board, except that out-of-state lodging and travel expenses related to
examinations authorized under Section 132 shall be in accordance with
travel rates prescribed under paragraph 301-7.2 of the Federal Travel
Regulations, 41 C.F.R. 301-7.2, for reimbursement of subsistence expenses
incurred during official travel.  All lodging and travel expenses may be reimbursed directly upon authorization of the
Director. With the exception of the
direct reimbursements authorized by the
Director, all performance examination charges collected by the
Department shall be paid
to the Insurance Producer Administration Fund,
however, the electronic data processing costs
incurred by the Department in the performance of any examination shall be
billed directly to the company being examined for payment to the Technology Management
 Revolving Fund.(4) At the time of any service of process on the Director
as attorney for such service, the Director shall charge and collect the
sum of $40, which may be recovered as taxable costs by
the party to the suit or action causing such service to be made if he prevails
in such suit or action.(5) (a) The costs incurred by the Department of Insurance
in conducting any hearing authorized by law shall be assessed against the
parties to the hearing in such proportion as the Director of Insurance may
determine upon consideration of all relevant circumstances including:  (1)
the nature of the hearing; (2) whether the hearing was instigated by, or
for the benefit of a particular party or parties; (3) whether there is a
successful party on the merits of the proceeding; and (4) the relative levels
of participation by the parties.(b) For purposes of this subsection (5) costs incurred shall
mean the hearing officer fees, court reporter fees, and travel expenses
of Department of Insurance officers and employees; provided however, that
costs incurred shall not include hearing officer fees or court reporter
fees unless the Department has retained the services of independent
contractors or outside experts to perform such functions.(c) The Director shall make the assessment of costs incurred as part of
the final order or decision arising out of the proceeding; provided, however,
that such order or decision shall include findings and conclusions in support
of the assessment of costs.  This subsection (5) shall not be construed as
permitting the payment of travel expenses unless calculated in accordance
with the applicable travel regulations of the Department
of Central Management Services, as approved by the Governor's Travel Control
Board.  The Director as part of such order or decision shall require all
assessments for hearing officer fees and court reporter fees, if any, to
be paid directly to the hearing officer or court reporter by the party(s)
assessed for such costs. The assessments for travel expenses of Department
officers and employees shall be reimbursable to the
Director of Insurance for
deposit to the fund out of which those expenses had been paid.(d) The provisions of this subsection (5) shall apply in the case of any
hearing conducted by the Director of Insurance not otherwise specifically
provided for by law.(6) The Director shall charge and collect an annual financial
regulation fee from every domestic company for examination and analysis of
its financial condition and to fund the internal costs and expenses of the
Interstate Insurance Receivership Commission as may be allocated to the State
of Illinois and companies doing an insurance business in this State pursuant to
Article X of the Interstate Insurance Receivership Compact.  The fee shall be
the greater fixed amount based upon
the combination of nationwide direct premium income and
nationwide reinsurance
assumed premium
income or upon admitted assets calculated under this subsection as follows:(a) Combination of nationwide direct premium income     and nationwide reinsurance assumed premium.(i) $150, if the premium is less than $500,000         and there is no reinsurance assumed premium;(ii) $750, if the premium is $500,000 or more,         but less than $5,000,000 and there is no reinsurance assumed premium; or if the premium is less than $5,000,000 and the reinsurance assumed premium is less than $10,000,000;(iii) $3,750, if the premium is less than         $5,000,000 and the reinsurance assumed premium is $10,000,000 or more;(iv) $7,500, if the premium is $5,000,000 or         more, but less than $10,000,000;(v) $18,000, if the premium is $10,000,000 or         more, but less than $25,000,000;(vi) $22,500, if the premium is $25,000,000 or         more, but less than $50,000,000;(vii) $30,000, if the premium is $50,000,000 or         more, but less than $100,000,000;(viii) $37,500, if the premium is $100,000,000 or         more.(b) Admitted assets.(i) $150, if admitted assets are less than         $1,000,000;(ii) $750, if admitted assets are $1,000,000 or         more, but less than $5,000,000;(iii) $3,750, if admitted assets are $5,000,000         or more, but less than $25,000,000;(iv) $7,500, if admitted assets are $25,000,000         or more, but less than $50,000,000;(v) $18,000, if admitted assets are $50,000,000         or more, but less than $100,000,000;(vi) $22,500, if admitted assets are $100,000,000         or more, but less than $500,000,000;(vii) $30,000, if admitted assets are         $500,000,000 or more, but less than $1,000,000,000;(viii) $37,500, if admitted assets are         $1,000,000,000 or more.(c) The sum of financial regulation fees charged to     the domestic companies of the same affiliated group shall not exceed $250,000 in the aggregate in any single year and shall be billed by the Director to the member company designated by the group.(7) The Director shall charge and collect an annual financial regulation
fee from every foreign or alien company, except fraternal benefit
societies, for the
examination and analysis of its financial condition and to fund the internal
costs and expenses of the Interstate Insurance Receivership Commission as may
be allocated to the State of Illinois and companies doing an insurance business
in this State pursuant to Article X of the Interstate Insurance Receivership
Compact.
The fee shall be a fixed amount based upon Illinois direct premium income
and nationwide reinsurance assumed premium income in accordance with the
following schedule:(a) $150, if the premium is less than $500,000 and     there is no reinsurance assumed premium;(b) $750, if the premium is $500,000 or more, but     less than $5,000,000 and there is no reinsurance assumed premium; or if the premium is less than $5,000,000 and the reinsurance assumed premium is less than $10,000,000;(c) $3,750, if the premium is less than $5,000,000     and the reinsurance assumed premium is $10,000,000 or more;(d) $7,500, if the premium is $5,000,000 or more, but     less than $10,000,000;(e) $18,000, if the premium is $10,000,000 or more,     but less than $25,000,000;(f) $22,500, if the premium is $25,000,000 or more,     but less than $50,000,000;(g) $30,000, if the premium is $50,000,000 or more,     but less than $100,000,000;(h) $37,500, if the premium is $100,000,000 or more.The sum of financial regulation fees under this subsection (7)
charged to the foreign or alien companies within the same affiliated group
shall not exceed $250,000 in the aggregate in any single year
and shall be
billed by the Director to the member company designated by the group.(8) Beginning January 1, 1992, the financial regulation fees imposed
under subsections (6) and (7)
of this Section shall be paid by each company or domestic affiliated group
annually.  After January
1, 1994, the fee shall be billed by Department invoice
based upon the company's
premium income or admitted assets as shown in its annual statement for the
preceding calendar year.  The invoice is due upon
receipt and must be paid no later than June 30 of each calendar year.  All
financial
regulation fees collected by the Department shall be paid to the Insurance
Financial Regulation Fund.  The Department may not collect financial
examiner per diem charges from companies subject to subsections (6) and (7)
of this Section undergoing financial examination
after June 30, 1992.(9) In addition to the financial regulation fee required by this
Section, a company undergoing any financial examination authorized by law
shall pay the following costs and expenses incurred by the Department:
electronic data processing costs, the expenses authorized under Section 131.21
and
subsection (d) of Section 132.4 of this Code, and lodging and travel expenses.Electronic data processing costs incurred by the Department in the
performance of any examination shall be billed directly to the company
undergoing examination for payment to the Technology Management Revolving
Fund.  Except for direct reimbursements authorized by the Director or
direct payments made under Section 131.21 or subsection (d) of Section
132.4 of this Code, all financial regulation fees and all financial
examination charges collected by the Department shall be paid to the
Insurance Financial Regulation Fund.All lodging and travel expenses shall be in accordance with applicable
travel regulations published by the Department of Central Management
Services and approved by the Governor's Travel Control Board, except that
out-of-state lodging and travel expenses related to examinations authorized
under Sections 132.1 through 132.7 shall be in accordance
with travel rates prescribed
under paragraph 301-7.2 of the Federal Travel Regulations, 41 C.F.R. 301-7.2,
for reimbursement of subsistence expenses incurred during official travel.
All lodging and travel expenses may be
reimbursed directly upon the authorization of the Director.In the case of an organization or person not subject to the financial
regulation fee, the expenses incurred in any financial examination authorized
by law shall be paid by the organization or person being examined.  The charge
shall be reasonably related to the cost of the examination including, but not
limited to, compensation of examiners and other costs described in this
subsection.(10) Any company, person, or entity failing to make any payment of $150
or more as required under this Section shall be subject to the penalty and
interest provisions provided for in subsections (4) and (7)
of Section 412.(11) Unless otherwise specified, all of the fees collected under this
Section shall be paid into the Insurance Financial Regulation Fund.(12) For purposes of this Section:(a) "Domestic company" means a company as defined in     Section 2 of this Code which is incorporated or organized under the laws of this State, and in addition includes a not-for-profit corporation authorized under the Dental Service Plan Act or the Voluntary Health Services Plans Act, a health maintenance organization, and a limited health service organization.(b) "Foreign company" means a company as defined in     Section 2 of this Code which is incorporated or organized under the laws of any state of the United States other than this State and in addition includes a health maintenance organization and a limited health service organization which is incorporated or organized under the laws of any state of the United States other than this State.(c) "Alien company" means a company as defined in     Section 2 of this Code which is incorporated or organized under the laws of any country other than the United States.(d) "Fraternal benefit society" means a corporation,     society, order, lodge or voluntary association as defined in Section 282.1 of this Code.(e) "Mutual benefit association" means a company,     association or corporation authorized by the Director to do business in this State under the provisions of Article XVIII of this Code.(f) "Burial society" means a person, firm,     corporation, society or association of individuals authorized by the Director to do business in this State under the provisions of Article XIX of this Code.(g) "Farm mutual" means a district, county and     township mutual insurance company authorized by the Director to do business in this State under the provisions of the Farm Mutual Insurance Company Act of 1986.(Source: P.A. 102-775, eff. 5-13-22.) (215 ILCS 5/408.1) (from Ch. 73, par. 1020.1)Sec. 408.1. 
		Fee for valuation of life insurance policies. 
		Upon the effective date of this amendatory Act of 1998, all actions to
collect life insurance policy valuation fees or to transfer such fees to the
General Revenue Fund from any protest account established under the State
Officers and Employees Money Disposition Act shall cease and any such protested
life insurance policy valuation fee payments shall be returned to the taxpayer
who initiated the protest.
		(Source: P.A. 90-583, eff. 5-29-98.) (215 ILCS 5/408.2) (from Ch. 73, par. 1020.2)Sec. 408.2. Statistical services. Any public record, or any data obtained
by the Department of Insurance, which is subject to public inspection or
copying and which is maintained on a computer processible medium, may be
furnished in a computer processed or computer processible medium upon the
written request of any applicant and the payment of a reasonable fee
established by the Director sufficient to cover the total cost of the
Department for processing, maintaining and generating such computer
processible records or data, except to the extent of any salaries or
compensation of Department officers or employees.The Director of Insurance is specifically authorized to contract with
members of the public at large, enter waiver agreements, or otherwise enter
written agreements for the purpose of assuring public access to the
Department's computer processible records or data, or for the purpose of
restricting, controlling or limiting such access where necessary to protect
the confidentiality of individuals, companies or other entities identified
by such documents.All fees collected by the Director under this Section 408.2 shall be
deposited in the Technology Management Revolving Fund and credited to the
account of the Department of Insurance.  Any surplus funds remaining in
such account at the close of any fiscal year shall be delivered to the
State Treasurer for deposit in the Insurance Financial Regulation Fund.
(Source: P.A. 100-23, eff. 7-6-17.) (215 ILCS 5/408.3) (from Ch. 73, par. 1020.3)Sec. 408.3. Insurance Financial Regulation Fund; uses. The monies
deposited into the Insurance Financial
Regulation Fund shall be used only for (i) payment of the expenses of the
Department, including related administrative expenses, incurred in
analyzing, investigating and examining the financial condition or control
of insurance companies and other entities licensed or seeking to be
licensed by the Department, including the collection, analysis and
distribution of information on insurance premiums, other income, costs and
expenses, and (ii) to pay internal costs and expenses of the Interstate
Insurance Receivership Commission allocated to this State and authorized and
admitted companies doing an insurance business in this State under Article X of
the Interstate Receivership Compact.  All distributions and payments from the
Insurance Financial Regulation Fund shall be subject to appropriation as
otherwise provided by law for
payment of such expenses.Sums appropriated under clause (ii) of the preceding paragraph shall be
deemed to satisfy, pro tanto, the obligations of insurers doing business in
this
State under Article X of the Interstate Insurance Receivership Compact.Nothing in this Code shall prohibit the General Assembly from
appropriating funds from the General Revenue Fund to the Department for the
purpose of administering this Code.No fees collected pursuant to Section 408 of this Code shall be used
for the regulation of pension funds or activities by the Department in the
performance of its duties under Article 22 of the Illinois Pension Code.If at the end of a fiscal year the balance in the Insurance Financial
Regulation Fund which remains unexpended or unobligated exceeds the amount
of funds that the Director may certify is needed for the purposes
enumerated in this Section, then the General Assembly may appropriate that
excess amount for purposes other than those enumerated in this Section.
(Source: P.A. 98-609, eff. 1-1-14.) (215 ILCS 5/408.4)Sec. 408.4. 
		Receipt and use grants.(a) The Department is authorized to accept, receive, and use, for and in
behalf of the State, any grant of money given to further the purposes of the
insurance laws of this State by the federal government as may be offered
unconditionally or under conditions, agreements, covenants, or terms that, in
the judgment of the Department, are proper and consistent with the provisions
of subsection (b).  All moneys so received shall be deposited into the
Insurance Producer Administration Fund.(b) The moneys deposited into the Insurance Producer Administration Fund
under
this Section shall be accounted for separately and shall be expended, pursuant
to appropriation, only in accordance with the conditions, agreements,
covenants, or terms, if any, under which they were accepted and must be used to
disseminate and provide insurance related information or assistance to senior
citizens.
		(Source: P.A. 88-313.) (215 ILCS 5/409) (from Ch. 73, par. 1021)Sec. 409. Annual privilege tax payable by
companies.(1) As of January 1, 1999 for all health maintenance organization premiums
written; as of July 1, 1998 for all premiums written as accident and health
business, voluntary health service plan business, dental service plan business,
or limited health service organization business; and as of January 1, 1998
for all other types of insurance premiums written, every company doing any form
of insurance business in this
State, including, but not limited to, every risk retention group, and excluding
all fraternal benefit societies, all farm mutual companies, all religious
charitable risk pooling trusts, and excluding all statutory residual market and
special purpose entities in which companies are statutorily required to
participate, whether incorporated or otherwise, shall pay, for the privilege of
doing business in this State, to the Director for the State treasury a State
tax equal to 0.5% of the net taxable premium written, together with any amounts
due under Section 444 of this Code, except that the tax to be paid on any
premium derived from any accident and health insurance or on any insurance
business written by any company operating as a health maintenance organization,
voluntary health service plan, dental service plan, or limited health service
organization shall be equal to 0.4% of such net taxable premium written,
together with any amounts due under Section 444.  Upon the failure of any
company to pay any such tax due, the Director may, by order, revoke or
suspend the company's certificate of authority after giving 20 days written
notice to the company, or commence proceedings for the suspension of business
in this State under the procedures set forth by Section 401.1 of this Code.
The gross taxable premium written shall be the gross amount of premiums
received on direct business during the calendar year on contracts covering
risks in this State, except premiums on annuities, premiums on which State
premium taxes are prohibited by federal law, premiums paid by the State for
health care coverage for Medicaid eligible insureds as described in Section
5-2 of the Illinois Public Aid Code, premiums paid for health care services
included as an element of tuition charges at any university or college owned
and operated by the State of Illinois, premiums on group insurance contracts
under the State Employees Group Insurance Act of 1971, and except premiums for
deferred compensation plans for employees of the State, units of local
government, or school districts.  The net taxable premium shall be the gross
taxable premium written reduced only by the following:(a) the amount of premiums returned thereon which     shall be limited to premiums returned during the same preceding calendar year and shall not include the return of cash surrender values or death benefits on life policies including annuities;(b) dividends on such direct business that have been     paid in cash, applied in reduction of premiums or left to accumulate to the credit of policyholders or annuitants.  In the case of life insurance, no deduction shall be made for the payment of deferred dividends paid in cash to policyholders on maturing policies; dividends left to accumulate to the credit of policyholders or annuitants shall be included as gross taxable premium written when such dividend accumulations are applied to purchase paid-up insurance or to shorten the endowment or premium paying period.(2) The annual privilege tax payment due from a company under subsection (4)
of
this Section may be reduced by: (a) the excess amount, if any, by which the
aggregate income taxes paid by the company, on a cash basis, for the preceding
calendar year under Sections 601 and 803 of the Illinois
Income Tax Act exceed 1.5% of the company's net taxable premium written for
that prior calendar year, as determined under subsection (1) of this Section;
and (b) the amount of any fire department taxes paid by the company during the
preceding calendar year under Section 11-10-1 of the Illinois Municipal Code.
Any deductible amount or offset allowed under items (a) and (b) of this
subsection for any calendar year will not be allowed as a deduction or offset
against the company's privilege tax liability for any other taxing period or
calendar year.(3) If a company survives or was formed by a merger, consolidation,
reorganization, or reincorporation, the premiums received and amounts returned
or paid by all companies party to the merger, consolidation, reorganization,
or reincorporation shall, for purposes of determining the amount of the tax
imposed by this Section, be regarded as received, returned, or paid by the
surviving
or new company.(4)(a) All companies subject to the provisions of this Section shall make an
annual return for the preceding calendar year on or before March 15 setting
forth such information on such forms as the Director may reasonably require.
Payments of quarterly installments of the taxpayer's total estimated tax for
the current calendar year shall be due on or before April 15, June 15,
September 15, and December 15 of such year, except that all companies
transacting insurance in this State whose annual tax for the immediately
preceding calendar year was less than $5,000 shall make only an annual return.
 Failure of a company to make the annual payment, or to make the quarterly
payments, if required, of at least 25% of either (i) the total tax paid during
the
previous calendar year or (ii) 80% of the actual tax for the current calendar
year shall subject it to the penalty provisions set forth in Section 412 of
this Code.(b) Notwithstanding the foregoing provisions, no annual return shall be
required or made on March 15, 1998, under this subsection.  For the calendar
year 1998:(i) each health maintenance organization shall have     no estimated tax installments;(ii) all companies subject to the tax as of July 1,     1998 as set forth in subsection (1) shall have estimated tax installments due on September 15 and December 15 of 1998 which installments shall each amount to no less than one-half of 80% of the actual tax on its net taxable premium written during the period July 1, 1998, through December 31, 1998; and(iii) all other companies shall have estimated tax     installments due on June 15, September 15, and December 15 of 1998 which installments shall each amount to no less than one-third of 80% of the actual tax on its net taxable premium written during the calendar year 1998.In the year 1999 and thereafter all companies shall make annual and
quarterly installments of their estimated tax as provided by paragraph (a) of
this subsection.(5) In addition to the authority specifically granted under Article XXV of
this Code, the Director shall have such authority to adopt rules and establish
forms as may be reasonably necessary
for purposes of determining the allocation of Illinois corporate income taxes
paid under subsections (a) through (d) of Section 201 of the Illinois Income
Tax Act amongst members of a business group that files an Illinois corporate
income tax return on a unitary basis, for purposes of regulating the amendment
of tax returns, for purposes of defining terms, and for purposes of enforcing
the provisions of
Article XXV of
this Code.  The Director shall also have authority to defer, waive, or abate
the tax
imposed by this Section if in his opinion the company's solvency and ability to
meet its insured obligations would be immediately threatened by payment of the
tax due.(6) This Section is subject to the provisions of Section 10 of the New Markets Development Program Act. (Source: P.A. 97-813, eff. 7-13-12; 98-1169, eff. 1-9-15.) (215 ILCS 5/410) (from Ch. 73, par. 1022)Sec. 410. 
		
		Reports
and statements for purpose of auditing retaliatory and privilege tax returns.
(1) For the purpose of enabling the Director to audit the retaliatory and
privilege tax
calculation of a company liable for such tax under the provisions of
Sections 409, 444 and 444.1, every such company, in addition to all other
statements and
reports required by law, shall file a report in writing with the Director
not later than March 1 of each year, in the form prescribed by the
Director, signed and sworn to by its president, vice president, secretary,
treasurer or manager.(2) In every such return the reporting of premiums for tax purposes
shall be on a written basis or on a paid for basis, consistent with the
basis required by the annual statement of the insurer filed with the
Director pursuant to Section 136.(3) The Director may require at any time verified supplemental
statements with reference to any matter pertinent to the proper calculation
of the tax.
		(Source: P.A. 82-767.) (215 ILCS 5/412) (from Ch. 73, par. 1024)Sec. 412. Refunds; penalties; collection.(1)(a) Whenever it appears to
the satisfaction of the Director that because of some mistake of fact,
error in calculation, or erroneous interpretation of a statute of this
or any other state, any authorized company, surplus line producer, or industrial insured has paid to him, pursuant to
any provision of law, taxes, fees, or other charges
in excess of the
amount legally chargeable against it, during the 6 year period
immediately preceding the discovery of such overpayment, he shall have
power to refund to such company, surplus line producer, or industrial insured the amount of the excess or excesses by
applying the amount or amounts thereof toward
the payment of taxes, fees, or other charges already due, or which may
thereafter become due from that company until such excess or excesses have been
fully
refunded, or upon a written request from the authorized company, surplus line producer, or industrial insured, the
Director shall provide a cash refund within
120 days after receipt of the written request if all necessary information has
been filed with the Department in order for it to perform an audit of the
tax report for the transaction or period or annual return for the year in which the overpayment occurred or within 120 days
after the date the Department receives all the necessary information to perform
such audit.  The Director shall not provide a cash refund if there are
insufficient funds in the Insurance Premium Tax Refund Fund to provide a cash
refund, if the amount of the overpayment is less than $100, or if the amount of
the overpayment can be fully offset against the taxpayer's estimated liability
for the year following the year of the cash refund request.  Any cash refund
shall be paid from the Insurance Premium Tax Refund Fund, a special fund hereby
created in the
State treasury.(b) As determined by the Director pursuant to paragraph (a) of this subsection, the Department shall deposit an amount of cash refunds approved by the Director for payment as a result of overpayment of tax liability
 collected under Sections 121-2.08, 409, 444, 444.1, and 445 of
this
Code into the Insurance Premium Tax Refund Fund.(c) Beginning July 1, 1999, moneys in the Insurance Premium Tax Refund
Fund
shall be expended exclusively for the purpose of paying cash refunds resulting
from overpayment of tax liability under Sections 121-2.08, 409, 444, 444.1, and 445 of this
Code
as
determined by the Director pursuant to subsection 1(a) of this Section.  Cash
refunds made in accordance with this Section may be made from the Insurance
Premium Tax Refund Fund only to the extent that amounts have been deposited and
retained in the Insurance Premium Tax Refund Fund.(d) This Section shall constitute an irrevocable and continuing
appropriation from the Insurance Premium Tax Refund Fund for the purpose of
paying cash refunds pursuant to the provisions of this Section.(2)(a) When any insurance company fails to
file any tax return required under Sections 408.1, 409, 444, and 444.1 of
this Code or Section 12 of the Fire Investigation Act  on the date
prescribed, including any extensions, there shall be added as a penalty
$400 or 10% of the amount of such tax, whichever is
greater, for each month
or part of a month of failure to file, the entire penalty not to exceed
$2,000 or 50% of the tax due, whichever is greater.(b) When any industrial insured or surplus line producer fails to file any tax return or report required under Sections 121-2.08 and 445 of this Code or Section 12 of the Fire Investigation Act on the date prescribed, including any extensions, there shall be added:(i) as a late fee, if the return or report is     received at least one day but not more than 7 days after the prescribed due date, $400 or 10% of the tax due, whichever is greater, the entire fee not to exceed $1,000;(ii) as a late fee, if the return or report is     received at least 8 days but not more than 14 days after the prescribed due date, $400 or 10% of the tax due, whichever is greater, the entire fee not to exceed $1,500;(iii) as a late fee, if the return or report is     received at least 15 days but not more than 21 days after the prescribed due date, $400 or 10% of the tax due, whichever is greater, the entire fee not to exceed $2,000; or(iv) as a penalty, if the return or report is     received more than 21 days after the prescribed due date, $400 or 10% of the tax due, whichever is greater, for each month or part of a month of failure to file, the entire penalty not to exceed $2,000 or 50% of the tax due, whichever is greater.A tax return or report shall be deemed received as of the date mailed as evidenced by a postmark, proof of mailing on a recognized United States Postal Service form or a form acceptable to the United States Postal Service or other commercial mail delivery service, or other evidence acceptable to the Director.(3)(a) When any insurance company
fails to pay the full amount due under the provisions of this Section,
Sections 408.1, 409, 444, or 444.1 of this Code, or Section 12 of the
Fire Investigation Act, there shall be added to the amount due as a penalty
an amount equal to 10% of the deficiency.(a-5) When any industrial insured or surplus line producer fails to pay the full amount due under the provisions of this Section, Sections 121-2.08 or 445 of this Code, or Section 12 of the Fire Investigation Act on the date prescribed, there shall be added:(i) as a late fee, if the payment is received at     least one day but not more than 7 days after the prescribed due date, 10% of the tax due, the entire fee not to exceed $1,000;(ii) as a late fee, if the payment is received at     least 8 days but not more than 14 days after the prescribed due date, 10% of the tax due, the entire fee not to exceed $1,500;(iii) as a late fee, if the payment is received at     least 15 days but not more than 21 days after the prescribed due date, 10% of the tax due, the entire fee not to exceed $2,000; or(iv) as a penalty, if the return or report is     received more than 21 days after the prescribed due date, 10% of the tax due.A tax payment shall be deemed received as of the date mailed as evidenced by a postmark, proof of mailing on a recognized United States Postal Service form or a form acceptable to the United States Postal Service or other commercial mail delivery service, or other evidence acceptable to the Director.(b) If such failure to pay is determined by the Director to be wilful,
after a hearing under Sections 402 and 403, there shall be added to the tax
as a penalty an amount equal to the greater of 50% of the
deficiency or 10%
of the amount due and unpaid for each month or part of a month that the
deficiency remains unpaid commencing with the date that the amount becomes
due. Such amount shall be in lieu of any determined under paragraph (a) or (a-5).(4) Any insurance company, industrial insured, or surplus line producer that
fails to pay the full amount due under this Section or Sections 121-2.08, 408.1, 409,
444, 444.1, or 445 of this Code, or Section 12 of the Fire Investigation
Act  is liable, in addition to the tax and any late fees and penalties, for interest
on such deficiency at the rate of 12% per annum, or at such higher adjusted
rates as are or may be established under subsection (b) of Section 6621
of the Internal Revenue Code, from the date that payment of any such tax
was due, determined without regard to any extensions, to the date of payment
of such amount.(5) The Director, through the Attorney
General, may institute an action in the name of the People of the State
of Illinois, in any court of competent jurisdiction, for the recovery of
the amount of such taxes, fees, and penalties due, and prosecute the same to
final judgment, and take such steps as are necessary to collect the same.(6) In the event that the certificate of authority of a foreign or
alien company is revoked for any cause or the company withdraws from
this State prior to the renewal date of the certificate of authority as
provided in Section 114, the company may recover the amount of any such
tax paid in advance. Except as provided in this subsection, no
revocation or withdrawal excuses payment of or constitutes grounds for
the recovery of any taxes or penalties imposed by this Code.(7) When an insurance company or domestic affiliated group fails to pay
the full amount of any fee of $200 or more due under
Section 408 of this Code, there shall be added to the amount due as
a penalty the greater of $100 or an amount equal to 10%
of the deficiency for
each month or part of
a month that the deficiency remains unpaid.(8) The Department shall have a lien for the taxes, fees, charges, fines, penalties,  interest, other charges, or any portion thereof, imposed or assessed pursuant to this Code, upon all the real and personal property of any company or person to whom the assessment or final order has been issued or whenever a tax return is filed without payment of the tax or penalty shown therein to be due, including all such property of the  company or person acquired after receipt of the assessment, issuance of the order, or filing of the return. The company or person is liable for the filing fee incurred by the Department for filing the lien and the filing fee incurred by the Department to file the release of that lien. The filing fees shall be paid to the Department in addition to payment of the tax, fee, charge, fine, penalty, interest, other charges, or any portion thereof, included in the amount of the lien. However, where the lien arises because of the issuance of a final order of the Director or tax assessment by the Department, the lien shall not attach and the notice referred to in this Section shall not be filed until all administrative proceedings or proceedings in court for review of the final order or assessment have terminated or the time for the taking thereof has expired without such proceedings being instituted.Upon the granting of Department review after a lien has attached, the lien shall remain in full force except to the extent to which the final assessment may be reduced by a revised final assessment following the rehearing or review. The lien created by the issuance of a final assessment shall terminate, unless a notice of lien is filed, within 3 years after the date all proceedings in court for the review of the final assessment have terminated or the time for the taking thereof has expired without such proceedings being instituted, or (in the case of a revised final assessment issued pursuant to a rehearing or  review by the Department) within 3 years after the date all proceedings in court for the review of such revised final assessment have terminated or the time for the taking thereof has expired without such proceedings being instituted. Where the lien results from the filing of a tax return without payment of the tax or penalty shown therein to be due, the lien shall terminate, unless a notice of lien is filed, within 3 years after the date when the return is filed with the Department.The time limitation period on the Department's right to file a notice of lien shall not run during any period of time in which the order of any court has the effect of enjoining or restraining the Department from filing such notice of lien. If the Department finds that a  company or person is about to depart from the State, to conceal himself or his property, or to do any other act tending to prejudice or to render wholly or partly ineffectual proceedings to collect the amount due and owing to the Department unless such proceedings are brought without delay, or if the Department finds that the collection of the amount due from any company or person will be jeopardized by delay, the Department shall give the company or person notice of such findings and shall make demand for immediate return and payment of the amount, whereupon the amount shall become immediately due and payable. If the company or person, within 5 days after the notice (or within such extension of time as the Department may grant), does not comply with the notice or show to the Department that the findings in the notice are erroneous, the Department may file a notice of jeopardy assessment lien in the office of the recorder of the county in which any property of the company or person may be located and shall notify the company or person of the filing. The jeopardy assessment lien shall have the same scope and effect as the statutory lien provided for in this Section. If the company or person believes that the company or person does not owe some or all of the tax for which the jeopardy assessment lien against the company or person has been filed, or that no jeopardy to the revenue in fact exists, the company or person may protest within 20 days after being notified by the Department of the filing of the jeopardy assessment lien and request a hearing, whereupon the Department shall hold a hearing in conformity with the provisions of this Code and, pursuant thereto, shall notify the company or person of its findings as to whether or not the jeopardy assessment lien will be released. If not, and if the company or person is aggrieved by this decision, the company or person may file an action for judicial review of the final determination of the Department in accordance with the Administrative Review Law. If, pursuant to such hearing (or after an independent determination of the facts by the Department without a hearing), the Department determines that some or all of the amount due covered by the jeopardy assessment lien is not owed by the company or person, or that no jeopardy to the revenue exists, or if on judicial review the final judgment of the court is that the company or person does not owe some or all of the amount due covered by the jeopardy assessment lien against them, or that no jeopardy to the revenue exists, the Department shall release its jeopardy assessment lien to the extent of such finding of nonliability for the amount, or to the extent of such finding of no jeopardy to the revenue. The Department shall also release its jeopardy assessment lien against the company or person whenever the amount due and owing covered by the lien, plus any interest which may be due, are paid and the company or person has paid the Department in cash or by guaranteed remittance an amount representing the filing fee for the lien and the filing fee for the release of that lien. The Department shall file that release of lien with the recorder of the county where that lien was filed.Nothing in this Section shall be construed to give the Department a preference over the rights of any bona fide purchaser, holder of a security interest, mechanics lienholder, mortgagee, or judgment lien creditor arising prior to the filing of a regular notice of lien or a notice of jeopardy assessment lien in the office of the recorder in the county in which the property subject to the lien is located. For purposes of this Section, "bona fide" shall not include any mortgage of real or personal property or any other credit transaction that results in the mortgagee or the holder of the security acting as trustee for unsecured creditors of the company or person mentioned in the notice of lien who executed such chattel or real property mortgage or the document evidencing such credit transaction. The lien shall be inferior to the lien of general taxes, special assessments, and special taxes levied by any political subdivision of this State. In case title to land to be affected by the notice of lien or notice of jeopardy assessment lien is registered under the provisions of the Registered Titles (Torrens) Act, such notice shall be filed in the office of the Registrar of Titles of the county within which the property subject to the lien is situated and shall be entered upon the register of titles as a memorial or charge upon each folium of the register of titles affected by such notice, and the Department shall not have a preference over the rights of any bona fide purchaser, mortgagee, judgment creditor, or other lienholder arising prior to the registration of such notice. The regular lien or jeopardy assessment lien shall not be effective against any purchaser with respect to any item in a retailer's stock in trade purchased from the retailer in the usual course of the retailer's business.(Source: P.A. 102-775, eff. 5-13-22.) (215 ILCS 5/413) (from Ch. 73, par. 1025)Sec. 413. 
		
		Privilege
Tax Payable on Admission of Foreign or Alien Company.(1) Every foreign or alien company applying for a certificate of
authority to transact business in this State shall pay to the Director a
tax for the privilege of transacting business in this State in accordance
with Section 409.(2) If during all or any part of the 3 year period next preceding the
date of application for a certificate of authority the company had a
certificate of authority to transact business in this State, or if it
survives or was formed by a merger, consolidation, reorganization or
reincorporation, and one or more of the parties thereto was a foreign or
alien company authorized to transact business in this State during all or
any part of such 3 year period, then the tax shall be determined in
accordance with Section 409 on the basis of the last entire calendar year
during which the company or any one of the foreign or alien companies
parties to the merger, consolidation, reorganization or reincorporation was
authorized to transact business in this State, or if none was authorized
during any entire calendar year, then on the basis of the last partial
calendar year during which any of such companies were authorized to
transact business in this State.
		(Source: P.A. 77-2087.) (215 ILCS 5/414a) (from Ch. 73, par. 1026a)Sec. 414a. 
		
		Notwithstanding the provisions of this or any other Act, the
tax authorized by Section 414 of this Act shall not be imposed after January
1, 1979; provided that this Section shall not prohibit the collection after
January 1, 1979 of any taxes levied under Section 414 prior to January
1, 1979, on property subject to assessment and taxation under Section 414
of this Act prior to January 1, 1979.  For the purpose of replacing the revenue
lost by taxing districts, as defined in Section 1-150 of the Property Tax
Code, as a result of the abolition of ad
valorem taxes on personal property after January 1, 1979, there shall be
imposed the taxes described in Section 201(c) and (d) of the Illinois
Income Tax Act, Section 2a.1 of the Messages Tax Act,
Section 2a.1 of the Gas Revenue Tax Act, Section 2a.1 of
the Public Utilities Revenue Act, and Section 1 of the Water Company Invested
Capital Tax Act.  Such replacement taxes owed
within one year of the effective date of the taxes established by
this amendatory Act of 1979 shall replace the personal property tax levies of
1979.  The replacement taxes owed in each succeeding year shall replace the
personal property tax that could have been levied in each succeeding year.
		(Source: P.A. 88-670, eff. 12-2-94.) (215 ILCS 5/415) (from Ch. 73, par. 1027)Sec. 415. 
		No taxes to be imposed by political subdivisions. 
		
The fees, charges and taxes provided for by this Article
shall be in lieu of all license fees or privilege or occupation taxes or
other fees levied or assessed by any municipality, county or other political
subdivision of this State, and no municipality, county or other political
subdivision of this State shall impose any license fee or privilege or
occupation tax or fee upon any domestic, foreign or alien company, or upon any
of its agents, for the privilege of doing an insurance business therein, except
the tax authorized by Division 10 of Article 11 of the Illinois Municipal Code,
as heretofore and hereafter amended.  This Section shall not be construed to
prohibit the levy and collection of:(a) State, county or municipal taxes upon the real     and personal property of such a company, including the tax imposed by Section 414 of this Code, and(b) taxes for the purpose of maintaining the Office     of the State Fire Marshal and paying the expenses incident thereto.		(Source: P.A. 91-357, eff. 7-29-99.) (215 ILCS 5/416)Sec. 416. Illinois Workers' Compensation

Commission Operations Fund Surcharge.(a) As of July 30, 2004 (the effective date of Public Act 93-840), every company licensed or
authorized by the Illinois Department of Insurance and insuring employers'
liabilities arising under the Workers' Compensation Act or the Workers'
Occupational Diseases Act shall remit to the Director a surcharge based upon
the annual direct written premium, as reported under Section 136 of this Act,
of the company in the manner provided in this
Section.  Such
proceeds shall
be deposited into the Illinois Workers' Compensation

Commission Operations Fund as
established in
the Workers' Compensation Act. If a company
survives or
was formed by a merger, consolidation, reorganization, or reincorporation, the
direct
written premiums of all companies party to the merger, consolidation,
reorganization, or
reincorporation shall, for purposes of determining the amount of the fee
imposed by this
Section, be regarded as those of the surviving or new company.(b)(1) Except as provided in subsection (b)(2) of this Section, beginning on
July 30, 2004 (the effective date of Public Act 93-840) and on July 1 of each year thereafter,
the
Director shall
charge an annual Illinois Workers' Compensation Commission Operations Fund Surcharge from every
company subject to subsection (a) of this Section equal to 1.01% of its direct
written
premium for insuring employers' liabilities arising under the Workers'
Compensation Act or Workers' Occupational Diseases Act as reported in each
company's
annual
statement filed for the previous year as required by Section 136. The
Illinois Workers' Compensation Commission Operations Fund Surcharge shall be collected by companies
subject to subsection (a) of this Section as a separately stated surcharge on
insured employers at the rate of 1.01% of direct written premium.  The
Illinois Workers'   Compensation Commission Operations Fund Surcharge shall not be collected by companies
subject to subsection (a) of this Section from any employer that self-insures its liabilities arising under the Workers' Compensation Act or Workers' Occupational Diseases Act, provided that the employer has paid the Illinois Workers'   Compensation Commission Operations Fund Fee pursuant to Section 4d of the Workers' Compensation Act. All sums
collected by
the Department of Insurance under the provisions of this Section shall be paid
promptly
after the receipt of the same, accompanied by a detailed statement thereof,
into the
Illinois Workers' Compensation Commission Operations Fund in the State treasury.(b)(2) The surcharge due pursuant to Public Act 93-840 shall be collected instead of the surcharge due on July 1, 2004 under Public Act 93-32. Payment of the surcharge due under Public Act 93-840 shall discharge the employer's obligations due on July 1, 2004.(c) In addition to the authority specifically granted under Article XXV of
this
Code, the Director shall have such authority to adopt rules or establish forms
as may be
reasonably necessary for purposes of enforcing this Section. The Director shall
also have
authority to defer, waive, or abate the surcharge or any penalties imposed by
this
Section if in
the Director's opinion the company's solvency and ability to meet its insured
obligations
would be immediately threatened by payment of the surcharge due.(d) When a company fails to pay the full amount of any annual
Illinois Workers' Compensation

Commission Operations Fund Surcharge of $100 or more due under this Section,
there
shall be
added to the amount due as a penalty an amount equal
to 10% of
the deficiency for each month or part of a month that the deficiency remains
unpaid.(e) The Department of Insurance may enforce the collection of any delinquent
payment, penalty, or portion thereof by legal action or in any other manner by
which the
collection of debts due the State of Illinois may be enforced under the laws of
this State.(f) Whenever it appears to the satisfaction of the Director that a company
has
paid
pursuant to this Act an Illinois Workers' Compensation Commission Operations Fund Surcharge in
an amount
in excess of the amount legally collectable from the company, the Director
shall issue a
credit memorandum for an amount equal to the amount of such overpayment. A
credit
memorandum may be applied for the 2-year period from the date of issuance,
against the
payment of any amount due during that period under the surcharge imposed by
this
Section or,
subject to reasonable rule of the Department of Insurance including requirement
of
notification, may be assigned to any other company subject to regulation under
this Act.
Any application of credit memoranda after the period provided for in this
Section is void.(g) Annually, the Governor may direct a transfer of up to 2% of all moneys
collected under this Section to the Insurance Financial Regulation Fund.
(Source: P.A. 102-775, eff. 5-13-22.)
(215 ILCS 5/Art. XXVI heading) ARTICLE XXVI.  
		UNFAIR METHODS OF COMPETITION AND UNFAIR AND DECEPTIVE ACTS
AND PRACTICES (215 ILCS 5/421) (from Ch. 73, par. 1028)Sec. 421. 
		Declaration of purpose.The purpose of this article is to regulate trade practices in the
business of insurance in accordance with the intent of Congress as
expressed in the Act of Congress of March 9, 1945 (Public Law 15, 79th
Congress), by defining, or providing for the determination of, all such
practices in this State which constitute unfair methods of competition or
unfair or deceptive acts or practices and by prohibiting the trade
practices so defined or determined.
		(Source: Laws 1959, p. 734.) (215 ILCS 5/422) (from Ch. 73, par. 1029)Sec. 422. 
		Definitions.When used in this Article, "Person" shall mean any individual,
partnership, association, corporation, society, order, firm, company,
aggregation of individuals, reciprocal exchange, inter-insurer, Lloyds
insurer, fraternal benefit society, and any other legal entity to which any
article of this Code is applicable, or which is subject to examination,
visitation or supervision by the Director under any provision of this Code
or under any law of this State, or which is engaged or engaging in or
proposing or attempting to engage in or is representing that it is doing an
insurance or surety business in this State, or which is in process of
organization for the purpose of doing such business, including agents,
brokers, adjusters and solicitors.
		(Source: Laws 1959, p. 734.) (215 ILCS 5/423) (from Ch. 73, par. 1030)Sec. 423. 
		
		Unfair
methods of competition or unfair and deceptive acts or practices
prohibited.(1) No person shall engage in this State in any trade practice which is
defined in this Article as, or determined pursuant to this Article to be an
unfair method of competition or an unfair or deceptive act or practice in
the business of insurance.(2) No person domiciled in or resident of this State shall engage in any
other State, Territory, Province, Possession, Country or District in which
he is not licensed or otherwise authorized to transact business in any
trade practice which is defined in this Article as, or determined pursuant
to this Article to be an unfair method of competition or an unfair or
deceptive act or practice in the business of insurance.
		(Source: Laws 1967, p. 990.) (215 ILCS 5/424) (from Ch. 73, par. 1031)Sec. 424. Unfair methods of competition and unfair or deceptive acts or
practices defined.   The following are hereby defined as unfair methods of
competition and unfair and deceptive acts or practices in the business of
insurance:(1) The commission by any person of any one or more     of the acts defined or prohibited by Sections 134, 143.24c, 147, 148, 149, 151, 155.22, 155.22a, 155.42, 236, 237, 364, 469, and 513b1 of this Code.(2) Entering into any agreement to commit, or by any     concerted action committing, any act of boycott, coercion or intimidation resulting in or tending to result in unreasonable restraint of, or monopoly in, the business of insurance.(3) Making or permitting, in the case of insurance of     the types enumerated in Classes 1, 2, and 3 of Section 4, any unfair discrimination between individuals or risks of the same class or of essentially the same hazard and expense element because of the race, color, religion, or national origin of such insurance risks or applicants.  The application of this Article to the types of insurance enumerated in Class 1 of Section 4 shall in no way limit, reduce, or impair the protections and remedies already provided for by Sections 236 and 364 of this Code or any other provision of this Code.(4) Engaging in any of the acts or practices defined     in or prohibited by Sections 154.5 through 154.8 of this Code.(5) Making or charging any rate for insurance against     losses arising from the use or ownership of a motor vehicle which requires a higher premium of any person by reason of his physical disability, race, color, religion, or national origin.(6) Failing to meet any requirement of the Unclaimed     Life Insurance Benefits Act with such frequency as to constitute a general business practice. (Source: P.A. 102-778, eff. 7-1-22.) (215 ILCS 5/425) (from Ch. 73, par. 1032)Sec. 425. 
		
		Power of
Director.The Director shall have power to examine and investigate into the
affairs of every person engaged in the business of insurance in this State
and to examine and investigate into the affairs of any person domiciled in
or resident of this State engaged in the business of insurance in any other
State, Territory, Province, Possession, Country or District in which he is
not licensed or otherwise authorized to transact business in order to
determine whether such person has been or is engaged in any unfair method
of competition or in any unfair or deceptive act or practice prohibited by
Section 424.
		(Source: Laws 1967, p. 990.) (215 ILCS 5/426) (from Ch. 73, par. 1033)Sec. 426. 
		Hearings.(1) Whenever the Director shall have reason to believe that any such
person has been engaged or is engaging in this State in any unfair method
of competition or any unfair or deceptive act or practice defined in
Section 424, or that any person domiciled in or resident of this State
has been engaged or is engaging in any other State, Territory, Province,
Possession, Country or District in which he is not licensed or otherwise
authorized to transact business in any unfair method of competition or any
unfair or deceptive act or practice defined in Section 424, and that a
proceeding by him in respect thereto would be to the interest of the
public, he shall issue and serve upon such person or persons domiciled in
or resident of this State a statement of the charges in that respect and a
notice of a hearing thereon to be held at a time and place fixed in the
notice, which shall not be less than 10 days after the date of the service
thereof.(2) At the time and place fixed for such hearing, such person shall have
an opportunity to be heard in person or by counsel and to show cause why an
order should not be made by the Director requiring such persons to cease
and desist from the acts, methods or practices so complained of. Upon good
cause shown, before the commencement of such hearing, the Director shall
permit any person to intervene, appear and be heard at such hearing by
counsel or in person.(3) The Director, upon such hearing, may, and upon the request of any
party shall, cause to be made a stenographic record of all the evidence and
all the proceedings had at such hearing. If no stenographic record is made
and if a judicial review is sought, the Director shall prepare a statement
of the evidence and proceeding for use on review.
		(Source: Laws 1967, p. 990.) (215 ILCS 5/427) (from Ch. 73, par. 1034)Sec. 427. 
		
		Cease and
desist orders and modifications thereof.(1) If, after such hearing, the Director shall determine that the method
of competition or the act or practice in question is defined in Section
424 and that the person complained of has engaged in such method of
competition, act or practice in violation of this article, he shall reduce
his findings to writing and shall issue and cause to be served upon the
person charged with the violation an order requiring such person to cease
and desist from engaging in such method of competition, act or practice.(2) Until the expiration of the time allowed under Section 407 of this
Code for filing a complaint for review if no such complaint has been duly
filed within such time or, if a complaint for review has been filed within
such time, then until the answer in the proceeding has been filed in the
court, as provided in said section, the Director may at any time, upon such
notice and in such manner as he shall deem proper, modify or set aside in
whole or in part any order issued by him under this section.(3) After the expiration of the time allowed for filing such a complaint
for review if no such complaint has been duly filed within such time, the
Director may at any time, after notice and opportunity for hearing, reopen
and alter, modify or set aside, in whole or in part, any order issued by
him under this section, whenever in his opinion conditions of fact or of
law have so changed as to require such action or if the public interest
shall so require.
		(Source: Laws 1959, p. 734.) (215 ILCS 5/428) (from Ch. 73, par. 1035)Sec. 428. 
		
		Procedure
on review.
(1) To the extent that the order of the Director is affirmed, the court
shall thereupon enter its own order commanding obedience to the terms of
the order of the Director. If either party applies to the court for
leave to adduce additional evidence, and shows to the satisfaction of
the court that such additional evidence is material and that there were
reasonable grounds for the failure to adduce such evidence in the
proceeding before the Director, the court may order such additional
evidence to be taken before the Director and to be adduced upon the hearing
in such manner and upon such terms and conditions as to the court may seem
proper. The Director, may modify his or her findings of fact, or make new findings
by reason of the additional evidence so taken, and he or she shall file such
modified or new findings as well as any modification of the original order
reached as a result of hearing such additional evidence.(2) A cease and desist order issued by the Director under Section 427
shall become final.(a) Upon the expiration of the time allowed for filing a complaint for
review if no such complaint has been duly filed within such time; but
the Director may thereafter modify or set aside his or her order to the
extent provided in Section 427 (2); or(b) Upon the entry of a final decision, order or judgment of the
court.(3) No order of the Director under this Article or order of a court to
enforce the same shall in any way relieve or absolve any person affected by
such order from any liability under any other laws of this State.
		(Source: P.A. 84-1308.) (215 ILCS 5/429) (from Ch. 73, par. 1036)Sec. 429. Procedure
as to unfair methods of competition and unfair or deceptive acts or
practices which are not defined.(1) Whenever the Director shall have reason to believe (a) that any
person engaged in the business of insurance is engaging in this State in
any method of competition or in any act or practice in the conduct of such
business which is not defined in Section 424, as an unfair method of
competition or an unfair or deceptive act or practice or that any person
domiciled in or resident of this State engaged in the business of insurance
is engaging in any other state, territory, province, possession, country,
or district in which he or she is not licensed or otherwise authorized to transact
business in any method of competition or in any act or practice in the
conduct of such business which is not defined in Section 424, as an unfair
method of competition or an unfair or deceptive act or practice, and (b)
that such method of competition is unfair or that such act or practice is
unfair or deceptive, or (c) that such unfair method of competition or such
unfair or deceptive act or practice violates any of the provisions of this Code or any other law of this State, or (d) that a proceeding
by him or her in respect thereto would be to the interest of the public,
he or she may
issue and serve upon such person a statement of the charges in that respect
and a notice of a hearing thereon to be held at a time and place fixed in
the notice, which shall not be less than 10 days after the date of the
service thereof. Each such hearing shall be conducted in the same manner as
the hearings provided for in Section 426. The Director shall, after such
hearing, make a report in writing in which he or she shall state his
or her findings as
to the facts, and he or she shall serve a copy thereof upon such person.(2) If such report charges a violation of this Article and if such
method of competition, act, or practice has not been discontinued, the
Director may, through the Attorney General of this State, at any time after
the service of such report cause a complaint to be filed in the Circuit
Court of Sangamon County or in the Circuit Court of this State within the
county wherein the person resides or has his principal place of business,
to enjoin and restrain such person from engaging in such method, act, or
practice. The court shall have jurisdiction of the proceeding and shall
have power to make and enter appropriate orders in connection therewith and
to enter such orders as are ancillary to its jurisdiction
or are necessary
in its judgment to prevent injury to the public pendente lite.(3) A transcript of the proceedings before the Director including all
evidence taken and the report and findings shall be filed with such
complaint. If either party shall apply to the court for leave to adduce
additional evidence and shall show, to the satisfaction of the court, that
such additional evidence is material and there were reasonable grounds for
the failure to adduce such evidence in the proceedings before the Director
the court may order such additional evidence to be taken before the
Director and to be adduced upon the hearing in such manner and upon such
terms and conditions as to the court may seem proper. The Director may
modify his or her findings of fact or make new findings by reason of the
additional evidence so taken, and he or she shall file such modified or new
findings with the return of such additional evidence.(4) If the court finds (a) that the method of competition complained of
is unfair or that the act or practice complained of is unfair or deceptive,
or (b) that such unfair method of competition or such unfair or deceptive
act or practice is in violation of this Code or any other law of
this State and (c) that the proceeding by the Director with respect thereto
is to the interest of public and (d) that the findings of the Director are
supported by the evidence, it shall enter an order enjoining and
restraining the continuance of such method of competition, act, or practice.
(Source: P.A. 100-863, eff. 8-14-18.) (215 ILCS 5/430) (from Ch. 73, par. 1037)Sec. 430. 
		Judicial review by intervenor. 
		If the report of the Director
does not charge a violation of this
Article, then any party in interest who was an intervenor in the
proceedings before the Director may within 35 days after the service of
such report, cause a complaint to be filed in the Circuit Court of Sangamon
County for a review of such report.  Upon such review, the court shall have
authority to issue appropriate orders and judgment in connection therewith,
including, if the court finds that it is to the interest of the public,
orders enjoining and restraining the continuance of any method of
competition, act or practice which it finds, notwithstanding such report of
the Director, constitutes a violation of this Article.
		(Source: P.A. 79-1362.) (215 ILCS 5/431) (from Ch. 73, par. 1038)Sec. 431. 
		Penalty. 
		 Any person who violates a cease and desist order of the Director under
Section 427, after it has become final, and while such order is in
effect, or who violates an order of the Circuit Court under Section 429,
shall, upon proof thereof to the satisfaction of the court, forfeit and pay
to the State of Illinois, a sum not to exceed $1,000, which may be
recovered
in a civil action, for each violation.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/432) (from Ch. 73, par. 1039)Sec. 432. 
		Provisions additional to existing law.The powers vested in the Director by this Article shall be additional to
any other powers to enforce any penalties, fines or forfeitures authorized
by law with respect to the methods, acts and practices hereby declared to
be unfair or deceptive.
		(Source: Laws 1959, p. 734.) (215 ILCS 5/433) (from Ch. 73, par. 1040)Sec. 433. 
		
		Immunity
from prosecution.If any person shall ask to be excused from attending and testifying or
from producing any books, papers, records, correspondence or other
documents at any hearing on the ground that the testimony or evidence
required of him may tend to incriminate him or subject him to a penalty or
forfeiture, and shall notwithstanding be directed to give such testimony or
produce such evidence, he must none the less comply with such direction,
but he shall not thereafter be prosecuted or subjected to any penalty or
forfeiture for or on account of any transaction, matter or thing concerning
which he may testify or produce evidence pursuant thereto, and no testimony
so given or evidence produced shall be received against him upon any
criminal action, investigation or proceeding, provided, however, that no
such individual so testifying shall be exempt from prosecution or
punishment for any perjury committed by him while so testifying and the
testimony or evidence so given or produced shall be admissible against him
upon any criminal action, investigation or proceeding concerning such
perjury, nor shall he be exempt from the refusal, revocation or suspension
of any license, permission or authority conferred, or to be conferred,
pursuant to the insurance laws of this State. Any such individual may
execute, acknowledge and file in the office of the Director a statement
expressly waiving such immunity or privilege in respect to any transaction,
matter or thing specified in such statement and thereupon the testimony of
such person or such evidence into such transaction, matter or thing may be
received or produced before any judge or justice, court, tribunal, grand
jury or otherwise, and if so received or produced such individual shall not
be entitled to any immunity or privilege on account of any testimony he may
so give or evidence so produced.
		(Source: Laws 1959, p. 734.) (215 ILCS 5/434) (from Ch. 73, par. 1041)Sec. 434. 
		Separability provision.If any provision of this Article, or the application of such provision
to any person or circumstances, shall be held invalid, the remainder of the
Article, and the application of such provision to persons or circumstances
other than those as to which it is held invalid, shall not be affected
thereby.
		(Source: Laws 1959, p. 734.)
(215 ILCS 5/Art. XXVIII heading) ARTICLE XXVIII.  
		FINAL PROVISIONS (215 ILCS 5/441) (from Ch. 73, par. 1053)Sec. 441. 
		
		General
corporate powers.(1) In order to carry out the purpose for which it is organized, each
company under the laws of the State and subject to the provisions of this
Code shall have(a) perpetual succession by its corporate name unless a limited period
of duration is stated in its articles of incorporation;(b) power in its corporate name to sue and be sued, to contract and be
contracted with, to own, hold, sell, convey, mortgage, pledge, lease and
otherwise dispose of real and personal property;(c) power to adopt by-laws not in conflict with the provisions of this
Code, and to adopt and use a seal and to alter the same at pleasure;(d) power to make donations in reasonable amounts for the public welfare
or for charitable, scientific, religious or educational purposes;(e) such other powers as shall be needful to accomplish the purposes of
its organization.(2) Such power shall be exercised subject to the provisions and
restrictions of this Code and other laws of this State.(3) No conveyance or transfer by or to any company of property, real or
personal, of any kind or description, shall be invalid or fail because in
making such conveyance or transfer or in acquiring such property, real or
personal, the company, its board of directors, trustees or other governing
body, or any of its officers, acting within the scope of the actual or
apparent authority given to them by its board of directors, trustees or
other governing body, have in so doing exceeded any of the purposes or
powers of the company.
		(Source: Laws 1959, p. 151.) (215 ILCS 5/442) (from Ch. 73, par. 1054)Sec. 442. 
		Validation of illegally issued policies.Any contract or policy of insurance or any application, endorsement or
rider form used in connection therewith issued in violation of any section
of this Code requiring certain provisions to be inserted therein or the
inclusion of provisions prohibited, or issued without submitting same for
approval by the Director in accordance with section 143, shall
nevertheless be held valid but shall be construed in accordance with the
requirements of the section that the said policy, application, endorsement
or rider violates, and when any provision in such contract, application,
endorsement or rider is in conflict with any provision of this Code, the
rights, and obligations of the company thereunder shall not be less
favorable to the holder of the contract and the beneficiary or annuitant
thereunder than is required by the provisions of this Code applicable
thereto.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/443) (from Ch. 73, par. 1055)Sec. 443. 
		Reciprocity.The policies of a company, not organized under the laws of this State,
may contain any provision which the law of the state or country under which
the company is organized prescribes shall be in such policies when issued
in this State, and the policies of such insurance company organized under
the laws of this State may, when issued or delivered in any other state or
country, contain any provisions required by the laws of the state or
country in which the same are issued, anything in this Code to the contrary
notwithstanding.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/444) (from Ch. 73, par. 1056)Sec. 444. Retaliation.(1) Whenever the existing or future laws of any other state or country
shall
require of companies incorporated or organized under the laws of this State
as a condition precedent to their doing business in such other state or
country, compliance with laws, rules, regulations, and prohibitions more
onerous or burdensome than the rules and regulations imposed by this State
on foreign or alien companies, or shall require any deposit of securities
or other obligations in such state or country, for the protection of
policyholders or otherwise or require of such companies or agents thereof
or brokers the payment of penalties, fees, charges, or taxes greater than
the penalties, fees, charges, or taxes required in the aggregate for like
purposes by this Code or any other law of this State, of foreign or alien
companies, agents thereof or brokers, then such laws, rules, regulations,
and prohibitions of said other state or country shall apply to companies
incorporated or organized under the laws of such state or country doing
business in this State, and all such companies, agents thereof, or brokers
doing business in this State, shall be required to make deposits, pay
penalties, fees, charges, and taxes, in amounts equal to those required in
the aggregate for like purposes of Illinois companies doing business in
such state or country, agents thereof or brokers. Whenever any other state
or country shall refuse to permit any insurance company incorporated or
organized under the laws of this State to transact business according to
its usual plan in such other state or country, the director may, if
satisfied that such company of this State is solvent, properly managed, and
can operate legally under the laws of such other state or country,
forthwith suspend or cancel the license of every insurance company doing
business in this State which is incorporated or organized under the laws of
such other state or country to the extent that it insures in this State
against any of the risks or hazards which are sought to be insured against
by the company of this State in such other state or country.(2) The provisions of this Section shall not apply to residual market
or special purpose assessments or guaranty fund or guaranty association
assessments, both under the laws of this State and under the laws of any other
state
or country, and any tax offset or credit for any such assessment shall, for
purposes of this Section, be treated as a tax paid both under the laws of this
State and under the laws of any other state or country.(3) The terms "penalties", "fees", "charges", and "taxes" in subsection
(1) of this
Section
shall include: the penalties, fees, charges, and taxes collected on a cash basis under State
law
and
referenced within Article XXV exclusive of any items referenced by
subsection
(2) of this Section, but including any tax offset allowed under Section 531.13
of this Code; the aggregate Illinois corporate income taxes paid under Sections 601 and 803
 of the Illinois Income Tax Act during the calendar year for which the retaliatory tax calculation is being made, less the recapture of any Illinois corporate income tax cash refunds to the extent that the amount of tax refunded was reported as part of the Illinois basis in the calculation of the retaliatory tax for a prior tax year, provided that such recaptured refund shall not exceed the amount necessary for equivalence of the Illinois basis with the state of incorporation basis in such tax year, and after
any tax offset allowed under Section 531.13 of this Code;
income or personal property taxes imposed by other states or countries;
penalties, fees, charges, and taxes of other states
or countries imposed for purposes like those of the penalties, fees, charges,
and taxes
specified in Article XXV of this Code exclusive of any item referenced in
subsection (2) of this Section; and any penalties, fees, charges, and taxes
required as
a
franchise, privilege, or licensing tax for
conducting the business of insurance whether calculated as a percentage of
income, gross receipts, premium, or otherwise.(4) Nothing contained in this Section or Section 409 or Section 444.1 is
intended to authorize or expand any power of local governmental units or
municipalities to impose taxes, fees, or charges.(5) This Section is subject to the provisions of Section 10 of the New Markets Development Program Act. (Source: P.A. 98-1169, eff. 1-9-15.) (215 ILCS 5/444.1) (from Ch. 73, par. 1056.1)Sec. 444.1. Payment of retaliatory taxes.(1) Every foreign or alien
company doing insurance business in this State shall pay the Director the
retaliatory tax determined in accordance with Section 444.(2) (a) All companies subject to the provisions of this Section shall
make an
annual return for the preceding calendar year on or before March 15 setting
forth such information on such forms as the Director may reasonably require.
Payments of quarterly installments of the taxpayer's total estimated
retaliatory tax for the current calendar year shall be due on or before April
15, June 15, September 15, and December 15 of such year, except that all
companies
transacting insurance business in this State whose annual tax for the
immediately
preceding calendar year was less than $5,000 shall make only an annual
return.  Failure of a company to make the annual payment, or to make the
quarterly payments, if required, of at least one-fourth of either (i) the total
tax paid during the previous calendar year or (ii) 80% of the actual tax for
the current calendar year shall subject it to the penalty provisions set forth
in Section 412 of this Code.(b) Notwithstanding the foregoing provisions of paragraph (a) of this
subsection, the retaliatory tax liability of companies under Section 444 of
this Code for the calendar year ended December 31, 1997 shall be
determined in accordance with this amendatory Act of 1998 and shall include in
the aggregate comparative tax burden for the State of Illinois, any tax offset
allowed under Section 531.13 of this Code and any income
taxes paid for the year 1997 under subsections (a) through (d) of Section 201
of the Illinois Income Tax Act after any tax offset allowed under Section
531.13 of this Code.(i) Any annual retaliatory tax returns and payments     made for the year ended December 31, 1997 and any quarterly installments of the taxpayer's total estimated 1998 retaliatory tax liability paid prior to the effective date of this Amendatory Act of 1998 that do not include the items specified by subsection (1) of this Section shall be amended and restated, at the taxpayer's election, on forms prepared by the Director so as to provide for the inclusion of such items. An amended and restated return for the year ended December 31, 1997 filed under this subparagraph shall treat any payment of estimated privilege taxes under Section 409 as in effect prior to October 23, 1997 as a payment of estimated retaliatory taxes for the year ended December 31, 1997.(ii) Any overpayment resulting from such amended     return and restated tax liability shall be allowed as a credit against any subsequent privilege or retaliatory tax obligations of the taxpayer.(iii) In the year 1999 and thereafter all companies     shall make annual and quarterly installments of their estimated tax as provided by paragraph (a) of this subsection.(3) Any tax payment made under this Section and any tax returns prepared
in compliance with Section 410 shall give full consideration to the impact
of any future reduction in or elimination of a taxpayer's liability under
Section 409, whether such reduction or elimination is due to an operation
of law or an Act of the General Assembly.(4) Any foreign or alien taxpayer who makes, under protest, a tax payment
required by Section 409 shall, at the time of payment, file a retaliatory
tax return sufficient to disclose the full amount of retaliatory taxes which
would be due and owing for the tax period in question if the protest were
upheld.  Notwithstanding the provisions of the State Officers and Employees
Money Disposition Act or any other laws of this State, the protested
payment, to the extent of the retaliatory tax so disclosed, shall be deposited
directly in the General Revenue Fund; and the balance of the payment, if
any, shall be deposited in a protest account pursuant to the provisions
of the aforesaid Act, as now or hereafter amended.(5) The failure of a company to make the annual payment or to make the
quarterly payments, if required,
of at least one-fourth of either (i) the total tax paid
during the preceding
calendar year or (ii) 80% of the actual tax for the current calendar
year shall subject it to the penalty provisions set forth in Section
412 of this Code.(6) This Section is subject to the provisions of Section 10 of the New Markets Development Program Act. (Source: P.A. 95-1024, eff. 12-31-08.) (215 ILCS 5/445) (from Ch. 73, par. 1057)Sec. 445. Surplus line.(1) Definitions. For the purposes of this Section:"Affiliate" means, with respect to an insured, any entity that controls, is controlled by, or is under common control with the insured. For the purpose of this definition, an entity has control over another entity if:(A) the entity directly or indirectly or acting     through one or more other persons owns, controls, or has the power to vote 25% or more of any class of voting securities of the other entity; or(B) the entity controls in any manner the election of     a majority of the directors or trustees of the other entity."Affiliated group" means any group of entities that are all affiliated."Authorized insurer" means an insurer that holds a certificate of
authority
issued by the Director but, for the purposes of this Section, does not
include a
domestic surplus line insurer as defined in Section 445a or any
residual market
mechanism."Exempt commercial purchaser" means any person purchasing commercial insurance that, at the time of placement, meets the following requirements:(A) The person employs or retains a qualified risk     manager to negotiate insurance coverage.(B) The person has paid aggregate nationwide     commercial property and casualty insurance premiums in excess of $100,000 in the immediately preceding 12 months.(C) The person meets at least one of the following     criteria:(I) The person possesses a net worth in excess of         $20,000,000, as such amount is adjusted pursuant to the provision in this definition concerning percentage change.(II) The person generates annual revenues in         excess of $50,000,000, as such amount is adjusted pursuant to the provision in this definition concerning percentage change.(III) The person employs more than 500 full-time         or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than 1,000 employees in the aggregate.(IV) The person is a not-for-profit organization         or public entity generating annual budgeted expenditures of at least $30,000,000, as such amount is adjusted pursuant to the provision in this definition concerning percentage change.(V) The person is a municipality with a         population in excess of 50,000 persons.Effective on January 1, 2015 and each fifth January 1 occurring thereafter, the amounts in subitems (I), (II), and (IV) of item (C) of this definition shall be adjusted to reflect the percentage change for such 5-year period in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor."Home state" means the following:(A)  With respect to an insured, except as provided     in item (B) of this definition:(I) the state in which an insured maintains its         principal place of business or, in the case of an individual, the individual's principal residence; or(II) if 100% of the insured risk is located out         of the state referred to in subitem (I), the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated.(B) If more than one insured from an affiliated group     are named insureds on a single surplus line insurance contract, then "home state" means the home state, as determined pursuant to item (A) of this definition, of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract.If more than one insured from a group that is not     affiliated are named insureds on a single surplus line insurance contract, then:(I) if individual group members pay 100% of the         premium for the insurance from their own funds, "home state" means the home state, as determined pursuant to item (A) of this definition, of each individual group member; each individual group member's coverage under the surplus line insurance contract shall be treated as a separate surplus line contract for the purposes of this Section;(II) otherwise, "home state" means the home         state, as determined pursuant to item (A) of this definition, of the group.Nothing in this definition shall be construed to alter the terms of the surplus line insurance contract."Master policy" means a surplus line insurance contract with a single set of general contractual terms that are designed to apply on a group basis to multiple insureds who may or may not be affiliated and who may be added to or removed from the contract throughout the course of the contract period. A master policy may include certain provisions that vary for each insured depending on the insured's characteristics and the coverage sought."Multi-State risk" means a risk with insured exposures in more than one State."NAIC" means the National Association of Insurance Commissioners or any successor entity."Personal lines insurance" means insurance as defined in subsection (a), (b), or (c) of Section 143.13 of this Code."Premium" means any amount designated as premium on the declarations page or elsewhere in a policy and on any endorsement, but does not include taxes, the Surplus Line Association of Illinois recording fee, or any other fee."Program business" means a clearly defined group of insurance contracts procured by a licensed surplus line producer from an unauthorized insurer, under a single agreement between the producer and insurer, for insureds with the same or similar characteristics and containing the same or similar contract terms."Qualified risk manager" means, with respect to a policyholder of commercial insurance, a person who meets all of the following requirements:(A) The person is an employee of, or third-party     consultant retained by, the commercial policyholder.(B) The person provides skilled services in loss     prevention, loss reduction, or risk and insurance coverage analysis, and purchase of insurance.(C) With regard to the person:(I) the person has:(a) a bachelor's degree or higher from an             accredited college or university in risk management, business administration, finance, economics, or any other field determined by the Director or his designee to demonstrate minimum competence in risk management; and(b) the following:(i) three years of experience in risk                 financing, claims administration, loss prevention, risk and insurance analysis, or purchasing commercial lines of insurance; or(ii) alternatively has:(AA) a designation as a Chartered                     Property and Casualty Underwriter (in this subparagraph (ii) referred to as "CPCU") issued by the American Institute for CPCU/Insurance Institute of America;(BB) a designation as an Associate in                     Risk Management (ARM) issued by the American Institute for CPCU/Insurance Institute of America;(CC) a designation as Certified Risk                     Manager (CRM) issued by the National Alliance for Insurance Education & Research;(DD) a designation as a RIMS Fellow                     (RF) issued by the Global Risk Management Institute; or(EE) any other designation,                     certification, or license determined by the Director or his designee to demonstrate minimum competency in risk management;(II) the person has:(a) at least 7 years of experience in risk             financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; and(b) has any one of the designations specified             in subparagraph (ii) of paragraph (b);(III) the person has at least 10 years of         experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; or(IV) the person has a graduate degree from an         accredited college or university in risk management, business administration, finance, economics, or any other field determined by the Director or his or her designee to demonstrate minimum competence in risk management."Residual market mechanism" means an association, organization, or other
entity described in Article XXXIII of this Code or Section 7-501 of the
Illinois Vehicle Code or any similar association, organization, or other
entity."State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa."Surplus line insurance" means insurance on a risk:(A) of the kinds specified in Classes 2 and 3 of     Section 4 of this Code; and(B) that is procured from an unauthorized insurer     after the insurance producer representing the insured or the surplus line producer is unable, after diligent effort, to procure the insurance from authorized insurers; and(C) where Illinois is the home state of the insured,     for policies effective, renewed or extended on July 21, 2011 or later and for multiyear policies upon the policy anniversary that falls on or after July 21, 2011; and(D) that is located in Illinois, for policies     effective prior to July 21, 2011."Taxable premium" means a premium for any risk that is located in or attributed to any state."Unauthorized insurer" means an insurer that does not hold a valid
certificate of authority issued by the Director but, for the purposes of this
Section, shall also include a domestic surplus line insurer as defined in
Section 445a.(1.5) Procuring surplus line insurance; surplus line insurer requirements.(a) License required. Insurance producers may procure     surplus line insurance only if licensed as a surplus line producer under this Section.(b) Domestic and foreign insurer eligibility.     Licensed surplus line producers may procure surplus line insurance from an unauthorized insurer domiciled in any state only if the insurer:(i)  is permitted in its domiciliary jurisdiction         to write the type of insurance involved; and(ii) has, based upon information available to the         surplus line producer,  a policyholders surplus of not less than $15,000,000 determined in accordance with the laws of its domiciliary jurisdiction; and(iii) has standards of solvency and management         that are adequate for the protection of policyholders.Where an unauthorized insurer does not meet the     standards set forth in (ii) and (iii) above, a surplus line producer may, if necessary, procure insurance from that insurer only if prior written warning of such fact or condition is given to the insured by the insurance producer or surplus line producer.(c) Alien insurer eligibility. Licensed surplus line     producers may procure surplus line insurance from an unauthorized insurer not domiciled in any state only if the insurer meets the standards for unauthorized insurers domiciled in any state in paragraph (b) of this subsection (1.5) or is listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department of the NAIC at the time of procurement. The Director shall make the Quarterly Listing of Alien Insurers available to surplus line producers without charge.(d) Prohibited transactions. Insurance producers     shall not procure from an unauthorized insurer an insurance policy:(i) that is designed to satisfy the proof of         financial responsibility and insurance requirements in any Illinois law where the law requires that the proof of insurance is issued by an authorized insurer or residual market mechanism;(ii) that covers the risk of accidental injury to         employees arising out of and in the course of employment according to the provisions of the Workers' Compensation Act; or(iii) that insures any Illinois personal lines         risk that is eligible for residual market mechanism coverage, unless the insured or prospective insured requests limits of liability greater than the limits provided by the residual market mechanism.  In the course of making a diligent effort to procure insurance from authorized insurers, an insurance producer shall not be required to submit a risk to a residual market mechanism when the risk is not eligible for coverage or exceeds the limits available in the residual market mechanism.Where there is an insurance policy issued by an     authorized insurer or residual market mechanism insuring a risk described in item (i), (ii), or (iii) above, nothing in this paragraph shall be construed to prohibit a surplus line producer from procuring from an unauthorized insurer a policy insuring the risk on an excess or umbrella basis where the excess or umbrella policy is written over one or more underlying policies.(e) Exempt commercial purchaser diligent effort.     Licensed surplus line producers may procure surplus line insurance from an unauthorized insurer for an exempt commercial purchaser without making the required diligent effort to procure the insurance from authorized insurers if:(i) the producer has disclosed to the exempt         commercial purchaser that such insurance may or may not be available from authorized insurers that may provide greater protection with more regulatory oversight; and(ii) the exempt commercial purchaser has         subsequently in writing requested the producer to procure such insurance from an unauthorized insurer.(f)   Commercial wholesale transaction diligent     effort. A licensed surplus line producer may procure a surplus line insurance contract,  other than a personal lines insurance contract, from an unauthorized insurer without making the required diligent effort to procure the insurance from authorized insurers if the risk was referred to the surplus line producer by an Illinois-licensed insurance producer who is not affiliated with the surplus line producer.(g)   Master policy diligent effort. For a master     policy insurance contract, a licensed surplus line producer may make the required diligent effort to procure the insurance from authorized insurers annually for the master policy rather than individually for each insured that is added during the policy period. The diligent effort shall include all variable provisions of the master policy.(h)   Program business diligent effort. For program     business, a licensed surplus line producer may make the required diligent effort to procure the insurance from authorized insurers annually for the program rather than individually for each contract. The diligent effort shall include all variable provisions of the master policy.(2) Surplus line producer; license.  Any licensed producer who is a
resident of this State, or any nonresident who qualifies under Section
500-40, may be licensed as a surplus line producer upon payment of an annual license fee of $400.A surplus line producer so licensed shall keep a separate
account of
the business transacted thereunder for 7 years from the policy effective date which shall be open at all times to the
inspection of the Director or his representative.No later than July 21, 2012, the State of Illinois shall participate in the national insurance producer database of the NAIC, or any other equivalent uniform national database, for the licensure of surplus line producers and the renewal of such licenses.(3) Taxes and reports.(a) Surplus line tax and penalty for late payment.     The surplus line tax rate for a surplus line insurance policy or contract is determined as follows:(i) 3% for policies or contracts with an         effective date prior to July 1, 2003;(ii) 3.5% for policies or contracts with an         effective date of July 1, 2003 or later.A surplus line producer shall file with the Director     on or before February 1 and August 1 of each year a report in the form prescribed by the Director on all surplus line insurance procured from unauthorized insurers and submitted to the Surplus Line Association of Illinois during the preceding 6 month period ending December 31 or June 30 respectively, and on the filing of such report shall pay to the Director for the use and benefit of the State a sum equal to the surplus line tax rate multiplied by the gross taxable premiums less returned taxable premiums upon all surplus line insurance submitted to the Surplus Line Association of Illinois during the preceding 6 months.Any surplus line producer who fails to pay the full     amount due under this subsection is liable, in addition to the amount due, for such late fee, penalty, and interest charges as are provided for under Section 412 of this Code.  The Director, through the Attorney General, may institute an action in the name of the People of the State of Illinois, in any court of competent jurisdiction, for the recovery of the amount of such taxes, late fees, interest, and penalties due, and prosecute the same to final judgment, and take such steps as are necessary to collect the same.(b) Fire Marshal Tax. Each surplus line producer     shall file with the Director on or before February 1  of each year a report in the form prescribed by the Director on all fire insurance procured from unauthorized insurers and submitted to the Surplus Line Association of Illinois during the previous year that is subject to tax under Section 12 of the Fire Investigation Act and shall pay to the Director the fire marshal tax required thereunder.(c) Taxes and fees charged to insured.  The taxes     imposed under this subsection and the recording fees charged by the Surplus Line Association of Illinois may be charged to and collected from surplus line insureds.(4) (Blank).(5) Submission of documents to Surplus Line Association of Illinois.
A surplus line producer shall submit every insurance contract and premium-bearing endorsement
issued
under his or her license to the Surplus Line Association of Illinois for
recording.  The submission and recording may be
effected through electronic means.  The submission shall set
forth:(a) the name of the insured;(b) the description and location of the insured     property or risk;(c) (blank);(d) the gross premiums charged or returned;(e) the name of the unauthorized insurer from whom     coverage has been procured;(f) the kind or kinds of insurance procured; and(g) amount of premium subject to tax required by     Section 12 of the Fire Investigation Act.Proposals, endorsements, and other documents which are
incidental to the insurance but which do not affect the premium
charged
are exempted from the submission and recording requirements.The submission of insuring contracts
to the Surplus Line Association of
Illinois constitutes a certification by the surplus line producer or by the insurance producer who presented the risk to the surplus line producer for
placement as a surplus line risk that
after diligent effort, where required, the required insurance could not be procured from
authorized insurers and that
such procurement was otherwise in accordance with the surplus line law.(6) Evidence of recording required.  It shall be unlawful for an insurance
producer to deliver any unauthorized insurer
contract or premium-bearing endorsement unless it contains evidence of recording by the Surplus Line Association of
Illinois.(7) Inspection of records.  A surplus line producer shall
maintain
separate records of the business transacted under his or her license for 7 years from the policy effective date,
including complete copies of surplus line insurance contracts maintained on
paper or by electronic means, which
records shall be open at all times for inspection by the Director and by
the Surplus Line Association of Illinois.(8) Violations and penalties.  The Director may suspend or revoke or
refuse to renew a surplus line producer license for any violation of this Code.
In addition to or in lieu of suspension or revocation, the Director may
subject a surplus line producer
to a civil penalty of up to $2,000 for each cause for suspension
or
revocation.  Such penalty is enforceable under subsection (5) of Section
403A of this Code.Whenever it appears to the satisfaction of the Director that a surplus line producer has made a documented good faith determination of the home state for a surplus line insurance contract and has paid the surplus line taxes to a state other than Illinois, and the Director determines that the producer's good faith determination was incorrect and the home state is Illinois, the surplus line producer may, at the discretion of the Director, be required to submit the contract to the Surplus Line Association of Illinois and pay applicable taxes and recording fees, but there shall be no penalty, interest, or late fee assessed.(9) Director may declare insurer ineligible.  If the
Director determines
that the further assumption of risks might be hazardous to the
policyholders of an unauthorized insurer, the Director may
order the
Surplus Line Association of
Illinois not to accept and record insurance contracts evidencing insurance in
such insurer and order surplus line producers to cease
procuring insurance
from such insurer.(10) Service of process upon Director.  Insurance contracts
delivered under this Section from unauthorized insurers, other than domestic
surplus line insurers as defined in Section 445a,
shall contain a
provision designating the
Director and his successors in office the true and lawful attorney of the
insurer upon whom may be served all lawful process in any
action, suit or
proceeding arising out of such insurance.
Service of process made upon the Director to be valid hereunder must state
the name of the insured, the name of the unauthorized insurer
and identify
the contract of insurance.  The Director at his option is authorized to
forward a copy of the process to the Surplus Line Association of Illinois
for delivery to the unauthorized insurer or the Director may deliver the process to the
unauthorized insurer by other means which he considers to be
reasonably
prompt and certain.(10.5) Required notice to policyholder. Insurance contracts delivered under this Section from unauthorized insurers, other than domestic surplus line insurers as defined in Section 445a, shall have stamped or imprinted on the first page thereof in not less than 12-pt. bold face type the following legend: "Notice to Policyholder: This contract is issued, pursuant to Section 445 of the Illinois Insurance Code, by a company not authorized and licensed to transact business in Illinois and as such is not covered by the Illinois Insurance Guaranty Fund." Insurance contracts delivered under this Section from domestic surplus line insurers as defined in Section 445a shall have stamped or imprinted on the first page thereof in not less than 12-pt. bold face type the following legend: "Notice to Policyholder: This contract is issued by a domestic surplus line insurer, as defined in Section 445a of the Illinois Insurance Code, pursuant to Section 445, and as such is not covered by the Illinois Insurance Guaranty Fund."(11) Marine, aviation, and transportation. The Illinois Surplus Line law does not apply to insurance of
property and operations of railroads or aircraft engaged in interstate or
foreign commerce, insurance of vessels, crafts or hulls, cargoes, marine
builder's risks, marine protection and indemnity, or other risks including
strikes and war risks insured under ocean or wet marine forms of policies.(12) Applicability of Illinois Insurance Code. Surplus line insurance procured under this Section, including
insurance procured from a domestic surplus line insurer, is not subject
to the provisions of the Illinois Insurance Code other than Sections 123,
123.1, 401, 401.1, 402, 403, 403A, 408, 412, 445, 445a, 445.1, 445.2, 445.3,
445.4, and all of the provisions of Article XXXI to the extent that the
provisions of Article XXXI are not inconsistent with the terms of this Act.
(Source: P.A. 102-224, eff. 1-1-22.) (215 ILCS 5/445a)Sec. 445a. Domestic surplus line insurer.(a) A domestic insurer possessing
policyholder surplus of at least $15,000,000 may pursuant to a resolution by
its board of directors, and with the written approval of the Director, be
designated as a "domestic surplus line insurer".(b) A domestic surplus line insurer may insure in this State an
Illinois risk only if procured from a surplus line producer pursuant to Section 445 of
this Code.(c) A domestic surplus line insurer must agree not to issue a policy
designed to satisfy the financial responsibility requirements of the Illinois
Vehicle Code, the Workers' Compensation Act, or the Workers' Occupational
Diseases Act.  A domestic surplus line insurer is not subject to the provisions
of Articles XXXIII, XXXIII 1/2, XXXIV, XXXVIIIA, Section 468, or Section
478.1 of this Code.(d) For the purposes of the federal Nonadmitted and Reinsurance Reform Act of 2010 (15 USC 8201 et seq.), a domestic surplus line insurer shall be considered a nonadmitted insurer, as the term is defined in the Act, with respect to risks insured in this State. (Source: P.A. 97-955, eff. 8-14-12.) (215 ILCS 5/445.1) (from Ch. 73, par. 1057.1)Sec. 445.1. Surplus Line Association of Illinois. There is hereby created a
non-profit association to be known as the Surplus Line Association of
Illinois.  All surplus line producers shall be and must remain individual
members of the Association as a condition of their holding a license as a
surplus line producer in this State.  The Association must perform its
functions under the plan of operation established and approved under
Section 445.3 and must exercise its powers through a board of directors
established under Section 445.2 of this Code.  The Association shall be
supervised by the Director and is subject to the applicable provisions of
the Illinois Insurance Code.  The Association shall be authorized and have the
duty to:(1) receive and record all surplus line insurance     contracts that surplus line producers are required to file with the Association under subsection (5) of Section 445;(2) prepare monthly reports for the Director on     surplus line insurance procured by its members during the preceding month in such form and providing such information as the Director may prescribe;(3) prepare and deliver to the Director and, at the     discretion of the Director, to each licensee the reports of surplus line business prescribed in subsection (3) of Section 445;(4) assess its members for costs of operations in     accordance with a schedule adopted by the Board of Directors of the Association and approved by the Director;(5) employ and retain such persons as are necessary     to carry out the duties of the Association;(6) borrow money as necessary to effect the purposes     of the Association;(7) enter contracts as necessary to effect the     purposes of the Association;(8) perform such other acts as will facilitate and     encourage compliance by its members with the surplus line law of this State and rules promulgated thereunder; and(9) provide such other services to its members as are     incidental or related to the purposes of the Association.Nothing in this Act shall be
construed as giving the Association any discretionary authority to enforce
this Act or to withhold or decline acceptance and recording of insurance contracts that meet
the requirements of subsection (5) of Section 445.
(Source: P.A. 102-224, eff. 1-1-22.) (215 ILCS 5/445.2) (from Ch. 73, par. 1057.2)Sec. 445.2. 
		Board of Directors. 
		The Association shall function through
a Board of Directors elected by the Association members, and officers who
shall be elected by the Board of Directors.The Board of Directors of the Association shall consist of not less than
5 nor more than 9 persons serving terms as established in the plan of
operation. The plan of operation shall provide for the election of a Board
of Directors by the members of the Association from its membership.  The
plan of operation shall fix the manner of voting and may weigh each
member's vote to reflect the annual surplus line insurance premium written
by the member.  Members employed by the same or affiliated employers may
consolidate their premiums written and delegate an individual officer or
partner to represent the member in the exercise of Association affairs,
including service on the Association Board of Directors.
The Director shall appoint an interim Board of Directors for the sole purpose
of conducting an election of Directors.  If no Board of Directors is elected
within 90 days after the effective date of this amendatory Act of 1984,
the Director shall appoint the initial members of the Board of Directors.The Board of Directors shall elect such officers as may be provided in
the plan of operation.
		(Source: P.A. 83-1300.) (215 ILCS 5/445.3) (from Ch. 73, par. 1057.3)Sec. 445.3. 
		Plan of Operation. 
		(1) The Association shall submit to
the Director a plan of operation and any amendments thereto to provide
operating procedures for the
administration of the Association.  The plan of operation and any amendments
thereto shall become effective upon approval in writing by the Director.(2) If the Association fails to submit a suitable plan of operation within
180 days following the effective date of this amendatory Act of 1984, or
if at any time thereafter the Association fails to submit required amendments
to the plan of operation, the Director shall, after notice and hearing pursuant
to Sections 401, 402 and 403 of this Code, adopt and promulgate such rules
as are necessary or advisable to effectuate the provisions of this Act.
Such rules shall
continue in force until modified by the Director or superseded by a plan
of operation submitted by the Association and approved by the Director.(3) All Association members must comply with the plan of operation.
		(Source: P.A. 83-1300.) (215 ILCS 5/445.4) (from Ch. 73, par. 1057.4)Sec. 445.4. Examination. The Director shall, at such times as he deems
necessary, make or cause to be made an examination of the Association.
The reasonable cost of any such examination shall be paid by the Association
upon presentation to it by the Director of a detailed account of such cost.
During the course of such examination, the  directors, officers, members, agents and
employees of the Association may be examined under oath regarding the operation
of the Association and shall make available all books, records, accounts,
documents and agreements pertaining thereto.  The Director shall furnish
a copy of the examination report to the Association.  Within 20 days after
receipt of the report, the Association may request a hearing on the report
or any facts or recommendations therein.  If the Director finds the Association
or any of its members to be in violation of this Act, he may issue an order
requiring discontinuance of such violation. The Association shall annually provide for an independent financial audit of the books and records of the Association by a certified public accountant and shall provide a copy of the audit report to the Director. 
(Source: P.A. 98-978, eff. 1-1-15.) (215 ILCS 5/445.5) (from Ch. 73, par. 1057.5)Sec. 445.5. 
		Immunity. 
		There shall be no liability on the part of and
no causes of action of any nature shall arise against the Association, its
directors, officers, agents or employees, or the Director of Insurance or
his representatives for any action taken or omitted by them in the performance
of their powers and duties under this Act.
		(Source: P.A. 83-1300.) (215 ILCS 5/446) (from Ch. 73, par. 1058)Sec. 446. 
		Penalties.Any person who violates any of the provisions of this Code, or fails to
comply with any duty imposed upon him or it by any provision of this law,
for which violation or failure no penalty is elsewhere provided by the laws
of this State, shall be guilty of a petty offense.
		(Source: P.A. 77-2699.) (215 ILCS 5/447) (from Ch. 73, par. 1059)Sec. 447. 
		
		Domestic
company's adoption of code.Any company, other than a stock company, heretofore organized or
incorporated under the laws of this State may, without reincorporation,
avail itself of all the provisions of this Code by filing with the
Director, a certified copy of a resolution adopted by its board of
directors, trustees, or other governing body, and in the case of a stock
company such certified copy and a certified copy of a resolution adopted by
at least two-thirds of its shareholders, accepting the provisions of this
Code.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/448) (from Ch. 73, par. 1060)Sec. 448. 
		
		Certain
powers reserved to General Assembly.The General Assembly shall at all times have power to prescribe such
regulations, provisions, and limitations as it may deem advisable, which
regulations, provisions, and limitations shall be binding upon any and all
companies, domestic, foreign or alien, subject to the provisions of this
Code, and the General Assembly shall have power to amend, repeal, or modify
this Code at pleasure.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/449) (from Ch. 73, par. 1061)Sec. 449. 
		
		Effect of
repeal of prior law.The repeal of a law by this Code shall not affect any right accrued or
established, or any liability or penalty incurred, under the provisions of
such law, prior to the repeal thereof.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/450) (from Ch. 73, par. 1062)Sec. 450. 
		
		Effect of
invalidity of part of code.If any provision of this Code, or the application of such provision to
any person or circumstances, shall be held invalid, the remainder of the
Code, and the application of such provision to persons or circumstances
other than those as to which it is held invalid, shall not be affected
thereby.
		(Source: Laws 1937, p. 696.) (215 ILCS 5/451) (from Ch. 73, par. 1063)Sec. 451. Companies
not subject to Code. This Code shall not apply to companies now or hereafter organized or
transacting business under the Title Insurance Act, or Act amendatory thereof,
supplementary thereto, or in replacement thereof; nor to corporations now or hereafter organized and
transacting business under "An Act to provide for the incorporation and
regulation of nonprofit hospital service corporations" approved July 6,
1935, or Act amendatory thereof or supplementary thereto; nor shall any
part of this Code other than Articles X, XI, XIII, and XXIV apply to
companies now or hereafter organized or transacting business under an Act
entitled, "An Act relating to local mutual district, county and township
insurance companies," approved March 13, 1936, or Act amendatory thereof
or supplementary thereto. No domestic company shall be organized under this
Code, nor shall any foreign or alien company receive a certificate of
authority under this Code, to transact the business of title insurance. The changes made to this Section by Public Act 96-334 are a statement and clarification of existing law. 
(Source: P.A. 96-334, eff. 1-1-10; 96-1000, eff. 7-2-10.) (215 ILCS 5/452) (from Ch. 73, par. 1064)Sec. 452. Civil
Administrative Code of Illinois. Nothing in this Code contained shall be held or construed to alter,
modify, or repeal any of the provisions of the Civil Administrative Code of Illinois.
(Source: P.A. 101-81, eff. 7-12-19.)
(215 ILCS 5/Art. XXXI.5 heading) ARTICLE XXXI 1/2. 
THIRD PARTY PRESCRIPTION PROGRAMS (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) (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) (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.) (215 ILCS 5/512-4) (from Ch. 73, par. 1065.59-4)Sec. 512-4. 
		Registration. 
		All third party prescription programs and
administrators doing business in the State shall register with the Director
of Insurance.  The Director shall promulgate regulations establishing criteria
for registration in accordance with the terms of this Article. The Director
may by rule establish an annual registration fee for each third party administrator.
		(Source: P.A. 82-1005.) (215 ILCS 5/512-5) (from Ch. 73, par. 1065.59-5)Sec. 512-5. 
		Fiduciary and Bonding Requirements. 
		 A third party prescription program administrator shall (1) establish and
maintain a fiduciary account, separate and apart from any and all other
accounts, for the receipt and disbursement of funds for reimbursement of
providers of services under the program, or (2) post,
or cause to be posted, a bond of indemnity in an amount equal to not less
than 10% of the total estimated annual reimbursements under the program.The establishment of such fiduciary accounts and bonds shall be consistent
with applicable State law.
If a bond of indemnity is posted, it shall be held by the Director of Insurance
for the benefit and indemnification of the providers of services under the
third party prescription program.An administrator who operates more than one third party prescription program
may establish and maintain a separate fiduciary account or bond of indemnity
for each such program, or may operate and maintain a consolidated fiduciary
account or bond of indemnity for all such programs.The requirements of this Section do not apply to any third party prescription
program administered by or on behalf of any insurance company, Health Care
Service Plan Corporation or Pharmaceutical Service Plan Corporation authorized
to do business in the State of Illinois.
		(Source: P.A. 82-1005.) (215 ILCS 5/512-6) (from Ch. 73, par. 1065.59-6)Sec. 512-6. 
		Notice. 
		Notice of any change in the terms of a third party prescription program,
including but not limited to drugs covered, reimbursement rates, co-payments,
and dosage quantity, shall be given to each enrolled pharmacy at least 30
days prior to the time it becomes effective.
		(Source: P.A. 82-1005.) (215 ILCS 5/512-7) (from Ch. 73, par. 1065.59-7)Sec. 512-7. Contractual provisions.(a) Any agreement or contract entered into in this State between the
administrator of a program and a pharmacy shall include a statement of the
method and amount of reimbursement to the pharmacy for services rendered to
persons enrolled in the program, the frequency of payment by the program
administrator to the pharmacy for those services, and a method for the
adjudication of complaints and the settlement of disputes between the
contracting parties.(b)(1) A program shall provide an annual period of at     least 30 days during which any pharmacy licensed under the Pharmacy Practice Act  may elect to participate in the program under the program terms for at least one year.(2) If compliance with the requirements of this     subsection (b) would impair any provision of a contract between a program and any other person, and if the contract provision was in existence before January 1, 1990, then immediately after the expiration of those contract provisions the program shall comply with the requirements of this subsection (b).(3) This subsection (b) does not apply if:(A) the program administrator is a licensed         health maintenance organization that owns or controls a pharmacy and that enters into an agreement or contract with that pharmacy in accordance with subsection (a); or(B) the program administrator is a licensed         health maintenance organization that is owned or controlled by another entity that also owns or controls a pharmacy, and the administrator enters into an agreement or contract with that pharmacy in accordance with subsection (a).(4) This subsection (b) shall be inoperative         after October 31, 1992.(c) The program administrator shall cause to be issued an identification
card to each person enrolled in the program.  The identification card
shall include:(1) the name of the individual enrolled in the     program; and(2) an expiration date if required under the     contractual arrangement or agreement between a provider of pharmaceutical services and prescription drug products and the third party prescription program administrator.(Source: P.A. 95-689, eff. 10-29-07.) (215 ILCS 5/512-8) (from Ch. 73, par. 1065.59-8)Sec. 512-8. 
		Cancellation procedures. 
		(a) The administrator of a program
shall notify all pharmacies enrolled in the program of any cancellation
of the coverage of benefits of any group enrolled in the program at least
30 days prior to the effective date of such cancellation.
  However, if the administrator of a program is not notified at least 45
days prior to the effective date of such cancellation, the administrator
shall notify all pharmacies enrolled in the program of the cancellation
as soon as practicable after having received notice.(b) When a program is terminated, all persons enrolled therein shall be
so notified, and the employer shall make every reasonable effort to gain
possession of any plan identification cards in such persons' possession.(c) Any person who intentionally uses a program identification card to
obtain services from a pharmacy after having received notice of the cancellation
of his benefits shall be guilty of a Class C misdemeanor.  Persons shall
be liable to the program administrator for all monies paid by the program
administrator for any services received pursuant to any improper use of
the identification card.
		(Source: P.A. 82-1005.) (215 ILCS 5/512-9) (from Ch. 73, par. 1065.59-9)Sec. 512-9. 
		Denial of Payment. 
		(a) No administrator shall deny payment
to any pharmacy for covered pharmaceutical services or prescription drug
products rendered as a result of the misuse, fraudulent or illegal use of
an identification card unless such identification card had expired, been
noticeably altered, or the pharmacy was notified of the cancellation of
such card.  In lieu of notifying pharmacies which have a common ownership,
the administrator may notify a party designated by the pharmacy to receive
such notice, in which case, notification shall not become effective until
5 calendar days after the designee receives notification.(b) No program administrator may withhold any payment to any pharmacy
for covered pharmaceutical services or prescription drug products beyond
the time period specified in the payment schedule provisions of the agreement,
except for individual claims for payment which have been returned to the pharmacy
as incomplete or illegible.  Such returned claims shall be paid if resubmitted
by the pharmacy to the program administrator with the appropriate corrections made.
		(Source: P.A. 82-1005.) (215 ILCS 5/512-10) (from Ch. 73, par. 1065.59-10)Sec. 512-10. 
		Failure to Register. 
		Any third party prescription program
or administrator which operates without a certificate of registration or
fails to register with the Director and pay the fee prescribed by this Article
shall be construed to be an unauthorized insurer as defined in Article VII
of this Code and shall be subject to all penalties contained therein.The provisions of the Article shall apply to all new programs established
on or after January 1, 1983. Existing programs shall comply with the provisions
of this Article on the anniversary date of the programs that occurs on or
after January 1, 1983.
		(Source: P.A. 82-1005.)
(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) (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) (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) (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) (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) (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) (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) (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) (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) (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) (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) (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) (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) (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) (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)(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)(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 heading) ARTICLE XXXI.  
		INSURANCE PRODUCERS, LIMITED
INSURANCE REPRESENTATIVES AND REGISTERED FIRMS
(Article scheduled to be repealed on January 1, 2027) (215 ILCS 5/490.1) (from Ch. 73, par. 1065.37-1)Sec. 490.1. 
		(Repealed). 
		(Source: P.A. 83-801. Repealed by P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/491.1) (from Ch. 73, par. 1065.38-1)Sec. 491.1. 
		(Repealed). 
		(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/492.2) (from Ch. 73, par. 1065.39-2)Sec. 492.2. 
		(Repealed). 
		(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/493.1) (from Ch. 73, par. 1065.40-1)Sec. 493.1. 
		(Repealed). 
		(Source: P.A. 83-749.  Repealed by P.A. 90-499, eff. 8-19-97.) (215 ILCS 5/493.2) (from Ch. 73, par. 1065.40-2)Sec. 493.2. 
		(Repealed). 
		(Source: P.A. 85-334. Repealed by P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/494.1) (from Ch. 73, par. 1065.41-1)Sec. 494.1. 
		(Repealed). 
		(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/494.2) (from Ch. 73, par. 1065.41-2)Sec. 494.2. 
		(Repealed). 
		(Source: P.A. 87-1216. Repealed by P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/495.1) (from Ch. 73, par. 1065.42-1)Sec. 495.1. 
		(Repealed). 
		(Source: P.A. 86-600. Repealed by P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/495.2)Sec. 495.2. 
		(Repealed). 
		(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/496.2) (from Ch. 73, par. 1065.43-2)Sec. 496.2. 
		(Repealed). 
		(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/497.1) (from Ch. 73, par. 1065.44-1)Sec. 497.1. 
		(Repealed). 
		(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/497.2) (from Ch. 73, par. 1065.44-2)Sec. 497.2. 
		(Repealed). 
		(Source: P.A. 87-601.  Repealed by P.A. 89-265, eff. 1-1-96.) (215 ILCS 5/498.1) (from Ch. 73, par. 1065.45-1)Sec. 498.1. 
		(Repealed). 
		(Source: P.A. 88-313. Repealed by P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/499.1) (from Ch. 73, par. 1065.46-1)Sec. 499.1. 
		(Repealed). 
		(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/500-5)(Section scheduled to be repealed on January 1, 2027)Sec. 500-5. 
		Scope of Article. 
		This Article applies to all persons and
insurance companies as
defined in this Code.  This Article does not apply to surplus lines producers
licensed pursuant to
Section 445 except as provided in Section 500-40 and subsection (b) of Section
500-90 of this
Article.
		(Source: P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/500-10)(Section scheduled to be repealed on January 1, 2027)Sec. 500-10. Definitions. In addition to the definitions in Section 2 of
the
Code, the following
definitions apply to this Article:"Business entity" means a corporation, association, partnership, limited
liability
company, limited liability partnership, or other legal entity."Car rental limited line licensee" means a person authorized under the
provisions of
Section 500-105 to sell certain coverages relating to the rental of vehicles."Home state" means the District of Columbia and any state or territory of the
United
States in which an insurance producer maintains his or her principal place of
residence or
principal place of business and is licensed to act as an insurance producer."Insurance" means any of the lines of authority in Section 500-35, any health
care plan
under the Health Maintenance Organization Act, or any limited health care plan
under the
Limited Health Service Organization Act."Insurance producer" means a person required to be licensed under the laws of
this State
to sell, solicit, or negotiate insurance."Insurer" means a company as defined in subsection (e) of Section 2 of this
Code, a
health maintenance organization as defined in the Health Maintenance
Organization Act, or a
limited health service organization as defined in the Limited Health
Service Organization Act."License" means a document issued by the Director authorizing an individual
to act as an
insurance producer for the lines of authority specified in the document or
authorizing a business
entity to act as an insurance producer.  The license itself does not create any
authority, actual,
apparent, or inherent, in the holder to represent or commit
an insurance carrier."Limited lines insurance" means those lines of insurance defined in Section
500-100 or
any other line of insurance that the Director may deem it necessary to
recognize for the purposes
of complying with subsection (e) of Section 500-40."Limited lines producer" means a person authorized by the Director to sell,
solicit, or
negotiate limited lines insurance."Negotiate" means the act of conferring directly with or offering advice
directly to a
purchaser or prospective purchaser of a particular contract of insurance
concerning any
of the substantive benefits, terms, or conditions of the contract, provided
that the person
engaged in that act either sells insurance or obtains insurance from
insurers for purchasers."Person" means an individual or a business entity."Rental agreement" means a written agreement setting forth the terms and
conditions
governing the use of a vehicle provided by a rental company for
rental or lease."Rental company" means a person, or a franchisee of the person, in the
business of
providing primarily private passenger vehicles to the public under a
rental agreement for a period
not to exceed 30 days."Rental period" means the term of the rental agreement."Renter" means a person obtaining the use of a vehicle from a
rental company under the
terms of a rental agreement for a period not to exceed 30 days."Self-service storage facility limited line licensee" means a person
authorized under the provisions of Section 500-107 to sell certain coverages
relating to the rental of self-service storage facilities."Sell" means to exchange a contract of insurance by any means, for
money or its equivalent, on
behalf of an insurance company."Solicit" means attempting to
sell insurance or asking or urging a person to apply for a
particular kind of insurance from a particular company."Terminate" means the cancellation of the relationship between an insurance
producer and the
insurer or the termination of a producer's authority to transact insurance."Travel insurance" has the meaning provided in Section 1630."Uniform Business Entity Application" means the current version of the
National Association of Insurance Commissioners' Uniform
Business Entity Application for nonresident business entities."Uniform Application" means the current version of the National Association
of Insurance Commissioners' Uniform
Application for
nonresident producer licensing."Vehicle" or "rental vehicle" means a motor vehicle of (1) the private
passenger
type, including passenger vans, mini vans, and sport utility vehicles or (2)
the cargo type,
including cargo vans, pickup trucks, and trucks with a gross vehicle
weight of less than
26,000 pounds the operation of which does not require the operator to possess a
commercial
driver's license."Webinar" means an online educational presentation during which a live and participating instructor and participating viewers, whose attendance is periodically verified throughout the presentation, actively engage in discussion and in the submission and answering of questions. (Source: P.A. 102-212, eff. 10-28-21.) (215 ILCS 5/500-15)(Section scheduled to be repealed on January 1, 2027)Sec. 500-15. 
		License required.(a) A person may not sell, solicit, or negotiate insurance in this State for
any class or
classes of insurance unless the person is licensed for that line of authority
in accordance with this
Article.(b) A person may not, for a fee, engage in the business of offering any
advice, counsel, opinion, or service with respect to the benefits, advantages,
or disadvantages under any policy of insurance that could be issued in
Illinois, unless that person is:(1) engaged or employed as an attorney licensed to     practice law and performing duties incidental to that position;(2) a licensed insurance producer, limited insurance     representative, or temporary insurance producer offering advice concerning a class of insurance as to which he or she is licensed to transact business;(3) a trust officer of a bank performing duties     incidental to his or her position;(4) an actuary or a certified public accountant     engaged or employed in a consulting capacity, performing duties incidental to that position; or(5) a licensed public adjuster acting within the     scope of his or her license.(c) In addition to any other penalty set forth in this Article, an
individual
who
knowingly violates subsection (a) is guilty of a Class A misdemeanor.(d) In addition to any other penalty set forth in this Article, any
individual violating subsection (a) or (b) and misappropriating or converting
any moneys collected in conjunction with the violation is guilty of a Class 4
felony.
		(Source: P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/500-20)(Section scheduled to be repealed on January 1, 2027)Sec. 500-20. 
		Exceptions to licensing.(a) Nothing in this Article shall be construed to require an insurer to
obtain
an
insurance producer license.  In this Section, the term "insurer" does not
include an insurer's
officers, directors, employees, subsidiaries, or affiliates.(b) A license as an insurance producer shall not be required of the
following:(1) an officer, director, or employee of an insurer     or of an insurance producer, provided that the officer, director, or employee does not receive any commission on policies written or sold to insure risks residing, located, or to be performed in this State and:(A) the officer's, director's, or employee's         activities are executive, administrative, managerial, clerical, or a combination of these, and are only indirectly related to the sale, solicitation, or negotiation of insurance;(B) the officer's, director's, or employee's         function relates to underwriting, loss control, inspection, or the processing, adjusting, investigating, or settling of a claim on a contract of insurance; or(C) the officer, director, or employee is acting         in the capacity of a special agent or agency supervisor assisting insurance producers if the person's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation, or negotiation of insurance;(2) a person who secures and furnishes information     for the purpose of group life insurance, group property and casualty insurance, group annuities, or group or blanket accident and health insurance or for the purpose of enrolling individuals under plans, issuing certificates under plans or otherwise assisting in administering plans or who performs administrative services related to mass marketed property and casualty insurance, if no commission is paid to the person for the service;(3) an employer or association or its officers,     directors, employees, or the trustees of an employee trust plan, to the extent that the employers, officers, employees, directors, or trustees are engaged in the administration or operation of a program of employee benefits for the employer's or association's own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance issued by an insurer, as long as the employers, associations, officers, directors, employees, or trustees are not in any manner compensated, directly or indirectly, by the company issuing the contracts;(4) employees of insurers or organizations employed     by insurers who are engaging in the inspection, rating, or classification of risks or in the supervision of the training of insurance producers and who are not individually engaged in the sale, solicitation, or negotiation of insurance;(5) a person whose activities in this State are     limited to advertising without the intent to solicit insurance in this State through communications in printed publications or forms of electronic mass media whose distribution is not limited to residents of this State, provided that the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in this State;(6) a person who is not a resident of this State who     sells, solicits, or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract, provided that the person is otherwise licensed as an insurance producer to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state; or(7) a salaried, full-time employee who counsels or     advises his or her employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer provided that the employee does not sell or solicit insurance or receive a commission.		(Source: P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/500-25)(Section scheduled to be repealed on January 1, 2027)Sec. 500-25. 
		Application for examination.(a) A resident individual applying for an insurance producer license must
pass a written
examination unless exempt pursuant to Section 500-45.  Both part one and part 2
of the
examination must be passed within 90 days of each other.  The examination shall
test the
knowledge of the individual concerning the lines of authority for which
application is made, the
duties and responsibilities of an insurance producer, and the insurance laws
and rules of this
State.  Examinations required by this Section must be developed and conducted
under rules
prescribed by the Director.(b) The Director may make arrangements,
including contracting with an outside testing
service, for administering
examinations and collecting the nonrefundable fee set forth in Section
500-135.(c) An individual applying for an examination must remit a nonrefundable fee
as
prescribed by the Director as set forth in Section 500-135, plus a separate
remittance payable to
the designated testing service for the total fees the testing service charges
for each of the various
services being requested by the applicant.(d) An individual who fails to appear for the examination as scheduled or
fails
to pass the
examination, must reapply for an examination and remit all required fees and
forms before being
rescheduled for another examination.
		(Source: P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/500-30)(Section scheduled to be repealed on January 1, 2027)Sec. 500-30. Application for license.(a) An individual applying for a resident insurance producer license must
make
application on a form specified by the Director and declare under penalty of
refusal, suspension,
or revocation of the license that the statements made in the application are
true, correct, and
complete to the best of the individual's knowledge and belief.  Before
approving the application,
the Director must find that the individual:(1) is at least 18 years of age;(2) is sufficiently rehabilitated in cases in which     the applicant has committed any act that is a ground for denial, suspension, or revocation set forth in Section 500-70, other than convictions set forth in paragraph (6) of subsection (a) of Section 500-70; with respect to applicants with convictions set forth in paragraph (6) of subsection (a) of Section 500-70, the Director shall determine in accordance with Section 500-76 that the conviction will not impair the ability of the applicant to engage in the position for which a license is sought;(3) has completed, if required by the Director, a     pre-licensing course of study before the insurance exam for the lines of authority for which the individual has applied (an individual who successfully completes the Fire and Casualty pre-licensing courses also meets the requirements for Personal Lines-Property and Casualty);(4) has paid the fees set forth in Section 500-135;     and(5) has successfully passed the examinations for the     lines of authority for which the person has applied.(b) A pre-licensing course of study for each class of insurance for which
an insurance
producer license is requested must be established in accordance with rules
prescribed by the
Director and must consist of the following minimum hours:


Class of Insurance
Number of




Hours


Life (Class 1(a))
20


Accident and Health (Class 1(b) or 2(a))
20


Fire (Class 3)
20


Casualty (Class 2)
20


Personal Lines-Property Casualty
20


Motor Vehicle (Class 2(b) or 3(e))
12.5

7.5 hours of each pre-licensing course must be completed in a classroom or webinar setting, except Motor Vehicle, which would require 5 hours in a classroom or webinar setting.(c) A business entity acting as an insurance producer must obtain an
insurance
producer license. Application must be made using the Uniform Business Entity
Application.
Before approving the application, the Director must find that:(1) the business entity has paid the fees set forth     in Section 500-135; and(2) the business entity has designated a licensed     producer responsible for the business entity's compliance with the insurance laws and rules of this State.(d) The Director may require any documents reasonably necessary to verify
the
information contained in an application.
(Source: P.A. 102-135, eff. 7-23-21.) (215 ILCS 5/500-35)(Section scheduled to be repealed on January 1, 2027)Sec. 500-35. License.(a) Unless denied a license pursuant to Section 500-70, persons who have met
the
requirements of Sections 500-25 and 500-30 shall be issued a 2-year insurance
producer license.
An insurance producer may receive qualification for a license in one or more of
the following
lines of authority:(1) Life: insurance coverage on human lives including     benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income.(2) Variable life and variable annuity products:     insurance coverage provided under variable life insurance contracts and variable annuities.(3) Accident and health or sickness: insurance     coverage for sickness, bodily injury, or accidental death and may include benefits for disability income.(4) Property: insurance coverage for the direct or     consequential loss or damage to property of every kind.(5) Casualty: insurance coverage against legal     liability, including that for death, injury, or disability or damage to real or personal property.(6) Personal lines: property and casualty insurance     coverage sold to individuals and families for primarily noncommercial purposes.(7) Any other line of insurance permitted under State     laws or rules.(b) An insurance producer license shall remain in effect unless revoked or
suspended
as long as the fee set forth in Section 500-135 is paid and education
requirements for resident
individual producers are met by the due date.(1) Before each license renewal, an insurance     producer must satisfactorily complete at least 24 hours of course study or participation in a professional insurance association under paragraph (3) of this subsection in accordance with rules prescribed by the Director. Three of the 24 hours of course study must consist of classroom or webinar ethics instruction. The Director may not approve a course of study unless the course provides for classroom, seminar, webinar, or self-study instruction methods.  A course given in a combination instruction method of classroom, seminar, webinar, or self-study shall be deemed to be a self-study course unless the classroom, seminar, or webinar certified hours meets or exceeds two-thirds of total hours certified for the course.  The self-study material used in the combination course must be directly related to and complement the classroom portion of the course in order to be considered for credit.  An instruction method other than classroom or seminar shall be considered as self-study methodology.  Self-study credit hours require the successful completion of an examination covering the self-study material. The examination may not be self-evaluated. However, if the self-study material is completed through the use of an approved computerized interactive format whereby the computer validates the successful completion of the self-study material, no additional examination is required.  The self-study credit hours contained in a certified course shall be considered classroom hours when at least two-thirds of the hours are given as classroom or seminar instruction.(2) An insurance producer license automatically     terminates when an insurance producer fails to successfully meet the requirements of item (1) of subsection (b) of this Section.  The producer must complete the course in advance of the renewal date to allow the education provider time to report the credit to the Department.(3)   An insurance producer's active participation in     a State or national professional insurance association may be approved by the Director for up to 4 hours of continuing education credit per biennial reporting period. Credit shall be provided on an hour-for-hour basis. These hours shall be verified and submitted by the association on behalf of the insurance producer and credited upon timely filing with the Director or his or her designee on a biennial basis. Any association submitting continuing education credit hours on behalf of insurance producers must be registered as an education provider under Section 500-135. Credit granted under these provisions shall not be used to satisfy ethics education requirements. Active participation in a State or national professional insurance association is defined by one of the following methods:(A)   service on a board of directors of a State         or national chapter of the association;(B)   service on a formal committee of a State or         national chapter of the association; or(C)   service on a formal subcommittee or task         force of a State or national chapter of the association.(c) A provider of a pre-licensing or continuing education course required
by Section
500-30 and this Section must pay a registration fee and a course certification
fee for each course
being certified as provided by Section 500-135.(d) An individual insurance producer who allows his or her license to lapse
may,
within 12 months after the due date of the renewal fee, be issued a license
without the necessity
of passing a written examination. However, a penalty in the amount of double
the unpaid renewal
fee shall be required after the due date.(e) A licensed insurance producer who is unable to comply with license
renewal
procedures due to military service may request a waiver of those procedures.(f) The license must contain the licensee's name, address, and personal
identification
number, the date of issuance, the lines of authority, the expiration date, and
any other
information the Director deems necessary.(g) Licensees must inform the Director by any means acceptable to the
Director of a
change of address within 30 days after the change.(h) In order to assist in the performance of the Director's duties, the
Director may
contract with a non-governmental entity including the National Association of
Insurance
Commissioners (NAIC), or any affiliates or subsidiaries that the NAIC oversees,
to perform any
ministerial functions, including collection of fees, related to producer
licensing that the Director
and the non-governmental entity may deem appropriate.
(Source: P.A. 102-766, eff. 1-1-23.) (215 ILCS 5/500-40)(Section scheduled to be repealed on January 1, 2027)Sec. 500-40. 
		Nonresident licensing.(a) Unless denied a license pursuant to Section 500-70, a nonresident person
shall
receive a nonresident producer license if:(1) the person is currently licensed as a resident     and in good standing in his or her home state;(2) the person has submitted the proper request for a     license and has paid the fees required by Section 500-135;(3) the person has submitted or transmitted to the     Director the application for a license that the person submitted to his or her home state or, instead of that application, a completed Uniform Application; and(4) the person's home state awards nonresident     producer licenses to residents of this State on the same basis.(b) The Director may verify the producer's licensing status through the
Producer
Database maintained by the National Association of Insurance Commissioners or
its
affiliates or
subsidiaries or by obtaining certification from the public official having
supervision of insurance in the
applicant's state of
residence that the applicant has passed the written examination for the class
of insurance applied for.(c) A nonresident producer who moves from one state to another state or a
resident
producer who moves from this State to another state must file a change of
address and provide
certification from the new resident state within 30 days after the change of
legal residence. No
fee or license application is required.(d) Notwithstanding any other provision of this Article, a person licensed
as
a surplus
lines producer in his or her home state shall receive a nonresident surplus
lines producer license
pursuant to subsection (a) of this Section.  Except as provided in subsection
(a),
nothing in this Section
supersedes any provision of Section 445 of this Code.(e) Notwithstanding any other provision of this Article, a person licensed
as
a limited
lines producer in his or her home state shall receive a nonresident limited
lines producer license,
pursuant to subsection (a) of this Section, granting the same scope of
authority as granted under
the license issued by the producer's home state.  For the purposes of this
subsection, limited line
insurance is any authority granted by the home state that restricts the
authority of the license to
less than the total authority prescribed in the associated major lines pursuant
to items (1) through
(5) of subsection (a) of Section 500-35.
		(Source: P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/500-45)(Section scheduled to be repealed on January 1, 2027)Sec. 500-45. 
		Exemption from examination.(a) An individual who applies for an insurance producer license in this
State who was
previously licensed for the same lines of authority in another state shall not
be required to
complete any pre-licensing education or examination. This exemption is only
available if the
person is currently licensed in that state or if the application is received
within 90 days after the
cancellation of the applicant's previous license and if the prior state issues
a certification that, at
the time of cancellation, the applicant was in good standing in that state or
the state's Producer
Database records, maintained by the National Association of Insurance
Commissioners, its
affiliates, or subsidiaries indicate that the producer is or was licensed in
good standing for the
line of authority requested.(b) A person licensed as an insurance producer in another state who moves to
this
State must make application within 90 days after establishing legal residence
to become a
resident licensee pursuant to Section 500-30. A pre-licensing education or
examination is
not required of that person to obtain any line of authority previously held in
the
prior state except
when the Director determines otherwise by rule.
		(Source: P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/500-50)(Section scheduled to be repealed on January 1, 2027)Sec. 500-50. Insurance producers; examination statistics.(a) The use of examinations for the purpose of determining qualifications of
persons
to be licensed as insurance producers has a direct and far-reaching effect on
persons seeking
those licenses, on insurance companies, and on the public. It is in the public
interest and it will
further the public welfare to insure that examinations for licensing do not
have the effect of
unlawfully discriminating against applicants for licensing as insurance
producers on the basis of
race, color, national origin, or sex.(b) As used in this Section, the following words have the meanings given in
this
subsection.Examination. "Examination" means the examination in each line of insurance
administered pursuant to Section 500-30.Examinee. "Examinee" means a person who takes an examination.Part. "Part" means a portion of an examination for which a score is
calculated.Operational item. "Operational item" means a test question considered in
determining an
examinee's score.Test form. "Test form" means the test booklet or instrument used for a part
of
an
examination.Pretest item. "Pretest item" means a prospective test question that is
included
in a test
form in order to assess its performance, but is not considered in determining
an examinee's score.Minority group or examinees. "Minority group" or "minority examinees" means
examinees who are American Indian or Alaska Native, Asian, Black or African American, Hispanic or Latino, or Native Hawaiian or Other Pacific Islander.Correct-answer rate. "Correct-answer rate" for an item means the number of
examinees
who provided the correct answer on an item divided by the number of examinees
who answered
the item.Correlation. "Correlation" means a statistical measure of the relationship
between
performance on an item and performance on a part of the examination.(c) The Director shall ask each examinee to self-report on a voluntary basis
on the
answer sheet, application form, or by other appropriate means, the following
information:(1) race or ethnicity (American Indian or Alaska     Native, Asian, Black or African American, Hispanic or Latino, Native Hawaiian or Other Pacific Islander, or White);(2) education (8th grade or less; less than 12th     grade; high school diploma or State of Illinois High School Diploma; some college, but no 4-year degree; or 4-year degree or more); and(3) gender (male or female).The Director must advise all examinees that they are not required to provide
this
information, that they will not be penalized for not doing so, and that the
Director will use the
information provided exclusively for research and statistical purposes and to
improve the quality
and fairness of the examinations.(d) No later than May 1 of each year, the Director must prepare, publicly
announce,
and publish an Examination Report of summary statistical information relating
to each
examination administered during the preceding calendar year. Each Examination
Report shall
show with respect to each examination:(1) For all examinees combined and separately by race     or ethnicity, by educational level, by gender, by educational level within race or ethnicity, by education level within gender, and by race or ethnicity within gender:(A) number of examinees;(B) percentage and number of examinees who passed         each part;(C) percentage and number of examinees who passed         all parts;(D) mean scaled scores on each part; and(E) standard deviation of scaled scores on each         part.(2) For male examinees, female examinees, Black or     African American examinees, white examinees, American Indian or Alaska Native examinees, Asian examinees, Hispanic or Latino examinees, and Native Hawaiian or Other Pacific Islander, respectively, with a high school diploma or State of Illinois High School Diploma, the distribution of scaled scores on each part.No later than May 1 of each year, the Director must prepare and make
available on
request an Item Report of summary statistical information relating to each
operational item on
each test form administered during the preceding calendar year. The Item Report
shall show, for
each operational item, for all examinees combined and separately for Black or African
American
examinees, white examinees, American Indian or Alaska Native examinees, Asian examinees,
Hispanic or Latino examinees, and Native Hawaiian or Other Pacific Islander, the correct-answer rates and correlations.The Director is not required to report separate statistical information
for any group or
subgroup comprising fewer than 50 examinees.(e) The Director must obtain a regular analysis of the data collected under
this
Section, and any other relevant information, for purposes of the development of
new test forms.
The analysis shall continue the implementation of the item selection
methodology as
recommended in the Final Report of the Illinois Insurance Producer's Licensing
Examination
Advisory Committee dated November 19, 1991, and filed with the Department
unless some other
methodology is determined by the Director to be as effective in minimizing
differences between
white and minority examinee pass-fail rates.(f) The Director has the discretion to set cutoff scores for the
examinations, provided
that scaled scores on test forms administered after July 1, 1993, shall be made
comparable to
scaled scores on test forms administered in 1991 by use of professionally
acceptable methods so
as to minimize changes in passing rates related to the presence or absence of
or changes in
equating or scaling equations or methods or content outlines. Each calendar
year, the scaled
cutoff score for each part of each examination shall fluctuate by no more than
the standard error
of measurement from the scaled cutoff score employed during the preceding year.(g) No later than May 1, 2003 and no later than May 1 of every fourth year
thereafter,
the Director must release to the public and make generally available one
representative test form
and set of answer keys for each part of each examination.(h) The Director must maintain, for a period of 3 years after they are
prepared or
used, all registration forms, test forms, answer sheets, operational items and
pretest items, item
analyses, and other statistical analyses relating to the examinations.  All
personal identifying
information regarding examinees and the content of test items must be
maintained confidentially
as necessary for purposes of protecting the personal privacy of examinees and
the maintenance of
test security.(i) In administering the examinations, the Director must make such
accommodations
for examinees with disabilities as are reasonably warranted by the particular disability
involved,
including the provision of additional time if necessary to complete an
examination or special
assistance in taking an examination.(j) For the purposes of this Section:(1) "American Indian or Alaska Native" means a person     having origins in any of the original peoples of North and South America, including Central America, and who maintains tribal affiliation or community attachment.(2) "Asian" means a person having origins in any of     the original peoples of the Far East, Southeast Asia, or the Indian subcontinent, including, but not limited to, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam.(3) "Black or African American" means a person having     origins in any of the black racial groups of Africa.(4) "Hispanic or Latino" means a person of Cuban,     Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race.(5) "Native Hawaiian or Other Pacific Islander" means     a person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands.(6) "White" means a person having origins in any of     the original peoples of Europe, the Middle East, or North Africa.(Source: P.A. 102-465, eff. 1-1-22; 102-1100, eff. 1-1-23.) (215 ILCS 5/500-55)(Section scheduled to be repealed on January 1, 2027)Sec. 500-55. 
		Assumed names. 
		An insurance producer doing business under
any
name other than
the producer's legal name must notify the Director before using the assumed
name.
		(Source: P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/500-60)(Section scheduled to be repealed on January 1, 2027)Sec. 500-60. Temporary licensing.(a) The Director may issue a temporary insurance producer license for a
period not to
exceed 180 days and, at the discretion of the Director, may renew the temporary
producer license
for an additional 180 days without requiring an examination if the Director
deems that the
temporary license is necessary for the servicing of an insurance business in
the following cases:(1) to the surviving spouse or court-appointed     personal representative of a licensed insurance producer who dies or becomes a person with a mental or physical disability  to allow adequate time for the sale of the insurance business owned by the producer or for the recovery or return of the producer to the business or to provide for the training and licensing of new personnel to operate the producer's business;(2) to a member or employee of a business entity     licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license; or(3) to the designee of a licensed insurance producer     entering active service in the armed forces of the United States of America.(b) The Director may by order limit the authority of any temporary licensee
in any
way deemed necessary to protect insureds and the public.  The Director may
require the
temporary licensee to have a suitable sponsor who is a licensed producer or
insurer and who
assumes responsibility for all acts of the temporary licensee and may impose
other similar
requirements designed to protect insureds and the public.  The Director may by
order revoke a
temporary license if the interest of insureds or the public are endangered.  A
temporary license
may not continue after the owner or the personal representative disposes of the
business.(c) Before any temporary insurance producer license is issued, there must be
filed
with the Director a written application by the person desiring the license in
the form, with the
supplements, and containing the information that the Director requires.
License fees, as
provided for in Section 500-135, must be paid upon the issuance of the original
temporary
insurance producer license, but not for any renewal thereof.
(Source: P.A. 99-143, eff. 7-27-15.) (215 ILCS 5/500-65)(Section scheduled to be repealed on January 1, 2027)Sec. 500-65. 
		Temporary insurance producer license for an applicant.(a) The Director may grant a temporary insurance producer license to an
applicant for
an insurance producer license, without requiring an examination, for a period
of 90 days, when
the applicant otherwise meets the requirements of this Article. During that
90-day period, the
applicant must be enrolled in a training course or training program conducted
by or on behalf of
the appointing insurance company and be in the process of fulfilling the
pre-licensing
requirements of Sections 500-25 and 500-30.(b) An individual applicant may not hold more than one temporary insurance
producer license during his or her lifetime.(c) The Director may refuse to grant temporary insurance producer licenses
to
applicants from an insurance company when during a 6-month period more than 50%
of that
company's temporary insurance producer license holders have failed to obtain
insurance producer
licenses prior to the expiration of their temporary insurance producer
licenses.(d) Before the Director approves any temporary insurance producer license,
the
insurance company requesting the license must file with the Director an
application and the fee
required by Section 500-135. The application must be made on the form and in
the manner the
Director requires.
		(Source: P.A. 92-386, eff. 1-1-02.) (215 ILCS 5/500-70)(Section scheduled to be repealed on January 1, 2027)Sec. 500-70. License denial, nonrenewal, or revocation.(a) The Director may place on probation, suspend, revoke, or refuse to issue
or renew
an insurance producer's license or may levy a civil penalty in accordance with
this Section or
take any combination of actions, for any one or more of the following causes:(1) providing incorrect, misleading, incomplete, or     materially untrue information in the license application;(2) violating any insurance laws, or violating any     rule, subpoena, or order of the Director or of another state's insurance commissioner;(3) obtaining or attempting to obtain a license     through misrepresentation or fraud;(4) improperly withholding, misappropriating or     converting any moneys or properties received in the course of doing insurance business;(5) intentionally misrepresenting the terms of an     actual or proposed insurance contract or application for insurance;(6)  having been convicted of a felony, unless the     individual demonstrates to the Director sufficient rehabilitation to warrant the public trust; consideration of such conviction of an applicant shall be in accordance with Section 500-76;(7) having admitted or been found to have committed     any insurance unfair trade practice or fraud;(8) using fraudulent, coercive, or dishonest     practices, or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this State or elsewhere;(9) having an insurance producer license, or its     equivalent, denied, suspended, or revoked in any other state, province, district or territory;(10) forging a name to an application for insurance     or to a document related to an insurance transaction;(11) improperly using notes or any other reference     material to complete an examination for an insurance license;(12) knowingly accepting insurance business from an     individual who is not licensed;(13) failing to comply with an administrative or     court order imposing a child support obligation;(14) failing to pay state income tax or penalty or     interest or comply with any administrative or court order directing payment of state income tax or failed to file a return or to pay any final assessment of any tax due to the Department of Revenue;(15) (blank); or(16) failing to comply with any provision of the     Viatical Settlements Act of 2009.(b) If the action by the Director is to nonrenew, suspend, or revoke a
license or to
deny an application for a license, the Director shall notify the applicant or
licensee and advise, in
writing, the applicant or licensee of the reason for the suspension,
revocation, denial or
nonrenewal of the applicant's or licensee's license. The applicant or licensee
may make written
demand upon the Director within 30 days after the date of mailing for a hearing
before the
Director to determine the reasonableness of the Director's action.  The hearing
must be held
within not fewer than 20 days nor more than 30 days after the mailing of the
notice of hearing
and shall be held pursuant to 50 Ill. Adm. Code 2402.(c) The license of a business entity may be suspended, revoked, or refused
if the
Director finds, after hearing, that an individual licensee's violation was
known or should have
been known by one or more of the partners, officers, or managers acting on
behalf of the
partnership, corporation, limited liability company, or limited liability
partnership and the
violation was neither reported to the Director nor corrective action taken.(d) In addition to or instead of any applicable denial, suspension, or
revocation of a
license, a person may, after hearing, be subject to a civil penalty of up to
$10,000 for each cause for
denial, suspension, or revocation, however, the civil penalty may total no more
than $100,000.(e) The Director has the authority to enforce the provisions of and impose
any penalty
or remedy authorized by this Article against any person who is under
investigation for or charged
with a violation of this Code or rules even if the person's license or
registration has been
surrendered or has lapsed by operation of law.(f) Upon the suspension, denial, or revocation of a license, the licensee or
other
person having possession or custody of the license shall promptly deliver it to
the Director in
person or by mail. The Director shall publish all suspensions, denials, or
revocations after the
suspensions, denials, or revocations become final in a manner designed to
notify interested
insurance companies and other persons.(g) A person whose license is revoked or whose application is denied
pursuant to this
Section is ineligible to apply for any license for 3 years after the revocation
or denial.  A person
whose license as an insurance producer has been revoked, suspended, or denied
may not be
employed, contracted, or engaged in any insurance related capacity during the
time the
revocation, suspension, or denial is in effect.
(Source: P.A. 100-286, eff. 1-1-18; 100-872, eff. 8-14-18.) (215 ILCS 5/500-75)Sec. 500-75. (Repealed).
	 
	 (Source: P.A. 92-386, eff. 1-1-02. Repealed by P.A. 96-1332, eff. 1-1-11.) (215 ILCS 5/500-76)(Section scheduled to be repealed on January 1, 2027)Sec. 500-76. Applicant convictions.(a) The Director and the Department shall not require applicants to report the following information and shall not collect and consider the following  criminal history records in connection with an insurance producer license application:(1) Juvenile adjudications of delinquent minors as     defined in Section 5-105 of the Juvenile Court Act of 1987, subject to the restrictions set forth in Section 5-130 of that Act.(2) Law enforcement records, court records, and     conviction records of an individual who was 17 years old at the time of the offense and before January 1, 2014, unless the nature of the offense required the individual to be tried as an adult.(3) Records of arrest not followed by a charge or     conviction.(4) Records of arrest where charges were dismissed     unless related to the duties and responsibilities of an insurance producer.  However, applicants shall not be asked to report any arrests, and any arrest not followed by a conviction shall not be the basis of a denial and may be used only to assess an applicant's rehabilitation.(5) Convictions overturned by a higher court.(6) Convictions or arrests that have been sealed or     expunged.(b) The Director, upon a finding that an applicant for a license under this Act was previously convicted of a felony, shall consider any mitigating factors and evidence of rehabilitation contained in the applicant's record, including any of the following factors and evidence, to determine if  a license may be denied because the prior conviction will impair the ability of the applicant to engage in the position for which a license is sought:(1) the  bearing, if any, of the offense    for which     the applicant was previously convicted  on the duties and functions of the position for which a license is sought;(2) whether the conviction suggests a future     propensity to endanger the safety and property of others while performing the duties and responsibilities for which a license is sought;(3) whether 5 years since a felony conviction or 3     years since release from confinement for the conviction, whichever is later, have passed without a subsequent conviction;(4) if the applicant was previously licensed or     employed in this State or other states or jurisdictions, then the lack of prior misconduct arising from or related to the licensed position or position of employment;(5) the age of the person at the time of the criminal     offense;(6) successful completion of sentence and, for     applicants serving a term of parole or probation, a progress report provided by the applicant's probation or parole officer that documents the applicant's compliance with conditions of supervision;(7) evidence of the applicant's present fitness and     professional character;(8) evidence of rehabilitation or rehabilitative     effort during or after incarceration or during or after a term of supervision, including, but not limited to, a certificate of good conduct under Section 5-5.5-25 of the Unified Code of Corrections or certificate of relief from disabilities under Section 5-5.5-10 of the Unified Code of Corrections; and(9) any other mitigating factors that contribute to     the person's potential and current ability to perform the duties and responsibilities of an insurance producer.(c) If a nonresident licensee meets the standards set forth in items (1) through (4) of subsection (a) of Section 500-40 and has received consent pursuant to 18 U.S.C. 1033(e)(2) from his or her home state, the Director shall grant the nonresident licensee a license.(d) If the Director refuses to issue a license to an applicant based upon a conviction or convictions in whole or in part, then the Director shall notify the applicant of the denial in writing with the following included in the notice of denial:(1) a statement about the decision to refuse to issue     a license;(2) a list of convictions that the Director     determined will impair the applicant's ability to engage in the position for which a license is sought;(3) a list of the convictions that were the sole or     partial basis for the refusal to issue a license; and(4) a summary of the appeal process or the earliest     the applicant may reapply for a license, whichever is applicable.(Source: P.A. 100-286, eff. 1-1-18.) (215 ILCS 5/500-77)(Section scheduled to be repealed on January 1, 2027)Sec. 500-77. 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
business entity or furnished by the insured to the
insurer or any agent,
contractor, or representative of the insurer.For purposes of this Section only, a business entity
						
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 business entity.  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 business
entity.(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 business entity 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
business entity.  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 business entity.
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 business entity, this Section
shall not apply:(1) when the insured requests either orally or in     writing that another business entity obtain quotes for insurance from another insurance company or when the insured requests in writing individually or through another business entity, 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 business entity 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     business entity, 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 business entity 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 business entity 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, business entity, 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
June 1, 2001.

		(Source: P.A. 94-248, eff. 7-19-05.) (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)(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)(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)(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)(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)(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)(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)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)(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)(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)(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)(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)(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)(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)(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)(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)(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)(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) (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) (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) (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) (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) (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) (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) (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) (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) (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) (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)(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) (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) (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) (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) (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) (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. XXXIIA heading) ARTICLE XXXIIA.  
		PREMIUM FINANCE REGULATION (215 ILCS 5/513a1) (from Ch. 73, par. 1065.60a1)Sec. 513a1. 
		Scope of Article.(a) Except as provided in subsection (b), this Article applies to all
persons engaged in the business of financing insurance premiums, entering
into premium finance agreements, or otherwise acquiring premium finance
agreements, and insurance companies and insurance producers as defined in
this Code, except in connection with premiums on the kinds of business
described as Class 1(a) or Class 1(b) of Section 4.(b) Except for the provisions of Section 513a11 that apply to all
premium financing agreements in which the right to cancel one or more
policies of insurance on behalf of the named has been assigned to the
lender, this Article does not apply to the following entities:(1) Credit unions, as defined in the Illinois Credit     Union Act.(2) Banks, as defined in the Illinois Banking Act.(3) Savings and loan associations, as defined in the     Illinois Savings and Loan Act of 1985.(4) Persons operating under the provisions of Section     4a of the Interest Act.(5) Persons operating under the Consumer Installment     Loan Act or the Consumer Finance Act.(6) Persons that acquire premium finance agreements     from insurance companies and entities described in paragraphs (1) through (5).		(Source: P.A. 87-811.) (215 ILCS 5/513a2) (from Ch. 73, par. 1065.60a2)Sec. 513a2. 
		Definitions.(a) "Accepted agreement" means a premium finance
agreement deemed to be accepted by a premium finance company when a binder
number or policy number is provided for each policy premium listed on the
premium finance agreement and premium payment book or when the first
premium payment notice has been sent to the named insured.(b) "Financing insurance premiums" means
to be engaged in the practice of:(1) advancing monies directly or indirectly to an     insurer pursuant to the terms of an acquired premium finance agreement; or(2) allowing 10% or more of a producer's or     registered firm's premium accounts receivable to be more than 90 days past due.(c) "Premium finance agreement" means a
promissory note, loan contract, or agreement by which an insured or
prospective insured promises to pay to another person an amount advanced or
to be advanced thereunder to an insurer in payment of premiums on an
insurance contract together with a service charge and which contains an
assignment of or is otherwise secured by the unearned premium payable by
the insurer upon cancellation of the insurance contract; provided, however,
that a premium finance agreement shall not include an installment sale
contract, lease agreement, security agreement, or mortgage covering
personal or real property that includes a charge for insurance or pursuant
to which the vendor, lessor, lienholder, or mortgagee is authorized to pay
or advance the premium for insurance with respect to that property.(d) "Premium finance company" means any person
engaged in the business of financing insurance premiums, of entering into
premium finance agreements with insureds, or of acquiring premium finance
agreements.
		(Source: P.A. 90-655, eff. 7-30-98.) (215 ILCS 5/513a3) (from Ch. 73, par. 1065.60a3)Sec. 513a3. 
		License required.(a) No person may act as a premium finance company or hold himself out
to be engaged in the business of financing insurance premiums, either
directly or indirectly, without first having obtained a license as a
premium finance company from the Director.(b) An insurance producer shall be deemed to be engaged in the
business of financing insurance premiums if 10% or more of the producer's total
premium accounts receivable are more than 90 days past due.(c) In addition to any other penalty set forth in this Article, any
person violating subsection (a) of this Section may, after hearing as set
forth in Article XXIV of this Code, be required to pay a civil penalty of
not more than $2,000 for each offense.(d) In addition to any other penalty set forth in this Article, any
person violating subsection (a) of this Section is guilty of a Class A
misdemeanor.  Any individual violating subsection (a) of this Section, and
misappropriating or converting any monies collected in conjunction with the
violation, is guilty of a Class 4 felony.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/513a4) (from Ch. 73, par. 1065.60a4)Sec. 513a4. 
		Application and license.(a) Each application for a premium finance license shall be made on a
form specified by the Director and shall be signed by the applicant
declaring under penalty of refusal, suspension, or revocation of the
license that the statements made in the application are true, correct, and
complete to the best of the applicant's knowledge and belief.  The Director
shall cause to be issued a license to each applicant that has demonstrated
to the Director that the applicant:(1) is competent and trustworthy and of a good     business reputation;(2) has a minimum net worth of $50,000; and(3) has paid the fees required by this Article.(b) Each applicant at the time of request for a license or renewal of
a license shall:(1) certify that no charge for financing premiums     shall exceed the rates permitted by this Article;(2) certify that the premium finance agreement or     other forms being used are in compliance with the requirements of this Article;(3) certify that he or she has a minimum net worth of     $50,000; and(4) attach with the application a non-refundable     annual fee of $400.(c) An applicant who has met the requirements of subsection (a) and
subsection (b) shall be issued a premium finance license.(d) Each premium finance license shall remain in effect as long as the
holder of the license annually continues to meet the requirements of
subsections (a) and (b) by the due date unless the license is revoked or
suspended by the Director.(e) The individual holder of a premium finance license shall inform the
Director in writing of a change in residence address within 30 days of the
change, and a corporation, partnership, or association holder of a premium
finance license shall inform the Director in writing of a change in
business address within 30 days of the change.(f) Every partnership or corporation holding a license as a premium
finance company shall appoint one or more partners or officers to be
responsible for the firm's compliance with the Illinois Insurance Code and
applicable rules and regulations.  Any change in the appointed person or
persons shall be reported to the Director in writing within 30 days of the
change.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/513a5) (from Ch. 73, par. 1065.60a5)Sec. 513a5. Insurance Producer Administration Fund. All fees and
penalties paid to and collected by the Director under this Article shall be
paid promptly after receipt, together with a detailed statement of the
fees, into the Insurance Producer Administration Fund.
(Source: P.A. 98-463, eff. 8-16-13.) (215 ILCS 5/513a6) (from Ch. 73, par. 1065.60a6)Sec. 513a6. 
		Felony convictions. 
		Any person or authorized member of a
partnership or corporation who, while licensed as a premium finance
company, is convicted of a felony shall report the conviction to the
Director within 30 days of the entry date of the judgement.  Within that 30
day period, the person shall also provide the Director with a copy of the
judgement, the probation or commitment order, and any other relevant document.
		(Source: P.A. 87-811.) (215 ILCS 5/513a7) (from Ch. 73, par. 1065.60a7)Sec. 513a7. 
		License suspension; revocation or denial.(a) Any license issued under this Article may be suspended, revoked, or
denied if the Director finds that the licensee or applicant:(1) has wilfully violated any provisions of this Code     or the rules and regulations thereunder;(2) has intentionally made a material misstatement in     the application for a license;(3) has obtained or attempted to obtain a license     through misrepresentation or fraud;(4) has misappropriated or converted to his own use     or improperly withheld monies;(5) has used fraudulent, coercive, or dishonest     practices or has demonstrated incompetence, untrustworthiness, or financial irresponsibility;(6) has been, within the past 3 years, convicted of a     felony, unless the individual demonstrates to the Director sufficient rehabilitation to warrant public trust;(7) has failed to appear without reasonable cause or     excuse in response to a subpoena issued by the Director;(8) has had a license suspended, revoked, or denied     in any other state on grounds similar to those stated in this Section; or(9) has failed to report a felony conviction as     required by Section 513a6.(b) Suspension, revocation, or denial of a license under this Section
shall be by written order sent to the licensee or applicant by certified or
registered mail at the address specified in the records of the Department.
The licensee or applicant may in writing request a hearing within 30 days
from the date of mailing.  If no written request is made the order shall be
final upon the expiration of that 30 day period.(c) If the licensee or applicant requests a hearing under this Section,
the Director shall issue a written notice of hearing sent to the licensee
or applicant by certified or registered mail at his address, as specified
in the records of the Department, and stating:(1) the grounds, charges, or conduct that justifies     suspension, revocation, or denial under this Section;(2) the specific time for the hearing, which may not     be fewer than 20 nor more than 30 days after the mailing of the notice of hearing; and(3) a specific place for the hearing, which may be     either in the City of Springfield or in the county where the licensee's principal place of business is located.(d) Upon the suspension or revocation of a license, the licensee or
other person having possession or custody of the license shall promptly
deliver it to the Director in person or by mail.  The Director shall
publish all suspensions and revocations after they become final in a manner
designed to notify interested insurance companies and other persons.(e) Any person whose license is revoked or denied under this Section
shall be ineligible to apply for any license for 2 years. A suspension
under this Section may be for a period of up to 2 years.(f) In addition to or instead of a denial, suspension, or revocation of
a license under this Section, the licensee may be subjected to a civil
penalty of up to $2,000 for each cause for denial, suspension,
or
revocation. The penalty is enforceable under subsection (5) of Section
403A of this Code.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/513a8) (from Ch. 73, par. 1065.60a8)Sec. 513a8. 
		Examinations.(a) The Director may examine any applicant for or holder of a premium
finance license.(b) All persons being examined, as well as their officers and directors,
shall 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 person's insurance and premium financing business affairs.
The licensee or its officers, directors, and employees shall 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 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. Any report alleging substantive violations of this
Code or the rules and regulations thereunder shall be in writing and be
based upon facts obtained by the examiners. The report of examination shall
be verified by the examiners.(e) If a report is made, the Director shall either deliver a duplicate
thereof to the licensee being examined or send the duplicate by certified
or registered mail to the licensee's address of record. The Director shall
afford the licensee an opportunity to request a hearing with reference to
the facts and other evidence contained in the report. The licensee may
request a hearing within 14 calendar days after he receives the duplicate
of the examination report by giving the Director written notice of that
request, together with written statement of the licensee's objection to the
report. The Director shall, if requested to do so, conduct a hearing in
accordance with Sections 402 and 403. The Director shall issue a written
order based upon the examination report 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 licensee may request a
hearing, if the examination reveals that the licensee is operating in
violation of any law, this Code or rules and regulations promulgated
thereunder, or prior order, the Director in the written order may require
the licensee 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) Any licensee 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 license may be revoked or suspended under Section 513a7,
and he may be fined not less than $501 nor more than $5,000.
		(Source: P.A. 87-811.) (215 ILCS 5/513a9) (from Ch. 73, par. 1065.60a9)Sec. 513a9. 
		Premium finance agreement.(a) A premium finance
agreement must be dated and signed by or on behalf of the named
insured, and the printed
portion shall be in at least 8-point type.  The following items must be set
forth on the first page of the accepted finance agreement:(1) the total amount of the premiums;(2) the amount of the down payment;(3) the principal balance (the difference between     items (1) and (2));(4) the amount of the finance charges expressed in     dollars and as an annual percentage rate;(5) the balance payable by the insured (sum of items     (3) and (4));(6) the number of installments, the due dates     thereof, and the amount of each installment expressed in dollars; and(7) the policy numbers or binder numbers.(b) The premium finance company is required to
furnish full and complete
disclosure of the terms and conditions of the premium finance
agreement including, but not limited to, the specific insurance coverages
financed to the named insured no later than the date that the first
premium payment notice is sent to the insured.(c) As to policies written primarily for personal, family, or household
use, the premium finance company must:(1) deliver or mail the premium check or checks in     the amount of the principal balance directly to the insurer or insurers unless the insurer or insurers have given written authority to the premium finance company to deliver the checks to the producer;(2) issue the premium check or checks payable to the     insurer, insurers, or, if the insurer gives written authority to the premium finance company, to the producer; and(3) properly identify the premium check or checks by     policy number or binder number when the premium is paid to the insurer or insurers.(d) As to all other policies the premium finance company may:(1) deliver or mail the premium check or checks in     the amount of the principal balance directly to the producer; and(2) issue the premium check or checks payable to the     producer.(e) A premium finance company that pays the financed premium to the
producer pursuant to subsection (d) establishes the producer as the agent of
the premium finance company for payment of the premium and for receipt of any
return premium.
		(Source: P.A. 89-265, eff. 1-1-96; 90-381, eff. 8-14-97.) (215 ILCS 5/513a10) (from Ch. 73, par. 1065.60a10)Sec. 513a10. 
		Maximum service charge.(a) No service charge shall be made for financing premiums other than as
permitted by this Article.(b) The service charge is to be computed on the principal balance from
the effective date of the insurance coverage for which the premiums are
being advanced to and including the date when the final installment of the
premium finance agreement is payable.(c) The service charge shall be a maximum of $10 per $100 per year plus
an allowable charge as follows:
		

Allowable Charge
Amount of Principal


Per Finance Agreement
Balance


$20
$0 to $499


$30
$500 to $999


$40
$1000 or more

(d) The service charge or any other charge made by the licensee does not
have to be refunded upon cancellation or prepayment.  The allowable charge
is considered to be part of the service charge.(e) A premium finance agreement may provide for a delinquency charge of
not less than $1 nor more than 5% of any installment in default for more
than 5 days.(f) Any other charges shall be disclosed in the premium finance agreement.
		(Source: P.A. 87-811.) (215 ILCS 5/513a11) (from Ch. 73, par. 1065.60a11)Sec. 513a11. Cancellation requirements upon default.(a) When a premium finance agreement contains a power of attorney
enabling the premium finance company to cancel any insurance contract or
contracts listed in the premium finance agreement, the insurance contract
or contracts shall not be cancelled by the premium finance company unless
the request for cancellation is effectuated under this Section.(b) Not less than 10 days written notice shall be mailed to the named
insured of the intent of the premium finance company to cancel the
insurance contract unless the default is cured within the 10 day period.(c) After expiration of the 10 day period, the premium finance company
may request, in the name of the named insured, cancellation of the insurance
contract or contracts by mailing or hand delivering to the insurer a
request for cancellation, and the insurance contract shall be cancelled as
if the request for cancellation had been submitted by the named insured,
but without requiring the return of the insurance contract or contracts.
The premium finance company shall also mail a copy of the request for
cancellation to the named insured at his last known address.(d) All statutory, regulatory, and contractual restrictions providing
that the insurance contract may not be cancelled unless notice is given to
a governmental agency, mortgagee, or other third party shall apply where
cancellation is effected under provisions of this Section. The insurer
shall give the notice to any governmental agency, mortgagee, or other
third party on or before the fifth business day after it receives the
notice of cancellation from the premium finance company. For purposes of this Section, any governmental agency, mortgagee, or other third party may opt to receive notices electronically.(e) In the event that the collection of return premiums for the account of
the named insured results in a surplus over the amount due from the named
insured, the premium finance company shall refund the excess to the named
insured; however, no refund is required if it amounts to less than $5.(f) All cancellation provisions required of the premium finance company
and insurer are applicable to any policy to which Section 143.11 applies.
					(Source: P.A. 93-713, eff. 1-1-05.) (215 ILCS 5/513a12) (from Ch. 73, par. 1065.60a12)Sec. 513a12. 
		Books and records.(a) Until payment in full and 3 years thereafter every licensee shall
maintain each premium finance agreement or duplicate originals thereof and
all original documents relating thereto (except those papers returned to
the insured) so as to be readily available for examination by the Director.(b) Every licensee shall maintain a register, ledger, or combination of
records for each premium finance agreement that can readily show:(1) the date of acquisition;(2) the name of the insured;(3) the identifying number;(4) the principal balance;(5) the amount of all charges assessed;(6) the balance; and(7) a distribution of proceeds showing the dates,     amounts, and names of the persons to whom any part of the proceeds were distributed.		(Source: P.A. 87-811.) (215 ILCS 5/513a13)Sec. 513a13. Electronic delivery of notices and documents.(a) As used in this Section:"Delivered by electronic means" includes:(1) delivery to an electronic mail address at which a     party has consented to receive notices or documents; or(2) posting on an electronic network or site     accessible via the Internet, mobile application, computer, mobile device, tablet, or any other electronic device, together with separate notice of the posting, which shall be provided by electronic mail to the address at which the party has consented to receive notice or by any other delivery method that has been consented to by the party."Party" means any recipient of any notice or document required as part of a premium finance agreement including, but not limited to, an applicant or contracting party. For the purposes of this Section, "party" includes the producer of record.(b) Subject to the requirements of this Section, any notice to a party or any other document required under applicable law in a premium finance agreement or that is to serve as evidence of a premium finance agreement may be delivered, stored, and presented by electronic means so long as it meets the requirements of the Uniform Electronic Transactions Act.(c) Delivery of a notice or document in accordance with this Section shall be considered equivalent to delivery by first class mail or first class mail, postage prepaid.(d) A notice or document may be delivered by electronic means by a premium finance company to a party under this Section if:(1) the party has affirmatively consented to that     method of delivery and has not withdrawn the consent;(2) the party, before giving consent, is provided     with a clear and conspicuous statement informing the party of:(A) the right of the party to withdraw consent to         have a notice or document delivered by electronic means, at any time, and any conditions or consequences imposed in the event consent is withdrawn;(B) the types of notices and documents to which         the party's consent would apply;(C) the right of a party to have a notice or         document delivered in paper form; and(D) the procedures a party must follow to         withdraw consent to have a notice or document delivered by electronic means and to update the party's electronic mail address;(3) the party:(A) before giving consent, is provided with a         statement of the hardware and software requirements for access to, and retention of, a notice or document delivered by electronic means; and(B) consents electronically, or confirms consent         electronically, in a manner that reasonably demonstrates that the party can access information in the electronic form that will be used for notices or documents delivered by electronic means as to which the party has given consent; and(4) after consent of the party is given, the premium     finance company, in the event a change in the hardware or software requirements needed to access or retain a notice or document delivered by electronic means creates a material risk that the party will not be able to access or retain a subsequent notice or document to which the consent applies:(A) provides the party with a statement that         describes:(i) the revised hardware and software             requirements for access to and retention of a notice or document delivered by electronic means; and(ii) the right of the party to withdraw             consent without the imposition of any condition or consequence that was not disclosed at the time of initial consent; and(B) complies with paragraph (2) of this         subsection (d).(e) Delivery of a notice or document in accordance with this Section does not affect requirements related to content or timing of any notice or document required under applicable law.(f) The legal effectiveness, validity, or enforceability of any premium finance agreement executed by a party may not be denied solely because of the failure to obtain electronic consent or confirmation of consent of the party in accordance with subparagraph (B) of paragraph (3) of subsection (d) of this Section.(g) A withdrawal of consent by a party does not affect the legal effectiveness, validity, or enforceability of a notice or document delivered by electronic means to the party before the withdrawal of consent is effective.A withdrawal of consent by a party is effective within a reasonable period of time after receipt of the withdrawal by the premium finance company.Failure by a premium finance company to comply with paragraph (4) of subsection (d) of this Section and subsection (j) of this Section may be treated, at the election of the party, as a withdrawal of consent for purposes of this Section.(h) This Section does not apply to a notice or document delivered by a premium finance company in an electronic form before the effective date of this amendatory Act of the 100th General Assembly to a party who, before that date, has consented to receive notice or document in an electronic form otherwise allowed by law.(i) If the consent of a party to receive certain notices or documents in an electronic form is on file with a premium finance company before the effective date of this amendatory Act of the 100th General Assembly and, pursuant to this Section, a premium finance company intends to deliver additional notices or documents to the party in an electronic form, then prior to delivering such additional notices or documents electronically, the premium finance company shall:(1) provide the party with a statement that         describes:(A) the notices or documents that shall be             delivered by electronic means under this Section that were not previously delivered electronically; and(B) the party's right to withdraw consent to             have notices or documents delivered by electronic means without the imposition of any condition or consequence that was not disclosed at the time of initial consent; and(2) comply with paragraph (2) of subsection (d)         of this Section.(j) A premium finance company shall deliver a notice or document by any other delivery method permitted by law other than electronic means if:(1) the premium finance company attempts to deliver     the notice or document by electronic means and has a reasonable basis for believing that the notice or document has not been received by the party; or(2) the premium finance company becomes aware that     the electronic mail address provided by the party is no longer valid.(k) The producer of record shall not be subject to civil liability for any harm or injury that occurs as a result of a party's election to receive any notice or document by electronic means or by a premium finance company's failure to deliver a notice or document by electronic means unless the harm or injury is caused by the willful and wanton misconduct of the producer of record.(l) This Section shall not be construed to modify, limit, or supersede the provisions of the federal Electronic Signatures in Global and National Commerce Act, as amended. 
(Source: P.A. 102-38, eff. 6-25-21.)
(215 ILCS 5/Art. XXXIIB heading) ARTICLE XXXIIB.  PHARMACY BENEFIT MANAGERS
(Source: P.A. 101-452, eff. 1-1-20.) (215 ILCS 5/513b1)Sec. 513b1. Pharmacy benefit manager contracts.(a) As used in this Section:"340B drug discount program" means the program established
under Section 340B of the federal Public Health Service Act, 42 U.S.C. 256b."340B entity" means a covered entity as defined in 42 U.S.C. 256b(a)(4) authorized to participate in the 340B drug discount program."340B pharmacy" means any pharmacy used to dispense 340B drugs for a covered entity, whether entity-owned or external."Biological product" has the meaning ascribed to that term in Section 19.5 of the Pharmacy Practice Act."Maximum allowable cost" means the maximum amount that a pharmacy benefit manager will reimburse a pharmacy for the cost of a drug."Maximum allowable cost list" means a list of drugs for which a maximum allowable cost has been established by a pharmacy benefit manager."Pharmacy benefit manager" means a person, business, or entity, including a wholly or partially owned or controlled subsidiary of a pharmacy benefit manager, that provides claims processing services or other prescription drug or device services, or both, for health benefit plans."Retail price" means the price an individual without prescription drug coverage would pay at a retail pharmacy, not including a pharmacist dispensing fee."Third-party payer" means any entity that pays for prescription drugs on behalf of a patient other than a health care provider or sponsor of a plan subject to regulation under Medicare Part D, 42 U.S.C. 1395w-101, et seq.(b) A contract between a health insurer and a pharmacy benefit manager must require that the pharmacy benefit manager:(1) Update maximum allowable cost pricing information     at least every 7 calendar days.(2) Maintain a process that will, in a timely manner,     eliminate drugs from maximum allowable cost lists or modify drug prices to remain consistent with changes in pricing data used in formulating maximum allowable cost prices and product availability.(3) Provide access to its maximum allowable cost list     to each pharmacy or pharmacy services administrative organization subject to the maximum allowable cost list.  Access may include a real-time pharmacy website portal to be able to view the maximum allowable cost list.  As used in this  Section, "pharmacy services administrative organization" means an entity operating within the State that contracts with independent pharmacies to conduct business on their behalf with third-party payers.  A pharmacy services administrative organization may provide administrative services to pharmacies and negotiate and enter into contracts with third-party payers or pharmacy benefit managers on behalf of pharmacies.(4) Provide a process by which a contracted pharmacy     can appeal the provider's reimbursement for a drug subject to maximum allowable cost pricing.  The appeals process must, at a minimum, include the following:(A)  A requirement that a contracted pharmacy has         14 calendar days after the applicable fill date to appeal a maximum allowable cost if the reimbursement for the drug is less than the net amount that the network provider paid to the supplier of the drug.(B) A requirement that a pharmacy benefit manager         must respond to a challenge within 14 calendar days of the contracted pharmacy making the claim for which the appeal has been submitted.(C) A telephone number and e-mail address or         website to network providers, at which the provider can contact the pharmacy benefit manager to process and submit an appeal.(D) A requirement that, if an appeal is denied,         the pharmacy benefit manager must provide the reason for the denial and the name and the national drug code number from national or regional wholesalers.(E)  A requirement that, if an appeal is         sustained, the pharmacy benefit manager must make an adjustment in the drug price effective the date the challenge is resolved and make the adjustment applicable to all similarly situated network pharmacy providers, as determined by the managed care organization or pharmacy benefit manager.(5) Allow a plan sponsor contracting with a pharmacy     benefit manager an annual right to audit compliance with the terms of the contract by the pharmacy benefit manager, including, but not limited to, full disclosure of any and all rebate amounts secured, whether product specific or generalized rebates, that were provided to the pharmacy benefit manager by a pharmaceutical manufacturer.(6) Allow a plan sponsor contracting with a pharmacy     benefit manager to request that the pharmacy benefit manager disclose the actual amounts paid by the pharmacy benefit manager to the pharmacy.(7)  Provide notice to the party contracting with the     pharmacy benefit manager of any consideration that the pharmacy benefit manager receives from the manufacturer for dispense as written prescriptions once a generic or biologically similar product becomes available.(c) In order to place a particular prescription drug on a maximum allowable cost list, the pharmacy benefit manager must, at a minimum, ensure that:(1) if the drug is a generically equivalent drug, it     is listed as therapeutically equivalent and pharmaceutically equivalent "A" or "B" rated in the United States Food and Drug Administration's most recent version of the "Orange Book" or have an NR or NA rating by Medi-Span, Gold Standard, or a similar rating by a nationally recognized reference;(2) the drug is available for purchase by each     pharmacy in the State from national or regional wholesalers operating in Illinois; and(3) the drug is not obsolete.(d) A pharmacy benefit manager is prohibited from limiting a pharmacist's ability to disclose whether the cost-sharing obligation exceeds the retail price for a covered prescription drug, and the availability of a more affordable alternative drug, if one is available in accordance with Section 42 of the Pharmacy Practice Act.(e) A health insurer or pharmacy benefit manager shall not require an insured to make a payment for a prescription  drug at the point of sale in an amount that exceeds the lesser of:(1) the applicable cost-sharing amount; or(2) the retail price of the drug in the absence of     prescription drug coverage.(f) Unless required by law, a contract between a pharmacy benefit manager or third-party payer and a 340B entity or 340B pharmacy shall not contain any provision that:(1) distinguishes between drugs purchased through the     340B drug discount program and other drugs when determining reimbursement or reimbursement methodologies, or contains otherwise less favorable payment terms or reimbursement methodologies for 340B entities or 340B pharmacies when compared to similarly situated non-340B entities;(2) imposes any fee, chargeback, or rate adjustment     that is not similarly imposed on similarly situated pharmacies that are not  340B entities or 340B pharmacies;(3) imposes any fee, chargeback, or rate adjustment     that exceeds the fee, chargeback, or rate adjustment that is not similarly imposed on similarly situated pharmacies that are not  340B entities or 340B pharmacies;(4) prevents or interferes with an individual's     choice to receive a covered prescription drug from a 340B entity or 340B pharmacy through any legally permissible means, except that nothing in this paragraph shall prohibit the establishment of differing copayments or other cost-sharing amounts within the benefit plan for covered persons who acquire covered prescription drugs from a nonpreferred or nonparticipating provider;(5) excludes a 340B entity or 340B pharmacy from a     pharmacy network on any basis that includes consideration of whether the 340B entity or 340B pharmacy participates in the 340B drug discount program;(6) prevents a 340B entity or 340B pharmacy from     using a drug purchased under the 340B drug discount program; or(7) any other provision that discriminates against a     340B entity or 340B pharmacy by treating the 340B entity or 340B pharmacy differently than non-340B entities or non-340B pharmacies for any reason relating to the entity's participation in the 340B drug discount program.As used in this subsection, "pharmacy benefit manager" and "third-party payer" do not include pharmacy benefit managers and third-party payers acting on behalf of a Medicaid program.(g) A violation of this Section by a pharmacy benefit manager constitutes an unfair or deceptive act or practice in the business of insurance under Section 424.(h) A provision that violates subsection (f) in a contract between a pharmacy benefit manager or a third-party payer and a 340B entity that is entered into, amended, or renewed after July 1, 2022 shall be void and unenforceable.(i) This Section applies to contracts entered into or renewed on or after July 1, 2022.(j) This Section applies to any group or individual policy of accident and health insurance or managed care plan that provides coverage for prescription drugs and that is amended, delivered, issued, or renewed on or after July 1, 2020. 
(Source: P.A. 101-452, eff. 1-1-20; 102-778, eff. 7-1-22.) (215 ILCS 5/513b2)Sec. 513b2. Licensure requirements.(a) Beginning on July 1, 2020, to conduct business in this State, a pharmacy benefit manager must register with the Director.  To initially register or renew a registration, a pharmacy benefit manager shall submit:(1) A nonrefundable fee not to exceed $500.(2) A copy of the registrant's corporate charter,     articles of incorporation, or other charter document.(3) A completed registration form adopted by the     Director containing:(A) The name and address of the registrant.(B) The name, address, and official position of         each officer and director of the registrant.(b) The registrant shall report any change in information required under this Section to the Director in writing within 60 days after the change occurs.(c) Upon receipt of a completed registration form, the required documents, and the registration fee, the Director shall issue a registration certificate. The certificate may be in paper or electronic form, and shall clearly indicate the expiration date of the registration. Registration certificates are nontransferable.(d) A registration certificate is valid for 2 years after its date of issue. The Director shall adopt by rule an initial registration fee not to exceed $500 and a registration renewal fee not to exceed $500, both of which shall be nonrefundable. Total fees may not exceed the cost of administering this Section.(e) The Department  shall adopt any rules necessary to implement this Section. 
(Source: P.A. 101-452, eff. 1-1-20.) (215 ILCS 5/513b3)Sec. 513b3. Examination.(a)  The Director, or his or her designee, may examine a registered pharmacy benefit manager.(b)  Any pharmacy benefit manager being examined shall provide to the Director, or his or her designee, convenient and free access to all books, records, documents, and other papers relating to such pharmacy benefit manager's business affairs at all reasonable hours at its offices.(c)  The Director, or his or her designee, may administer oaths and thereafter examine the pharmacy benefit manager's designee, representative, or any officer or senior manager as listed on the license or registration certificate about the business of the pharmacy benefit manager.(d)  The examiners designated by the Director under this Section may make reports to the Director. Any report alleging substantive violations of this Article, any applicable provisions of this 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 report to the pharmacy benefit manager being examined or send such duplicate by certified or registered mail to the pharmacy benefit manager's address specified in the records of the Department. The Director shall afford the pharmacy benefit manager an opportunity to request a hearing to object to the report. The pharmacy benefit manager may request a hearing within 30 days after receipt of the duplicate 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 a hearing is waived if the delivery of the report is refused or the report is otherwise undeliverable or the pharmacy benefit manager does not timely request a hearing. After the hearing or upon expiration of the time period during which a pharmacy benefit manager may request a hearing, if the examination reveals that the pharmacy benefit manager is operating in violation of any applicable provision of this Code, any applicable Part of Title 50 of the Illinois Administrative Code, a provision of this Article, or prior order, the Director, in the written order, may require the pharmacy benefit manager 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. 101-452, eff. 1-1-20.) (215 ILCS 5/513b4)Sec. 513b4. Denial, revocation, or suspension of registration; administrative fines.(a) Denial of an application or suspension or revocation of a registration in accordance with  this Section shall be by written order sent to the applicant or registrant 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 registrant 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 registrant'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.(b) If the Director finds that one or more grounds exist for the revocation or suspension of a registration issued under this Article, the Director may, in lieu of or in addition to such suspension or revocation, impose a fine upon the pharmacy benefit manager as provided under subsection (c).(c) With respect to any knowing and willful violation of a lawful order of the Director, any applicable portion of this Code, Part of Title 50 of the Illinois Administrative Code, or provision of this Article, the Director may impose a fine upon the pharmacy benefit manager in an amount not to exceed $50,000 for each violation.
(Source: P.A. 101-452, eff. 1-1-20.) (215 ILCS 5/513b5)Sec. 513b5. Failure to register.  Any pharmacy benefit manager that operates without a registration or fails to register with the Director and pay the fee prescribed by this Article is an unauthorized insurer as defined in Article VII of this Code and shall be subject to all penalties provided for therein.
(Source: P.A. 101-452, eff. 1-1-20.) (215 ILCS 5/513b6)Sec. 513b6. 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 the Insurance Producer Administration Fund.  The moneys deposited into 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. 101-452, eff. 1-1-20.)
(215 ILCS 5/Art. XXXIII.5 heading) ARTICLE XXXIII 1/2.  
		LIFE AND HEALTH
INSURANCE GUARANTY ASSOCIATION (215 ILCS 5/531.01) (from Ch. 73, par. 1065.80-1)Sec. 531.01. 
		
		Title.)  This Article is known and may be
cited as the Illinois Life and Health Insurance Guaranty Association
Law.
		(Source: P.A. 81-899.) (215 ILCS 5/531.01a) (from Ch. 73, par. 1065.80-1a)Sec. 531.01a. 
		Existing Liability. 
		Any liabilities of the
Association for any member company
which was an insolvent insurer as defined by this Article prior to January
1, 1986 shall be
determined under the law which was in effect at the time the member company
became an insolvent insurer
as if there had been no amendment to that law.  Any liabilities of the
Association for a member company which became an insolvent insurer on or after
January 1, 1986, shall be
determined under the law in effect at the time when the member became an
insolvent insurer, notwithstanding any prior law.On or after January 1, 1986, any assessments made against other member
companies to meet Association liabilities shall be made based on
the law which  was in effect when the member company was an impaired or
insolvent insurer as defined by this Article.  If different assessment
methods are used in any one year, those assessments shall be aggregated for
purposes of calculating the
aggregate assessment under Sections 531.09 and 531.13.
		(Source: P.A. 84-1035.) (215 ILCS 5/531.02) (from Ch. 73, par. 1065.80-2)Sec. 531.02. Purpose. The purpose of this Article is to protect,
subject to certain limitations, the persons specified in paragraph (1) of
Section 531.03 against failure
in the performance of contractual obligations, under life, health, and annuity policies, plans, or contracts and health or medical care service
contracts specified in paragraph (2) of Section 531.03, due to the
impairment or insolvency of the
member insurer issuing such policies, plans, or contracts.  To provide this protection,
(1) an association of member insurers is created to enable the guaranty of payment
of benefits and of continuation of coverages, (2) members of the Association
are subject to assessment to provide funds to carry out the purpose of this
Article, and (3) the Association is authorized to assist the Director, in
the prescribed manner, in the detection and prevention of member insurer impairments
or insolvencies.
(Source: P.A. 100-687, eff. 8-3-18.) (215 ILCS 5/531.03) (from Ch. 73, par. 1065.80-3)Sec. 531.03. Coverage and limitations.(1) This Article shall provide
coverage for the policies and contracts specified in subsection (2) of this
Section:(a) to persons who, regardless of where they reside     (except for non-resident certificate holders under group policies or contracts), are the beneficiaries, assignees or payees, including health care providers rendering services covered under a health insurance policy or certificate, of the persons covered under paragraph (b) of this subsection, and(b) to persons who are owners of or certificate     holders or enrollees under the policies or contracts (other than unallocated annuity contracts and structured settlement annuities) and in each case who:(i) are residents; or(ii) are not residents, but only under all of the         following conditions:(A) the member insurer that issued the             policies or contracts is domiciled in this State;(B) the states in which the persons reside             have associations similar to the Association created by this Article;(C) the persons are not eligible for coverage             by an association in any other state due to the fact that the insurer or health maintenance organization was not licensed in that state at the time specified in that state's guaranty association law.(c)  For unallocated annuity contracts specified in     subsection (2), paragraphs (a) and (b) of this subsection (1) shall not apply and this Article shall (except as provided in paragraphs (e) and (f) of this subsection) provide coverage to:(i) persons who are the owners of the unallocated         annuity contracts if the contracts are issued to or in connection with a specific benefit plan whose plan sponsor has its principal place of business in this State; and(ii) persons who are owners of unallocated         annuity contracts issued to or in connection with government lotteries if the owners are residents.(d)  For structured settlement annuities specified in     subsection (2), paragraphs (a) and (b) of this subsection (1) shall not apply and this Article shall (except as provided in paragraphs (e) and (f) of this subsection) provide coverage to a person who is a payee under a structured settlement annuity (or beneficiary of a payee if the payee is deceased), if the payee:(i) is a resident, regardless of where the         contract owner resides; or(ii) is not a resident, but only under both of         the following conditions:(A) with regard to residency:(I) the contract owner of the structured                 settlement annuity is a resident; or(II) the contract owner of the structured                 settlement annuity is not a resident but the insurer that issued the structured settlement annuity is domiciled in this State and the state in which the contract owner resides has an association similar to the Association created by this Article; and(B)   neither the payee or beneficiary nor             the contract owner is eligible for coverage by the association of the state in which the payee or contract owner resides.(e)  This Article shall not provide coverage to:(i) a person who is a payee or beneficiary of a         contract owner resident of this State if the payee or beneficiary is afforded any coverage by the association of another state; or(ii) a person covered under paragraph (c) of this         subsection (1), if any coverage is provided by the association of another state to that person.(f)  This Article is intended to provide coverage to     a person who is a resident of this State and, in special circumstances, to a nonresident. In order to avoid duplicate coverage, if a person who would otherwise receive coverage under this Article is provided coverage under the laws of any other state, then the person shall not be provided coverage under this Article. In determining the application of the provisions of this paragraph in situations where a person could be covered by the association of more than one state, whether as an owner, payee, enrollee, beneficiary, or assignee, this Article shall be construed in conjunction with other state laws to result in coverage by only one association.(2)(a) This Article shall provide coverage to the persons
specified in subsection (1) of this Section for policies or contracts of direct, (i)
nongroup life insurance, health insurance (that, for the purposes of this Article, includes health maintenance organization subscriber contracts and certificates), annuities and
supplemental contracts to any of these, (ii) for
certificates under direct group policies or contracts, (iii) for unallocated
annuity contracts and (iv) for contracts to furnish
health care services and subscription certificates for medical or health
care services issued by persons licensed to transact insurance business
in this State under this Code.
Annuity contracts and certificates under group annuity contracts include
but are not limited to guaranteed investment contracts, deposit
administration contracts, unallocated funding agreements, allocated funding
agreements, structured settlement agreements, lottery contracts
and any immediate or deferred annuity contracts.(b) Except as otherwise provided in paragraph (c) of this subsection, this Article shall not provide coverage for:(i) that portion of a policy or contract not     guaranteed by the member insurer, or under which the risk is borne by the policy or contract owner;(ii) any such policy or contract or part thereof     assumed by the impaired or insolvent insurer under a contract of reinsurance, other than reinsurance for which assumption certificates have been issued;(iii) any portion of a policy or contract to the     extent that the rate of interest on which it is based or the interest rate, crediting rate, or similar factor is determined by use of an index or other external reference stated in the policy or contract employed in calculating returns or changes in value:(A) averaged over the period of 4 years prior to         the date on which the member insurer becomes an impaired or insolvent insurer under this Article, whichever is earlier, exceeds the rate of interest determined by subtracting 2 percentage points from Moody's Corporate Bond Yield Average averaged for that same 4-year period or for such lesser period if the policy or contract was issued less than 4 years before the member insurer becomes an impaired or insolvent insurer under this Article, whichever is earlier; and(B) on and after the date on which the member         insurer becomes an impaired or insolvent insurer under this Article, whichever is earlier, exceeds the rate of interest determined by subtracting 3 percentage points from Moody's Corporate Bond Yield Average as most recently available;(iv) any unallocated annuity contract issued to or in     connection with a benefit plan protected under the federal Pension Benefit Guaranty Corporation, regardless of whether the federal Pension Benefit Guaranty Corporation has yet become liable to make any payments with respect to the benefit plan;(v) any portion of any unallocated annuity contract     which is not issued to or in connection with a specific employee, union or association of natural persons benefit plan or a government lottery;(vi) an obligation that does not arise under the     express written terms of the policy or contract issued by the member insurer to the enrollee, certificate holder, contract owner, or policy owner, including without limitation:(A)  a claim based on marketing materials;(B)  a claim based on side letters, riders, or         other documents that were issued by the member insurer without meeting applicable policy or contract form filing or approval requirements;(C)  a misrepresentation of or regarding policy         or contract benefits;(D)  an extra-contractual claim; or(E) a claim for penalties or consequential or         incidental damages;(vii) any stop-loss insurance, as defined in clause     (b) of Class 1 or clause (a) of Class 2 of Section 4, and further defined in subsection (d) of Section 352;(viii) any policy or contract providing any hospital,     medical, prescription drug, or other health care benefits pursuant to Part C or Part D of Subchapter XVIII, Chapter 7 of Title 42 of the United States Code (commonly known as Medicare Part C & D),  Subchapter XIX, Chapter 7 of Title 42 of the United States Code (commonly known as Medicaid), or any regulations issued pursuant thereto;(ix)  any  portion of a policy or contract to the     extent that the assessments required by Section 531.09 of this Code with respect to the policy or contract are preempted or otherwise not permitted by federal or State law;(x)  any portion of a policy or contract issued to a     plan or program of an employer, association, or other person to provide life, health, or annuity benefits to its employees, members, or others to the extent that the plan or program is self-funded or uninsured, including, but not limited to, benefits payable by an employer, association, or other person under:(A) a multiple employer welfare arrangement as         defined in 29 U.S.C. Section 1002;(B) a minimum premium group insurance plan;(C) a stop-loss group insurance plan; or(D) an administrative services only contract;(xi)  any portion of a policy or contract to the     extent that it provides for:(A) dividends or experience rating credits;(B) voting rights; or(C) payment of any fees or allowances to any         person, including the policy or contract owner, in connection with the service to or administration of the policy or contract;(xii) any policy or contract issued in this State by     a member insurer at a time when it was not licensed or did not have a certificate of authority to issue the policy or contract in this State;(xiii) any contractual agreement that establishes the     member insurer's obligations to provide a book value accounting guaranty for defined contribution benefit plan participants by reference to a portfolio of assets that is owned by the benefit plan or its trustee, which in each case is not an affiliate of the member insurer;(xiv) any portion of a policy or contract to the     extent that it provides for interest or other changes in value to be determined by the use of an index or other external reference stated in the policy or contract, but which have not been credited to the policy or contract, or as to which the policy or contract owner's rights are subject to forfeiture, as of the date the member insurer becomes an impaired or insolvent insurer under this Code, whichever is earlier. If a policy's or contract's interest or changes in value are credited less frequently than annually, then for purposes of determining the values that have been credited and are not subject to forfeiture under this Section, the interest or change in value determined by using the procedures defined in the policy or contract will be credited as if the contractual date of crediting interest or changing values was the date of impairment or insolvency, whichever is earlier, and will not be subject to forfeiture; or(xv) that portion or part of a variable life     insurance or variable annuity contract not guaranteed by a member insurer.(c) The exclusion from coverage referenced in subdivision (iii) of paragraph (b) of this subsection shall not apply to any portion of a policy or contract, including a rider, that provides long-term care or other health insurance benefits.(3) The benefits for which the Association may become liable shall in
no event exceed the lesser of:(a) the contractual obligations for which the member     insurer is liable or would have been liable if it were not an impaired or insolvent insurer, or(b)(i) with respect to any one life, regardless of     the number of policies or contracts:(A) $300,000 in life insurance death benefits,         but not more than $100,000 in net cash surrender and net cash withdrawal values for life insurance;(B) for health insurance benefits:(I)   $100,000 for coverages not defined as             disability income insurance or health benefit plans or long-term care insurance, including any net cash surrender and net cash withdrawal values;(II)   $300,000 for disability income             insurance and $300,000 for long-term care insurance; and(III)    $500,000 for health benefit plans;(C) $250,000 in the present value of annuity         benefits, including net cash surrender and net cash withdrawal values;(ii) with respect to each individual participating in     a governmental retirement benefit plan established under Section 401, 403(b), or 457 of the U.S. Internal Revenue Code covered by an unallocated annuity contract or the beneficiaries of each such individual if deceased, in the aggregate, $250,000 in present value annuity benefits, including net cash surrender and net cash withdrawal values;(iii) with respect to each payee of a structured     settlement annuity or beneficiary or beneficiaries of the payee if deceased, $250,000 in present value annuity benefits, in the aggregate, including net cash surrender and net cash withdrawal values, if any; or(iv) with respect to either (1) one contract owner     provided coverage under subparagraph (ii) of paragraph (c) of subsection (1) of this Section or (2) one plan sponsor whose plans own directly or in trust one or more unallocated annuity contracts not included in subparagraph (ii) of paragraph (b) of this subsection, $5,000,000 in benefits, irrespective of the number of contracts with respect to the contract owner or plan sponsor. However, in the case where one or more unallocated annuity contracts are covered contracts under this Article and are owned by a trust or other entity for the benefit of 2 or more plan sponsors, coverage shall be afforded by the Association if the largest interest in the trust or entity owning the contract or contracts is held by a plan sponsor whose principal place of business is in this State. In no event shall the Association be obligated to cover more than $5,000,000 in benefits with respect to all these unallocated contracts.In no event shall the Association be obligated to cover more than (1) an aggregate of $300,000 in benefits with respect to any one life under subparagraphs (i), (ii), and (iii) of this paragraph (b) except with respect to benefits for health benefit plans under item (B) of subparagraph (i) of this paragraph (b), in which case the aggregate liability of the Association shall not exceed $500,000 with respect to any one individual or (2) with respect to one owner of multiple nongroup policies of life insurance, whether the policy or contract owner is an individual, firm, corporation, or other person and whether the persons insured are officers, managers, employees, or other persons, $5,000,000 in benefits, regardless of the number of policies and contracts held by the owner.The limitations set forth in this subsection are limitations on the benefits for which the Association is obligated before taking into account either its subrogation and assignment rights or the extent to which those benefits could be provided out of the assets of the impaired or insolvent insurer attributable to covered policies. The costs of the Association's obligations under this Article may be met by the use of assets attributable to covered policies or reimbursed to the Association pursuant to its subrogation and assignment rights.For purposes of this Article, benefits provided by a long-term care rider to a life insurance policy or annuity contract shall be considered the same type of benefits as the base life insurance policy or annuity contract to which it relates.(4)   In performing its obligations to provide coverage under Section 531.08 of this Code, the Association shall not be required to guarantee, assume, reinsure, reissue, or perform or cause to be guaranteed, assumed, reinsured, reissued, or performed the contractual obligations of the insolvent or impaired insurer under a covered policy or contract that do not materially affect the economic values or economic benefits of the covered policy or contract. (Source: P.A. 100-687, eff. 8-3-18; 100-863, eff. 8-14-18.) (215 ILCS 5/531.04) (from Ch. 73, par. 1065.80-4)Sec. 531.04. Construction.   This Article shall be construed to
effect the purpose under Section 531.02.
(Source: P.A. 96-1450, eff. 8-20-10.) (215 ILCS 5/531.05) (from Ch. 73, par. 1065.80-5)Sec. 531.05. Definitions. As used in this Act:"Account" means either of the 2 accounts created under Section
531.06."Association" means the Illinois Life and Health Insurance
Guaranty Association created under Section 531.06."Authorized assessment" or the term "authorized" when used in the context of assessments means a resolution by the Board of Directors has been passed whereby an assessment shall be called immediately or in the future from member insurers for a specified amount. An assessment is authorized when the resolution is passed."Benefit plan" means a specific employee, union, or association of natural persons benefit plan."Called assessment" or the term "called" when used in the context of assessments means that a notice has been issued by the Association to member insurers requiring that an authorized assessment be paid within the time frame set forth within the notice. An authorized assessment becomes a called assessment when notice is mailed by the Association to member insurers."Director" means the Director of Insurance of this State."Contractual obligation" means any obligation under a policy or
contract or certificate under a group policy or contract, or portion
thereof for which coverage is provided under Section 531.03."Covered person" means any person who is entitled to the
protection of the Association as described in Section 531.02."Covered contract" or "covered policy" means any policy or contract within the scope
of this Article under Section 531.03."Extra-contractual claims" shall include, but are not limited to, claims relating to bad faith in the payment of claims, punitive or exemplary damages, or attorneys' fees and costs."Health benefit plan" means any hospital or medical expense policy or certificate or
    health maintenance organization subscriber contract or any other similar health
    contract. "Health benefit plan" does not include:(1) accident only insurance;(2) credit insurance;(3) dental only insurance;(4) vision only insurance;(5) Medicare supplement insurance;(6) benefits for long-term care, home health care,     community-based care, or any               combination thereof;(7) disability income insurance;(8) coverage for on-site medical clinics; or(9) specified disease, hospital confinement     indemnity, or limited benefit health              insurance if the types of coverage do not provide coordination of benefits and          are provided under separate policies or certificates."Impaired insurer" means (A) a member insurer which, after the effective date of this amendatory Act of the 96th General Assembly, is not an insolvent insurer, and is placed under an order of rehabilitation or conservation by a court of competent jurisdiction or (B)  a member insurer deemed by the Director after the effective date of this amendatory Act of the 96th General Assembly to be potentially unable to fulfill its contractual obligations and not an insolvent insurer."Insolvent insurer" means a member insurer that, after the effective date of this amendatory Act of the 96th General Assembly, is placed under a final order of liquidation by a court of competent jurisdiction with a finding of insolvency."Member insurer" means an insurer or health maintenance organization licensed or holding a certificate of authority to transact in this State any kind of insurance or health maintenance organization business for which coverage is provided under Section 531.03 of this Code and includes an insurer or health maintenance organization whose license or certificate of authority in this State may have been suspended, revoked, not renewed, or voluntarily withdrawn or whose certificate of authority may have been suspended pursuant to Section 119 of this Code, but does not include:(1) a hospital or medical service organization,     whether profit or nonprofit;(2) (blank);(3)       any burial society organized under Article     XIX of this Code, any fraternal benefit society organized under Article XVII of this Code, any mutual benefit association organized under Article XVIII of this Code, and any foreign fraternal benefit society licensed under Article VI of this Code;(4) a mandatory State pooling plan;(5) a mutual assessment company or other person that     operates on an assessment basis;(6)       an insurance exchange;(7)      an organization that is permitted to issue     charitable gift annuities pursuant to Section 121-2.10 of this Code;(8)          any health services plan corporation     established pursuant to the Voluntary Health Services Plans Act;(9)          any dental service plan corporation     established pursuant to the Dental Service Plan Act; or(10)         an entity similar to any of the above."Moody's Corporate Bond Yield Average" means the Monthly Average
Corporates as published by Moody's Investors Service, Inc., or any successor
thereto."Owner" of a policy or contract and "policyholder", "policy owner", and "contract owner" mean the person who is identified as the legal owner under the terms of the policy or contract or who is otherwise vested with legal title to the policy or contract through a valid assignment completed in accordance with the terms of the policy or contract and properly recorded as the owner on the books of the member insurer. The terms owner, contract owner, policyholder, and policy owner do not include persons with a mere beneficial interest in a policy or contract."Person" means an individual, corporation, limited liability company, partnership, association, governmental body or entity, or voluntary organization."Plan sponsor" means:(1) the employer in the case of a benefit plan     established or maintained by a single employer;(2) the employee organization in the case of a     benefit plan established or maintained by an employee organization; or(3)   in a case of a benefit plan 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 benefit plan."Premiums" mean amounts or considerations, by whatever name called, received on covered policies or contracts less returned premiums, considerations, and deposits and less dividends and experience credits."Premiums" does not include:(A) amounts or considerations received for policies     or contracts or for the portions of policies or contracts for which coverage is not provided under Section 531.03 of this Code except that assessable premium shall not be reduced on account of the provisions of subparagraph (iii) of paragraph (b) of subsection (2) of Section 531.03 of this Code relating to interest limitations and the provisions of paragraph (b) of subsection (3) of Section 531.03 relating to limitations with respect to one individual, one participant, and one policy owner or contract owner;(B)   premiums in excess of $5,000,000 on an     unallocated annuity contract not issued under a governmental retirement benefit plan (or its trustee) established under Section 401, 403(b) or 457 of the United States Internal Revenue Code; or(C)   with respect to multiple nongroup policies of     life insurance owned by one owner, whether the policy owner or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, premiums in excess of $5,000,000 with respect to these policies or contracts, regardless of the number of policies or contracts held by the owner."Principal place of business" of a plan sponsor or a person other than a natural person means the single state in which the natural persons who establish policy for the direction, control, and coordination of the operations of the entity as a whole primarily exercise that function, determined by the Association in its reasonable judgment by considering the following factors:(A) the state in which the primary executive and     administrative headquarters of the entity is located;(B) the state in which the principal office of the     chief executive officer of the entity is located;(C) the state in which the board of directors (or     similar governing person or persons) of the entity conducts the majority of its meetings;(D) the state in which the executive or management     committee of the board of directors (or similar governing person or persons) of the entity conducts the majority of its meetings;(E) the state from which the management of the     overall operations of the entity is directed; and(F) in the case of a benefit plan sponsored by     affiliated companies comprising a consolidated corporation, the state in which the holding company or controlling affiliate has its principal place of business as determined using the above factors.  However, in the case of a plan sponsor, if more than 50% of the participants in the benefit plan are employed in a single state, that state shall be deemed to be the principal place of business of the plan sponsor.The principal place of business of a plan sponsor of a benefit plan described in paragraph (3) of the definition of "plan sponsor" shall be deemed to be the principal place of business of the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan that, in lieu of a specific or clear designation of a principal place of business, shall be deemed to be the principal place of business of the employer or employee organization that has the largest investment in the benefit plan in question."Receivership court" means the court in the insolvent or impaired insurer's state having jurisdiction over the conservation, rehabilitation, or liquidation of the member insurer."Resident" means a person to whom a contractual obligation is owed and who resides in this State on the date of entry of a court order that determines a member insurer to be an impaired insurer or a court order that determines a member insurer to be an insolvent insurer. A person may be a resident of only one state, which in the case of a person other than a natural person shall be its principal place of business. Citizens of the United States that are either (i) residents of foreign countries or (ii) residents of United States possessions, territories, or protectorates that do not have an association similar to the Association created by this Article, shall be deemed residents of the state of domicile of the member insurer that issued the policies or contracts."Structured settlement annuity" means an annuity purchased in order to fund periodic payments for a plaintiff or other claimant in payment for or with respect to personal injury suffered by the plaintiff or other claimant."State" means a state, the District of Columbia, Puerto Rico, and a United States possession, territory, or protectorate."Supplemental contract" means a written agreement entered into for the distribution of proceeds under a life, health, or annuity policy or a life, health, or annuity contract."Unallocated annuity contract" means any annuity contract or group
annuity certificate which is not issued to and owned by an individual,
except to the extent of any annuity benefits guaranteed to an individual by
an insurer under such contract or certificate.
(Source: P.A. 100-687, eff. 8-3-18.) (215 ILCS 5/531.06) (from Ch. 73, par. 1065.80-6)Sec. 531.06. Creation of the Association. There is created a
non-profit legal entity to be known as the Illinois Life and Health
Insurance Guaranty Association.  All member insurers are and must remain
members of the Association as a condition of their authority to transact
insurance or a health maintenance organization business in this State.  The Association must perform its functions under
the plan of operation established and approved under Section 531.10 and must
exercise its powers through a board of directors established under
Section 531.07.  For purposes of administration and assessment, the Association
must maintain 2 accounts:(1) The life insurance and annuity account, which     includes the following subaccounts:(a) Life Insurance Account;(b) Annuity account, which shall include annuity         contracts owned by a governmental retirement plan (or its trustee) established under Section 401, 403(b), or 457 of the United States Internal Revenue Code, but shall otherwise exclude unallocated annuities; and(c) Unallocated annuity account, which shall         exclude contracts owned by a governmental retirement benefit plan (or its trustee) established under Section 401, 403(b), or 457 of the United States Internal Revenue Code.(2) The health account.The Association shall be supervised by the Director
and is subject to the applicable provisions of the Illinois Insurance
Code. Meetings or records of the Association may be opened to the public upon majority vote of the board of directors of the Association. 
(Source: P.A. 100-687, eff. 8-3-18.) (215 ILCS 5/531.07) (from Ch. 73, par. 1065.80-7)Sec. 531.07. Board of Directors.)   The board of directors of the
Association consists of not less than 7 nor more than 11 members serving
terms as established in the plan of operation.  The insurer members of the board
are to be selected by member insurers subject to the approval of the
Director.  In addition, 2 persons who must be public representatives may be appointed by the Director to the board of directors. A public representative may not be an officer, director, or employee of an insurance company or a health maintenance organization or any person engaged in the business of insurance. Vacancies on the board must be filled for the remaining period
of the term in the manner described in the plan of operation.In approving selections or in appointing members to the board, the
Director must consider, whether all member insurers are
fairly represented.Members of the board may be reimbursed from the assets of the Association
for expenses incurred by them as members of the board of directors but
members of the board may not otherwise be compensated by the Association for
their services.
(Source: P.A. 100-687, eff. 8-3-18.) (215 ILCS 5/531.08) (from Ch. 73, par. 1065.80-8)Sec. 531.08. Powers and duties of the Association.(a) In addition to
the powers and duties enumerated in other Sections of this Article:(1) If a member insurer is an impaired insurer, then     the Association may, in its discretion and subject to any conditions imposed by the Association that do not impair the contractual obligations of the impaired insurer and that are approved by the Director:(A) guarantee, assume, reissue, or reinsure or         cause to be guaranteed, assumed, reissued, or reinsured, any or all of the policies or contracts of the impaired insurer; or(B) provide such money, pledges, loans, notes,         guarantees, or other means as are proper to effectuate paragraph (A) and assure payment of the contractual obligations of the impaired insurer pending action under paragraph (A).(2)  If a member insurer is an insolvent insurer,     then the Association shall, in its discretion, either:(A) guaranty, assume, reissue, or reinsure or         cause to be guaranteed, assumed, reissued, or reinsured the policies or contracts of the insolvent insurer or assure payment of the contractual obligations of the insolvent insurer and provide money, pledges, loans, notes, guarantees, or other means reasonably necessary to discharge the Association's duties; or(B) provide benefits and coverages in accordance         with the following provisions:(i) with respect to policies and contracts,             ensure payment of benefits that would have been payable under the policies or contracts of the insolvent insurer for claims incurred:(a) with respect to group policies and                 contracts, not later than the earlier of the next renewal date under those policies or contracts or 45 days, but in no event less than 30 days, after the date on which the Association becomes obligated with respect to the policies and contracts;(b) with respect to nongroup policies,                 contracts, and annuities not later than the earlier of the next renewal date (if any) under the policies or contracts or one year, but in no event less than 30 days, from the date on which the Association becomes obligated with respect to the policies or contracts;(ii) make diligent efforts to provide all             known insureds, enrollees, or annuitants (for nongroup policies and contracts), or group policy owners or contract owners with respect to group policies and contracts, 30 days notice of the termination (pursuant to subparagraph (i) of this paragraph (B)) of the benefits provided;(iii) with respect to nongroup policies and             contracts covered by the Association, make available to each known insured, enrollee, or annuitant, or owner if other than the insured, enrollee, or annuitant, and with respect to an individual formerly an insured, enrollee, or annuitant under a group policy or contract who is not eligible for replacement group coverage, make available substitute coverage on an individual basis in accordance with the provisions of subsection (b), if the insureds, enrollees, or annuitants had a right under law or the terminated policy, contract, or annuity to convert coverage to individual coverage or to continue an individual policy, contract, or annuity in force until a specified age or for a specified time, during which the insurer or health maintenance organization had no right unilaterally to make changes in any provision of the policy, contract, or annuity or had a right only to make changes in premium by class.(b) In providing the substitute coverage required under subparagraph (iii) of paragraph (B) of item (2) of subsection (a)
 of this Section, the Association may offer either to reissue the
terminated coverage or to issue an alternative policy or contract at actuarially justified rates, subject to the prior approval of the Director.Alternative or reissued policies or contracts shall be offered without requiring
evidence of insurability, and shall not provide for any waiting period or
exclusion that would not have applied under the terminated policy or contract.The Association may reinsure any alternative or reissued policy or contract.Alternative policies or contracts adopted by the Association shall be subject
to the approval of the Director.  The Association may adopt alternative
policies or contracts of various types for future issuance without regard to any
particular impairment or insolvency.Alternative policies or contracts shall contain at least the minimum statutory
provisions required in this State and provide benefits that shall not be
unreasonable in relation to the premium charged.  The
Association shall set the premium in accordance with a table of rates which
it shall adopt.  The premium shall reflect the amount of insurance to be
provided and the age and class of risk of each insured, but shall not
reflect any changes in the health of the insured after the original policy or contract
was last underwritten.Any alternative policy or contract issued by the Association shall provide
coverage of a type similar to that of the policy or contract issued by the impaired or
insolvent insurer, as determined by the Association.(c) If the Association elects to reissue terminated coverage at a
premium rate different from that charged under the terminated policy or contract, the
premium shall be actuarially justified and set by the Association in accordance with the amount of
insurance or coverage provided and the age and class of risk, subject to approval of
the Director.(d) The Association's obligations with respect to coverage under any
policy or contract of the impaired or insolvent insurer or under any reissued or
alternative policy or contract shall cease on the date such coverage or policy or contract is
replaced by another similar policy or contract by the policyholder, the insured, the enrollee, or the
Association.(e) When proceeding under this Section with
respect to any policy or contract carrying guaranteed minimum interest
rates, the Association shall assure the payment or crediting of a rate of
interest consistent with subparagraph (2)(b)(iii)(B) of Section 531.03.(f) Nonpayment of premiums thirty-one days after the date required under
the terms of any guaranteed, assumed, alternative or reissued policy or
contract or substitute coverage shall terminate the Association's
obligations under such policy, contract, or coverage under this Act with respect to
such policy, contract, or coverage, except with respect to any claims incurred or any
net cash surrender value which may be due in accordance with the provisions of
this Act.(g) Premiums due for coverage after entry of an order of liquidation of
an insolvent insurer shall belong to and be payable at the direction of the
Association,
and the Association shall be liable for unearned premiums due to policy or
contract owners arising after the entry of such order.(h)  In carrying out its duties under paragraph (2) of subsection (a) of this Section, the Association may:(1)   subject to approval by a court in this State,     impose permanent policy or contract liens in connection with a guarantee, assumption, or reinsurance agreement if the Association finds that the amounts which can be assessed under this Article are less than the amounts needed to assure full and prompt performance of the Association's duties under this Article or that the economic or financial conditions as they affect member insurers are sufficiently adverse to render the imposition of such permanent policy or contract liens to be in the public interest; or(2) subject to approval by a court in this State,     impose temporary moratoriums or liens on payments of cash values and policy loans or any other right to withdraw funds held in conjunction with policies or contracts in addition to any contractual provisions for deferral of cash or policy loan value. In addition, in the event of a temporary moratorium or moratorium charge imposed by the receivership court on payment of cash values or policy loans or on any other right to withdraw funds held in conjunction with policies or contracts, out of the assets of the impaired or insolvent insurer, the Association may defer the payment of cash values, policy loans, or other rights by the Association for the period of the moratorium or moratorium charge imposed by the receivership court, except for claims covered by the Association to be paid in accordance with a hardship procedure established by the liquidator or rehabilitator and approved by the receivership court.(i) There shall be no liability on the part of and no cause of action
shall arise against the Association or against any transferee from the
Association in connection with the transfer by reinsurance or otherwise of
all or any part of an impaired or insolvent insurer's business by reason of
any action taken or any failure to take any action by the impaired or
insolvent insurer at any time.(j) If the Association fails to act within a reasonable period of
time as provided in subsection (2) of this Section with respect to an
insolvent insurer, the
Director shall have the powers and duties of the Association under this
Act with regard to such insolvent insurers.(k) The Association or its designated representatives
may render assistance and advice to the
Director, upon his request, concerning rehabilitation, payment of
claims, continuations of coverage, or the performance of other
contractual obligations of any impaired or insolvent insurer.(l)  The Association shall have standing to appear or intervene before a court or agency in this State with jurisdiction over an impaired or insolvent insurer concerning which the Association is or may become obligated under this Article or with jurisdiction over any person or property against which the Association may have rights through subrogation or otherwise. Standing shall extend to all matters germane to the powers and duties of the Association, including, but not limited to, proposals for reinsuring, reissuing, modifying, or guaranteeing the policies or contracts of the impaired or insolvent insurer and the determination of the policies or contracts and contractual obligations. The Association shall also have the right to appear or intervene before a court or agency in another state with jurisdiction over an impaired or insolvent insurer for which the Association is or may become obligated or with jurisdiction over any person or property against whom the Association may have rights through subrogation or otherwise.(m)(1) A person receiving benefits under this Article shall be deemed to have assigned the rights under and any causes of action against any person for losses arising under, resulting from, or otherwise relating to the covered policy or contract to the Association to the extent of the benefits received because of this Article, whether the benefits are payments of or on account of contractual obligations, continuation of coverage, or provision of substitute or alternative policies, contracts, or coverages. The Association may require an assignment to it of such rights and cause of action by any enrollee, payee, policy, or contract owner, beneficiary, insured, or annuitant as a condition precedent to the receipt of any right or benefits conferred by this Article upon the person.(2) The subrogation rights of the Association under this subsection
have the same priority against the assets of the impaired or insolvent insurer as
that possessed by the person entitled to receive benefits under this
Article.(3)  In addition to paragraphs (1) and (2), the Association shall have all common law rights of subrogation and any other equitable or legal remedy that would have been available to the impaired or insolvent insurer or owner, beneficiary, enrollee, or payee of a policy or contract with respect to the policy or contracts, including without limitation, in the case of a structured settlement annuity, any rights of the owner, beneficiary, enrollee, or payee of the annuity to the extent of benefits received pursuant to this Article, against a person originally or by succession responsible for the losses arising from the personal injury relating to the annuity or payment therefor, excepting any such person responsible solely by reason of serving as an assignee in respect of a qualified assignment under Internal Revenue Code Section 130.(4)  If the preceding provisions of this subsection (m) are invalid or ineffective with respect to any person or claim for any reason, then the amount payable by the Association with respect to the related covered obligations shall be reduced by the amount realized by any other person with respect to the person or claim that is attributable to the policies or contracts, or portion thereof, covered by the Association.(5)  If the Association has provided benefits with respect to a covered obligation and a person recovers amounts as to which the Association has rights as described in the preceding paragraphs of this subsection (10), then  the person shall pay to the Association the portion of the recovery attributable to the policies or contracts, or portion thereof, covered by the Association.(n) The Association may:(1) Enter into such contracts as are necessary or     proper to carry out the provisions and purposes of this Article.(2) Sue or be sued, including taking any legal     actions necessary or proper for recovery of any unpaid assessments under Section 531.09.  The Association shall not be liable for punitive or exemplary damages.(3) Borrow money to effect the purposes of this     Article.  Any notes or other evidence of indebtedness of the Association not in default are legal investments for domestic member insurers and may be carried as admitted assets.(4) Employ or retain such persons as are necessary to     handle the financial transactions of the Association, and to perform such other functions as become necessary or proper under this Article.(5) Negotiate and contract with any liquidator,     rehabilitator, conservator, or ancillary receiver to carry out the powers and duties of the Association.(6) Take such legal action as may be necessary to     avoid payment of improper claims.(7) Exercise, for the purposes of this Article and to     the extent approved by the Director, the powers of a domestic life insurer, health insurer, or health maintenance organization, but in no case may the Association issue policies or  contracts other than those issued to perform the contractual obligations of the impaired or insolvent insurer.(8) Exercise all the rights of the Director under     Section 193(4) of this Code with respect to covered policies after the association becomes obligated by statute.(9)  Request information from a person seeking     coverage from the Association in order to aid the Association in determining its obligations under this Article with respect to the person, and the person shall promptly comply with the request.(9.5) Unless prohibited by law, in accordance with     the terms and conditions of the  policy or contract, file for actuarially justified rate or premium increases for any policy or contract for which it provides coverage under this Article.(10)  Take other necessary or appropriate action to     discharge its duties and obligations under this Article or to exercise its powers under this Article.(o) With respect to covered policies for which the Association becomes
obligated after an entry of an order of liquidation or rehabilitation,
the Association may
elect to succeed to the rights of the insolvent insurer arising after the
date of the order of liquidation or rehabilitation under any contract
of reinsurance to which
the insolvent insurer was a party, to the extent that such contract
provides coverage for losses occurring after the date of the order of
liquidation or rehabilitation.  As a condition to making this election,
the Association must pay all unpaid premiums due under the contract for
coverage relating to periods before and after the date of the order of
liquidation or rehabilitation.(p)  A deposit in this State, held pursuant to law or required by the Director for the benefit of creditors, including policy owners or contract owners, not turned over to the domiciliary liquidator upon the entry of a final order of liquidation or order approving a rehabilitation plan of a member insurer domiciled in this State or in a reciprocal state, pursuant to Article XIII 1/2 of this Code, shall be promptly paid to the Association. The Association shall be entitled to retain a portion of any amount so paid to it equal to the percentage determined by dividing the aggregate amount of policy owners' or contract owners' claims related to that insolvency for which the Association has provided statutory benefits by the aggregate amount of all policy owners' or contract owners' claims in this State related to that insolvency and shall remit to the domiciliary receiver the amount so paid to the Association less the amount retained pursuant to this subsection (p). Any amount so paid to the Association and retained by it shall be treated as a distribution of estate assets pursuant to applicable State receivership law dealing with early access disbursements.(q)  The Board of Directors of the Association shall have discretion and may exercise reasonable business judgment to determine the means by which the Association is to provide the benefits of this Article in an economical and efficient manner.(r)  Where the Association has arranged or offered to provide the benefits of this Article to a covered person under a plan or arrangement that fulfills the Association's obligations under this Article, the person shall not be entitled to benefits from the Association in addition to or other than those provided under the plan or arrangement.(s) Venue in a suit against the Association arising under the Article shall be in Cook County. The Association shall not be required to give any appeal bond in an appeal that relates to a cause of action arising under this Article.(t)  The Association may join an organization of one or more other State associations of similar purposes to further the purposes and administer the powers and duties of the Association.(u)  In carrying out its duties in connection with guaranteeing, assuming, reissuing, or reinsuring policies or contracts under subsections (1) or (2), the Association may issue substitute coverage for a policy or contract that provides an interest rate, crediting rate, or similar factor determined by use of an index or other external reference stated in the policy or contract employed in calculating returns or changes in value by issuing an alternative policy or contract in accordance with the following provisions:(1) in lieu of the index or other external reference     provided for in the original policy or contract, the alternative policy or contract provides for (i) a fixed interest rate, or (ii) payment of dividends with minimum guarantees, or (iii) a different method for calculating interest or changes in value;(2) there is no requirement for evidence of     insurability, waiting period, or other exclusion that would not have applied under the replaced policy or contract; and(3) the alternative policy or contract is     substantially similar to the replaced policy or contract in all other material terms. (Source: P.A. 100-687, eff. 8-3-18.) (215 ILCS 5/531.09) (from Ch. 73, par. 1065.80-9)Sec. 531.09. Assessments.(1)  For the purpose of providing the funds
necessary to carry out the powers and duties of the Association, the board
of directors shall assess the member insurers, separately for each account, at such
times and for such amounts as the board finds necessary.  Assessments shall
be due not less than 30 days after written notice to the member insurers
and shall accrue interest from the due date at such adjusted rate as is
established under Section 6621 of Chapter 26 of the United States Code and
such interest shall be compounded daily.(2) There shall be 2 classes of assessments, as follows:(a) Class A assessments shall be made for the purpose     of meeting administrative costs and other general expenses and examinations conducted under the authority of the Director under subsection (5) of Section 531.12.(b) Class B assessments shall be made to the extent     necessary to carry out the powers and duties of the Association under Section 531.08 with regard to an impaired or insolvent domestic insurer or insolvent foreign or alien insurers.(3)(a) The amount of any Class A assessment shall be determined at the discretion of the board of directors and such assessments shall be authorized and called on a non-pro rata basis.  The amount of any Class B
assessment, except for assessments related to long-term care insurance, shall be allocated for assessment
purposes among the accounts
and subaccounts pursuant to an allocation formula which may be based on
the premiums or reserves of the impaired or insolvent insurer or any other
standard deemed by the board in its sole discretion as being fair and
reasonable under the circumstances.(b) Class B assessments against member insurers for each account and
subaccount shall
be in the proportion that the premiums received on business in this State
by each assessed member insurer on policies or contracts covered by
each account or subaccount for the three most recent calendar years
for which information is available preceding the year in which the member insurer
became impaired or insolvent, as the case may be, bears to such premiums
received on business in this State for such calendar years by all assessed
member insurers.(b-5) The amount of the Class B assessment for long-term care insurance written by the impaired or insolvent insurer shall be allocated according to a methodology included in the plan of operation and approved by the Director.  The methodology shall provide for 50% of the assessment to be allocated to accident and health member insurers and 50% to be allocated to life and annuity member insurers.(c) Assessments for funds to meet the requirements of the Association
with respect to an impaired or insolvent insurer shall not be made until
necessary to implement the purposes of this Article.  Classification
of assessments
under subsection (2) and computations of assessments under this subsection
shall be made with a reasonable degree of accuracy, recognizing that exact
determinations may not always be possible.(4)  The Association may abate or defer, in whole or in part, the assessment of a member insurer if, in the opinion of the board, payment of the assessment would endanger the ability of the member insurer to fulfill its contractual obligations. In the event an assessment against a member insurer is abated or deferred in whole or in part the amount by which the assessment is abated or deferred may be assessed against the other member insurers in a manner consistent with the basis for assessments set forth in this Section. Once the conditions that caused a deferral have been removed or rectified, the member insurer shall pay all assessments that were deferred pursuant to a repayment plan approved by the Association.(5)  (a)  Subject to the provisions of this paragraph, the total of all assessments authorized by the Association with respect to a member insurer for each subaccount of the life insurance and annuity account and for the health account shall not in one calendar year exceed 2% of that member insurer's average annual premiums received in this State on the policies and contracts covered by the subaccount or account during the 3 calendar years preceding the year in which the member insurer became an impaired or insolvent insurer.If 2 or more assessments are authorized in one calendar year with respect to member insurers that become impaired or insolvent in different calendar years, the average annual premiums for purposes of the aggregate assessment percentage limitation referenced in subparagraph (a) of this paragraph shall be equal and limited to the higher of the 3-year average annual premiums for the applicable subaccount or account as calculated pursuant to this Section.If the maximum assessment, together with the other assets of the Association in an account, does not provide in one year in either account an amount sufficient to carry out the responsibilities of the Association, the necessary additional funds shall be assessed as soon thereafter as permitted by this Article.(b) The board may provide in the plan of operation a method of allocating funds among claims, whether relating to one or more impaired or insolvent insurers, when the maximum assessment will be insufficient to cover anticipated claims.(c) If the maximum assessment for a subaccount of the life insurance and annuity account in one year does not provide an amount sufficient to carry out the responsibilities of the Association, then pursuant to paragraph (b) of subsection (3), the board shall assess the other subaccounts of the life insurance and annuity account for the necessary additional amount, subject to the maximum stated in paragraph (a) of this subsection.(6) The board may, by an equitable method as established in the
plan of operation, refund to member insurers, in proportion to the contribution
of each member insurer to that account, the amount by which the assets of the account
exceed the amount the board finds is necessary to carry out during the coming
year the obligations of the Association with regard to that account, including
assets accruing from net realized gains and income from investments.  A
reasonable amount may be retained in any account to provide funds for the
continuing expenses of the Association and for future losses.(7) An assessment is deemed to occur on the date upon which the board
votes such assessment.  The board may defer calling the payment of the
assessment or may call for payment in one or more installments.(8) It is proper for any member insurer, in determining its premium
rates and policy owner dividends as to any kind of insurance or health maintenance organization business within the scope of
this Article, to consider the amount reasonably necessary to meet its assessment
obligations under this Article.(9) The Association must issue to each member insurer paying a
Class B assessment
under this Article a certificate of contribution,
in a form acceptable to the
Director, for the amount of the assessment so paid.  All outstanding certificates
are of equal
dignity and priority without reference to amounts or dates of issue.  A certificate
of contribution may be shown by the member insurer in its financial statement as an asset
in such form and for such amount, if any, and period of time as the Director
may approve, provided the member insurer shall in any event at its option have
the right to show a certificate of contribution as an admitted asset at
percentages of the original face amount for calendar years as follows:100% for the calendar year after the year of issuance;80% for the second calendar year after the year of issuance;60% for the third calendar year after the year of issuance;40% for the fourth calendar year after the year of issuance;20% for the fifth calendar year after the year of issuance.(10)  The Association may request information of member insurers in order to aid in the exercise of its power under this Section and member insurers shall promptly comply with a request. (Source: P.A. 100-687, eff. 8-3-18.) (215 ILCS 5/531.10) (from Ch. 73, par. 1065.80-10)Sec. 531.10. Plan of operation.(1)(a)  The Association must
submit to the Director a plan of operation and any amendments thereto necessary
or suitable to assure the fair, reasonable, and equitable administration of the
Association.  The plan of operation and any amendments thereto become effective
upon approval in writing by the Director.(b) If the Association fails to submit a suitable plan of operation
within 180 days following the effective date of this Article or if at any time
thereafter the Association fails to submit suitable amendments to the plan, the
Director may, after notice and hearing, adopt and promulgate such reasonable
rules as are necessary or advisable to effectuate the provisions of this Article.
Such rules are in force until modified by the Director or superseded by a plan
submitted by the Association and approved by the Director.(2) All member insurers must comply with the plan of operation.(3) The plan of operation must, in addition to requirements enumerated
elsewhere in this Article:(a) Establish procedures for handling the assets of     the Association;(b) Establish the amount and method of reimbursing     members of the board of directors under Section 531.07;(c) Establish regular places and times for meetings     of the board of directors;(d) Establish procedures for records to be kept of     all financial transactions of the Association, its agents, and the board of directors;(e) Establish the procedures whereby selections for     the board of directors will be made and submitted to the Director;(f) Establish any additional procedures for     assessments under Section 531.09; and(g) Contain additional provisions necessary or proper     for the execution of the powers and duties of the Association.(4) The plan of operation shall establish a procedure for protest by
any member insurer of assessments made by the Association pursuant to
Section 531.09.  Such procedures shall require that:(a) a member insurer that wishes to protest all or     part of an assessment shall pay when due the full amount of the assessment as set forth in the notice provided by the Association. The payment shall be available to meet Association obligations during the pendency of the protest or any subsequent appeal. Payment shall be accompanied by a statement in writing that the payment is made under protest and setting forth a brief statement of the grounds for the protest;(b) within 30 days following the payment of an     assessment under protest by any protesting member insurer, the Association must notify the member insurer in writing of its determination with respect to the protest unless the Association notifies the member that additional time is required to resolve the issues raised by the protest;(c) in the event the Association determines that the     protesting member insurer is entitled to a refund, such refund shall be made within 30 days following the date upon which the Association makes its determination;(d) the decision of the Association with respect to a     protest may be appealed to the Director pursuant to Section 531.11(3);(e) in the alternative to rendering a decision with     respect to any protest based on a question regarding the assessment base, the Association may refer such protests to the Director for final decision, with or without a recommendation from the Association; and(f) interest on any refund due a protesting member     insurer shall be paid at the rate actually earned by the Association.(5) The plan of operation may provide that any or all powers and duties
of the Association, except those under paragraph (3) of subsection (n) 
of Section 531.08 and Section 531.09 are delegated to a corporation,
association  or other organization which performs or will perform functions
similar to those of this Association, or its equivalent, in 2 or more states.
Such a corporation, association or organization shall be reimbursed for any
payments made on behalf of the Association and shall be paid for its
performance of any function of the Association.  A delegation under this
subsection shall take effect only with the approval of both the Board of
Directors and the Director, and may be made only to a corporation, association
or organization which extends protection not substantially less favorable and
effective than that provided by this Act.
(Source: P.A. 100-687, eff. 8-3-18.) (215 ILCS 5/531.11) (from Ch. 73, par. 1065.80-11)Sec. 531.11. Duties and powers of the Director. In addition to
the duties and powers enumerated elsewhere in this Article:(1) The Director must do all of the following:(a) Upon request of the board of directors,         provide the Association with a statement of the premiums in the appropriate accounts for each member insurer.(b) Notify the board of directors of the         existence of an impaired or insolvent insurer not later than 3 days after a determination of impairment or insolvency is made or when the Director receives notice of impairment or insolvency.(c) Give notice to an impaired insurer as         required by Sections 34 or 60.  Notice to the impaired insurer shall constitute notice to its shareholders, if any.(d) In any liquidation or rehabilitation         proceeding involving a domestic member insurer, be appointed as the liquidator or rehabilitator.  If a foreign or alien member insurer is subject to a liquidation proceeding in its domiciliary jurisdiction or state of entry, the Director shall be appointed conservator.(2) The Director may suspend or revoke, after notice     and hearing, the certificate of authority to transact business in this State of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation.  As an alternative the Director may levy a forfeiture on any member insurer which fails to pay an assessment when due.  Such forfeiture may not exceed 5% of the unpaid assessment per month, but no forfeiture may be less than $100 per month.(3) Any action of the board of directors or the     Association may be appealed to the Director by any member insurer or any other person adversely affected by such action if such appeal is taken within 30 days of the action being appealed.  Any final action or order of the Director is subject to judicial review in a court of competent jurisdiction.(4) The liquidator, rehabilitator, or conservator of     any impaired insurer may notify all interested persons of the effect of this Article.(Source: P.A. 100-687, eff. 8-3-18.) (215 ILCS 5/531.12) (from Ch. 73, par. 1065.80-12)Sec. 531.12. Prevention of Insolvencies. To aid in the detection and
prevention of member insurer insolvencies or impairments:(1) It shall be the duty of the Director:(a) To notify the Commissioners of all other         states, territories of the United States, and the District of Columbia when he takes any of the following actions against a member insurer:(i) revocation of license;(ii) suspension of license;(iii) makes any formal order except for an             order issued pursuant to Article XII 1/2 of this Code that such member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the State, reinsure all or any part of its business, or increase capital, surplus or any other account for the security of policy owners, contract owners, certificate holders, or creditors.Such notice shall be transmitted to all         commissioners within 30 days following the action taken or the date on which the action occurs.(b) To report to the board of directors when he         has taken any of the actions set forth in subparagraph (a) of this paragraph or has received a report from any other commissioner indicating that any such action has been taken in another state.  Such report to the board of directors shall contain all significant details of the action taken or the report received from another commissioner.(c)  To report to the board of directors when the         Director has reasonable cause to believe from an examination, whether completed or in process, of any member insurer that the member insurer may be an impaired or insolvent insurer.(d)  To furnish to the board of directors the         National Association of Insurance Commissioners Insurance Regulatory Information System ratios and listings of companies not included in the ratios developed by the National Association of Insurance Commissioners. The board may use the information contained therein in carrying out its duties and responsibilities under this Section. The report and the information contained therein shall be kept confidential by the board of directors until such time as made public by the Director or other lawful authority.(2) The Director may seek the advice and     recommendations of the board of directors concerning any matter affecting his or her duties and responsibilities regarding the financial condition of member insurers and insurers or health maintenance organizations seeking admission to transact business in this State.(3) The board of directors may, upon majority vote,     make reports and recommendations to the Director upon any matter germane to the liquidation, rehabilitation or conservation of any member insurer and insurers or health maintenance organizations seeking admission to transact business in this State.  Such reports and recommendations shall not be considered public documents.(4) The board of directors may, upon majority vote,     make recommendations to the Director for the detection and prevention of member insurer insolvencies.(5) The board of directors shall, at the conclusion     of any member insurer insolvency in which the Association was obligated to pay covered claims prepare a report to the Director containing such information as it may have in its possession bearing on the history and causes of such insolvency.  The board shall cooperate with the boards of directors of guaranty associations in other states in preparing a report on the history and causes for insolvency of a particular member insurer, and may adopt by reference any report prepared by such other associations.(Source: P.A. 100-687, eff. 8-3-18.) (215 ILCS 5/531.13) (from Ch. 73, par. 1065.80-13)Sec. 531.13. Tax offset. In the event the aggregate Class A, B and C
assessments for all member insurers do not exceed $3,000,000 in any one
calendar year, no member insurer shall receive a tax offset.  However, for
any one calendar year before 1998 in which the
total of such assessments exceeds $3,000,000,
the amount in excess of $3,000,000 shall be subject to a tax offset to the
extent of 20% of the amount of such assessment for each of the 5
calendar
years following the year in which such assessment was paid, and ending prior
to January 1, 2003, and each member
insurer may offset the proportionate amount of such excess paid by the member insurer
against its liabilities for the tax imposed by subsections (a) and (b)
of Section 201 of the Illinois
Income Tax Act.  The provisions of this Section shall expire and be given no
effect for any tax period commencing on and after January 1, 2003.
(Source: P.A. 100-687, eff. 8-3-18.) (215 ILCS 5/531.14) (from Ch. 73, par. 1065.80-14)Sec. 531.14. Miscellaneous provisions.(1)  Nothing in this
Article may be construed to reduce the liability for unpaid assessments of the insured
of an impaired or insolvent insurer operating under a plan with assessment liability.(2) Records must be kept of all negotiations and meetings in which
the Association or its representatives are involved to discuss the activities of the
Association in carrying out its powers and duties under Section 531.08.  Records of such
negotiations or meetings may be made public only upon the termination of a
liquidation, rehabilitation, or conservation proceeding involving the impaired
or insolvent insurer, upon the termination of the impairment or insolvency
of the insurer, or  upon the order
of a court of competent jurisdiction.  Nothing in this paragraph (2) limits the
duty of the Association to render a report of its activities under Section
531.15.(3) For the purpose of carrying out its obligations under this Article,
the Association is deemed to be a creditor of the impaired or insolvent
insurer to the extent of assets attributable to covered policies or contracts reduced by any
amounts to which the Association is entitled as subrogee (under subsection (m) 
of Section 531.08).  All assets of the impaired or insolvent insurer
attributable to covered policies or contracts must be used to continue all covered policies
and pay all contractual obligations of the impaired insurer as required by this
Article.  "Assets attributable to covered policies or contracts", as used in this paragraph
(3), is that proportion of the
assets which the reserves that should have been established
for such policies or contracts bear to the reserve that should have been
established for all policies of
insurance or health benefit plans written by the impaired or insolvent insurer.(4) (a) Prior to the termination of any liquidation, rehabilitation,
or conservation proceeding, the court may take into consideration the contributions
of the respective parties, including the Association, the shareholders, contract owners, certificate holders, enrollees, and policy owners
 of the impaired or insolvent insurer, and any other party with
a bona fide interest,
in making an equitable distribution of the ownership rights of such impaired
or insolvent
insurer.  In such a determination, consideration must be given to the welfare of the
policy owners, contract owners, certificate holders, and enrollees of the continuing or successor insurer.(b) No distribution to stockholders, if any, of an impaired or insolvent insurer
may be made until and unless the total
amount of valid claims of the Association for funds expended with interest in carrying
out its powers and duties under Section 531.08, with respect to such member insurer
have been fully recovered by the Association.(5) (a) If an order for liquidation or rehabilitation of
a member insurer
domiciled in this State has been entered, the receiver appointed under such
order has a right to recover on behalf of the member insurer, from any affiliate that
controlled it, the amount of distributions, other than stock dividends paid by
the member insurer on its capital stock, made at any time during the 5 years preceding
the petition for liquidation or rehabilitation subject to the limitations of
paragraphs (b) to (d).(b) No such dividend is recoverable if the member insurer shows that when
paid the distribution was lawful and reasonable, and that the member insurer did not
know and could not reasonably have known that the distribution might adversely affect
the ability of the member insurer to fulfill its contractual obligations.(c) Any person who as an affiliate that controlled the member insurer at
the time the distributions were paid is liable up to the amount of distributions
he received.  Any person who was an affiliate that controlled the member insurer at the
time the distributions were declared, is liable up to the amount of distributions
he would have received if they had been paid immediately.  If 2 persons are
liable with respect to the same distributions, they are jointly and severally liable.(d) The maximum amount recoverable under subsection (5) of this Section is
the amount needed in excess of all other available assets of the insolvent insurer
to pay the contractual obligations of the insolvent insurer.(e) If any person liable under paragraph (c) of subsection (5) of this
Section is insolvent, all its
affiliates that controlled it at the time the dividend was paid are jointly and
severally liable for any resulting deficiency in the amount recovered from
the insolvent affiliate.(6)  As a creditor of the impaired or insolvent insurer as established in subsection (3) of this Section and consistent with subsection (2) of Section 205 of this Code, the Association and other similar associations shall be entitled to receive a disbursement of assets out of the marshaled assets, from time to time as the assets become available to reimburse it, as a credit against contractual obligations under this Article. If the liquidator has not, within 120 days after a final determination of insolvency of a member insurer by the receivership court, made an application to the court for the approval of a proposal to disburse assets out of marshaled assets to guaranty associations having obligations because of the insolvency, then the Association shall be entitled to make application to the receivership court for approval of its own proposal to disburse these assets. (Source: P.A. 100-687, eff. 8-3-18.) (215 ILCS 5/531.15) (from Ch. 73, par. 1065.80-15)Sec. 531.15. 
		Examination of the Association - Annual Report. 
		The
Association shall be subject to examination and regulation by the Director.
The board of directors must submit to the Director, not later than the
first day of the fifth month following the end of the Association's fiscal
year, a financial report for such fiscal year in a
form acceptable to the Director and a report of its
activities during such fiscal year.
		(Source: P.A. 86-753.) (215 ILCS 5/531.16) (from Ch. 73, par. 1065.80-16)Sec. 531.16. 
		
		Tax Exemptions.)  The Association is exempt from payment of
all fees and all taxes levied by this State or any of its subdivisions, except taxes
levied on real property.
		(Source: P.A. 81-899.) (215 ILCS 5/531.17) (from Ch. 73, par. 1065.80-17)Sec. 531.17. 
		
		Immunity.)  There is no liability on the part of and
no cause of action of any nature may arise against any member insurer or its agents
or employees, the Association or its agents or employees, members of the board of
directors, or the Director or his representatives, for any action taken by them
in the performance of their powers and duties under this Article.
		(Source: P.A. 81-899.) (215 ILCS 5/531.18) (from Ch. 73, par. 1065.80-18)Sec. 531.18. Stay of Proceedings - Reopening Default Judgments.) 
All proceedings in which the insolvent insurer is a party in any court in this
State shall be stayed 180 days from the date an order of liquidation,
rehabilitation, or conservation is final to permit proper legal action by the
Association on any matters germane to its powers or duties.  As to a judgment under
any decision, order, verdict, or finding based on default the Association may apply
to have such judgment set aside by the same court that made such judgment and must
be permitted to defend against such suit on the merits.
(Source: P.A. 96-1450, eff. 8-20-10.) (215 ILCS 5/531.19) (from Ch. 73, par. 1065.80-19)Sec. 531.19. Prohibited advertisement of action of the Insurance Guaranty
Association in sale of insurance.(a) No person, including a member insurer,
agent
or affiliate of a member insurer shall make, publish, disseminate, circulate,
or place before the public, or cause directly or indirectly, to be made,
published, disseminated, circulated or placed before the public, in any
newspaper, magazine or other publication, or in the form of a notice, circular,
pamphlet, letter or poster, or over any radio station or television station,
or in any other way, any advertisement, announcement or statement, written or
oral, which
uses the existence of the Insurance Guaranty Association of this State for
the purpose of sales, solicitation or inducement to purchase any form of
insurance or other coverage covered by this Article; provided, however, that this Section
shall not apply to the Illinois Life and Health Guaranty Association or
any other entity which does not sell or solicit insurance or coverage by a health maintenance organization.(b) Within 180 days of August 16,
1993, the Association shall prepare a summary document describing the general
purposes and current limitations of this Article and complying with subsection
(c).  This document shall be submitted to the Director for approval.  Sixty
days after receiving approval, no member insurer may deliver a policy or contract
described in subparagraph (a) of paragraph (2) of Section 531.03 and not
excluded under subparagraph (b) of that Section to a policy owner, 
contract owner, certificate holder, or enrollee unless the document is delivered to the policy owner, contract owner, certificate
holder, or enrollee prior to or at the time of delivery of the policy or contract.  The document should also be available upon request
by
a policy owner, contract owner, certificate holder, or enrollee.  The distribution, delivery, or contents or interpretation of
this document shall not mean that either the policy or the contract or the policy owner, contract owner, certificate
holder, or enrollee thereof would be covered in the event of the impairment or insolvency of
a member insurer.  The description document shall be revised by the Association
as amendments to this Article may require.  Failure to receive this document
does not give the policy owner, contract owner, certificate holder, enrollee, or insured
any greater rights than those stated in this Article.(c) The document prepared under subsection (b) shall contain a clear and
conspicuous disclaimer on its face.  The Director shall promulgate a rule
establishing the form and content of the disclaimer.  The disclaimer shall:(1) State the name and address of the Life and Health     Insurance Guaranty Association and of the Department.(2) Prominently warn the policy owner, contract     owner, certificate holder, or enrollee that the Life and Health Insurance Guaranty Association may not cover the policy or contract or, if coverage is available, it will be subject to substantial limitations and exclusions and conditioned on continued residence in the State.(3) State that the member insurer and its agents are     prohibited by law from using the existence of the Life and Health Insurance Guaranty Association for the purpose of sales, solicitation, or inducement to purchase any form of insurance or health maintenance organization coverage.(4) Emphasize that the policy owner, contract owner,     certificate holder, or enrollee should not rely on coverage under the Life and Health Insurance Guaranty Association when selecting an insurer or health maintenance organization.(5) Provide other information as directed by the     Director.(d) (Blank).
(Source: P.A. 100-687, eff. 8-3-18.) (215 ILCS 5/531.20)Sec. 531.20. Merger of Illinois Health Maintenance Organization Guaranty Association with and into the Illinois Life and Health Insurance Guaranty Association. In order to provide for the merger of the Illinois Health Maintenance Organization Guaranty Association with and into the Illinois Life and Health Insurance Guaranty Association, the following shall apply:(1) The Illinois Health Maintenance Organization     Guaranty Association is merged with and into the Illinois Life and Health Insurance Guaranty Association, which shall then continue to be known as the Illinois Life and Health Insurance Guaranty Association.(2) All premerger rights, powers, privileges,     assets, property, duties, debts, obligations, and liabilities of each association related to a liquidated member shall remain with the members of the respective association prior to merger and subject to the laws in effect at the time the order of liquidation was entered with respect to the liquidated member, but shall be administered by the Illinois Life and Health Insurance Guaranty Association.  The Illinois Life and Health Insurance Guaranty Association shall adopt changes to its plan of operation which reasonably accomplish this.(3) Subject to paragraph (2), the Illinois Life and     Health Insurance Guaranty Association shall succeed, without other transfer, to all the rights, powers, privileges, assets, and property of the Illinois Health Maintenance Organization Guaranty Association and shall be subject to all duties, debts, obligations, and liabilities of the Illinois Health Maintenance Organization that exist as of the date of the merger of the Illinois Health Maintenance Organization  Guaranty Association into the Illinois Life and Health Insurance Guaranty Association.  Without limiting the generality of the foregoing, the Illinois Life and Health Insurance Guaranty Association shall succeed to (A) all collected, uncollected, or unbilled assessments of the Illinois Health Maintenance Organization  Guaranty Association, (B) all cash, bank accounts, accrued interest, and tangible property of the Illinois Health Maintenance Organization  Guaranty Association, (C) all rights, powers, privileges, duties, and obligations of the Illinois Health Maintenance Organization Guaranty Association under any of its contracts or commitments, and (D) all subrogations, assignments, and creditor rights and interests of the Illinois Health Maintenance Organization  Guaranty Association.(4) All rights of creditors and all liens upon the     property of the Illinois Health Maintenance Organization Guaranty Association shall be preserved unimpaired, provided that the liens upon property of the Illinois Health Maintenance Organization Guaranty Association shall be limited to the property affected thereby immediately prior to the effective date of this amendatory Act of the 100th General Assembly.(5) Any action or proceeding pending by or against     the Illinois Health Maintenance Organization Guaranty Association may be prosecuted to judgment.(6) Notwithstanding any other provision to the     contrary in this Article:(A) It is the intent of this Section to preserve         only the rights, powers, privileges, assets, property, debts, obligations, and liabilities of the Illinois Health Maintenance Organization  Guaranty Association as they existed on the date of its merger into the Illinois Life and Health Insurance Guaranty Association, and not to provide contract owners, certificate holders, enrollees and policy owners, or their respective payees, beneficiaries, or assignees, with duplicative or new rights, powers, privileges, assets, or property.(B) Accordingly, no contract owner, certificate         holder, enrollee  and policy owner, and no contract owner's, certificate holder's, enrollee's  or policy owner's payee, beneficiary, or assignee, shall be entitled to (i) a recovery from the Illinois Life and Health Insurance Guaranty Association that is duplicative of a previous recovery from the Illinois Health Maintenance Organization  Guaranty Association or (ii) a recovery from the Illinois Life and Health Insurance Guaranty Association on account of a claim against the Illinois Health Maintenance Organization Guaranty Association where the Illinois Life and Health Insurance Guaranty Association is liable with respect to a claim under the same policy or contract under this Article. (Source: P.A. 100-687, eff. 8-3-18.)
(215 ILCS 5/Art. XXXIII heading) ARTICLE XXXIII.  
		URBAN
PROPERTY INSURANCE (215 ILCS 5/522) (from Ch. 73, par. 1065.69)Sec. 522. 
		Purpose. 
		This article is to make basic property insurance increasingly available
to the citizens of this State, and to deter the insurance industry from
geographically redlining urban areas of this State by requiring the restructuring
of the Industry Placement Facility and administering the FAIR Plan (Fair
Access to Insurance Requirements) to deliver residential property insurance
to all citizens of this State on a reasonable access and marketing basis
by offering homeowners insurance, by requiring immediate binding of eligible
risks, by making use of premium installment payment plans, and by further
establishing reasonable service standards in its plan of operation subject
to the approval and review of the Director; and, to establish a central
operation facility for the equitable distribution of losses and expenses
in the writing of the basic property insurance and homeowners insurance in this State.
		(Source: P.A. 80-1365.) (215 ILCS 5/523) (from Ch. 73, par. 1065.70)Sec. 523. 
		
		Definitions.) (1) "Basic Property Insurance" means the
coverage against direct loss to real or tangible personal property at a
fixed location provided in the Standard Fire Policy and Extended
Coverage Endorsement and such vandalism and malicious mischief or such
other classes of insurance as may be added with respect to the property
by the Industry Placement Facility with the approval of the Director, except
insurance on automobile, farm and manufacturing
risks and it shall include homeowners insurance.(2) "Homeowners Insurance" means the personal multi-peril property
coverages commonly known as Homeowners Insurance.(3) "Inspection Bureau(s)" means the organization or organizations
designated by the Industry Placement Facility with the approval of the
Director to make inspections to determine the condition of the
properties for which basic property insurance is sought and to perform
such other duties as may be authorized by the Industry Placement
Facility;(4) "Industry Placement Facility" or "Facility" means the
organization formed by insurers licensed to write and engaged in writing
basic property insurance (including multi-peril policies)
within the State of Illinois to assist applicants in urban areas in
securing basic property insurance and to formulate and administer a
program for the equitable apportionment among such insurers of such
basic property insurance.(5) "Urban Area" means any community having a blighted, deteriorated
or deteriorating area which the Facility has designated with the
approval of the Director, or which the Secretary of the U.S. Department
of Housing and Urban Development has approved for an urban renewal
project after a local public agency has been formed in the community to
avail itself of a U.S. Housing and Urban Renewal Program, or which the
Director of Insurance has designated.(6) "Premiums Written" means the gross direct premiums charged with
respect to property in this State on all policies of basic property
insurance and the basic property insurance premium components of all
multi-peril policies less return premiums, dividends paid or credited to
policyholders, or the unused or unabsorbed portions of premium deposits.
		(Source: P.A. 80-1365.) (215 ILCS 5/524) (from Ch. 73, par. 1065.71)Sec. 524. 
		FAIR Plan Procedure. 
		(1) Any person having an insurable
interest in real or tangible personal property at a fixed location in an
urban area who, after diligent effort has been unable to obtain basic
property insurance, as evidenced by 3 attempts to procure such insurance,
is entitled upon application to the Facility to an
inspection and evaluation of the property by representatives of the
Inspection Bureau.(2) Any person who is an owner-resident of a one to four family
dwelling unit at a fixed location in an urban area and whose residential
real property insurance coverage has been nonrenewed through the
voluntary insurance market shall be entitled to submit a binding
application of coverage to the Facility for such period of time as is
required by the Facility to conduct a reasonable inspection of the
residential real property.(3) The manner and scope of the inspection and evaluation report
for nonresidential property shall be prescribed by the Facility with
the approval of the Director. The
inspection must include, but need not be limited to, pertinent
structural and occupancy features as well as the general condition of
the building and surrounding structures. A representative photograph of
the property may be taken as part of the inspection.(4) Promptly after the request for inspection is received an
inspection must be made and an inspection report filed with the company
or companies designated by the Facility. A copy of the completed
inspection and evaluation report must be sent to the Facility and made
available to the
applicant and to insurers in the voluntary insurance market upon request.(5) If the Inspection Bureau finds that the residential property meets
the reasonable underwriting standards established under Section 525, the
applicant shall be so informed in writing. If the residential property does
not meet the criteria, the applicant shall be informed, in writing, of the
reasons for the failure of the residential property to meet the criteria.(6) If, at any time, the applicant makes improvements in the residential
property or its condition which he or she believes are sufficient to make
the residential property meet the criteria, a representative of the Inspection
Bureau shall reinspect the residential property upon request. In any case,
the applicant for residential property insurance shall be eligible for one
reinspection any time
beginning 60 days after his or
her initial Fair plan inspection. If upon reinspection the residential property
meets the reasonable underwriting standards established under Section 525,
the applicant shall be so informed in writing.
		(Source: P.A. 81-1430.) (215 ILCS 5/525) (from Ch. 73, par. 1065.72)Sec. 525. 
		
		Industry Placement Program.)(1) Within 30 days after the
effective date of this Article, all insurers engaged in writing in this
State, on a direct basis, basic property insurance or any property
insurance component in multi-peril policies, other than local district,
county and township mutual companies, must establish an Industry
Placement Facility to formulate and administer a Program for the
equitable apportionment among such insurers of basic property insurance
which may be afforded applicants in urban areas whose property is
insurable in accordance with reasonable underwriting standards, but
who, after diligent efforts, are unable to procure such insurance through
normal channels, as evidenced by 3 attempts to procure such insurance.
The Program may also provide, with the approval of the
Director, for the use of deductibles, percentage participation clauses
and other underwriting devices and for assessment of all members in
amounts sufficient to operate the Facility, and may establish maximum
limits of liability to be placed through the Program,
commissions to be paid to the license producer designated by the
applicant and for relieving any company from accepting referrals under
the FAIR Plan, in whole or in part, for reasonable cause.  The Program
may also provide that the Facility issue policies in its own name.  The
Program shall establish reasonable underwriting standards for determining
insurability of a risk, subject to the approval of the Director.(2) The Industry Placement Program, through its plan of operation,
shall provide reasonable access and marketing procedures for (a)
immediate binding of eligible risks; (b) premium installment payment
plans; and, (c) establishing adequate marketing and service facilities
in all designated urban areas of this State.(3) Homeowners insurance coverage shall become part of the Industry
Placement Program of basic property insurance. The Facility shall
develop, with the consultation of the Director, a homeowners insurance
contract(s) for urban areas. Such Program of homeowners insurance will
be implemented through a plan of operation specifically entitling owner
residents who have been nonrenewed through normal insurance channels of
immediate binding coverage pending a reasonable period of time for the
Facility to conduct an inspection of the premises to determine whether
the premises comply with underwriting requirements set out in the Program.(4) Each insurer, as a condition of its authority to transact such
kinds of insurance in this State, must participate in the Industry
Placement Program in accordance with this Article and such a plan of
operation as may be established by a Governing Committee of 6 insurers
elected annually in a manner provided in a membership agreement to be
executed by each participating insurer, 4 members who are not
employees of or otherwise affiliated with the
insurance industry appointed by the Director to represent the
interest of insurance consumers, and one member who is an Illinois licensed
insurance producer appointed by the Director, who shall serve
for terms consistent with the terms served by
their counterparts from the insurance industry.
		(Source: P.A. 88-667, eff. 9-16-94.) (215 ILCS 5/525.1) (from Ch. 73, par. 1065.72-1)Sec. 525.1. 
		
		Centralized Operations Authorized.)  (1)  The Industry
Placement Facility is authorized, for FAIR Plan purposes only, to issue
policies of insurance and endorsements thereto in its own name or a
trade name duly adopted for that purpose, and to act on behalf of all
participating insurers in connection with said policies and otherwise in
any manner necessary to accomplish the purposes of this Article,
including but not limited to collection of premiums, issuance of
cancellations, and payment of commissions, losses, judgments and
expenses.(2) The participating insurers shall be liable to the Facility as
provided in this Article, the Program and any related Articles of
Agreement for the expenses and liabilities so incurred by the Facility,
and the Governing Committee shall make assessments against the
participating insurers as required to meet such expenses and
liabilities. In connection with any policy issued by the Facility: (a)
the name and percentage participation of each participating insurer
shall be made available to the insured upon request to the Facility;
(b) service of any notice, proof of loss, legal process or other
communication with respect to the policy may and shall be made upon the
Facility; and (c) any action by the insured constituting a claim under
the policy shall be brought only against the Facility, and the Facility
shall be the proper party for all purposes in any action brought under
or in connection with any such policy.  The foregoing requirements shall
be set forth in any policy issued by the Facility and the form and
content of any such policy shall be subject to the approval of the
Director of Insurance.(3) The Facility is authorized to assume and cede reinsurance in
conformity with the Program.(4) (a)  Each insurer must participate in the writings, expenses,
profits and losses of the Facility in the proportion that its premiums written,
with respect to each fund, bear to the aggregate premiums written by all
insurers, with respect to each said fund, excluding that portion of the
premiums written attributable to the operation of the Facility except
as otherwise provided in this Section.(b) The Director of Insurance shall by rule establish procedures for
determining the net level of participation required of each insurer, which
shall include the following elements:(i) The designation of one or more contiguous ZIP CODE areas within
this State wherein the insurers writing new policies upon risks which they
do not insure prior to the effective date of this amendatory Act may receive
credit against
their obligation for FAIR Plan risks;(ii) The minimum level of participation required of all insurers regardless of
the amount of credit allowed but which in no case shall be less than 50%
of that level of participation that would be required as defined in paragraph
(a) above;(iii) A designation of the type of risks for which credit may be allowed,
provided that credit shall not apply to commercial risks where the annual
premium for the policy exceeds $2,000 for each fixed location;(iv) The maximum level of participation required of all insurers regardless
of the amount of credit allowed.(c) The procedures for determining levels of participation and all designations,
formulas, minima and maxima required by this Section shall be reasonably
designed to effect the intent of this Article without exempting any insurer
from the participation requirement.(5) Voting on administrative questions of the Facility shall be
weighted in accordance with each insurers' premium written during the
second preceding calendar year as disclosed in the reports filed by the
insurer with the Director.(6) The Facility may on its own initiative or at the request of the
Director, amend its rules or Program, subject to approval by the
Director.
		(Source: P.A. 81-1426.) (215 ILCS 5/525.2) (from Ch. 73, par. 1065.72-2)Sec. 525.2. 
		Premium financing.In the event the Industry Placement Facility accepts premium payments
from licensed premium financing companies and whenever a financed FAIR Plan
insurance contract is cancelled in accordance with Section 521 of the
Illinois Insurance Code, the insurer or Industry Placement Facility shall
return whatever gross unearned premium is due under the insurance contract
to the premium finance company effecting the cancellation for the account
of the insured or insureds less the proportionate amount of the commissions
paid by it to the producers of such FAIR Plan risk, prorated as to the
unearned portion of the premium, which amount such producers shall return
to the premium finance company. In the event of cancellation as set forth
above the Industry Placement Facility may deduct and retain from the return
premium a reasonable amount as a service charge.
		(Source: P.A. 77-1561.) (215 ILCS 5/525.3) (from Ch. 73, par. 1065.72-3)Sec. 525.3. 
		Approval of Rates. 
		In the event that the Industry Placement
Facility proposes to issue policies of insurance or endorsements thereto
pursuant to subsection (1) of Section 525.1, the Facility shall file for
approval with the Director the proposed rates and supplemental rate information
to be used in connection with the issuance of such policies or endorsements.
Within 60 days of the filing of the proposed rates, the Director shall enter
an order either approving or disapproving, in whole or in part, the rate
plan filed.  The Director may, upon notice to the Industry Placement Facility,
extend the period for entering an order under this Section an additional
30 days.  No such policies or endorsements shall be issued until such time
as the Director approves the rates to be applied to the policy or endorsement.
An order disapproving a rate shall state the grounds for the disapproval
and the findings in support thereof.
		(Source: P.A. 81-1426.) (215 ILCS 5/525.4) (from Ch. 73, par. 1965.72-4)Sec. 525.4. 
		Application for Coverage of Risks by the Facility. 
		(1) In the
event that the Industry Placement Facility proposes to issue policies of
insurance or endorsements thereto pursuant to subsection (1) of Section
525.1, the Facility shall require a written application for such
policies or endorsements.  All applications shall be incorporated into the
policy or endorsement for which application was made.(2) Applications for coverage of risks on property which is held in a
land trust, except applications for policies described in subsection (b)
of Section 143.13, shall disclose all beneficial interests in the property
in accordance with "An Act to require disclosure, under certification of
perjury, of all beneficial interests in real property held in a land trust,
in certain cases", approved September 21, 1973, as amended.  Changes, which
result in an aggregate of 25%, in beneficial interest in the property subsequent
to the verification made in the application shall be reported by the
applicant or policy holder to the Facility no later than 10 days after the
change in beneficial interest occurs.
This shall not apply to transfer of beneficial interest to members of the
immediate family including spouse, children and grandchildren and their
spouses, parents, sisters and brothers.  Changes in beneficial interest
which result in an aggregate of less than 25% shall be reported at the time
of renewal of the policy. Disclosure of the beneficial interests in such
property is deemed material
to the application for new coverage or the continuation of existing coverage
and failure to disclose all beneficial interests, including any changes
therein, renders the contract of insurance voidable at the option of the
Facility.  Upon being notified of any change in beneficial interest, the
Facility shall reevaluate its risk of loss as if the risk were a new application
for coverage.  When a policy subject to this Section is issued or applied
for, the Facility shall give written notice as to the requirements of this Section
to the named insured or applicant and all beneficiaries disclosed in the application.(3) Applications for policies or endorsements covering real property,
except applications for policies described in subsection (b) of Section
143.13, shall include the following information:(a) name and address of the applicant;(b) name and address of all parties with any financial interest in the
property to be insured and the nature and extent of such interest, including mortgages;(c) all purchases and sales of the property to be insured during the last
five years, including all parties involved in such transactions, with their
names and addresses;(d) the value the insured claims for the insurable interest and the method
utilized to derive that value;(e) all income from the property to be insured during the current year
and the last calendar and tax years, if known;(f) occupancy and use during the preceding two years, including percentage
of occupancy if a nonowner occupied dwelling, if known;(g) prior loss history of the applicant and the property to be insured;(h) all tax liens and other legal encumbrances affecting the property
to be insured; and(i) all violations of building construction and maintenance ordinances
concerning the property to be insured which have been cited in a legal notice
from an ordinance enforcement authority and which violations have not been
certified as remedied by the enforcement authority, and for which an enforcement
action is pending.(4) Within 60 days of receipt of an application submitted pursuant to
subsection (3), the Facility shall conduct an on-site inspection of the
property to be insured so as to determine the nature of the risk presented
and the availability of coverage by the Facility.  Any policy or endorsement
issued on an application submitted pursuant to subsection (3) may be cancelled
by the Facility within 60 days of the issuance thereof.
		(Source: P.A. 81-1426.) (215 ILCS 5/527) (from Ch. 73, par. 1065.74)Sec. 527. 
		
		Right
to appeal.
(1) Any applicant or affected insurer has the right of appeal to the
Governing Committee. A decision of the Committee may be appealed to the
Director within 30 days after such decision.(2) All orders or decisions of the Director made pursuant to this
Article are subject to judicial review
in accordance with the
Administrative Review Law.
		(Source: P.A. 82-783.) (215 ILCS 5/528) (from Ch. 73, par. 1065.75)Sec. 528. 
		Inspection reports.There is no liability on the part of, and no cause of action against
insurers, the Inspection Bureau, the Facility, the Association, the
Governing Committee, their agents or employees, or the Director or his
authorized representatives, with respect to any inspections required to be
undertaken by this Article or for any acts or omissions in connection
therewith, or for any statements made in any report and communication
concerning the insurability of the property, or in the findings required by
the provisions of this Article, or at the hearings conducted in connection
with such inspections. The reports and communications of the Inspection
Bureau, the Facility, the Association, and the records of the Governing
Committee are not considered public documents.
		(Source: Laws 1968, p. 15.) (215 ILCS 5/529) (from Ch. 73, par. 1065.76)Sec. 529. 
		Illinois Insurance Development Fund.(a) A trust fund is created to be known as the "Illinois Insurance
Development Fund" to be administered by the State Treasurer as a special
trust fund. The purpose is to provide financial back-up for the Facility
and the Association in order to enable companies to qualify for riot and
civil disorder reinsurance under the National Insurance Development
Corporation Act of 1968 or any other act of the United States which will
similarly provide reinsurance or financial back-up to accomplish the
purpose of this Article.(b) The Fund shall consist of all payments made to the Fund by companies
in accordance with the provisions of this Article, any securities acquired
by and through use of monies belonging to the Fund, any monies appropriated
to the Fund, and any interest and accretions earned on assets of the Fund.
The State Treasurer shall have the same power to enforce the collection of
the assessments provided hereunder as any other obligation due the State.
		(Source: P.A. 76-714.) (215 ILCS 5/529.1) (from Ch. 73, par. 1065.76-1)Sec. 529.1. 
		Reimbursement of the Secretary. 
		
		The Fund shall reimburse the Secretary of the Department of Housing and
Urban Development (hereinafter referred to as "the Secretary") under the
provisions of Section 1223(a) (1) of the Urban Property Protection and
Reinsurance Act of 1968 (hereinafter referred to as "the Act") for losses
reinsured by the Secretary and occurring in this State on or after August
1, 1968, provided that the total amount of reimbursement in any one year
shall not, in the aggregate, exceed 5% of the aggregate property insurance
premiums earned in this State during the preceding calendar year on those
lines of insurance reinsured by the Secretary in this State during the
calendar year.
		(Source: P.A. 76-714.) (215 ILCS 5/529.2) (from Ch. 73, par. 1065.76-2)Sec. 529.2. 
		Making of assessments. 
		
		Whenever the Secretary shall, in accordance with the Act, present to the
State a request for reimbursement under the Act, the Fund shall immediately
assess all companies which, during the calendar year with respect to which
reimbursement is requested by the Secretary, are engaged in writing
property insurance in this State. The amount of each such company's
assessment shall be calculated by multiplying the amount of the
reimbursement requested by the Secretary by a fraction the numerator of
which is the company's direct property insurance premiums earned in this
State and the denominator of which is the aggregate of such premiums for
all companies. Within 30 days following the end of each full calendar
quarter, each company shall pay to the Fund an amount equal to one-twelfth
of the company's assessment.
		(Source: P.A. 76-714.) (215 ILCS 5/529.3) (from Ch. 73, par. 1065.76-3)Sec. 529.3. 
		Insolvency. 
		In the event any company fails, by reason of insolvency, to pay any
assessment, the Fund shall cause the reimbursement ratios, computed
under Section 529.2, to be immediately recalculated, excluding therefrom the
amount of the insolvent company's assessment determined by the Director
of Insurance to be uncollectible, so that such uncollectible amount is,
in effect, assumed and redistributed among the remaining companies.
		(Source: P.A. 81-1509.) (215 ILCS 5/529.4) (from Ch. 73, par. 1065.76-4)Sec. 529.4. 
		
		
		Whenever the fund shall assess insurers in accordance with this Section,
each insurer may charge an additional premium on every property insurance
policy issued by it insuring property in this state, the effective date of
which policy is within the 3 year period commencing 90 days after the date
of assessment by the Fund. The amount of the additional premium shall be
calculated on the basis of a uniform percentage of the premium on such
policies equal to 1/3 of the ratio of the amount of an insurer's assessment
to the amount of its direct earned premiums for the calendar year
immediately preceding the year in which the assessment is made, such that
over the period of 3 years the aggregate of all such additional premium
charges by an insurer shall be equal to the amount of the assessment of
such insurer. The minimum additional premium charged on a policy may be
$1.00 and any other additional premium charged may be rounded to the
nearest dollar.
		(Source: P.A. 76-714.) (215 ILCS 5/529.5) (from Ch. 73, par. 1065.76-5)Sec. 529.5. 
		
		The Industry Placement Facility shall compile an annual
operating report, and publish such report in at least 2 newspapers having
widespread circulation in the State, which report shall include:(1) a description of the origin and purpose of the Illinois Fair Plan
and its relationship to the property and casualty insurance industry in
Illinois;(2) a financial statement specifying the amount of profit or loss incurred
by the Facility for its financial year; and(3) a disclosure as to the amount of subsidization per type of policy
written by the Facility, which is provided by the property and casualty
insurance companies operating in Illinois, if any.This annual report shall be a matter of public record to be made available
to any person requesting a copy from the Facility at a fee not to exceed
$10 per copy.  A copy shall be available for inspection at the
Department of Insurance.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/530) (from Ch. 73, par. 1065.77)Sec. 530. 
		
		Powers of the Director.)  In addition to any powers
conferred upon him by this or any other law, the Director is charged
with the authority to supervise the Inspection Bureau, the Facility and
the Association.  In addition the Director or any person designated by
him has the power:(1) to examine the operation of the Facility and Association through
free access to all the books, records, files, papers and documents
relating to their operation and may summon, qualify and examine as
witnesses all persons having knowledge of such operations including
officers, agents or employees thereof;(2) to do all things necessary to enable the State of Illinois and
any insurer participating in any Program approved by the Director to
fully participate in any federal program of reinsurance which may be
enacted for purposes similar to the purposes of this Article;(3) to require such reports from insurers concerning risks insured
under any Program approved pursuant to this Article as he may deem
necessary;(4) to approve a homeowners policy form(s) for the Industry Placement Program.(5) To require the Insurance Placement Program to develop marketing programs
which will deter urban redlining and other unfairly discriminatory geographic
underwriting programs by making readily available basic property insurance.(6) to permit modification of the Standard Fire Policy issued by the
facility for non owner-occupied residences exceeding four units, after the
director has conducted a public hearing which establishes that such modifications:1) will provide for equitable settlements of loss;2) will discourage arson for profit; and3) will encourage neighborhood revitalization, while maintaining the interests
of the insured and the facility.  The Director shall confer with the facility
to establish criteria by which it can be determined whether such modification
of the Standard Fire Policy is accomplishing its objectives.  The Director
shall conduct, within two years of any modification of the Standard Fire
Policy, a public hearing to determine whether such modification has accomplished
the three preceding objectives.  In the event that such public hearing does
not establish that such objectives are being accomplished, then the Director
shall rescind the modification of the Standard Fire Policy, or further modify
such policy to accomplish the objectives.
		(Source: P.A. 82-499.) (215 ILCS 5/530a) (from Ch. 73, par. 1065.77a)Sec. 530a. 
		
		The Director of Insurance shall form a task force to review
the policy forms and endorsements issued by the Industry Placement Facility
on residential property of 5 or more dwelling units.  The task force shall
consider the coverage, perils and settlement provisions and make their recommendations
to the Director by January 15, 1981, on proposed policy forms and endorsements
which will provide for equitable settlement of loss, discourage arson for
profit and encourage neighborhood revitalization.  Any recommendation of
the task force shall consider the impact on the continuous goal of depopulation
of the Facility.The Task force shall be comprised of members of the insurance industry,
general public and 4 members of the General Assembly, 2 to be appointed
by the President of the Senate and 2 by the Speaker of the House with equal
representation from the majority and minority parties.The Director shall hold public hearings on the task force recommendations
and promulgate a rule to adopt such policy forms and endorsements as minimum
standards for the Industry Placement Facility.
		(Source: P.A. 81-1432.)
(215 ILCS 5/Art. XXXIV heading) ARTICLE XXXIV.  
		ILLINOIS INSURANCE GUARANTY FUND (215 ILCS 5/532) (from Ch. 73, par. 1065.82)Sec. 532. Purpose.(a) The purpose of this Article is to provide a mechanism
for the payment of covered claims under certain insurance policies, to
avoid excessive delay in payment of covered claims, to avoid financial loss to claimants or policyholders
because of the entry of an Order of Liquidation against an insolvent
company, including through services offered to the Director in her or his capacity as receiver under Article XIII of this Code that relate to covered claims, to provide a Fund to assess among member companies the costs of such protection and maintain the continuity and self-sufficient operation of the Fund, and to offset the costs associated with maintaining the Fund's continuity and self-sufficient operations when practical by providing assistance and services to the Director in her or his capacity as receiver under Article XIII of this Code as described in this Section.(b)   The purpose of this Article is also to provide a mechanism for the Fund to participate in and facilitate the process by which the assets of an insolvent company are marshaled and distributed pursuant to Article XIII of this Code beyond reimbursing the cost of covered claims. This subsection (b) is inoperative 5 years after the effective date of this amendatory Act of the 102nd General Assembly. (Source: P.A. 102-396, eff. 8-16-21.) (215 ILCS 5/533) (from Ch. 73, par. 1065.83)Sec. 533. 
		Scope. 
		This Article applies to all of the kinds of insurance
written on a direct basis which are included in Class 2 and
Class 3 of Section 4 of this Code as they appear and are defined in those
clauses as of January 1, 1985, except that
it shall not apply to:(a) accident and health insurance written under clause (a) of Class 2, or(b) mortgage guaranty or other financial guaranty written as
suretyship obligations or insurance under clause (g), clause (h)
or clause (i) of Class 2 or otherwise, or(c) fidelity or surety bonds, or any other bonding obligations other
than employee fidelity bonds, or(d) marine insurance other than inland marine insurance, written  under
clause (d) of Class 3, or(e) insurance of warranties or service contracts, including insurance that
provides for the
repair, replacement, or service of goods or property or indemnification for
repair, replacement, or service for the operational or structural failure of
the goods or property due to a defect in materials, workmanship, or normal wear
and tear or provides reimbursement for the liability incurred by the issuer of
agreements or service contracts that provide these benefits, or(f) any claim servicing agreement or insurance policy which contains a
retrospective rating or other premium adjustment agreement under which
premiums are substantially equal to the losses and loss expenses covered
under the policy or any policy providing retroactive insurance of known loss, or(g) any insurance which is provided, guaranteed or reinsured pursuant to
the Federal Crop Insurance Program or the National Flood Insurance Program,
including flood insurance written by National Flood Insurance Program
Write Your Own Companies.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/534) (from Ch. 73, par. 1065.84)Sec. 534. 
		Definitions. 
		For the purposes of this Article, unless the
context requires otherwise, the words and phrases defined in Sections 534.1
through 534.8 have the meanings set forth in those Sections.
		(Source: P.A. 85-576.) (215 ILCS 5/534.1) (from Ch. 73, par. 1065.84-1)Sec. 534.1. 
		
		"Fund" means the Illinois Insurance Guaranty Fund created by this
Article.
		(Source: P.A. 77-305.) (215 ILCS 5/534.2) (from Ch. 73, par. 1065.84-2)Sec. 534.2. 
		"Director" means the Director of Insurance of the State of Illinois. 
		(Source: P.A. 77-305.) (215 ILCS 5/534.3) (from Ch. 73, par. 1065.84-3)Sec. 534.3. Covered claim; unearned premium defined.(a) "Covered claim" means an unpaid claim for a loss
arising out of and within the
coverage of an insurance policy to which this Article applies and which
is in force at the time of the occurrence giving rise to the unpaid
claim, including claims presented during any extended discovery period
which was purchased from the company before the entry of a liquidation
order or which is purchased or obtained from the liquidator after the entry
of a liquidation order, made by a person insured under such policy or by a
person
suffering injury or damage for which a person insured under such policy
is legally liable, and for unearned premium, if:(i) The company issuing, assuming, or being allocated     the policy becomes an insolvent company as defined in Section 534.4 after the effective date of this Article; and(ii) The claimant or insured is a resident of this     State at the time of the insured occurrence, or the property from which a first party claim for damage to property arises is permanently located in this State or, in the case of an unearned premium claim, the policyholder is a resident of this State at the time the policy was issued; provided, that for entities other than an individual, the residence of a claimant, insured, or policyholder is the state in which its principal place of business is located at the time of the insured event.(b) "Covered claim" does not include:(i) any amount in excess of the applicable limits of     liability provided by an insurance policy to which this Article applies; nor(ii) any claim for punitive or exemplary damages or     fines and penalties paid to government authorities; nor(iii) any first party claim by an insured who is an     affiliate of the insolvent company; nor(iv) any first party or third party claim by or     against an insured whose net worth on December 31 of the year next preceding the date the insurer becomes an insolvent insurer exceeds $25,000,000; provided that an insured's net worth on such date shall be deemed to include the aggregate net worth of the insured and all of its affiliates as calculated on a consolidated basis.  However, this exclusion shall not apply to third party claims against the insured where the insured has applied for or consented to the appointment of a receiver, trustee, or liquidator for all or a substantial part of its assets, filed a voluntary petition in bankruptcy, filed a petition or an answer seeking a reorganization or arrangement with creditors or to take advantage of any insolvency law, or if an order, judgment, or decree is entered by a court of competent jurisdiction, on the application of a creditor, adjudicating the insured bankrupt or insolvent or approving a petition seeking reorganization of the insured or of all or substantial part of its assets; nor(v) any claim for any amount due any reinsurer,     insurer, insurance pool, or underwriting association as subrogated recoveries, reinsurance recoverables, contribution, indemnification or otherwise. No such claim held by a reinsurer, insurer, insurance pool, or underwriting association may be asserted in any legal action against a person insured under a policy issued by an insolvent company other than to the extent such claim exceeds the Fund obligation limitations set forth in Section 537.2 of this Code.(c) "Unearned Premium" means the premium for the unexpired period of a
policy which has been terminated prior to the expiration of the period for
which premium has been paid and does not mean premium which is returnable
to the insured for any other reason.
(Source: P.A. 101-60, eff. 7-12-19; 102-558, eff. 8-20-21.) (215 ILCS 5/534.4) (from Ch. 73, par. 1065.84-4)Sec. 534.4. 
"Insolvent company" means a company
organized as a stock company, mutual company, reciprocal or Lloyds (a)
which holds a certificate of authority to transact insurance
in this State either at the time the policy was issued or when
the insured event occurred, or any company which has assumed or has been allocated
such policy obligation through merger, division, consolidation, or
reinsurance, whether or not such assuming company held a
certificate of authority to transact insurance in this State
at the time such policy was issued or when the insured event occurred; and (b)
against which a final Order of Liquidation with a finding of
insolvency to which there is no further right of appeal has been entered by
a court of competent jurisdiction in the company's State of domicile after the
effective date of this Article.
(Source: P.A. 100-1190, eff. 4-5-19.) (215 ILCS 5/534.5) (from Ch. 73, par. 1065.84-5)Sec. 534.5. 
		Member company. 
		"Member Company" means any insurance
company organized as a
stock company, mutual company, reciprocal or Lloyds, which holds a certificate
of authority to transact
any kind of insurance in this State to
which this Article applies, and which is either:(a) a domestic insurance company formed before or after the
effective date of this Article; or(b) a foreign or alien insurance company.An insurance company shall cease to be a member company effective on the
day following the termination or expiration of its license to transact the
kinds of insurance to which this Article applies; provided, however, that the
insurance company shall remain liable as a member company for any and all
obligations, including obligations for assessments levied before the
termination or expiration of the insurance company's license and assessments
levied after the termination or expiration, based on any insolvency as to which
the determination of insolvency by a court of competent jurisdiction occurs
before the termination or expiration of the insurance company's license.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/534.6) (from Ch. 73, par. 1065.84-6)Sec. 534.6. 
		
		"Net direct written premiums" means direct gross premiums
written in this State on insurance policies to which this Article applies, less return
premiums thereon and dividends paid or credited to policyholders on such
direct business. "Net direct written premiums" does not include premiums on
contracts of reinsurance or other contracts between insurers or reinsurers.
		(Source: P.A. 85-576.) (215 ILCS 5/534.7) (from Ch. 73, par. 1065.84-7)Sec. 534.7. 
		Affiliate. 
		An "affiliate" of a specified person means a
person who directly, or indirectly
through one or more intermediaries, controls, is controlled by, or is under
common control with the specified person on
December 31 of the year next
preceding the date the insolvent company became an
insolvent company.
		(Source: P.A. 89-97, eff. 7-7-95.) (215 ILCS 5/534.8) (from Ch. 73, par. 1065.84-8)Sec. 534.8. 
		
		"Control" means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a
person, whether through the ownership of voting securities, the holding of
proxies, by contract other than a commercial contract for goods or
nonmanagement services, or otherwise, unless the power is solely the result
of an official position with or corporate office held by the person.
Control shall be presumed to exist if any person, directly or indirectly,
owns, controls, holds with the power to vote, or holds proxies
representing, 10% or more of the voting securities or voting power of any
other person.  This presumption may be rebutted by a showing that control
does not exist in fact.
		(Source: P.A. 85-576.) (215 ILCS 5/535) (from Ch. 73, par. 1065.85)Sec. 535. 
		Creation of the Fund. 
		There is created a nonprofit
unincorporated legal entity to be known as the Illinois Insurance
Guaranty Fund. All member companies as defined in Section 534.5 shall be and
remain members of the Fund as a condition of their authority to transact
business in this State. The Fund shall perform its functions under a
plan of operation established and approved under Section 539 and shall
exercise its powers through a board of directors established under
Section 536. For purposes of administration and assessment, the Fund
shall be divided into 2 separate accounts: (a) the automobile insurance
account; and (b) the account for all other insurance to which this
Article applies, including Workers' Compensation.
		(Source: P.A. 85-576.) (215 ILCS 5/536) (from Ch. 73, par. 1065.86)Sec. 536. Board of Directors.(a) The board of directors of the Fund shall consist of not less than 5
nor more than 10 persons, with one public member appointed by the Director, serving terms as established in the plan of
operation. The public member shall be a resident of this State, and he or she shall either (1) be a licensed and certified public accountant under the laws of this State or (2) have earned, and maintain in good standing, the Chartered Property and Casualty Underwriter (CPCU) designation from the American Institute for Chartered Property Casualty Underwriters. The plan of operation shall provide that the board of directors
be elected on the basis of one vote for each member company of the Fund. If
more than one company of a group of wholly owned or controlled companies is a
member company of the Fund only one vote will be allowed for the entire
group. The members of the board of directors shall be elected by member companies
subject to the approval of the Director. Vacancies on the board of
directors shall be filled for the remaining period of the term by the board
of directors, subject to the approval of the
Director.(b) In approving elections to the board of directors, the Director shall consider
among other things whether all member companies are fairly represented.(c) Members of the board of directors shall receive no compensation, but may be
reimbursed from the assets of the Fund for expenses incurred by them as
members of the board of directors.
(Source: P.A. 98-202, eff. 1-1-14.) (215 ILCS 5/537) (from Ch. 73, par. 1065.87)Sec. 537. 
		
		Duties
and obligations of the Fund.
The Fund shall have the duties and obligations enumerated in Sections
537.1 through 537.9.
		(Source: P.A. 82-210.) (215 ILCS 5/537.1) (from Ch. 73, par. 1065.87-1)Sec. 537.1. 
		
		The Fund may provide for an equal annual fee of all member
companies on a non-pro rata basis to provide for contingent expenses of the
Fund. This fee may not exceed $500 per member company for any one calendar year.
		(Source: P.A. 85-576.) (215 ILCS 5/537.2) (from Ch. 73, par. 1065.87-2)Sec. 537.2. Obligation of Fund. The Fund shall be obligated to the
extent of the covered
claims existing prior to the entry of an Order of Liquidation against
an insolvent company and arising within
30 days after the entry of such
Order, or before the policy expiration date if less than 30 days after
the entry of such Order, or before the insured replaces the policy or on
request effects cancellation, if he does so within 30 days after the entry
of such Order. If the entry of an Order of Liquidation occurs on or after
October 1, 1975 and before October 1, 1977, such obligations shall not:
(i) exceed $100,000, or (ii)
include any obligation to refund the first $100 of any unearned premium
claim; and if the entry of an Order of Liquidation occurs on or after October
1, 1977 and before January 1, 1988, such obligations shall
not: (i) exceed
$150,000, except that this limitation shall not apply to any workers compensation
claims, or (ii)
include any obligation to refund the first
$100 of any unearned premium claim; and if the entry of an Order of
Liquidation occurs on or after January 1, 1988 and before January 1, 2011, such obligations shall not:
(i) exceed $300,000, except that this limitation shall not apply to any
workers compensation claims, or (ii) include any obligation to refund the
first $100 of any unearned premium claim or to refund any unearned premium
over $10,000 under any one policy. If the entry of an Order of Liquidation occurs on or after January 1, 2011, then such obligations shall not: (i) exceed $500,000, except that this limitation shall not apply to any workers compensation claims or (ii) include any obligation to refund the first $100 of any unearned premium claim or refund any unearned premium over $10,000 under any one policy. In no event shall the Fund be
obligated to a policyholder or claimant in an amount in excess
of the face amount of the policy from which the claim arises. For purposes of this Act, obligations arising under an insurance policy written to indemnify a permissibly self-insured employer under subsection (a) of Section 4 of the Workers' Compensation Act for its liability to pay workers' compensation benefits in excess of a specific or aggregate retention shall be subject to the applicable per-claim limits set forth in this Section.In no event
shall the Fund be liable for any interest on
any
judgment entered against the insured or the insolvent company, or for any
other
interest claim against the insured or the insolvent company, regardless of
whether the insolvent company would have been obligated to pay such interest
under the terms of its policy.  The Fund shall be liable for interest at the
statutory rate on money judgments entered against the Fund until the judgment
is satisfied.Any obligation of the Fund to defend an insured shall cease upon the
Fund's payment or tender of an amount equal to the lesser of the Fund's
covered claim obligation limit or the applicable policy limit.
(Source: P.A. 99-368, eff. 8-14-15.) (215 ILCS 5/537.3) (from Ch. 73, par. 1065.87-3)Sec. 537.3. 
		Access to insolvent company records.The liquidator of an insolvent company shall
permit access by the Fund or its authorized
representatives, and by any similar organization in another state or its
authorized representatives, to such of the
insolvent company's records which are necessary for the
Fund or such similar organization in carrying
out its functions under this Article or similar laws in other states
with regard to covered claims. In
addition, the liquidator shall provide the Fund or its representative, or
such similar organization, with
copies of such records upon the request
and at the expense of
the Fund or such similar organization.
		(Source: P.A. 85-576.) (215 ILCS 5/537.4) (from Ch. 73, par. 1065.87-4)Sec. 537.4. Fund assumes obligations of insolvent companies. The Fund
shall be deemed the insolvent company to the extent
of the Fund's obligation for covered claims and to such extent
shall have all
rights, duties, and obligations of the insolvent company, subject to the
limitations provided in this Article, as if the company had not become
insolvent, with the
exception that the liquidator shall retain the sole right
to recover any reinsurance proceeds.
The Fund's rights under this Section include, but are not limited to, the
right to pursue and retain salvage and subrogation recoveries on paid covered
claim obligations to the extent paid by the Fund. The extent of the Fund's subrogation rights and any other rights of reimbursement with respect to its covered claims payments shall not be limited as if the Fund were the insolvent company, but shall be determined independently by taking into account the Fund's rights under Section 546 of this Article. 
(Source: P.A. 99-387, eff. 8-17-15.) (215 ILCS 5/537.6) (from Ch. 73, par. 1065.87-6)Sec. 537.6. Allocation of claims; assessments. The Fund shall allocate
covered claims paid and expenses
incurred between the accounts established by Section 535 separately, and
assess member companies separately for each
account amounts necessary to pay the obligations of the Fund under
Section 537.2 subsequent to the entry of an Order of Liquidation against
an insolvent company, the expenses of handling
covered claims subsequent to such Order of Liquidation and other expenses
authorized by this
Article. The assessments of each member company shall be in the proportion that
the net direct written premiums of the member company for the calendar
year immediately preceding the year in which the assessment is levied on
the kinds of insurance in the account bears to the net direct written
premiums of all member companies for such preceding calendar year on the
kinds of insurance in the account.  Each member company shall be notified
of the assessment not later than 30 days before it is due. Before January 1,
2002, no member
company may be assessed in any year on any account an amount greater
than 1% of that member company's net direct written premiums
on the kinds of insurance in the account for the calendar
year preceding the assessment.  Beginning January 1, 2002, the amount a
member company may be assessed in any year on any account shall be a maximum of
2% of that member company's net direct written premium on the kinds of
insurance in the account for the calendar year preceding the assessment.  This
2% maximum shall apply regardless of the date of any insolvency that gives rise
to the need for the assessment.  If the
maximum assessment, together with the other assets of the Fund in any
account, does not provide, in any one year, in any account, an amount
sufficient to make all necessary payments from that account, the funds
available shall be paid in the manner determined by the Fund and
approved by the Director and the unpaid portion shall be paid as
soon thereafter as funds become available. If requested by a member
company, the Director may exempt or defer the assessment of any member
company, if the assessment would cause the member company's financial
impairment.In addition to the other assessment authority provided in this Section, the board of directors shall also have the assessment authority to pay off a loan as provided in Section 538.3.  If a loan is projected to be outstanding for 3 years or more, then the board of directors shall have the authority to increase the assessment to 3% of the net direct written premiums for the previous year until the loan has been paid in full. (Source: P.A. 101-60, eff. 7-12-19.) (215 ILCS 5/537.7) (from Ch. 73, par. 1065.87-7)Sec. 537.7. Investigation of claims; disposition.(a) The Fund shall investigate claims brought against the
Fund and adjust, compromise, settle, and pay covered claims to the extent of
the Fund's
obligation and deny all other claims.(b) The Fund shall not be bound by a settlement, release, compromise,
waiver, or final judgment executed or entered within 12 months prior to an
order of liquidation and shall have the right to assert all defenses available
to the Fund including, but not limited to, defenses applicable to determining
and enforcing its statutory rights and obligations to any claim.  The Fund
shall be bound by a settlement, release, compromise, waiver, or final judgment
executed or entered more than 12 months prior to an order of liquidation,
but only 
if the
claim is a covered claim and the settlement, release, compromise, waiver, or final judgment was not a result of
fraud, collusion, default, or failure to defend.  In addition, with respect to
covered
claims arising from a judgment under a decision, verdict, or finding based on
the default of the insolvent insurer or its failure to defend, upon application
by the Fund, either on its own behalf or on behalf of an insured, the court
shall set aside the judgment, order, decision, verdict,
or finding, and the Fund shall be permitted to defend against the claim on the
merits. The same criteria determining whether the Fund will be bound, as specified in this subsection (b), shall apply to any settlement, release, compromise, waiver, or final judgment entered into by a high net worth insured before the date on which claims by or against that insured became non-exempt for reasons specified in paragraph (iv) of subsection (b) of Section 534.3.(c) The Fund shall have the right to appoint or
approve and to direct legal counsel
retained under liability insurance policies for the defense
of covered claims.
(Source: P.A. 101-60, eff. 7-12-19.) (215 ILCS 5/537.9) (from Ch. 73, par. 1065.87-9)Sec. 537.9. 
		
		The Fund shall handle claims through its employees or
through one or more companies or other persons employed as servicing facilities.
		(Source: P.A. 85-576.) (215 ILCS 5/538) (from Ch. 73, par. 1065.88)Sec. 538. Powers
of the Fund. The Fund shall have the powers enumerated in the Sections following this Section and preceding Section 539.
(Source: P.A. 102-396, eff. 8-16-21.) (215 ILCS 5/538.1) (from Ch. 73, par. 1065.88-1)Sec. 538.1. 
		
		The Fund may appear in, defend and appeal any action on a claim brought
against it on a covered claim.
		(Source: P.A. 77-305.) (215 ILCS 5/538.2) (from Ch. 73, par. 1065.88-2)Sec. 538.2. 
		
		The Fund may employ or retain such persons as are necessary to handle
claims and perform other duties of the Fund.
		(Source: P.A. 77-305.) (215 ILCS 5/538.3) (from Ch. 73, par. 1065.88-3)Sec. 538.3. 
The Fund may borrow an amount of money necessary to effect the purposes
of this Article in accord with the plan of operation. The board of directors shall have the authority to pledge all or an appropriate portion of future assessments as necessary to secure a loan that may be needed to pay covered claims.  Until all loans secured by assessments are fully satisfied, the board of directors shall assess the maximum allowable under Section 537.6. 
(Source: P.A. 101-60, eff. 7-12-19.) (215 ILCS 5/538.4) (from Ch. 73, par. 1065.88-4)Sec. 538.4. Legal actions by Fund. The Fund may sue or be sued, including, but not limited to, taking any legal actions necessary
or proper for recovery of: (i) any unpaid assessments under Section 537.1 or 537.6; (ii) any amounts due to the Fund for salvage and subrogation under Section 537.4 or from insurers described in subsection (a) of Section 546; or (iii) any amounts due from an insured pursuant to subsections (a) and (d) of Section 545.
The Fund's power to sue includes, but is not limited to, the
power and right to
intervene as a party before any court that has jurisdiction over an insolvent
insurer when the Fund is a creditor or potential creditor of the insolvent
insurer.
(Source: P.A. 101-60, eff. 7-12-19.) (215 ILCS 5/538.5) (from Ch. 73, par. 1065.88-5)Sec. 538.5. 
		
		The Fund may negotiate and become a party to such contracts as are
necessary to carry out the purposes of this Article.
		(Source: P.A. 82-210.) (215 ILCS 5/538.7) (from Ch. 73, par. 1065.88-7)Sec. 538.7. 
(a) The Fund may perform such other acts as are necessary or proper to
effectuate the purposes of this Article.(b)   The Fund may contract with the Office of Special Deputy Receiver or any other person or organizations authorized by law to carry out the duties of the Director in her or his capacity as a receiver under Article XIII of this Code.  The power of the Fund to contract with these persons or entities includes, but is not limited to, providing consulting services and claims administration services that assist with these persons or entities in the performance of their respective statutory and legal functions provided by law.  The Fund may only exercise the authority to contract pursuant to this subsection upon the board of director's written determination that the provisioning of such services will advance the purposes set forth in Section 532. Any contract the Fund may enter into to provide services pursuant to this subsection shall be subordinate and subject to the Fund's statutory obligations to timely pay covered claims and avoid financial loss to claimants or policyholders described in this Article.This subsection (b) is inoperative 5 years after the effective date of this amendatory Act of the 102nd General Assembly. (Source: P.A. 102-396, eff. 8-16-21.) (215 ILCS 5/538.8) (from Ch. 73, par. 1065.88-8)Sec. 538.8. 
		
		(a) If, at any time, the board of directors finds
that the assets of the Fund in any account exceed the liabilities and
expected costs and expenses of that account, the Fund may refund that amount of assets
of the account which exceed such liabilities, expenses and costs to the
member companies in such a manner as is determined by the board of
directors.(b) If, at any time, the Fund receives monies as reimbursement from
the estate of an insolvent company, the Fund shall distribute those monies
in accordance with the procedures established in the plan of operation.
		(Source: P.A. 85-576.) (215 ILCS 5/538.9)Sec. 538.9. Action regarding insolvent company records.(a) In this Section, "claims information" includes files, records, and electronic data.(b) The Fund may bring an action against any third-party administrator, agent, attorney, or other representative of the insolvent insurer to obtain custody and control of all claims information related to an insolvent company that are appropriate or necessary for the Fund or a similar association in other states to carry out its duties under this Article. In such an action, the Fund shall have the absolute right through emergency equitable relief to obtain custody and control of such claims information in possession of such third-party administrator, agent, attorney or other representative of the insolvent insurer, regardless of where that claims information may be physically located. In bringing an action under this Section, the Fund shall not be subject to any defense, lien (possessory or otherwise), or other legal or equitable ground whatsoever for refusal to surrender such claims information that might be asserted against the liquidator of the insolvent insurers. To the extent that litigation is required for the Fund to obtain custody and control of the claims information requested and it results in the relinquishment of claims information to the Fund after refusal to provide that information in response to a written demand, the court shall award the Fund its costs, expenses, and reasonable attorney's fees incurred in bringing the action. This Section shall have the same effect on the rights and remedies that the custodian of such claims information may have against the insolvent insurers, so long as these rights and remedies do not conflict with the rights of the Fund to custody and control of the claims information under this Article. 
(Source: P.A. 101-60, eff. 7-12-19.) (215 ILCS 5/539) (from Ch. 73, par. 1065.89)Sec. 539. 
		Plan of operation. 
		(a) The Fund shall submit to the Director
a plan of operation and any
amendments thereto necessary or suitable to assure the fair, reasonable,
and equitable administration of the Fund. The plan of operation and any
amendments thereto shall become effective upon approval in writing by the
Director.(b) If the Fund fails to submit a suitable plan of operation within 90
days following the effective date of this Article or if at any time
thereafter the Fund fails to submit suitable amendments to the plan of operation, the
Director shall, after notice and hearing pursuant to Sections 401, 402 and
403 of this Code, adopt and promulgate
such reasonable
rules as are necessary or advisable to effectuate the provisions of this
Article. Such rules shall continue in force until modified by the Director
or superseded by a plan of operation submitted by the Fund and approved
by the Director.(c) All member companies must comply with the plan of operation.
		(Source: P.A. 82-210.) (215 ILCS 5/540) (from Ch. 73, par. 1065.90)Sec. 540. 
		
		
		The plan of operation shall do the following as enumerated in Sections
540.1 through 540.9.
		(Source: P.A. 77-305.) (215 ILCS 5/540.1) (from Ch. 73, par. 1065.90-1)Sec. 540.1. 
		
		The plan of operation shall establish the procedures whereby all the
powers and duties of the Fund under Sections 537.1 through 537.9 will be
performed.
		(Source: P.A. 82-210.) (215 ILCS 5/540.2) (from Ch. 73, par. 1065.90-2)Sec. 540.2. 
		
		The plan of operation shall establish procedures for handling
assets of the Fund.
		(Source: P.A. 77-305.) (215 ILCS 5/540.3) (from Ch. 73, par. 1065.90-3)Sec. 540.3. 
		
		The plan of operation shall establish the amount and method of
reimbursing members of the board of directors under subsection (c) of Section 536.
		(Source: P.A. 82-210.) (215 ILCS 5/540.5) (from Ch. 73, par. 1065.90-5)Sec. 540.5. 
		
		(a) A covered claim, for other than unearned premium, is a claim
which appears on the books and records of the insolvent company as of the
date of the Order of Liquidation or a claim for which notice is given
in writing to the liquidator of the insolvent company's domiciliary state
or to an ancillary receiver in this State, if any, or to the Fund or its
agents prior to the earlier of the last date fixed for the timely
filing of proofs of claim
in the domiciliary liquidation proceedings or 18 months after the entry
of the order of liquidation.  The liquidator or ancillary
receiver in this State, if any, shall periodically submit a list of claims
to the Fund or similar organization in another state.(b) The Fund shall establish procedures by which
unearned premium claims are to be determined and paid as covered claims.
		(Source: P.A. 85-576.) (215 ILCS 5/540.6) (from Ch. 73, par. 1065.90-6)Sec. 540.6. 
		
		The plan of operation shall provide that any member company aggrieved by
any final action or decision of the Fund may appeal to the Director within
30 days after the action or decision.
		(Source: P.A. 77-305.) (215 ILCS 5/540.7) (from Ch. 73, par. 1065.90-7)Sec. 540.7. 
		
		The plan of operation shall establish the procedures whereby selections
for the board of directors will be submitted to the Director.
		(Source: P.A. 77-305.) (215 ILCS 5/540.8) (from Ch. 73, par. 1065.90-8)Sec. 540.8. 
		
		The plan of operation shall establish the procedures for
disposition of monies reimbursed from the estate of the insolvent company.
		(Source: P.A. 85-576.) (215 ILCS 5/540.9) (from Ch. 73, par. 1065.90-9)Sec. 540.9. 
		
		
		The plan of operation may contain additional provisions necessary or
proper for the execution of the powers, duties and obligations of the Fund.
		(Source: P.A. 77-305.) (215 ILCS 5/541) (from Ch. 73, par. 1065.91)Sec. 541. 
		
		The plan of operation may provide that any or all powers and duties
of the Fund, except those under Sections 537.6 and 538.3 may be
delegated to a corporation, association, or other organization which
performs or will perform functions similar to those of this Fund, or its
equivalent, in 2 or more states.
A delegation under this Section shall take effect only with
the approval of both the board of directors and the Director, and may be
made only to a corporation, association, or organization which extends
protection not substantially less favorable and effective than that
provided by this Article.
		(Source: P.A. 80-827.) (215 ILCS 5/543) (from Ch. 73, par. 1065.93)Sec. 543. 
		
		Duties
and obligations of the Director.The Director shall have the duties and obligations enumerated in
Sections 543.1 through 543.3.
		(Source: P.A. 77-305.) (215 ILCS 5/543.1) (from Ch. 73, par. 1065.93-1)Sec. 543.1. 
		
		The Director shall serve a copy of the complaint seeking an
Order of Liquidation with a finding of insolvency against a domestic member
company on the Fund at the same time that such complaint is filed with the circuit court
or shall forward to the Fund notice of the filing of such a complaint
against a foreign or alien member company promptly upon receipt thereof.
The Director also shall serve on the Fund a copy of an Order of
Liquidation with a finding of insolvency against a domestic member company
immediately after it is entered by the circuit court or shall forward to
the Fund a copy of such order against a foreign or alien member company
promptly upon receipt thereof.
		(Source: P.A. 85-576.) (215 ILCS 5/543.2) (from Ch. 73, par. 1065.93-2)Sec. 543.2. 
		
		The Director shall, upon request of the board of directors, provide the
Fund with a statement of the net direct written premiums of each member
company for the preceding calendar year for which annual statements have
been filed with the Director.
		(Source: P.A. 77-305.) (215 ILCS 5/543.3) (from Ch. 73, par. 1065.93-3)Sec. 543.3. 
		
		The liquidator of an insolvent company shall notify the
policyholders of the insolvent company who are residents
of this State of the entry of an Order of Liquidation against the company
and of their rights under this
Article. Such notification shall be mailed to the last known
address of such policyholders,
where available, but if sufficient information for notification by mail is
not available, notice by publication in a newspaper of general circulation
shall be sufficient.  If the insolvent company is domiciled in another
state and the liquidator fails to give notice which satisfies the purposes
of this Section, such notice shall be given by the Director as ancillary
receiver or if the insolvent company is domiciled in another state and there
is no ancillary receiver in this State, the Fund shall give such notice
provided the necessary information is made available to the Fund by the liquidator.
The form of the notice given by the Director as either liquidator or ancillary
receiver shall be submitted to the Fund for its approval prior to mailing
or publication.
		(Source: P.A. 85-576.) (215 ILCS 5/544) (from Ch. 73, par. 1065.94)Sec. 544. 
		Powers of the Director. 
		The Director shall either (a) suspend or revoke, after notice
and hearing pursuant to Sections 401, 402 and 403 of this Code, the
certificate of authority to do business in this State of any member company
which fails to pay an assessment when due or fails to comply with the plan
of operation, or (b) levy a fine on any member
company which fails to pay an assessment when due. Such fine shall not
exceed 5% per month of the unpaid assessment, except that no fine shall be
less than $200 per month.
		(Source: P.A. 93-32, eff. 7-1-03.) (215 ILCS 5/545) (from Ch. 73, par. 1065.95)Sec. 545. Effect of paid claims.(a) Every insured or claimant seeking the
protection of this Article shall cooperate with the Fund to the same
extent as such person would have been required to cooperate with the
insolvent company. The Fund shall have all the rights, duties and
obligations under the policy to the extent of the covered claim payment,
provided the Fund shall have no cause of action against the
insured of the insolvent company for any sums it has paid out except
such causes of action as the insolvent company would have had if such
sums had been paid by the insolvent company and except as provided in
subsection (d) of this Section. Any person recovering under this Article and any insured whose liabilities are satisfied under this Article shall be deemed to have assigned the person's or insured's rights under the policy to the Fund to the extent of his or her recovery or satisfaction obtained from the Fund's payments.(b) The Fund and any similar organization in another state shall be
recognized as claimants in the liquidation of an insolvent company for any
amounts paid by them on covered claims obligations as determined under this
Article or similar laws in other states and shall receive dividends at the
priority set forth in paragraph (d) of subsection (1) of Section
205 of this
Code; provided that if, at the time that the liquidator issues a cut-off notice to the Fund in anticipation of closing the estate, a reserve has been established by the Fund, or any similar organization in another state, for the amount of their future administrative expenses and loss development associated with unpaid reported pending claims, these reserves will be deemed to have been paid as of the date of the notice and payment shall be made accordingly.
 The liquidator of an insolvent company shall be bound by
determinations of covered claim eligibility under the Act and by settlements
of claims made by
the Fund or a similar organization in
another state on the receipt of certification of such payments, to the extent
those
determinations or settlements satisfy obligations of the Fund, but the receiver
shall not be bound in any way by those determinations or settlements to the
extent that there remains a claim in the estate for amounts in excess of the
payments by the Fund.
In submitting their claim for covered claim payments the Fund and any
similar organization in another state shall not be subject to the
requirements of Sections 208 and 209 of this Code and shall not be affected
by the failure of the person receiving a covered claim payment to file a proof
of claim.(c) The expenses of the Fund and of any similar
organization in any other state, other than expenses incurred in the
performance of
duties under Section 547 or similar duties under the
statute governing a similar organization in another state, shall
be accorded priority over all claims
against the estate, except as provided for in paragraph (a) of subsection (1) of
Section 205 of this Code.  The liquidator shall make prompt reimbursement
to the Fund and any similar organization for such expense payments.(d) The Fund has the right to recover from the following persons the amount
of any covered claims (as determined without regard to the exemption in paragraph (iv) of subsection (b) of Section 534.3) and allocated claims expenses which the Fund paid or
incurred on behalf of such person in satisfaction, in whole or in part, of
liability obligations of such person to any other person:(i) any insured whose net worth on December 31 of the     year next preceding the date the company becomes an insolvent company exceeds $25,000,000; provided that an insured's net worth on such date shall be deemed to include the aggregate net worth of the insured and all of its affiliates as calculated on a consolidated basis.(ii) any insured who is an affiliate of the insolvent     company.The Fund may also, at its sole discretion and without assumption of any ongoing duty to do so, pay any workers compensation claims or any other third-party claims covered by a policy of an insolvent company on behalf of a high net worth insured as defined in paragraph (iv) of subsection (b) of Section 534.3. In that case, the Fund shall recover from the high net worth insured under this Section for all amounts paid on its behalf, all allocated claim adjusted expenses related to such claims, the Fund's attorney's fees, and all court costs in any action necessary to collect the full amount to the Fund's reimbursement under this Section. (Source: P.A. 100-410, eff. 8-25-17; 101-60, eff. 7-12-19.) (215 ILCS 5/546) (from Ch. 73, par. 1065.96)Sec. 546. Other insurance.(a) An insured or claimant shall be required first to exhaust all
coverage provided by any other insurance policy, regardless of whether or not
such other insurance policy was written by a member company, if the claim under
such other policy arises from the same facts, injury, or loss that gave rise to
the covered claim against the Fund.  The Fund's obligation under Section 537.2
shall be reduced by the amount recovered or recoverable, whichever is greater,
under such other insurance policy.  Where such other insurance policy provides
uninsured
or underinsured motorist coverage, the amount recoverable shall be deemed to be
the full applicable limits of such coverage.  To the extent that the Fund's
obligation under Section 537.2 is reduced by application of this Section, the
liability of the person insured by the insolvent insurer's policy for the claim
shall be reduced in the same amount. If the Fund pays a covered claim without the exhaustion of all other coverage that could have been exhausted under this Section, the Fund shall have an independent right of recovery against each insurer whose coverage was not exhausted in the amount the Fund would not have had to pay if that insurer's coverage had been exhausted first.(b) Any insured or claimant having a claim which may be recovered under more
than one insurance guaranty fund or its equivalent shall seek recovery
first from the Fund of the place of residence of the insured except that
if it is a first party claim for damage to property with a permanent
location, he shall first seek recovery from the Fund of the location of
the property; if it is a workers' compensation claim, he shall first
seek recovery from the Fund of the residence of the claimant. Any
recovery under this Article shall be reduced by the amount of the
recovery from any other insurance guaranty fund or its equivalent.
(Source: P.A. 99-387, eff. 8-17-15.) (215 ILCS 5/547) (from Ch. 73, par. 1065.97)Sec. 547. Prevention of insolvencies. To aid in the detection and prevention of company insolvencies:(a) The board of directors may, upon majority vote,     make recommendations to the Director on matters pertaining to regulation for solvency.(b) The board of directors may prepare a report on     the history and causes of any company insolvency in which the Fund was obligated to pay covered claims, based on the information available to the Fund, and submit such report to the Director.(c) The Director may disclose to the Fund the     information described in subsection (g) of Section 132.5 as well as the information described in subsection (c) of Section 131.22, and the Fund may use that information to prepare for the possible liquidation of a member company subject to the requirements and restrictions set forth in Section 132.5. (Source: P.A. 102-929, eff. 5-27-22.) (215 ILCS 5/548) (from Ch. 73, par. 1065.98)Sec. 548. Examination of the Fund. The Fund shall be subject to examination and regulation by the Director.
The board of directors shall, not later than April 30 of each year, submit
a financial report for the preceding calendar year in a form approved by
the Director.
(Source: P.A. 99-388, eff. 1-1-16.) (215 ILCS 5/549) (from Ch. 73, par. 1065.99)Sec. 549. 
		
		Tax
exemption.The Fund shall be exempt from payment of all fees and all taxes levied
by this State or any of its subdivisions.
		(Source: P.A. 77-305.) (215 ILCS 5/550) (from Ch. 73, par. 1065.100)Sec. 550. 
		Immunity.There shall be no liability on the part of and no cause of action of any
nature shall arise against any member company, the Fund or their agents or
employees, the board of directors, or the Director or his representatives
for any action taken or omitted by them in the performance of their powers
and duties under this Article.
		(Source: P.A. 77-305.) (215 ILCS 5/551) (from Ch. 73, par. 1065.101)Sec. 551. 
		Stay of proceedings. 
		All proceedings arising out of a claim under a policy of insurance written by
an insolvent company shall be stayed for 120 days from the date of the entry of
the Order of Liquidation to permit proper defense by the Fund of all such
pending causes of action. 
		(Source: P.A. 92-77, eff. 7-12-01.) (215 ILCS 5/552) (from Ch. 73, par. 1065.102)Sec. 552. 
		
		All provisions of this Article shall be interpreted in
accordance with and pursuant to those Sections of Article XIII of this Code
which may be applicable.
		(Source: P.A. 85-576.) (215 ILCS 5/553) (from Ch. 73, par. 1065.103)Sec. 553. 
		Severability.If any provision of this Article or the application thereof to any
claimant, company or circumstance is held invalid, such invalidity does not
affect other provisions or applications of this Article which can be given
effect without the invalid application or provision, and to this end the
provisions of this Article are declared to be severable.
		(Source: P.A. 77-305.)
(215 ILCS 5/Art. XXXIX heading) ARTICLE XXXIX.  
		GROUP LEGAL EXPENSE INSURANCE (215 ILCS 5/900) (from Ch. 73, par. 1065.600)Sec. 900. 
		Group legal expense defined. 
		Group legal expense insurance
means that form of legal expense insurance covering not less than 10 employees,
members, or employees of members, written under a master policy issued to
any governmental corporation, unit, agency or department thereof, or to
any corporation, copartnership, individual employer, or to any association
upon application of an executive officer or trustee of such association
having a constitution or bylaws and formed in good faith for purposes other
than that of obtaining insurance, where officers, members, employees, employees
of members or classes or departments thereof may be insured for their individual
benefit.  In addition, a group legal expense policy may be written to insure
any group which may be insured under a group life insurance policy.  The
term "employees" includes the officers, managers and employees or subsidiary
or affiliated corporations, and the individual proprietors, partners, and
employees of affiliated individuals and firms, when the business of such
subsidiary or affiliated corporations, firms or individuals is controlled
by a common employer through stock ownership, contract or otherwise.
		(Source: P.A. 81-1361.) (215 ILCS 5/901) (from Ch. 73, par. 1065.601)Sec. 901. 
		
		Group legal expense insurance authorized.)  Any insurance company
authorized to write legal expense insurance in this State shall have the
power to issue group legal expense insurance policies.  No policy,
certificate, endorsement, rider, or application which becomes or is designed
to become a part of any such policy of group legal expense insurance may
be issued or delivered in this State unless a copy of the form shall have
been filed with the Director of Insurance in accordance with Section 143
of this Code.  Such policy, certificate, endorsement, rider, or application
must contain those provisions required by Sections 902 through 906
of the Code.
No such policy, certificate, endorsement, application or rider
shall contain any provision which would interfere with the freedom of choice
by the insured in the selection
of attorneys except that the insurer
may select and contract with attorneys to verify plan coverage and to provide
the insureds with legal services which consist of initial advice and consultation.
Nothing herein shall prevent an insured, after plan coverage has been verified,
from choosing to go directly to his or her own attorney of choice for initial
advice and consultation, subject to applicable policy limitations.
Every such policy, certificate, endorsement, application or rider shall
prominently display language advising the insured of such freedom of choice
by the insured in the selection of attorneys
and that no company issuing such policy, certificate, endorsement, application
or rider may require, suggest or recommend the use of any attorney
or firm of attorneys, provided, however, that dissemination by an insurer
of the names of attorneys who have agreed to accept legal expense insurance
benefits as payment for certain legal services shall not constitute a requirement,
suggestion or recommendation of the use of any attorney or firm of attorneys.
The foregoing shall not prohibit referral of insured by the insurer to
any lawyer referral service authorized or operated by a state, county, local
or other bar association.
Any insurance company issuing such policies shall in no way interfere with
the attorney-client relationship nor with the independent exercise of professional
judgment by any attorney.
		(Source: P.A. 83-774.) (215 ILCS 5/902) (from Ch. 73, par. 1065.602)Sec. 902. Entire contract specified.  Each group legal expense insurance
policy shall provide that the policy, the application of the employer, or
executive officer or trustee of any association, and the individual applications,
if any, of the employees, members or employees of members insured shall
constitute the entire contract between the parties, and that all statements
made by the employer, or the executive officer or trustee, or by the individual
employees, members or employees of members shall, in the absence of fraud,
be deemed representations and not warranties, and that no such statement
shall be used in defense to a claim under the policy, unless it is contained
in a written application.
(Source: P.A. 99-642, eff. 7-28-16.) (215 ILCS 5/903) (from Ch. 73, par. 1065.603)Sec. 903. 
		
		Certificates Required.)  Each group legal expense insurance
policy shall provide that the insurer shall issue to the employer, or to
the executive officer or trustee of the association, for delivery to the
employee, member or employee of a member, who is insured under such policy,
an individual certificate setting forth a statement as to the insurance
protection to which he or she is entitled and to whom payable, if appropriate.
		(Source: P.A. 81-1361.) (215 ILCS 5/904) (from Ch. 73, par. 1065.604)Sec. 904. 
		
		New Members of Group.)  Each group legal expense insurance policy
shall provide that to the group or class thereof originally insured
shall be added from time to time all new employees of the employer, members
of the association or employees of members eligible to and applying for
insurance in such group or class, but participation in the group plan shall
not be required as a condition of employment, nor shall any member not participating
in the plan be coerced or discriminated against.
		(Source: P.A. 81-1361.) (215 ILCS 5/905) (from Ch. 73, par. 1065.605)Sec. 905. 
		
		Conversion Rights.)  Each group legal expense insurance policy
shall provide that any member of the group shall have the right to convert
his group policy to an individual standard policy of insurance in the same
company as offered by the insurer to the non-group insureds upon termination
of his connection with the group extending to him or her the same limits of coverage.
		(Source: P.A. 81-1361.) (215 ILCS 5/906) (from Ch. 73, par. 1065.606)Sec. 906. 
		Cancellation Restricted. 
		An insurer may not cancel the coverage
of an individual member of a group to which the insurer provides coverage
under a group legal expense insurance policy except for the nonpayment of
premium by such member, or the group policyholder if premium is paid or
collected by it for transmittal to the insurer or unless the insurance for
the entire group is cancelled.  In the event of cancellation the insurer shall:(1) If it has in its actual possession the names and addresses of individual
members insured under such group legal expense insurance policy, deliver
to the individual member written notice of cancellation stating when, not
less than 30 days thereafter, such cancellation shall be effective provided,
however, that if such cancellation is the result of nonpayment of premium
by such member or the group policyholder, a notice of 10 days shall be sufficient.(2) In the event the insurer does not administer the group legal expense
insurance policy and is not in actual possession of the names and addresses
of individual members insured under such policy, the insurer shall deliver
to the employer or to the executive officer or trustee of the association for delivery
to the employee, member or employee of a member who is insured under such
policy individual notice of cancellation forms stating when, not less than
30 days thereafter, such cancellation shall be effective provided, however,
that if such cancellation is the result of nonpayment of premium a notice
of 10 days shall be sufficient.  The insurer shall not be required to furnish
notice of cancellation under this Section to the group policyholder when
an individual member's insurance is terminated by reason of nonpayment of
premium unless it has specific knowledge of the individual's failure to pay premium.Delivery shall be considered effective by the mailing of such notice if
subsection (1) above is applicable to the last address of the member as
shown on the records of the insurer, and under subsection (2) by the mailing
of such notice to the last address of the group policyholder as shown on
the records of the insurer.
		(Source: P.A. 81-1361.)
(215 ILCS 5/Art. XXXVIIIA heading) Article XXXVIIIA 
MINE SUBSIDENCE INSURANCE (215 ILCS 5/801.1)Sec. 801.1. 
		Purpose. 
		The purpose of this Article is to require insurers to
make mine subsidence insurance coverage available for residences, living units
and commercial buildings located in Illinois; to establish the Illinois Mine
Subsidence Insurance Fund; to divide the Fund into separate residential and
commercial sub-funds; and to make the Fund the reinsurer for the mine
subsidence insurance made available under this Article.
		(Source: P.A. 88-379.) (215 ILCS 5/802.1)Sec. 802.1. 
		Definitions. 
		As used in this Article:(a) "Commercial Building" means any building, other than a residence,
permanently affixed to realty located in Illinois, including basements,
footings, foundations, septic systems and underground pipes directly servicing
the building, but does not include sidewalks, driveways, parking lots, living
units, land, trees, plants, crops or agricultural field drainage tile.(b) "Commercial Coverage" means mine subsidence insurance for a commercial
building.(c) "Insurer" or "Insurers" means insurance companies and reciprocals
licensed and authorized to write Class 3 policies of insurance, as defined in
this Code, within Illinois.(d) "Living Unit" shall mean that physical portion designated for separate
ownership or occupancy for residential purposes, of a building or group of
buildings, permanently affixed to realty located in Illinois, having elements
which are owned or used in common, including a condominium unit, a cooperative
unit or any other similar unit.(e) "Living Unit Coverage" means mine subsidence insurance for a living unit
covering the losses described in Section 805.1(d).(f) "Mine Subsidence" means lateral or vertical ground movement caused by a
failure initiated at the mine level, of man-made underground mines, including,
but not limited to coal mines, clay mines, limestone mines, and fluorspar mines
that directly damages residences or commercial buildings.  "Mine Subsidence"
does not include lateral or vertical ground movement caused by earthquake,
landslide, volcanic eruption, soil conditions, soil erosion, soil freezing and
thawing, improperly compacted soil, construction defects, roots of trees and
shrubs or collapse of storm and sewer drains and rapid transit tunnels.(g) "Mine Subsidence Insurance Fund" or "Fund" means the fund established by
this Article.(h) "Policy" or "policies" means any contract or contracts of insurance
providing the coverage of the Standard Fire Policy and Extended Coverage
Endorsement on any residence, living unit or commercial building.  It does not
include those
insurance contracts that are referred to as marine or inland marine policies.(i) "Premium" or "premiums" means the gross amount charged to policyholders
for the mine subsidence insurance made available under this Article.(j) "Rates" or "rate schedules" means the rates by which premiums shall be
computed for the mine subsidence insurance made available under this Article.(k) "Residence" means a building used principally for residential purposes
up
to and including a four family dwelling, permanently affixed to realty located
in Illinois, including appurtenant structures, driveways, sidewalks, basements,
footings, foundations, septic systems and underground pipes directly servicing
the dwelling or building, but does not include living units, land, trees,
plants, crops or agricultural field drainage tile.(l) "Residential Coverage" means mine subsidence insurance for a
residence.(m) "Intergovernmental cooperative" means an intergovernmental
cooperative organized pursuant to Article VII, Section 10 of the Illinois
Constitution and Section 6 of the Intergovernmental Cooperation Act.
		(Source: P.A. 90-499, eff. 8-19-97.) (215 ILCS 5/803.1)Sec. 803.1. Establishment of Fund.(a) There is established a fund to be known as the "Illinois Mine Subsidence
Insurance Fund".  The Fund shall operate pursuant to this Article.  The Fund is
authorized to transact business, provide services, enter into contracts and sue
or be sued in its own name.(b) The Fund shall provide reinsurance for mine subsidence losses to all
insurers writing mine subsidence insurance pursuant to this Article.(c) The monies in the Fund shall be derived from premiums for mine
subsidence
insurance collected on behalf of the Fund pursuant to this Article, from
investment income and from receipt of Federal or State funds.  No insurer shall
have any liability to the Fund or to any creditor of the Fund, except as may be
set forth in this Article, in the Articles of Governance which may be adopted
by the Fund, in a reinsurance agreement executed pursuant to Section 810.1,
in
the Plan of Operation established by the Fund, or in the rules and procedures
adopted by the Fund as authorized by the reinsurance agreement.(d) The Fund shall establish its rates, rating schedules, deductibles and
retentions, minimum premiums,

						classifications, and the maximum amount of reinsurance available per residence, commercial building, and living unit
						for mine subsidence insurance which the Fund shall file
with the Director.  The Director shall have 30 days from the
date of
receipt to approve or disapprove a rate filing.  If no action is taken by the
Director within 30 days, the rate is deemed to be approved.  The
Director
may, in writing, extend the period for an additional 30 days if
the
Director
determines that additional time is needed.(e) The Fund shall establish its rates, rating schedules, deductibles and
retentions, minimum premiums,
classifications, and the maximum amount of reinsurance available per residence, commercial building, and living unit in such a manner as to satisfy all reasonably foreseeable
claims and expenses the Fund is likely to incur.  The Fund shall give due
consideration to loss experience and relevant trends, premium and other income
and reasonable reserves established for contingencies in establishing the mine
subsidence rates.(f) The Fund shall compile and publish an annual operating report.(g) The Fund shall develop at least 2 consumer information publications to
aid the public in understanding mine subsidence and mine subsidence insurance
and shall establish a schedule for the distribution of the publications
pursuant
to the reinsurance agreement.  Topics that shall be addressed shall include but
are not limited to:(1) Descriptive information about mine subsidence,     and what benefits mine subsidence insurance provides to the property owner.(2) Information that will be useful to a policyholder     who has filed a mine subsidence claim, such as information that explains the claim investigation process and claim handling procedures.(h) The Fund shall be empowered to conduct research programs in an effort to
improve the administration of the mine subsidence insurance program and help
reduce and mitigate mine subsidence losses consistent with the public
interest.(i) The Fund may enter into reinsurance agreements with any
intergovernmental cooperative that provides joint self-insurance for mine
subsidence losses of its members.  These reinsurance agreements shall be
substantially similar to reinsurance agreements described in Section 810.1.
		(Source: P.A. 95-92, eff. 1-1-08; 95-334, eff. 1-1-08.) (215 ILCS 5/804.1)Sec. 804.1. 
		Management of the Fund.(a) The Fund shall be managed by an 11 member Board of Directors, 6 of whom
shall be insurance industry directors, 4 of whom shall be public
directors, and one of whom shall be an Illinois licensed
insurance producer. The industry
directors shall be elected annually in the manner provided in Articles of
Governance adopted by the Fund.  The public directors shall be appointed by the
Director, and shall not be employees of or otherwise affiliated with the
insurance industry.  The Illinois licensed insurance producer shall be
appointed by the Director.(b) The members of the Governing Committee of the Illinois Mine Subsidence
Insurance Fund established by Article XXXVIII who are members of the Governing
Committee as of December 31, 1993 shall become the members of the Board of
Directors of the Fund established by this Article on the effective date of this
Act, and shall continue to hold office until the next annual meeting of the
Fund.(c) No later than the date of the next annual meeting of the Fund following
the effective date of this Act, the Director shall appoint 4 public directors,
one for a one-year term, one for a two-year term and 2 for three-year
terms.
No later than the date of the next annual meeting of the Fund following the
effective date of this amendatory Act of 1994, the Director shall appoint the
Illinois licensed insurance producer for a 2-year term. Thereafter, all public
directors and the licensed insurance producer shall be appointed for 3 year terms.(d) As soon as practical after the effective date of this Act, the Fund
shall adopt Articles of Governance, which shall be submitted to the Director
for his review and approval.
		(Source: P.A. 88-379; 88-667, eff. 9-16-94; 89-206, eff. 7-21-95.) (215 ILCS 5/805.1)Sec. 805.1. Mine Subsidence Coverage.(a) Beginning January 1, 1994, every policy issued or renewed insuring a
residence on a direct basis shall include, at a separately stated premium,
residential coverage unless waived in writing by the insured.  Beginning
January 1, 1994, every policy issued or renewed insuring a commercial building
on a direct basis shall include at a separately stated premium, commercial
coverage unless waived in writing by the insured.  Beginning January 1, 1994,
every policy issued or renewed insuring a living unit on a direct basis shall
include, at a separately stated premium, living unit coverage unless waived in
writing by the insured.(b) If the insured has previously waived mine subsidence coverage in
writing,
the insurer or agent need not offer mine subsidence coverage in any renewal or
supplementary policy in connection with a policy previously issued to such
insured by the same insurer, unless the insured subsequently makes a written
request for mine subsidence coverage.(c) The premium charged for residential, commercial or living unit coverage
shall be the
premium level set by the Fund.  The loss covered shall be the loss in excess of
the deductible or retention established by the Fund and contained in a
mine subsidence endorsement to the policy.  For all policies issued or renewed on or after January 1, 2008, the reinsured loss per residence, per commercial building, and per living unit shall be the amounts established by the Fund and approved by the Director.

For all policies issued or renewed on or after January 1, 1996, the amount of
reinsurance available from the Fund shall not be less than $200,000 per
residence, $200,000 per commercial building, or $15,000 per living unit.  The
Fund may, from time to time, adjust the amount of reinsurance available as long
as the minimum set by this Section is met.(d) The residential coverage provided pursuant to this Article may also
cover
the additional living expenses reasonably and necessarily incurred by the owner
of a residence who has been temporarily displaced as the direct result of
damage to the residence caused by mine subsidence if the underlying policy also
covers this type of loss, provided however, that the loss covered under living
unit coverage shall be limited to losses to improvements
and betterments, and reimbursement of additional living expenses and
assessments made against the insured on account of mine subsidence loss.(e) The total amount of the loss reimbursable to an insurer shall be limited
to the amount of
insurance reinsured by the Fund in force at the time when the damage first
becomes reasonably observable.  All damage caused by a single mine subsidence
event or several subsidence events which are continuous shall constitute one
occurrence. As set forth in subsections (a) and (c) of this Section, a policy issued or renewed must provide coverage, unless waived in writing by the insured, and the insurer must continue to charge the premium level set for that coverage by the Fund. If mine subsidence coverage is in force when the mine subsidence damage first becomes reasonably observable, then the insurer shall notify the insured making the mine subsidence claim that continuation of that coverage thereafter may not be necessary and is optional, but that continued coverage on the damaged residence or commercial building shall terminate only upon written waiver by the insured. The notification shall be made within 60 days after the insurer receives written confirmation from the Fund that the cause of loss is active mine subsidence. The notification shall be in the form of a separate mailing to the insured from the insurer via the United States Postal Service and shall include notification to the insured that mine subsidence premiums paid for coverage on a damaged residence or commercial building subsequent to the established date of loss shall be refunded to the insured within 60 days after the insured provides a signed waiver of mine subsidence coverage to the insurer.  The notification shall be accompanied by a waiver of coverage form for the insured to sign and return to the insurer.(f) No insurer shall be required to offer mine subsidence coverage in
excess of the reinsured limits.
(Source: P.A. 98-1007, eff. 1-1-15.) (215 ILCS 5/806.1)Sec. 806.1. 
		
		Division of Fund Into Separate Residential and
Commercial Sub-funds.(a) Effective January 1, 1994, the Fund shall establish 2
separate
sub-funds, a Residential Fund to provide reinsurance for mine subsidence losses
arising from residential and living unit coverage and a Commercial Fund to
provide reinsurance for mine subsidence losses arising from commercial
coverage.  The assets and liabilities of the Fund shall be allocated to the two
sub-funds in such manner as determined by the Board of Directors, with the
approval of the Director.  The two sub-funds shall continue to be managed by
the Board of Directors.  Beginning January 1, 1994, all premiums received by
the Fund for residential coverage or living unit coverage shall be credited to
the Residential Fund, all losses and expenses for residential coverage or
living unit coverage shall be charged to the Residential Fund.  All premiums
received by the Fund for commercial coverage shall be credited to the
Commercial Fund, and all losses and expenses for commercial coverage shall be
charged to the Commercial Fund.  The Fund's overhead expenses shall be
allocated between the Residential Fund and the Commercial Fund on the basis of
annual written premium credited to each sub-fund.  The assets and liabilities
of
the Residential and Commercial Funds shall be accounted for
separately.  The assets of the Residential Fund shall not be used to reimburse
insurers for losses
for Commercial Coverage and the assets of the Commercial Fund shall not be used
to reimburse insurers for losses for residential coverage or living unit
coverage.(b) No insurer shall be required to pay any claim for any loss reinsured
under
this Article except to the extent that the amount available in the Residential
Fund or the Commercial Fund, as the case may be, is sufficient to reimburse the
insurer for such payment.
		(Source: P.A. 88-379; 89-206, eff. 7-21-95.) (215 ILCS 5/807.1)Sec. 807.1. 
		
		Exemption  of  Certain   Counties   by  the
Director.
The Director shall exempt every policy insuring residences, living units or
commercial buildings located in any county of 1,000,000 or more inhabitants or
any county contiguous to any such county, and, upon request of the Fund,
may exempt every policy insuring residences, living units or commercial
buildings located in any other specified county of this
State, from the provisions of Section 805.1 of this Article.
		(Source: P.A. 91-357, eff. 7-29-99.) (215 ILCS 5/808.1)Sec. 808.1. 
		
		Right of Insurers to Refuse to Provide Mine
Subsidence Coverage.
An insurer may refuse to provide mine subsidence coverage on a residence or
commercial building evidencing unrepaired mine subsidence damage until such
damage has been repaired.
		(Source: P.A. 88-379.) (215 ILCS 5/809.1)Sec. 809.1. 
		Arbitration. 
		In the event of a dispute between a policyholder and an insurer as to whether
a residence or commercial building covered by mine subsidence insurance has
been damaged by mine subsidence, a policyholder shall have the right to submit
that dispute to arbitration in accordance with this Section.  No policyholder
shall have the right under this Section to submit to arbitration any issue
regarding the amount of loss or damage caused to a residence or commercial
building by mine subsidence.Arbitration may be initiated only after the insurer has made a decision that
the residence or commercial building covered by mine subsidence insurance was
not damaged by mine subsidence and so notified the policyholder in writing,
accompanied by a notice informing the policyholder of the policyholder's right
to arbitration and containing specific reference to this Section.  Within 60
days after receipt by the policyholder of the notification, the policyholder
may initiate arbitration in accordance with the Commercial Arbitration Rules of
the American Arbitration Association, as then in effect.  All costs of the
arbitration shall be borne by the losing party.  Appeals from the decision of
the arbitrators shall be in accordance with the Uniform Arbitration Act as in
effect in Illinois.
		(Source: P.A. 88-379.) (215 ILCS 5/810.1)Sec. 810.1. 
		Reinsurance Agreements. 
		All insurers shall enter into a
reinsurance agreement with the Fund.   The reinsurance agreement shall be filed
with and approved by the
Director.  The agreement shall provide that each
insurer shall cede 100% of any subsidence insurance written up to the limits
contained in Section 805.1(c) to the Fund and, in
consideration of the ceding
commission retained by the insurer, agrees to distribute informational
publications provided by the Fund on a schedule set by the Fund, undertake
adjustment of losses, payment of taxes, and all other expenses of the insurer
necessary for sale of policies and administration of the mine subsidence
insurance coverage.  The Fund shall agree to reimburse the insurer for all
amounts reasonably and properly paid policyholders from claims resulting from
mine subsidence and for expenses specified in the reinsurance agreement.  In
addition, the reinsurance agreement may contain, and may authorize the Fund to
establish and promulgate deductibles.  The reinsurance agreement may also
contain reasonable rules and procedures covering
insurer documentation of losses; insurer reporting of claims, reports of
litigation, premiums and loss payments; loss payment review by the Fund;
remitting of premiums to the Fund; underwriting; and cause and origin
investigations; and procedures for
resolving disputes between the insurers and the Fund.
		(Source: P.A. 90-655, eff. 7-30-98; 91-357, eff. 7-29-99.) (215 ILCS 5/811.1)Sec. 811.1. 
		Distribution of Premiums. 
		The Fund is authorized to establish the proportion of total mine subsidence
insurance premiums collected by each insurer which shall be retained by the
insurer as a ceding commission, subject to review of the Director.  The
remainder of such premiums shall be remitted by the insurer to the Fund at
times to be determined by the Fund.  The ceding commission shall be uniform in
all reinsurance agreements entered into pursuant to Section 810.1 of this
Article
and shall be based on reasonable administrative costs to the insurers,
including agents' commissions.
		(Source: P.A. 88-379.) (215 ILCS 5/812.1)Sec. 812.1. 
		Claim Payments. 
		The Residential or the Commercial Fund, as the case may be, shall reimburse
insurers for all amounts due within 90 days after receiving adequate
documentation, as set forth in the reinsurance agreement, the Plan of Operation
or in the operating rules and procedures adopted by the Fund, that the insurer
has properly paid the claim and is entitled to reimbursement by the Fund,
subject to the limitations imposed by Section 806.1.
		(Source: P.A. 88-379.) (215 ILCS 5/813.1)Sec. 813.1. 
		Reporting Requirements. 
		Every insurer must report, at times designated by the Fund, such information
as is reasonably required by the Fund to conduct its affairs, establish claim
reserves, and reimburse insurers for losses paid to insureds.
		(Source: P.A. 88-379.) (215 ILCS 5/814.1)Sec. 814.1. 
		Right of Recourse.(a) The Fund shall have no right of recourse against the insurer, once the
Fund has reimbursed the insurer for any particular loss, unless the insurer has
failed to settle that loss in its customary manner, or in case of fraud by the
insurer.(b) The Fund may seek recovery against the policyholder for unjust
enrichment
if, in the Fund's judgment, the policyholder was not entitled to the amounts
paid because of fraud, or a material violation of the policy conditions.  The
insurer shall provide cooperation to the Fund.
		(Source: P.A. 88-379.) (215 ILCS 5/815.1)Sec. 815.1. 
		Subrogation.(a) All insurers issuing mine subsidence policies shall retain the right of
subrogation.(b) The Fund, on its own behalf, may exercise the right of subrogation.(c) Every insurer shall include in its reports an itemized list of all
losses
in subrogation and shall remit to the Fund all monies, less expenses, recovered
as the result of subrogation actions.
		(Source: P.A. 88-379.) (215 ILCS 5/817.1)Sec. 817.1. 
		Powers of Director. 
		In addition to any powers conferred upon
him by this or any other law, the Director shall have the authority to
supervise the operations of the Fund and shall review the Fund's rates once
every three years.  In addition the Director or any person designated by him
has the power:(a) to examine the operation of the Fund through free     access to all books, records, files, papers and documents relating to its operation and may summon, qualify and examine as witnesses all persons having knowledge of such operation, including officers, agents or employees thereof;(b) to do all things necessary to enable the State of     Illinois and any insurer participating in any program approved by the Director to fully participate in any federal program which may be enacted for purposes similar to the purposes of this Article;(c) to require such reports as the Director may deem     necessary.		(Source: P.A. 90-655, eff. 7-30-98.)
(215 ILCS 93/1)Sec. 1. 
		Short title. 
		This Act may be cited as the Small Employer Health Insurance Rating Act.
		(Source: P.A. 91-510, eff. 1-1-00.) (215 ILCS 93/5)Sec. 5. 
		Purpose. 
		The legislature recognizes that all too often, small
employers are forced to increase employee co-pays and deductibles or drop
health insurance coverage altogether because of unexpected rate increases as a
result of one major medical problem.  It is the intent of this Act to
improve the efficiency and fairness of the small group health insurance
marketplace.
		(Source: P.A. 91-510, eff. 1-1-00.) (215 ILCS 93/10)Sec. 10. 
		Definitions. 
		For purposes of this Act:"Actuarial certification" means a written statement by a member of the
American Academy of Actuaries or other individual acceptable to the Director
that a small employer carrier is in compliance with the provisions of Section
25 of this Act, based upon an examination which includes a review of the
appropriate records and of the actuarial assumptions and methods utilized by
the small employer carrier in establishing premium rates for the applicable
health benefit plans."Base premium rate" means for each class of business as to a rating period,
the lowest premium rate charged or which could be charged under a rating system
for that class of business by the small employer carrier to small employers
with similar case characteristics for health benefit plans with the same or
similar coverage."Carrier" means any entity which provides health insurance in this State.
For the purposes of this Act, carrier includes a licensed insurance company, a
prepaid hospital or medical service plan, a health maintenance organization,
 or any other entity providing a plan of
health insurance or health benefits subject to state insurance regulation."Case characteristics" means demographic, geographic or other objective
characteristics of a small employer, that are considered by the small employer
carrier, in the determination of premium rates for the small employer.  Claim
experience, health status, and duration of coverage shall not be
characteristics
for the purposes of the Small Employer Health Insurance Rating Act."Class of business" means all or a separate grouping of small employers
established pursuant to Section 20."Director" means the Director of Insurance."Department" means the Department of Insurance."Health benefit plan" or "plan" shall mean any hospital or medical
expense-incurred policy, hospital or medical service plan
contract, or health maintenance organization subscriber contract.  Health
benefit plan shall not include individual, accident-only, credit, dental,
vision, medicare supplement, hospital indemnity, long term care, specific
disease, stop loss or disability
income insurance,
coverage issued as a supplement to liability insurance, workers' compensation
or similar insurance, or automobile medical payment insurance."Index rate" means, for each class of business as to a rating period for
small employers with similar case characteristics, the arithmetic mean of
the applicable base premium rate and the corresponding highest premium rate."Late enrollee" has the meaning given that term in the Illinois Health
Insurance Portability and Accountability Act."New business premium rate" means, for each class of business as to a rating
period, the lowest premium rate charged or offered or which could have been
charged or offered by the small employer carrier to small employers with
similar case characteristics for newly issued health benefit plans with the
same or similar coverage."Objective characteristics" means measurable or observable phenomena.  An
example of a measurable characteristic would be the number of employees who
were late enrollees.  Examples of observable characteristics would be
geographic location of the employer or gender of the employee."Premium" means all monies paid by a small employer and eligible employees as
a condition of receiving coverage from a small employer carrier, including any
fees or other contributions associated with the health benefit plan."Rating period" means the calendar period for which premium rates established
by a small employer carrier are assumed to be in effect."Small employer" has the meaning given that term in the Illinois Health
Insurance Portability and Accountability Act."Small employer carrier" means a carrier that offers health benefit plans
covering employees of one or more small employers in this State.
		(Source: P.A. 91-510, eff. 1-1-00.) (215 ILCS 93/15)Sec. 15. 
		Applicability and scope. 
		This Act shall apply to each
health benefit plan for a small employer that is delivered, issued for
delivery, renewed, or continued in this State after July 1, 2000.  For
purposes of this Section, the date a plan is continued shall be the first
rating period which commences after July 1, 2000.  The Act shall apply to
any such health benefit plan which provides coverage to employees of a small
employer, except that the Act shall not apply to individual health insurance
policies.
		(Source: P.A. 91-510, eff. 1-1-00; 92-16, eff. 6-28-01.) (215 ILCS 93/20)Sec. 20. 
		Establishment of Class of Business.(a) A small employer carrier may establish a separate class of business only
to reflect substantial differences in expected claims experience or
administrative costs related to the following reasons:(1) the small employer carrier uses more than one     type of system for the marketing and sale of health benefit plans to small employers;(2) the small employer carrier has acquired a class     of business from another small employer carrier; or(3) the small employer carrier provides coverage to     one or more association groups.(b) A small employer carrier may establish up to 4 separate classes
of business under subsection (a).(c) The Director may approve the establishment of additional classes of
business upon application to the Director and a finding by the Director that
such action would enhance the efficiency and fairness of the small employer
marketplace.
		(Source: P.A. 91-510, eff. 1-1-00.) (215 ILCS 93/25)Sec. 25. 
		Premium Rates.(a) Premium rates for health benefit plans subject to this Act shall be
subject to all of the following provisions:(1) The index rate for a rating period for any class     of business shall not exceed the index rate for any other class of business by more than 20%.(2) For a class of business, the premium rates     charged during a rating period to small employers with similar case characteristics for the same or similar coverage, or the rates that could be charged to such employers under the rating system for that class of business, shall not vary from the index rate by more than 25% of the index rate.(3) The percentage increase in the premium rate     charged to a small employer for a new rating period shall not exceed the sum of the following:(A) the percentage change in the new business         premium rate measured from the first day of the prior rating period to the first day of the new rating period.  In the case of a health benefit plan into which the small employer carrier is no longer enrolling new small employers, the small employer carrier shall use the percentage change in the base premium rate;(B) an adjustment, not to exceed 15% annually and         adjusted pro rata for rating periods of less than one year, due to claim experience, health status, or duration of coverage of the employees or dependents of the small employer as determined from the small employer carrier's rate manual for the class of business; and(C) any adjustment due to change in coverage or         change in the case characteristics of the small employer as determined from the small employer carrier's rate manual for the class of business.(4) Adjustments in rates for a new rating period due     to claim experience, health status and duration of coverage shall not be charged to individual employees or dependents.  Any such adjustment shall be applied uniformly to the rates charged for all employees and dependents of the small employer.(5) In the case of health benefit plans delivered or     issued for delivery prior to the effective date of this Act, a premium rate for a rating period may exceed the ranges set forth in items (1) and (2) of subsection (a) for a period of 3 years following the effective date of this Act.  In such case, the percentage increase in the premium rate charged to a small employer for a new rating period shall not exceed the sum of the following:(A) the percentage change in the new business         premium rate measured from the first day of the prior rating period to the first day of the new rating period; in the case of a class of business into which the small employer carrier is no longer enrolling new small employes, the small employer carrier shall use the percentage change in the base premium rate, provided that such change does not exceed, on a percentage basis, the change in the new business premium rate for the most similar class of business into which the small employer carrier is actively enrolling new small employers; and(B) any adjustment due to change in coverage or         change in the case characteristics of the small employer as determined from the carrier's rate manual for the class of business.(6) Small employer carriers shall apply rating     factors, including case characteristics, consistently with respect to all small employers in a class of business. A small employer carrier shall treat all health benefit plans issued or renewed in the same calendar month as having the same rating period.(7) For the purposes of this subsection, a health     benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restriction of benefits to network providers results in substantial differences in claim costs.(b) A small employer carrier shall not transfer a small employer
involuntarily into or out of a class of business.  A small employer carrier
shall not offer to transfer a small employer into or out of a class of business
unless such offer is made to transfer all small employers in the class of
business without regard to case characteristics, claim experience, health
status or duration of coverage since issue.
		(Source: P.A. 91-510, eff. 1-1-00.) (215 ILCS 93/30)Sec. 30. 
		Rating and underwriting records.(a) A small employer carrier shall maintain at its principal place of
business a complete and detailed description of its rating practices and
renewal underwriting practices, including information and documentation that
demonstrates that its rating methods and practices are based upon commonly
accepted actuarial assumptions and are in accordance with sound actuarial
principles.(b) A small employer carrier shall file with the Director annually on or
before May 15, an actuarial certification certifying that the carrier is in
compliance with this Act, and that the rating methods of the small employer
carrier are actuarially sound.  Such certification shall be in a form and
manner, and shall contain such information, as specified by the Director.  A
copy of the certification shall be retained by the small employer carrier at
its principal place of business for a period of three years from the date of
certification.  This shall include any work papers prepared in support of the
actuarial certification.(c) A small employer carrier shall make the information and documentation
described in subsection (a) available to the Director upon request.  Except in
cases of violations of this Act, the information shall be considered
proprietary and trade secret information and shall not be subject to disclosure
by the Director to persons outside of the Department except as agreed to by the
small employer carrier or as ordered by a court of competent jurisdiction.
		(Source: P.A. 91-510, eff. 1-1-00.) (215 ILCS 93/35)Sec. 35. 
		Suspension of Rate Requirements. 
		The Director may suspend all or any part of Section 25 as to the premium
rates
applicable to one or more small employers for one or more rating periods upon a
filing by the small employer carrier and a finding by the Director that either
the suspension is reasonable in light of the financial viability of the carrier
or the suspension would enhance the efficiency and fairness of the small
employer health insurance marketplace.
		(Source: P.A. 91-510, eff. 1-1-00.) (215 ILCS 93/40)Sec. 40. 
		Director's Regulatory Authority. 
		The Director may adopt and promulgate rules and regulations to carry out the
provisions of this Act.
		(Source: P.A. 91-510, eff. 1-1-00.) (215 ILCS 93/99)Sec. 99. 
		Effective date. 
		This Act takes effect January 1, 2000.
		(Source: P.A. 91-510, eff. 1-1-00.)
(215 ILCS 97/1)Sec. 1. 
		Short title. 
		This Act may be cited as the Illinois Health Insurance Portability and Accountability Act.
		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 97/5)Sec. 5. Definitions."Affiliate"  means a person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the person specified."Beneficiary" has the meaning given such term under Section
3(8) of the Employee Retirement Income Security Act of 1974."Bona fide association" means, with respect to health
insurance coverage offered in a State, an association which:(1) has been actively in existence for at least 5     years;(2) has been formed and maintained in good faith for     purposes other than obtaining insurance;(3) does not condition membership in the association     on any health status-related factor relating to an individual (including an employee of an employer or a dependent of an employee);(4) makes health insurance coverage offered through     the association available to all members regardless of any health status-related factor relating to such members (or individuals eligible for coverage through a member);(5) does not make health insurance coverage offered     through the association available other than in connection with a member of the association; and(6) meets such additional requirements as may be     imposed under State law."Church plan" has the meaning given that term under Section
3(33) of the Employee Retirement Income Security Act of 1974."COBRA continuation provision" means any of the following:(1) Section 4980B of the Internal Revenue Code of     1986, other than subsection (f)(1) of that Section insofar as it relates to pediatric vaccines.(2) Part 6 of subtitle B of title I of the Employee     Retirement Income Security Act of 1974, other than Section 609 of that Act.(3) Title XXII of federal Public Health Service Act."Control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, the holding of policyholders' proxies by contract other than a commercial contract for goods or non-management services, or otherwise, unless the power is solely the result of an official position with or corporate office held by the person. Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds shareholders' proxies representing 10% or more of the voting securities of any other person or holds or controls sufficient policyholders' proxies to elect the majority of the board of directors of the domestic company. This presumption may be rebutted by a showing made in a manner as the Secretary may provide by rule. The Secretary may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support such determination, that control exists in fact, notwithstanding the absence of a presumption to that effect."Department" means the Department of Insurance."Employee" has the meaning given that term under Section 3(6)
of the Employee Retirement Income Security Act of 1974."Employer" has the meaning given that term under Section 3(5)
of the Employee Retirement Income Security Act of 1974, except
that the term shall include only employers of 2 or more
employees."Enrollment date" means, with respect to an individual covered under a group
health plan or group health insurance coverage, the date of enrollment of the
individual in the plan or coverage, or if earlier, the first day of the waiting
period for enrollment."Federal governmental plan" means a governmental plan established
or maintained for its employees by the government of
the United States or by any agency or instrumentality of that
government."Governmental plan" has the meaning given that term under
Section 3(32) of the Employee Retirement Income Security Act
of 1974 and any federal governmental plan."Group health insurance coverage" means, in connection with a
group health plan, health insurance coverage offered in
connection with the plan."Group health plan" means an employee welfare benefit plan (as
defined in Section 3(1) of the Employee Retirement Income
Security Act of 1974) to the extent that the plan provides
medical care (as defined in paragraph (2) of that Section and including items
and services paid for as medical care) to employees or their
dependents (as defined under the terms of the plan) directly
or through insurance, reimbursement, or otherwise."Health insurance coverage" means benefits consisting of
medical care (provided directly, through insurance or
reimbursement, or otherwise and including items and services paid for
as medical care) under any hospital or medical service policy
or certificate, hospital or medical service plan contract, or
health maintenance organization contract offered by a health
insurance issuer."Health insurance issuer" means an insurance company,
insurance service, or insurance organization (including a
health maintenance organization, as defined herein) which is
licensed to engage in the business of insurance in a state and
which is subject to Illinois law which regulates insurance (within the
meaning of Section 514(b)(2) of the Employee Retirement Income
Security Act of 1974).  The term does not include a group
health plan."Health maintenance organization (HMO)" means:(1) a Federally qualified health maintenance     organization (as defined in Section 1301(a) of the Public Health Service Act.);(2) an organization recognized under State law as a     health maintenance organization; or(3) a similar organization regulated under State law     for solvency in the same manner and to the same extent as such a health maintenance organization."Individual health insurance coverage" means health insurance
coverage offered to individuals in the individual market, but
does not include short-term limited duration insurance."Individual market" means the market for health insurance
coverage offered to individuals other than in connection with a
group health plan."Large employer" means, in connection with a group health plan
with respect to a calendar year and a plan year, an employer
who employed an average of at least 51 employees on business
days during the preceding calendar year and who employs at
least 2 employees on the first day of the plan year.(1) Application of aggregation rule for large     employers.  All persons treated as a single employer under subsection (b), (c), (m), or (o) of Section 414 of the Internal Revenue Code of 1986 shall be treated as one employer.(2) Employers not in existence in preceding year.  In     the case of an employer which was not in existence throughout the preceding calendar year, the determination of whether the employer is a large employer shall be based on the average number of employees that it is reasonably expected the employer will employ on business days in the current calendar year.(3) Predecessors.  Any reference in this Act to an     employer shall include a reference to any predecessor of such employer."Large group market" means the health insurance market under
which individuals obtain health insurance coverage (directly
or through any arrangement) on behalf of themselves (and their
dependents) through a group health plan maintained by a large
employer."Late enrollee" means with respect to coverage under a group health plan, a
participant or beneficiary who enrolls under the plan other than during:(1) the first period in which the individual is     eligible to enroll under the plan; or(2) a special enrollment period under subsection (F)     of Section 20."Medical care" means amounts paid for:(1) the diagnosis, cure, mitigation, treatment, or     prevention of disease, or amounts paid for the purpose of affecting any structure or function of the body;(2) amounts paid for transportation primarily for and     essential to medical care referred to in item (1); and(3) amounts paid for insurance covering medical care     referred to in items (1) and (2)."Nonfederal governmental plan" means a governmental plan that
is not a federal governmental plan."Network plan" means health insurance coverage of a health
insurance issuer under which the financing and delivery of
medical care (including items and services paid for as medical
care) are provided, in whole or in part, through a defined set
of providers under contract with the issuer."Participant" has the meaning given that term under Section
3(7) of the Employee Retirement Income Security Act of 1974."Person" means an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity, or any combination of the foregoing acting in concert, but does not include any securities broker performing no more than the usual and customary broker's function or joint venture partnership exclusively engaged in owning, managing, leasing, or developing real or tangible personal property other than capital stock."Placement" or being "placed" for adoption, in connection
with any placement for adoption of a child with any person,
means the assumption and retention by the person of a legal
obligation for total or partial support of the child in
anticipation of adoption of the child.  The child's placement
with the person terminates upon the termination of the legal
obligation."Plan sponsor" has the meaning given that term under Section
3(16)(B) of the Employee Retirement Income Security Act of
1974."Preexisting condition
exclusion" means, with respect to coverage, a
limitation or exclusion of benefits relating to a
condition based on the fact that the condition was
present before the date of enrollment for such
coverage, whether or not any medical advice,
diagnosis, care, or treatment was recommended or
received before such date."Small employer" means, in connection with a group
health plan with respect to a calendar year and a plan year,
an employer who employed an average of at least 2 but not more
than 50 employees on business days during the preceding calendar year and who
employs at least 2 employees on the first day
of the plan year.(1) Application of aggregation rule for small     employers.  All persons treated as a single employer under subsection (b), (c), (m), or (o) of Section 414 of the Internal Revenue Code of 1986 shall be treated as one employer.(2) Employers not in existence in preceding year.  In     the case of an employer which was not in existence throughout the preceding calendar year, the determination of whether the employer is a small employer shall be based on the average number of employees that it is reasonably expected the employer will employ on business days in the current calendar year.(3) Predecessors.  Any reference in this Act to a     small employer shall include a reference to any predecessor of that employer."Small group market" means the health insurance market under
which individuals obtain health insurance coverage (directly
or through any arrangement) on behalf of themselves (and their
dependents) through a group health plan maintained by a small
employer."State" means each of the several States, the District of
Columbia, Puerto Rico, the Virgin Islands, Guam, American
Samoa, and the Northern Mariana Islands."Waiting period" means with respect to a group health plan and an individual
who is a potential participant or beneficiary in the plan, the period of time
that must pass with respect to the individual before the individual is eligible
to be covered for benefits under the terms of the plan.
					(Source: P.A. 94-502, eff. 8-8-05.) (215 ILCS 97/15)Sec. 15. 
		Applicability and scope. 
		This Act applies to all health insurance policies and all health service
contracts issued, renewed, or delivered for issuance or renewal in this State
by a health insurance issuer after the effective date of this Act.  Unless
otherwise
specifically provided by this Act, the standards and requirements imposed by
this Act shall supersede and replace any and all conflicting, inconsistent or
less restrictive standards or requirements contained in the Illinois Insurance
Code, the Health Maintenance Organization Act, the Limited Health Service
Organization Act, and the Voluntary Health Services Plans Act.
		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 97/20)Sec. 20. Increased portability through prohibition of preexisting
condition exclusions.(A) No health insurance coverage issued, amended, delivered, or renewed on or after the effective date of this amendatory Act of the 102nd General Assembly may impose any preexisting condition exclusion with respect to the plan or coverage. This provision does not apply to the provision of excepted benefits as described in paragraph (2) of subsection (C).(B) (Blank).(C) Rules relating to crediting previous coverage.(1) Creditable coverage defined.  For purposes of     this Act, the term "creditable coverage" means, with respect to an individual, coverage of the individual under any of the following:(a) A group health plan.(b) Health insurance coverage.(c) Part A or part B of title XVIII of the Social         Security Act.(d) Title XIX of the Social Security Act, other         than coverage consisting solely of benefits under Section 1928.(e) Chapter 55 of title 10, United States Code.(f) A medical care program of the Indian Health         Service or of a tribal organization.(g) A State health benefits risk pool.(h) A health plan offered under chapter 89 of         title 5, United States Code.(i) A public health plan (as defined in         regulations).(j) A health benefit plan under Section 5(e) of         the Peace Corps Act (22 U.S.C. 2504(e)).(k) Title XXI of the federal Social Security Act,         State Children's Health Insurance Program.Such term does not include coverage consisting solely     of coverage of excepted benefits.(2) Excepted benefits.  For purposes of this Act, the     term "excepted benefits" means benefits under one or more of the following:(a) Benefits not subject to requirements:(i) Coverage only for accident, or disability             income insurance, or any combination thereof.(ii) Coverage issued as a supplement to             liability insurance.(iii) Liability insurance, including general             liability insurance and automobile liability insurance.(iv) Workers' compensation or similar             insurance.(v) Automobile medical payment insurance.(vi) Credit-only insurance.(vii) Coverage for on-site medical clinics.(viii) Other similar insurance coverage,             specified in regulations, under which benefits for medical care are secondary or incidental to other insurance benefits.(b) Benefits not subject to requirements if         offered separately:(i) Limited scope dental or vision benefits.(ii) Benefits for long-term care, nursing             home care, home health care, community-based care, or any combination thereof.(iii) Such other similar, limited benefits as             are specified in rules.(c) Benefits not subject to requirements if         offered, as independent, noncoordinated benefits:(i) Coverage only for a specified disease or             illness.(ii) Hospital indemnity or other fixed             indemnity insurance.(d) Benefits not subject to requirements if         offered as separate insurance policy.  Medicare supplemental health insurance (as defined under Section 1882(g)(1) of the Social Security Act), coverage supplemental to the coverage provided under chapter 55 of title 10, United States Code, and similar supplemental coverage provided to coverage under a group health plan.(3) Not counting periods before significant breaks in     coverage.(a) In general.  A period of creditable coverage         shall not be counted, with respect to enrollment of an individual under a group health plan, if, after such period and before the enrollment date, there was a 63-day period during all of which the individual was not covered under any creditable coverage.(b) Waiting period not treated as a break in         coverage.  For purposes of subparagraph (a) and subsection (D)(3), any period that an individual is in a waiting period for any coverage under a group health plan (or for group health insurance coverage) or is in an affiliation period (as defined in subsection (G)(2)) shall not be taken into account in determining the continuous period under subparagraph (a).(4) (Blank).(5) Establishment of period.  Periods of creditable     coverage with respect to an individual shall be established through presentation or certifications described in subsection (E) or in such other manner as may be specified in regulations.(D) (Blank).(E) Certifications and disclosure of coverage.(1) Requirement for Certification of Period of     Creditable Coverage.(a) A group health plan, and a health insurance         issuer offering group health insurance coverage, shall provide the certification described in subparagraph (b):(i) at the time an individual ceases to be             covered under the plan or otherwise becomes covered under a COBRA continuation provision;(ii) in the case of an individual becoming             covered under such a provision, at the time the individual ceases to be covered under such provision; and(iii) on the request on behalf of an             individual made not later than 24 months after the date of cessation of the coverage described in clause (i) or (ii), whichever is later.The certification under clause (i) may be provided,         to the extent practicable, at a time consistent with notices required under any applicable COBRA continuation provision.(b) The certification described in this         subparagraph is a written certification  of:(i) the period of creditable coverage of the             individual under such plan and the coverage (if any) under such COBRA continuation provision; and(ii) the waiting period (if any) (and             affiliation period, if applicable) imposed with respect to the individual for any coverage under such plan.(c) To the extent that medical care under a group         health plan consists of group health insurance coverage, the plan is deemed to have satisfied the certification requirement under this paragraph if the health insurance issuer offering the coverage provides for such certification in accordance with this paragraph.(2) (Blank).(3) Rules.  The Department shall establish rules to     prevent an entity's failure to provide information under paragraph (1) with respect to previous coverage of an individual from adversely affecting any subsequent coverage of the individual under another group health plan or health insurance coverage.(4) Treatment of certain plans as group health plan     for notice provision.  A program under which creditable coverage described in subparagraph (c), (d), (e), or (f) of Section 20(C)(1) is provided shall be treated as a group health plan for purposes of this Section.(F) Special enrollment periods.(1) Individuals losing other coverage.  A group     health plan, and a health insurance issuer offering group health insurance coverage in connection with a group health plan, shall permit an employee who is eligible, but not enrolled, for coverage under the terms of the plan (or a dependent of such an employee if the dependent is eligible, but not enrolled, for coverage under such terms) to enroll for coverage under the terms of the plan if each of the following conditions is met:(a) The employee or dependent was covered under a         group health plan or had health insurance coverage at the time coverage was previously offered to the employee or dependent.(b) The employee stated in writing at such time         that coverage under a group health plan or health insurance coverage was the reason for declining enrollment, but only if the plan sponsor or issuer (if applicable) required such a statement at such time and provided the employee with notice of such requirement (and the consequences of such requirement) at such time.(c) The employee's or dependent's coverage         described in subparagraph (a):(i) was under a COBRA continuation provision             and the coverage under such provision was exhausted; or(ii) was not under such a provision and             either the coverage was terminated as a result of loss of eligibility for the coverage (including as a result of legal separation, divorce, death, termination of employment, or reduction in the number of hours of employment) or employer contributions towards such coverage were terminated.(d) Under the terms of the plan, the employee         requests such enrollment not later than 30 days after the date of exhaustion of coverage described in subparagraph (c)(i) or termination of coverage or employer contributions described in subparagraph (c)(ii).(2) For dependent beneficiaries.(a) In general.  If:(i) a group health plan makes coverage             available with respect to a dependent of an individual,(ii) the individual is a participant under             the plan (or has met any waiting period applicable to becoming a participant under the plan and is eligible to be enrolled under the plan but for a failure to enroll during a previous enrollment period), and(iii) a person becomes such a dependent of             the individual through marriage, birth, or adoption or placement for adoption,then the group health plan shall provide for a         dependent special enrollment period described in subparagraph (b) during which the person (or, if not otherwise enrolled, the individual) may be enrolled under the plan as a dependent of the individual, and in the case of the birth or adoption of a child, the spouse of the individual may be enrolled as a dependent of the individual if such spouse is otherwise eligible for coverage.(b) Dependent special enrollment period.  A         dependent special enrollment period under this subparagraph shall be a period of not less than 30 days and shall begin on the later of:(i) the date dependent coverage is made             available; or(ii) the date of the marriage, birth, or             adoption or placement for adoption (as the case may be) described in subparagraph (a)(iii).(c) No waiting period.  If an individual seeks to         enroll a dependent during the first 30 days of such a dependent special enrollment period, the coverage of the dependent shall become effective:(i) in the case of marriage, not later than             the first day of the first month beginning after the date the completed request for enrollment is received;(ii) in the case of a dependent's birth, as             of the date of such birth; or(iii) in the case of a dependent's adoption             or placement for adoption, the date of such adoption or placement for adoption.(G) Use of affiliation period by HMOs as alternative to preexisting
condition exclusion.(1) In general.  A health maintenance organization     which offers health insurance coverage in connection with a group health plan and which does not impose any pre-existing condition exclusion with respect to any particular coverage option may impose an affiliation period for such coverage option, but only if:(a) such period is applied uniformly without         regard to any health status-related factors; and(b) such period does not exceed 2 months (or 3         months in the case of a late enrollee).(2) Affiliation period.(a) Defined.  For purposes of this Act, the term         "affiliation period" means a period which, under the terms of the health insurance coverage offered by the health maintenance organization, must expire before the health insurance coverage becomes effective.  The organization is not required to provide health care services or benefits during such period and no premium shall be charged to the participant or beneficiary for any coverage during the period.(b) Beginning.  Such period shall begin on the         enrollment date.(c) Runs concurrently with waiting periods.  An         affiliation period under a plan shall run concurrently with any waiting period under the plan.(3) Alternative methods.  A health maintenance     organization described in paragraph (1) may use alternative methods, from those described in such paragraph, to address adverse selection as approved by the Department.(Source: P.A. 102-775, eff. 5-13-22.) (215 ILCS 97/25)Sec. 25. 
		
		Prohibiting discrimination against individual
participants.(A) In eligibility to enroll.(1) In general.  Subject to paragraph (2), a group     health plan, and a health insurance issuer offering group health insurance coverage in connection with a group health plan, may not establish rules for eligibility (including continued eligibility) of any individual to enroll under the terms of the plan based on any of the following health status-related factors in relation to the individual or a dependent of the individual:(a) Health status.(b) Medical condition (including both physical         and mental illnesses).(c) Claims experience.(d) Receipt of health care.(e) Medical history.(f) Genetic information.(g) Evidence of insurability (including         conditions arising out of acts of domestic violence).(h) Disability.(2) No application to benefits or exclusions.  To the     extent consistent with Section 20, the provisions of paragraph (1) shall not be construed:(a) to require a group health plan, or group         health insurance coverage, to provide particular benefits other than those provided under the terms of such plan or coverage; or(b) to prevent such a plan or coverage from         establishing limitations or restrictions on the amount, level, extent, or nature of the benefits or coverage for similarly situated individuals enrolled in the plan or coverage.(3) Construction.  For purposes of paragraph (1),     rules for eligibility to enroll under a plan include rules defining any applicable waiting periods for such enrollment.(B) In premium contributions.(1) In general.  A group health plan, and a health     insurance issuer offering health insurance coverage in connection with a group health plan, may not require any individual (as a condition of enrollment or continued enrollment under the plan) to pay a premium or contribution which is greater than such premium or contribution for a similarly situated individual enrolled in the plan on the basis of any health status-related factor in relation to the individual or to an individual enrolled under the plan as a dependent of the individual.(2) Construction.  Nothing in paragraph (1) shall be     construed:(a) to restrict the amount that an employer may         be charged for coverage under a group health plan; or(b) to prevent a group health plan, and a health         insurance issuer offering group health insurance coverage, from establishing premium discounts or rebates or modifying otherwise applicable copayments or deductibles in return for adherence to programs of health promotion and disease prevention.		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 97/30)Sec. 30. 
		
		Guaranteed renewability of coverage for employers
in the group market.(A) In general.  Except as provided in this Section, if a
health insurance issuer offers health insurance coverage
in the small or large group market in connection with a
group health plan, the issuer must renew or continue in
force such coverage at the option of the plan sponsor of
the plan.(B) General exceptions.  A health insurance issuer may
nonrenew or discontinue health insurance coverage
offered in connection with a group health plan in the
small or large group market based only on one or more of
the following:(1) Nonpayment of premiums.  The plan sponsor has     failed to pay premiums or contributions in accordance with the terms of the health insurance coverage or the issuer has not received timely premium payments.(2) Fraud.  The plan sponsor has performed an act or     practice that constitutes fraud or made an intentional misrepresentation of material fact under the terms of the coverage.(3) Violation of participation or contribution rules.     The plan sponsor has failed to comply with a material plan provision relating to employer contribution or group participation rules, as permitted under Section 40(D) in the case of the small group market or pursuant to applicable State law in the case of the large group market.(4) Termination of coverage.  The issuer is ceasing     to offer coverage in such market in accordance with subsection (C) and applicable State law.(5) Movement outside service area.  In the case of a     health insurance issuer that offers health insurance coverage in the market through a network plan, there is no longer any enrollee in connection with such plan who lives, resides, or works in the service area of the issuer (or in the area for which the issuer is authorized to do business) and, in the case of the small group market, the issuer would deny enrollment with respect to such plan under Section 40(C)(1)(a).(6) Association membership ceases.  In the case of     health insurance coverage that is made available in the small or large group market (as the case may be) only through one or more bona fide association, the membership of an employer in the association (on the basis of which the coverage is provided) ceases but only if such coverage is terminated under this paragraph uniformly without regard to any health status-related factor relating to any covered individual.(C) Requirements for uniform termination of coverage.(1) Particular type of coverage not offered.  In any     case in which an issuer decides to discontinue offering a particular type of group health insurance coverage offered in the small or large group market, coverage of such type may be discontinued by the issuer in accordance with applicable State law in such market only if:(a) the issuer provides notice to each plan         sponsor provided coverage of this type in such market (and participants and beneficiaries covered under such coverage) of such discontinuation at least 90 days prior to the date of the discontinuation of such coverage;(b) the issuer offers to each plan sponsor         provided coverage of this type in such market, the option to purchase all (or, in the case of the large group market, any) other health insurance coverage currently being offered by the issuer to a group health plan in such market; and(c) in exercising the option to discontinue         coverage of this type and in offering the option of coverage under subparagraph (b), the issuer acts uniformly without regard to the claims experience of those sponsors or any health status-related factor relating to any participants or beneficiaries who may become eligible for such coverage.(2) Discontinuance of all coverage.(a) In general.  In any case in which a health         insurance issuer elects to discontinue offering all health insurance coverage in the small group market or the large group market, or both markets, in Illinois, health insurance coverage may be discontinued by the issuer only in accordance with Illinois law and if:(i) the issuer provides notice to the             Department and to each plan sponsor (and participants and beneficiaries covered under such coverage) of such discontinuation at least 180 days prior to the date of the discontinuation of such coverage; and(ii) all health insurance issued or delivered             for issuance in Illinois in such market (or markets) are discontinued and coverage under such health insurance coverage in such market (or markets) is not renewed.(b) Prohibition on market reentry.  In the case         of a discontinuation under subparagraph (a) in a market, the issuer may not provide for the issuance of any health insurance coverage in the Illinois market involved during the 5-year period beginning on the date of the discontinuation of the last health insurance coverage not so renewed.(D) Exception for uniform modification of coverage.  At the
time of coverage renewal, a health insurance issuer may
modify the health insurance coverage for a product
offered to a group health plan:(1) in the large group market; or(2) in the small group market if, for coverage that     is available in such market other than only through one or more bona fide associations, such modification is consistent with State law and effective on a uniform basis among group health plans with that product.(E) Application to coverage offered only through
associations.  In applying this Section in the case of
health insurance coverage that is made available by a
health insurance issuer in the small or large group
market to employers only through one or more associations,
a reference to "plan sponsor" is deemed, with
respect to coverage provided to an employer member of
the association, to include a reference to such employer.
		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 97/35)Sec. 35. 
		Disclosure of Information.(A) Disclosure of information by health plan issuers.  In
connection with the offering of any health insurance
coverage to a small employer, a health insurance issuer:(1) shall make a reasonable disclosure to such     employer, as part of its solicitation and sales materials, of the availability of information described in subsection (B), and(2) shall, upon request of such a small employer,     provide such information.(B) Information described.(1) In general.  Subject to paragraph (3), with     respect to a health insurance issuer offering health insurance coverage to a small employer, information described in this subsection is information concerning:(a) the provisions of such coverage concerning         issuer's right to change premium rates and the factors that may affect changes in premium rates;(b) the provisions of such coverage relating to         renewability of coverage;(c) the provisions of such coverage relating to         any pre-existing condition exclusion; and(d) the benefits and premiums available under all         health insurance coverage for which the employer is qualified.(2) Form of information.  Information under this     subsection shall be provided to small employers in a manner determined to be understandable by the average small employer, and shall be sufficient to reasonably inform small employers of their rights and obligations under the health insurance coverage.(3) Exception.  An issuer is not required under this     Section to disclose any information that is proprietary and trade secret information under applicable law.		(Source: P.A. 90-30, eff. 7-1-97; 91-357, eff. 7-29-99.) (215 ILCS 97/40)Sec. 40. 
		
		Guaranteed availability of coverage for employers
in the group market.(A) Issuance of coverage in the small group market.(1) In general.  Subject to subsections (C) through     (F), each health insurance issuer that offers health insurance coverage in the small group market in a State:(a) must accept every small employer (as defined         in Section 10) in the State that applies for such coverage; and(b) must accept for enrollment under such         coverage every eligible individual (as defined in paragraph (2)) who applies for enrollment during the period in which the individual first becomes eligible to enroll under the terms of the group health plan and may not place any restriction which is inconsistent with Section 25 on an eligible individual being a participant or beneficiary.(2) Eligible individual defined.  For purposes of     this Section, the term "eligible individual" means, with respect to a health insurance issuer that offers health insurance coverage to a small employer in connection with a group health plan in the small group market, such an individual in relation to the employer as shall be determined:(a) in accordance with the terms of such plan;(b) as provided by the issuer under rules of the         issuer which are uniformly applicable in a State to small employers in the small group market; and(c) in accordance with all applicable State laws         governing such issuer and such market.(B) Special rules for network plans.(1) In general.  In the case of a health insurance     issuer that offers health insurance coverage in the small group market through a network plan, the issuer may:(a) limit the employers that may apply for such         coverage to those with eligible individuals who live, work, or reside in the service area for such network plan; and(b) within the service area of such plan, deny         such coverage to such employers if the issuer has demonstrated, if required, to the Department that:(i) it will not have the capacity to deliver             services adequately to enrollees of any additional groups because of its obligations to existing group contract holders and enrollees; and(ii) it is applying this paragraph uniformly             to all employers without regard to the claims experience of those employers and their employees (and their dependents) or any health status-related factor relating to such employees and dependents.(2) 180-day suspension upon denial of coverage.  An     issuer, upon denying health insurance coverage in any service area in accordance with paragraph (1)(b), may not offer coverage in the small group market within such service area for a period of 180 days after the date such coverage is denied.(C) Application of financial capacity limits.(1) In general.  A health insurance issuer may deny     health insurance coverage in the small group market if the issuer has demonstrated, if required, to the Department:(a) it does not have the financial capacity         necessary to underwrite additional coverage; and(b) it is applying this paragraph uniformly to         all employers in the small group market in the State and without regard to the claims experience of those employers and their employees (and their dependents) or any health status-related factor relating to such employees and dependents.(2) 180-day suspension upon denial of coverage.  A     health insurance issuer upon denying health insurance coverage in connection with group health plans in accordance with paragraph (1) may not offer coverage in connection with group health plans in the small group market for a period of 180 days after the date such coverage is denied or until the issuer has demonstrated to the Department that the issuer has sufficient financial capacity to underwrite additional coverage, whichever is later. The Department may provide for the application of this subsection on a service-area-specific basis.(D) Exception to requirement for failure to meet certain minimum
participation or contribution rules.(1) In general.  Subsection (A) shall not be     construed to preclude a health insurance issuer from establishing employer contribution rules or group participation rules for the offering of health insurance coverage in connection with a group health plan in the small group market.(2) Rules defined.  For purposes of paragraph (1):(a) the term "employer contribution rule" means a         requirement relating to the minimum level or amount of employer contribution toward the premium for enrollment of participants and beneficiaries; and(b) the term "group participation rule" means a         requirement relating to the minimum number of participants or beneficiaries that must be enrolled in relation to a specified percentage or number of eligible individuals or employees of an employer.(E) Exception for coverage offered only to bona fide association members.
Subsection (A) shall not apply to health insurance coverage offered by a
health insurance issuer if such coverage is made available in the small group
market only through one or more bona fide associations (as defined in Section
10).
		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 97/45)Sec. 45. 
		Exclusion of certain plans.(A) Exception for certain small group health plans.  The requirements of
this Act
shall not apply to any group health plan (and health insurance
coverage offered in connection with a group health plan) for any plan year
if, on the first day of such plan year, such plan has less than 2
participants who are current employees.(B) Limitation on application of provisions relating to
group health plans.(1) In general.  The requirements of this Act shall     apply with respect to group health plans only:(a) subject to paragraph (2), in the case of a         plan that is a nonfederal governmental plan; and(b) with respect to health insurance coverage         offered in connection with a group health plan (including such a plan that is a church plan or a governmental plan).(2) Treatment of nonfederal governmental plans.(a) Election to be excluded.  If the plan sponsor         of a nonfederal governmental plan which is a group health plan to which the provisions of this Act otherwise apply makes an election under this subparagraph (in such form and manner as may be prescribed by rule), then the requirements of this Act insofar as they apply directly to group health plans (and not merely to group health insurance coverage) shall not apply to such governmental plans for such period except as provided in this paragraph.(b) Period of election.  An election under         subparagraph (a) shall apply:(i) for a single specified plan year; or(ii) in the case of a plan provided pursuant             to a collective bargaining agreement, for the term of such agreement.An election under clause (i) may be extended through     subsequent elections under this paragraph.(c) Notice to enrollees.  Under such an election,         the plan shall provide for:(i) notice to enrollees (on an annual basis             and at the time of enrollment under the plan) of the fact and consequences of such election; and(ii) certification and disclosure of             creditable coverage under the plan with respect to enrollees in accordance with Section 20(E).(C) Exception for certain benefits.  The requirements of this Act
shall not
apply to any group health plan (or group health insurance coverage) in relation
to its provision of excepted benefits described in
Section 20(C)(2)(a).(D) Exception for certain benefits if certain conditions met.(1) Limited, excepted benefits.  The requirements of     this Act shall not apply to any group health plan (and group health insurance coverage offered in connection with a group health plan) in relation to its provision of excepted benefits described in Section 20(C)(2)(b) if the benefits:(a) are provided under a separate policy,         certificate, or contract of insurance; or(b) are otherwise not an integral part of the         plan.(2) Noncoordinated, excepted benefits.  The     requirements of this Act shall not apply to any group health plan (and group health insurance coverage offered in connection with a group health plan) in relation to its provision of excepted benefits described in Section 20(C)(2)(c) if all of the following conditions are met:(a) The benefits are provided under a separate         policy, certificate, or contract of insurance.(b) There is no coordination between the         provision of such benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor.(c) Such benefits are paid with respect to an         event without regard to whether benefits are provided with respect to such an event under any group health plan maintained by the same plan sponsor.(3) Supplemental excepted benefits.  The requirements     of this Act shall not apply to any group health plan (and group health insurance coverage) in relation to its provision of excepted benefits described in Section 20(C)(2)(d) if the benefits are provided under a separate policy, certificate, or contract of insurance.(E) Treatment of partnerships.  For purposes of this Act:(1) Treatment as a group health plan.  Any plan,     fund, or program which would not be (but for this subsection) an employee welfare benefit plan and which is established or maintained by a partnership, to the extent that such plan, fund, or program provides medical care (including items and services paid for as medical care) to present or former partners in the partnership or to their dependents (as defined under the terms of the plan, fund, or program), directly or through insurance, reimbursement, or otherwise, shall be treated (subject to paragraph (2)) as an employee welfare benefit plan which is a group health plan.(2) Employer.  In the case of a group health plan,     the term "employer" also includes the partnership in relation to any partner.(3) Partnerships of group health plans.  In the case     of a group health plan, the term "participant" also includes:(a) in connection with a group health plan         maintained by a partnership, an individual who is a partner in relation to the partnership, or(b) in connection with a group health plan         maintained by a self-employed individual (under which one or more employees are participants), the self-employed individual, if such individual is or may become eligible to receive a benefit under the plan or the individual's beneficiaries may be eligible for any benefit.		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 97/50)Sec. 50. Guaranteed renewability of individual health insurance coverage.(A) In general.  Except as provided in this Section, a health insurance
issuer that provides individual health insurance coverage to an individual
shall renew or continue in force such coverage at the option of the individual.(B) General exceptions.  A health insurance issuer may nonrenew or
discontinue health insurance coverage of an individual in the individual market
based
only on one or more of the following:(1) Nonpayment of premiums.  The individual has     failed to pay premiums or contributions in accordance with the terms of the health insurance coverage or the issuer has not received timely premium payments.(2)  Fraud. The individual has performed an act or     practice that constitutes fraud or made an intentional misrepresentation of material fact under the terms of the coverage.(3) Termination of plan.  The issuer is ceasing to     offer coverage in the individual market in accordance with subsection (C) of this Section and applicable Illinois law.(4) Movement outside the service area.  In the case     of a health insurance issuer that offers health insurance coverage in the market through a network plan, the individual no longer resides, lives, or works in the service area (or in an area for which the issuer is authorized to do business), but only if such coverage is terminated under this paragraph uniformly without regard to any health status-related factor of covered individuals.(5) Association membership ceases.  In the case of     health insurance coverage that is made available in the individual market only through one or more bona fide associations, the membership of the individual in the association (on the basis of which the coverage is provided) ceases, but only if such coverage is terminated under this paragraph uniformly without regard to any health status-related factor of covered individuals.(C) Requirements for uniform termination of coverage.(1) Particular type of coverage not offered.  In any     case in which an issuer decides to discontinue offering a particular type of health insurance coverage offered in the individual market, coverage of such type may be discontinued by the issuer only if:(a) the issuer provides notice to each covered         individual provided coverage of this type in such market of such discontinuation at least 90 days prior to the date of the discontinuation of such coverage;(b) the issuer offers, to each individual in the         individual market provided coverage of this type, the option to purchase any other individual health insurance coverage currently being offered by the issuer for individuals in such market; and(c) in exercising the option to discontinue         coverage of that type and in offering the option of coverage under subparagraph (b), the issuer acts uniformly without regard to any health status-related factor of enrolled individuals or individuals who may become eligible for such coverage.(2) Discontinuance of all coverage.(a) In general.  Subject to subparagraph (c), in         any case in which a health insurance issuer elects to discontinue offering all health insurance coverage in the individual market in Illinois, health insurance coverage may be discontinued by the issuer only if:(i) the issuer provides notice to the             Director and to each individual of the discontinuation at least 180 days prior to the date of the expiration of such coverage;(ii) all health insurance issued or delivered             for issuance in Illinois in such market is discontinued and coverage under such health insurance coverage in such market is not renewed; and(iii) in the case where the issuer has             affiliates in the individual market, the issuer gives notice to each affected individual at least 180 days prior to the date of the expiration of the coverage of the individual's option to purchase all other individual health benefit plans currently offered by any affiliate of the carrier.(b) Prohibition on market reentry.  In the case         of a discontinuation under subparagraph (a) in the individual market, the issuer may not provide for the issuance of any health insurance coverage in Illinois involved during the 5-year period beginning on the date of the discontinuation of the last health insurance coverage not so renewed.(c) If an issuer elects to discontinue offering         all health insurance coverage in the individual market under subparagraph (a), its affiliates that offer health insurance coverage in the individual market in Illinois shall offer individual health insurance coverage to all individuals who were covered by the discontinued health insurance coverage on the date of the notice provided to affected individuals under subdivision (iii) of subparagraph (a) of this item (2) if the individual applies for coverage no later than 63 days after the discontinuation of coverage.(d) Subject to subparagraph (e) of this item (2),         an affiliate that issues coverage under subparagraph (c)  shall waive the preexisting condition exclusion period to the extent that the individual has satisfied the preexisting condition exclusion period under the individual's prior contract or policy.(e) An affiliate that issues coverage under         subparagraph (c) may require the individual to satisfy the remaining part of the preexisting condition exclusion period, if any, under the individual's prior contract or policy that has not been satisfied, unless the coverage has a shorter preexisting condition exclusion period, and may include in any coverage issued under subparagraph (c) any waivers or limitations of coverage that were included in the individual's prior contract or policy.(D) Exception for uniform modification of coverage.  At the time of coverage
renewal, a health insurance issuer may modify the health insurance coverage for
a policy form offered to individuals in the individual market so long as the
modification is consistent with Illinois law and effective on a uniform basis
among all individuals with that policy form.(E) Application to coverage offered only through associations.  In applying
this Section in the case of health insurance coverage that is made available by
a health insurance issuer in the individual market to individuals only through
one or more associations, a reference to an "individual" is deemed to include a
reference to such an association (of which the individual is a member).The changes to this Section made by this amendatory Act of the 94th General Assembly apply only to discontinuances of coverage occurring on or after the effective date of this amendatory Act of the 94th General Assembly.
					(Source: P.A. 94-502, eff. 8-8-05.) (215 ILCS 97/60)Sec. 60. Notice requirement. In any case where a health insurance issuer elects to uniformly modify coverage, uniformly terminate coverage, or discontinue coverage in a marketplace in accordance with Sections 30 and 50 of this Act, the issuer shall provide notice to the Department prior to notifying the plan sponsors, participants, beneficiaries, and covered individuals.  The notice shall be sent by certified mail to the Department 90 days in advance of any notification of the company's actions sent to plan sponsors, participants, beneficiaries, and covered individuals. The notice shall include: (i) a complete description of the action to be taken, (ii) a specific description of the type of coverage affected, (iii) the total number of covered lives affected, (iv) a sample draft of all letters being sent to the plan sponsors, participants, beneficiaries, or covered individuals, (v) time frames for the actions being taken, (vi) options the plans sponsors, participants, beneficiaries, or covered individuals may have available to them under this Act, and (vii) any other information as required by the Department.This Section applies only to discontinuances of coverage occurring on or after the effective date of this amendatory Act of the 94th General Assembly.
(Source: P.A. 94-502, eff. 8-8-05.) (215 ILCS 97/85)Sec. 85. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 90-30, eff. 7-1-97; text omitted.) (215 ILCS 97/86)Sec. 86. 
		
		The Small Employer Rating, Renewability and Portability Health
Insurance Act is amended by repealing Sections 1, 5, 10, 15, 20, and 55 on July
1, 1998.
		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 97/87)Sec. 87. 
		
		The Small Employer Rating, Renewability and Portability Health
Insurance Act is amended by repealing Sections 25, 30, 35, 40, 45, and 50.
		(Source: P.A. 90-30, eff. 7-1-97.) (215 ILCS 97/92)Sec. 92. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 90-30, eff. 7-1-97; text omitted.) (215 ILCS 97/94)Sec. 94. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 90-30, eff. 7-1-97; text omitted.) (215 ILCS 97/96)Sec. 96. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 90-30, eff. 7-1-97; text omitted.) (215 ILCS 97/98)Sec. 98. 
		(Amendatory provisions; text omitted). 
		(Source: P.A. 90-30, eff. 7-1-97; text omitted.) (215 ILCS 97/99)Sec. 99. 
		Effective date. 
		This Act takes effect on July 1, 1997.
		(Source: P.A. 90-30, eff. 7-1-97.)