215 ILCS 5/4
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article I - Short Title, Definitions And Classifications

 (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.)