215 ILCS 5/500-110
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XXXI - Insurance Producers, Limited Insurance Representatives And Registered Firms

(Section scheduled to be repealed on January 1, 2027)Sec. 500-110.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.)