215 ILCS 5/123.1
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article VII - Unauthorized Companies

 (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.)