reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 50 - INSURANCE › Part 909 - ADVERTISING AND SALES PROMOTION OF LIFE INSURANCE AND ANNUITIES › Section 909.110 - Conflict with Other Rules

Current through Register Vol. 48, No. 28, July 12, 2024
It is not intended that this Part conflict with or supersede
				any rules currently in force or subsequently adopted in this State governing
				specific aspects of the sale or replacement of life insurance including, but
				not limited to, rules dealing with life insurance cost comparison indices,
				deceptive practices in the sale of life insurance and replacement of life
				insurance policies. Consequently, no disclosure required under any such rules
				should be deemed to be an advertisement within the meaning of this
				Part.
Illinois Administrative Code › Title 50 - INSURANCE › Part 909 - ADVERTISING AND SALES PROMOTION OF LIFE INSURANCE AND ANNUITIES › Section 909.120 - Severability Provision

Current through Register Vol. 48, No. 28, July 12, 2024
If any Section or portion of a Section of this Part, or the
				applicability thereof to any person or circumstance, is held invalid by a
				court, the remainder of the Part, or the applicability of such provision or
				circumstances, shall not be affected.
Illinois Administrative Code › Title 50 - INSURANCE › Part 910 - SUPPLIER DIVERSITY REPORTS › Section 910.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
This Part implements and clarifies the requirements for
				risk-bearing entities authorized to do business or accredited by this State to
				file public reports on whether and how they operate any supplier diversity
				program as part of their procurement program. Nothing in this Part requires a
				risk-bearing entity to establish a supplier diversity program or to conform the
				operation of a supplier diversity program or procurement program to any
				specific standards.
Illinois Administrative Code › Title 50 - INSURANCE › Part 910 - SUPPLIER DIVERSITY REPORTS › Section 910.20 - Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
a) Except as
			 provided in subsection (b), this Part applies to every domestic, foreign, and
			 alien risk-bearing entity with a certificate of authority or accreditation from
			 the Director.
b) This Part does not
			 apply to any qualified group workers compensation pool, domestic captive
			 insurance company, fraternal benefit society, or any risk-bearing entity that,
			 in this State, only transacts business to offer Medicare Part C or D plans. For
			 any year when reports are due, this Part also does not apply to any
			 risk-bearing entity with less than $50,000,000 in total net admitted assets for
			 the current year as reflected on the Assets page of the annual statement filed
			 with the Director for the year ending December 31st
			 immediately preceding.
Illinois Administrative Code › Title 50 - INSURANCE › Part 913 - SECURITIES REGULATION › Section 913.20 - Purpose and Scope

Current through Register Vol. 48, No. 28, July 12, 2024
This Part applies to the sale of shares of:
a) All foreign or alien stock insurance
			 companies that have been continuously in business as such for more than ten
			 years and are authorized to transact their business in this State,
			 and
b) All domestic stock insurance
			 companies.
Illinois Administrative Code › Title 50 - INSURANCE › Part 913 - SECURITIES REGULATION › Section 913.30 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Code" means the Illinois Insurance Code [215 ILCS 5 ].
"Department" means the Illinois Department of Insurance.
"Director" means the Director of the Illinois Department of
				Insurance.
"Shares" means securities issued by and representing an
				interest in any insurance company. However, "shares" shall not include rights
				to shares (as distinguished from the shares proper) under stock option plans
				that have been approved by the Director.
Illinois Administrative Code › Title 50 - INSURANCE › Part 913 - SECURITIES REGULATION › Section 913.40 - Filing Requirement

Current through Register Vol. 48, No. 28, July 12, 2024
Pursuant to Section 147.1 of the Code and the provisions of
				this Part, a formal application must be submitted to obtain a permit from the
				Director to sell shares. Any domestic company seeking a permit to solicit
				subscriptions and issue shares under Section 20 or Section 32 of the Code,
				except for a private sale as set forth under 50 Ill. Adm. Code 907, shall
				likewise submit a formal application. The applicant shall deliver to the
				Director all documents, paper, agreements and other items that are required to
				be filed (see Section
				913.100)
				.
Illinois Administrative Code › Title 50 - INSURANCE › Part 913 - SECURITIES REGULATION › Section 913.60 - Alternate Prospectus

Current through Register Vol. 48, No. 28, July 12, 2024
In those instances in which the proposed offering is being
				registered under the Federal Securities Act of 1933 ( 17 U.S.C. 77 et seq.) the
				applicant in lieu of filing a prospectus as described in Section
				913.50 shall file
				two copies of the prospectus descriptive of the securities in the form in which
				such prospectus shall have been initially filed under the Federal Securities
				Act, and two copies of all subsequent amendments and supplements thereof. A
				preliminary prospectus, which meets the requirements of
				17
				CFR 230.433 promulgated under the Federal
				Securities Act of 1933, may be circulated prior to the issuance of a permit by
				the Director.
Illinois Administrative Code › Title 50 - INSURANCE › Part 913 - SECURITIES REGULATION › Section 913.70 - Equity Interest of Certain Persons

Current through Register Vol. 48, No. 28, July 12, 2024
The incorporators, organizers, promoters or other persons
				similarly situated of any domestic company organized after May 11, 1964 shall,
				prior to the issuance of a permit for a public sale by the Director pursuant to
				Section 20 of the Code, deposit in escrow in a bank or trust company in this
				State pursuant to an agreement a sum of money sufficient to purchase at the
				public offering price a total of not less than 15% of the shares and shall
				further provide that the total shares so purchased shall likewise be held in
				escrow and not in any manner disposed of for a minimum of 3 years after the
				date that the company is issued a Certificate of Authority pursuant to Section
				24 of the Code. The agreement shall also provide that the incorporators,
				organizers, promoters and like parties understand and agree to faithfully
				perform their obligations as such and also that they understand, in the event
				of a later public sale at a higher offering price per share, that they may be
				required to deposit all or part of their own shares under an escrow agreement
				pursuant to Section
				913.80.
Illinois Administrative Code › Title 50 - INSURANCE › Part 913 - SECURITIES REGULATION › Section 913.80 - Escrow Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
If application is made to the Director for a Permit authorizing
				the applicant to sell to the public shares of stock of an issue subject to this
				Part, and it shall appear to the Director that shares of stock of the issuer
				have, within the five (5) years next preceding the date of the application for
				such Permit, been issued or sold by the issuer or a controlling person for a
				consideration at a price less than the proposed public offering price, then the
				Director may for the protection of the prospective purchasers of the shares
				proposed to be offered, require that the shares issued for such consideration
				and help by officers and directors and holders of 10% of outstanding stock be
				delivered to a bank or trust company in this State authorized to accept and
				execute trusts, under an escrow agreement providing that the owners of the
				shares so escrowed shall not, in case of dissolution or insolvency of the
				issuer, participate in its assets until after the owners of all the shares of
				the issuer (other than those escrowed) shall have received an amount per share
				equal to the public offering price of the proposed offering. Such escrow
				agreement shall remain in force until the first to occur of the
				following:
a) Written consent is given
			 by the Director authorizing the release of such escrowed shares;
b) Financial statements of the issuer
			 prepared in accordance with generally accepted accounting principles which have
			 been audited by an independent certified public accountant in accordance with
			 generally accepted auditing standards have been submitted to the Director
			 establishing that the issuer has earned an amount equal to an average of 5% per
			 annum in any 24 month period or at least 10% per annum in any 12 month period
			 of a sum equal to the number of shares then outstanding, multiplied by the
			 public offering price at time of the imposition of the escrow, adjusted for any
			 intervening stock splits, dividends or combination; or
c) The question of the release of such escrow
			 is first put to the shareholders of the issuer and receives the affirmative
			 vote of the holders of not less than the majority of the outstanding shares
			 held by others than parties to the escrow.
Illinois Administrative Code › Title 50 - INSURANCE › Part 913 - SECURITIES REGULATION › Section 913.90 - Stock Option Plans

Current through Register Vol. 48, No. 28, July 12, 2024
The Director shall be guided in the granting of a permit to
				issue shares to implement stock option plans by the following:
a) Any stock option or purchase plan which
			 meets the requirements of Sections 422, 423 or 424 of the Internal Revenue Code
			 of 1954, as hereafter may be amended, shall be deemed prima facie reasonable by
			 the Director, provided however, that the number of shares to be granted
			 pursuant to such a plan, together with the number of shares in respect of which
			 unexercised options are outstanding or may be granted under any and all other
			 option plans of the company, shall in no event exceed 10% of the total shares
			 outstanding. The burden shall be upon the applicant to prove that such plan
			 complies with the provisions of said Sections 422, 423 or 424, as amended, and
			 such proof shall be made prior to the issuance of any Permit in connection with
			 the execution of such plan.
b) Any
			 stock option plan which does not comply with the Internal Revenue Code as
			 referred to above, shall be approved by the Director only upon proof that the
			 following conditions have been met:
1) The
			 option price is not less than 100% of the market price of shares on the date
			 the plan becomes effective, or if there is no market price of such shares on
			 the date the plan becomes effective, the last highest public offering
			 price;
2) The total of all shares
			 to be granted pursuant to such plan, together with the number of shares in
			 respect of which unexercised option are outstanding or may be granted under any
			 and all other option plans of the company, shall in no event exceed 10% of the
			 total shares outstanding;
3) In the
			 event an individual at the time the option is granted owns 10% of the stock of
			 the issuer, the option price is not less than 110% of the market price of the
			 shares on the date the plan becomes effective, or if there is no market price
			 of such shares on the date the plan becomes effective, the last highest public
			 offering price;
4) Such options
			 require the optionee to hold the stock for 1 year from the date of the exercise
			 of the option;
5) Such options by
			 their terms are not exercisable after the expiration of 5 years from the dates
			 such options are granted;
6) The
			 options are given only in respect of benefits which will be given to the
			 company by the person receiving the option; and
7) The plan has been submitted to a vote of
			 the shareholders of the company and received the affirmative vote of the
			 holders of not less than 2/3 of the outstanding shares.
Illinois Administrative Code › Title 50 - INSURANCE › Part 913 - SECURITIES REGULATION › Section 913.100 - Documents to be Filed with the Director

Current through Register Vol. 48, No. 28, July 12, 2024
In addition to all other documents required to be filed with
				the Director pursuant to Section 147.1(4) of the Code, an issuer, underwriter,
				dealer or controlling person making application to the Director for a permit to
				sell shares shall submit to the Department the following documents in
				duplicate, when applicable:
a) The form
			 of the prospectus to be used in connection with the public sale of
			 shares;
b) Underwriting or selling
			 agreements signed by the issuer and the selling agents;
c) Audited financial statements as required
			 in the prospectus;
d) Executed
			 copies of all escrow agreements required by any provision of this
			 Part;
e) Stock Option
			 Plans;
f) A supplemental statement
			 signed by the proposed incorporators or officers as the case may be, setting
			 forth the following information:
1) other
			 expenses of issuance and distribution;
2) relationship of the applicant to experts
			 named in the prospectus;
3)
			 subsidiaries of the applicant;
4)
			 indemnification of incorporators, officers or directors;
5) In lieu of the foregoing, copies of the
			 registration statement as filed with the Securities Exchange Commission
			 pursuant to the Federal Securities Act (15 U.S.C.
			 77f) , may be submitted.
Illinois Administrative Code › Title 50 - INSURANCE › Part 913 - SECURITIES REGULATION › Section 913.110 - Severability Provision

Current through Register Vol. 48, No. 28, July 12, 2024
If any section or portion of a section of this rule, or the
				applicability thereof to any person or circumstances is held invalid by a
				court, the remainder of the rule, or the applicability to other persons or
				circumstances, shall not be effected thereby.
Illinois Administrative Code › Title 50 - INSURANCE › Part 915 - MANAGEMENT INFORMATION REPORTS › Section 915.20 - Purpose and Scope

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is to set forth requirements that the
				Director deems necessary to carry out the provisions of Section 155.04 of the
				Illinois Insurance Code. The information called for by this Part is hereby
				declared to be necessary and appropriate in the public interest and for the
				protection of policyholders. This Part shall apply to all domestic, foreign and
				alien companies licensed to transact an insurance business in Illinois and
				to:
a) all persons proposing to form a
			 domestic insurance company under the laws of the State of Illinois;
b) all persons involved in the control,
			 management or serving as an executive officer of a foreign or alien insurance
			 company applying for a Certificate of Authority to do business in the State of
			 Illinois; and
c) all persons upon
			 being newly elected or appointed to be an executive officer of any domestic,
			 foreign or alien company licensed to transact an insurance business in this
			 State.
Illinois Administrative Code › Title 50 - INSURANCE › Part 915 - MANAGEMENT INFORMATION REPORTS › Section 915.30 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Code" means the Illinois Insurance Code [215 ILCS 5 ].
"Department" means the Illinois Department of Insurance.
"Director" means the Director of the Illinois Department of
				Insurance.
"Domestic, foreign or alien company" means the same as defined
				in Section 2 of the Code.
"Executive officer" means any person charged with active
				management and control in an executive capacity (including a president, vice
				president, treasurer, secretary, controller, chief actuary, general counsel,
				director, trustee, and any other person performing functions corresponding to
				those performed by these officers) of a company, whether incorporated or
				unincorporated.
"Person" means natural person.
Illinois Administrative Code › Title 50 - INSURANCE › Part 915 - MANAGEMENT INFORMATION REPORTS › Section 915.40 - Biographical Affidavits

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Biographical affidavits must be furnished to the Director by all companies and
			 persons subject to this Part pursuant to Section
			 915.20.
			 Affidavits of persons specified in Section
			 915.20(a) and
			 (b) must be filed along with the other papers
			 and documents required for purposes of formation of a domestic company or
			 issuance of a Certificate of Authority to a foreign or alien company.
			 Affidavits of persons specified in Section
			 915.20(c)
			 must be filed within 30 days after that person's election or appointment. The
			 domestic, foreign or alien company has ultimate responsibility for timely
			 filing of such affidavits.
b) The
			 biographical affidavits shall include, but not be limited to, the following
			 information: affiant's identifying and contact information; affiant's
			 educational, residential and employment history; affiant's professional,
			 business and technical licenses and memberships; a complete history of
			 affiant's fidelity bonding; affiant's criminal charges and convictions; civil,
			 regulatory, administrative and disciplinary actions in affiant's individual or
			 corporate capacity; a complete history of affiant's bankruptcy, insolvency,
			 liens and foreclosures in an individual or corporate capacity; affiant's
			 consent to release background reports to the Department and consent for third
			 parties to cooperate in the gathering of background information; and affiant's
			 and affiant's immediate family's equity holdings in any entity subject to
			 insurance regulation. The Department will accept the biographical affidavit,
			 and any supplement to that affidavit, that is obtained from the website of the
			 National Association of Insurance Commissioners (NAIC) or the
			 Department.
Illinois Administrative Code › Title 50 - INSURANCE › Part 915 - MANAGEMENT INFORMATION REPORTS › Section 915.50 - Change in Status

Current through Register Vol. 48, No. 28, July 12, 2024
Domestic companies must file with the Director notice of any
				change in executive officer status of any person required to file a
				biographical affidavit under Section
				915.40 of
				this Rule. Notice must be filed within 30 days of such
				change.
Illinois Administrative Code › Title 50 - INSURANCE › Part 915 - MANAGEMENT INFORMATION REPORTS › Section 915.60 - Additional Information

Current through Register Vol. 48, No. 28, July 12, 2024
The Director may request additional information such as
				depositions, transcripts, reinsurance agreements, examination reports,
				management and service contracts, or financial statements as necessary to carry
				out the purposes of Section 155.04 of the Illinois Insurance
				Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 915 - MANAGEMENT INFORMATION REPORTS › Section 915.70 - Severability Provision

Current through Register Vol. 48, No. 28, July 12, 2024
If any section or portion of a section of this rule, or the
				applicability thereof to any person or circumstance is held invalid by a court,
				the remainder of the rule, or the applicability to other persons or
				circumstances, shall not be affected thereby.
Illinois Administrative Code › Title 50 - INSURANCE › Part 916 - REQUIRED PROCEDURE FOR FILING AND SECURING APPROVAL OF POLICY FORMS › Section 916.10 - Authority

Current through Register Vol. 48, No. 28, July 12, 2024
This Part is promulgated by the Director of Insurance pursuant
				to authority contained in Section 401 of the Illinois Insurance Code
				[215 ILCS
				5/401 ] which empowers the Director to make reasonable
				rules and regulations as may be necessary for making effective insurance laws
				of the State of Illinois. This Part implements Section 143 of the Illinois
				Insurance Code [215 ILCS 5/143 ] and
				Section 10 of the Voluntary Health Services Plans Act [215 ILCS
				165/10 ] and Section 109 of the Dental Care Patient
				Protection Act [215 ILCS 109 ] and Section 25 of the Dental Service Plan Act
				[215 ILCS
				110/25 ] and Section 4003 of the Limited Health
				Service Organization Act [215 ILCS
				130/4003 ] and Section 5-3 of the Health Maintenance
				Organization Act [215 ILCS
				125/5-3 ] and the Electronic Commerce Security Act [5
				ILCS 175 ].
Illinois Administrative Code › Title 50 - INSURANCE › Part 916 - REQUIRED PROCEDURE FOR FILING AND SECURING APPROVAL OF POLICY FORMS › Section 916.20 - Purpose and Scope

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is to establish a uniform, expeditious
				and required method and procedure under which all companies, defined under
				Section
				916.30, shall file
				with and secure approval of the Director of Insurance of all life insurance,
				annuity and accident and health insurance policy forms, defined under Section
				916.30, before issuance or delivery.
Illinois Administrative Code › Title 50 - INSURANCE › Part 916 - REQUIRED PROCEDURE FOR FILING AND SECURING APPROVAL OF POLICY FORMS › Section 916.40 - Filing Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Certificate of Compliance. Each company doing business in the State of Illinois
			 shall submit with each filing a Certificate of Compliance, as described in
			 Section
			 916.50
			 and Exhibit A.
b) Forms Review.
			 Each company shall file with the Director for approval each new policy form in
			 a searchable text PDF before it is issued or delivered in this State. Each
			 filing shall be submitted directly through SERFF and shall include each of the
			 following:
1) A detailed description of:
A) the purpose for the policy form and the
			 manner in which it will be marketed; and
B) a cross-reference SERFF tracking number
			 for identical submissions made by affiliated companies.
Illinois Administrative Code › Title 50 - INSURANCE › Part 916 - REQUIRED PROCEDURE FOR FILING AND SECURING APPROVAL OF POLICY FORMS › Section 916.50 - Certificate of Compliance

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each
			 filing shall contain a Certificate of Compliance that the filing complies with
			 all applicable Illinois statutes. The Certificate of Compliance must carry a
			 readable, authentic and visible signature of an officer of the
			 company.
b) The Certificate of
			 Compliance shall be signed by an officer of the company, identified by title,
			 who has the authority to obligate the company by his or her signature. In this
			 manner, the company shall agree and consent to the discontinuance of future use
			 of any approved policy form. Discontinuance is effective 30 days from the date
			 of mailing an order of withdrawal issued by the Director pursuant to Section
			 143(1) of the Illinois Insurance Code. The order shall set forth the reasons
			 why the previously approved policy form is violative of or contrary to the
			 Illinois Insurance Code or all provisions of 50 Ill. Adm. Code applicable to
			 policy forms. Each company shall have the right to request a hearing within
			 that 30 day period. The request shall be made in writing to the Director. The
			 order of withdrawal shall be stayed and the company shall be given a hearing
			 under Sections 143(1), 401(c),
			 401.1, 402(2),
			 426 and 429 of the Illinois Insurance Code and 50 Ill. Adm. Code 2402, as may
			 be applicable, to determine:
1) whether the
			 policy form shall be disapproved; and
2) whether further orders of the Director may
			 be appropriate.
Illinois Administrative Code › Title 50 - INSURANCE › Part 916 - REQUIRED PROCEDURE FOR FILING AND SECURING APPROVAL OF POLICY FORMS › Exhibit A - Certificate of Compliance

Current through Register Vol. 48, No. 28, July 12, 2024
Each company shall submit a "Certificate of Compliance" in
				substantially this format:
CERTIFICATE OF COMPLIANCE
______________________________________________________________
(Company Name)
By: ______________________ Title:
				________________________________
certifies that the policy forms submitted or referenced in this
				filing do comply:
a) with all
			 provisions of the Illinois Insurance Code applicable to the policy forms;
			 and
b) with all provisions of 50
			 Ill. Adm. Code applicable to policy forms;
and does further certify to the best of our knowledge and
				belief that:
1) the forms do not
			 contain any inconsistent, ambiguous or misleading clauses;
2) the forms do not contain specifications or
			 conditions that unreasonably or deceptively affect the risk purported to be
			 assumed in the general coverage of the policy forms;
3) the only variation from the usual
			 provisions of the policy forms are clearly marked or otherwise
			 indicated;
4) the language of the
			 policy form, as submitted or approved, shall be exactly as it has been or will
			 be offered for issuance or delivery in the State of Illinois as approved by the
			 Director, except for hypothetical data and other appropriate variable material;
			 and
5) the policy forms do not
			 contain any provision or clause currently being disapproved by the Director.
In utilizing the procedure for policy form filing and approval
				set forth in 50 Ill. Adm. Code 916, ______________(company
				name)______________hereby expressly agrees and consents to a review, by
				the______ Director, to be made at any time, and further hereby expressly agrees
				and consents to the discontinuance by the company of future use of the approved
				policy forms, 30 days from the date of mailing an order of withdrawal issued by
				the Director pursuant to Section 143(1) of the Illinois Insurance Code. The
				order shall set forth the reasons why the previously approved policy forms are
				violative of or contrary to the provisions of the Illinois Insurance Code or
				all provisions of 50 Ill. Adm. Code applicable to policy forms. Each company
				shall have the right to request a hearing within that 30 day period. The
				request shall be made in writing to the Director. The order of withdrawal shall
				be stayed and the company shall be given a hearing under the provisions of
				Sections 143(1), 401(c),
				401.1, 402(2),
				426 and 429 of the Illinois Insurance Code [215 ILCS
				5/143(1), 401(c), 401.1, 402(2), 426
				and 429] and 50 Ill. Adm. Code 2402, as may be applicable, to determine:
a) whether the policy form shall be
			 disapproved; and
b) whether further
			 orders of the Director may be appropriate.
______________________________________________________
(Company Name)
By: ___________________________________________________
(Signature)
Title: ________________________________ Date:
				_____________
Illinois Administrative Code › Title 50 - INSURANCE › Part 917 - LIFE INSURANCE AND ANNUITY REPLACEMENT › Section 917.20 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is:
a) To regulate the activities of insurers and
			 insurance producers with respect to the replacement of existing life insurance
			 or annuities;
b) To protect the
			 interests of life insurance and annuity policyowners by establishing minimum
			 standards of conduct to be observed in the replacement or proposed replacement
			 of existing life insurance by:
1) Assuring
			 that the policyowner receives information with which a decision can be made in
			 his or her own best interest;
2)
			 Reducing the opportunity for misrepresentation and incomplete
			 disclosures.
Illinois Administrative Code › Title 50 - INSURANCE › Part 917 - LIFE INSURANCE AND ANNUITY REPLACEMENT › Section 917.30 - Definition of Replacement

Current through Register Vol. 48, No. 28, July 12, 2024
Replacement means any transaction except those exempted by
				Section
				917.50 in which new
				life insurance or annuity will be purchased, and it is known or should be known
				to the proposing insurance producer, or to the proposing insurer if there is no
				insurance producer, that by reason of such transaction, existing life insurance
				or annuity has been or is to be:
a)
			 Lapsed, forfeited, surrendered, or otherwise terminated;
b) Converted to reduced paid-up insurance,
			 continued as extended term insurance, or otherwise reduced in value by the use
			 of nonforfeiture benefits or other policy values;
c) Amended so as to effect either a reduction
			 in benefits or in the term for which coverage would otherwise remain in-force,
			 or for which benefits would be paid;
d) Reissued with any reduction in cash value;
			 or
e) Pledged as collateral or
			 subjected to borrowing, whether in a single loan or under a schedule of
			 borrowing over a period of time for amounts in the aggregate exceeding 25% of
			 the loan value set forth in the policy.
Illinois Administrative Code › Title 50 - INSURANCE › Part 917 - LIFE INSURANCE AND ANNUITY REPLACEMENT › Section 917.40 - Other Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
Buyer's Guide means a document which contains, and is limited
				to, the language contained in Exhibit A of 50 Ill. Adm. Code 930.
Direct-Response Sales means any sale of life insurance or
				annuity where the insurer does not utilize an insurance producer in the sale or
				delivery of the policy.
Existing Insurer means the insurance company whose policy is or
				will be changed or terminated in such a manner as described within the
				definition of "replacement."
Existing Life Insurance means any life insurance or annuity
				in-force, including insurance under a binding or conditional receipt or an
				insurance policy that is within an unconditional refund period, but excluding
				life insurance obtained through the exercise of a dividend option.
Insurance Producer, for the purposes of this Part, shall have
				the same meaning as "insurance producer" as defined in Section 500-10 of the
				Illinois Insurance Code [215
				ILCS 5/500-10 ].
Policy Summary means a written statement describing the
				elements of the policy as defined in 50 Ill. Adm. Code
				930.40(g).
Registered Contract means any contract issued by a life
				insurance company which is registered with the Federal Securities and Exchange
				Commission.
Replacing Insurer means the insurance company that issues a new
				policy which is a replacement of existing life insurance or
				annuity.
Illinois Administrative Code › Title 50 - INSURANCE › Part 917 - LIFE INSURANCE AND ANNUITY REPLACEMENT › Section 917.50 - Exemptions

Current through Register Vol. 48, No. 28, July 12, 2024
Unless otherwise specifically included, this Part shall not
				apply to:
a) Credit life
			 insurance;
b) Group life insurance
			 and group annuities;
c) Life
			 insurance policies issued in connection with a pension, profit-sharing or other
			 benefit plan qualifying for the tax deductibility of premiums;
d) Registered contracts except that the
			 appropriate prospectus or offering circular shall be given to the
			 applicant;
e) Existing life
			 insurance that is a non-convertible term life insurance policy which will
			 expire in 5 years or less and cannot be renewed;
f) Transactions where the replacing insurer
			 and the existing insurer are the same or are subsidiaries under common
			 ownership or control, provided, however, insurance producers proposing
			 replacement shall comply with the requirements of Section
			 917.60(a);
			 or
g) The total cash surrender
			 value of all existing policies which would be affected by the replacement is
			 less than $500 and the sum of their face amounts is less than $5,000.
Illinois Administrative Code › Title 50 - INSURANCE › Part 917 - LIFE INSURANCE AND ANNUITY REPLACEMENT › Section 917.60 - Duties of Insurance Producers

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Each insurance producer shall submit to the replacing insurer with or as part
			 of each application for life insurance or annuity:
1) A statement signed by the applicant, as to
			 whether or not such insurance will replace existing life insurance or annuity;
			 and
2) A signed statement as to
			 whether the insurance producer knows replacement is, or may be, involved in the
			 transaction.
Illinois Administrative Code › Title 50 - INSURANCE › Part 917 - LIFE INSURANCE AND ANNUITY REPLACEMENT › Section 917.70 - Duties of Replacing Insurers

Current through Register Vol. 48, No. 28, July 12, 2024
Each insurer shall:
a)
			 Require with or as part of each completed application for life insurance or
			 annuity a statement signed by the insurance producer and the applicant as to
			 whether or not such insurance will replace existing life insurance or
			 annuity;
b) Where a replacement is
			 involved, each replacing insurer shall require from the insurance producer,
			 with the application for life insurance or annuity, a copy of the notices
			 required in Section
			 917.60(b);
c) In the case of a replacement, the insurers
			 shall comply with Section 224(2) of the Illinois Insurance Code [215 ILCS
			 5/224(2) ], and furnish to the
			 applicant a copy of the Buyer's Guide pursuant to 50 Ill. Adm. Code
			 930.50
			 and forward, to the existing insurer, within 3 working days after receipt of
			 the application, the Notice Regarding Proposed Replacement of Life Insurance or
			 Annuity which is Exhibit B of this Part; and
d) Each replacing insurer shall maintain, at
			 its home office for at least 3 years following the date of insurance producer's
			 signature or date of mailing copies of the notices as required in Section
			 917.60(b)
			 for all instances where an insurance producer is involved.
Illinois Administrative Code › Title 50 - INSURANCE › Part 917 - LIFE INSURANCE AND ANNUITY REPLACEMENT › Section 917.80 - Duties of Insurers With Respect to Direct-Response Sales

Current through Register Vol. 48, No. 28, July 12, 2024
Each insurer shall:
a)
			 Require with or as part of each completed application for life insurance a
			 statement signed by the applicant as to whether such insurance will replace
			 existing life insurance;
b) Where
			 no replacement is proposed by an insurer in the solicitation of a
			 direct-response sale and a replacement is involved include a Notice Regarding
			 Replacement of Life Insurance in a form as described in Exhibit A, at the time
			 the policy is mailed to the applicant;
c) Where a replacement is proposed by an
			 insurer in the solicitation of a direct-response sale and a replacement is
			 involved:
1) Request from the applicant with
			 or as part of the application a list of all existing life insurance to be
			 replaced. Such existing life insurance shall be requested to be identified by
			 name of insurer;
2) If the
			 applicant furnishes the names of the existing insurers, then the replacing
			 direct-response insurer shall mail the applicant a Notice Regarding Replacement
			 of Life Insurance in a form substantially as described in Exhibit A within 3
			 working days after receipt of the application and shall comply with the
			 provisions of Section 224(2) of the Insurance Code, and forward to the existing
			 insurer, within 3 working days after receipt of the application the Notice
			 Regarding Proposed Replacement of Life Insurance or Annuity which is Exhibit B
			 of this Part;
3) If the applicant
			 does not furnish the names of the existing insurers, then the replacing
			 direct-response insurer shall, at the time the policy is mailed to the
			 applicant, include a Notice Regarding Replacement of Life Insurance in a form
			 as described in Exhibit A.
Illinois Administrative Code › Title 50 - INSURANCE › Part 917 - LIFE INSURANCE AND ANNUITY REPLACEMENT › Exhibit A - Notice Regarding Replacement of Life Insurance or Annuity

Current through Register Vol. 48, No. 28, July 12, 2024
REPLACING YOUR LIFE INSURANCE OR ANNUITY?
Are you thinking about buying a new life insurance policy or
				annuity and discontinuing or changing an existing one? If you are, your
				decision could be a good one - or a mistake. You will not know for sure unless
				you make a careful comparison of your existing benefits and the proposed
				benefits.
Make sure you understand the facts. You should ask the
				insurance producer or company that sold you your existing policy to give you
				information about it.
Hear both sides before you decide. This way you can be sure you
				are making a decision that is in your best interest.
We are required by law to notify your existing company that you
				may be replacing their policy.
List below the identification
of policies which are involved
in the replacement transaction
_____________________________
____________________________
Contract Number
Insurance Producer's Signature
_____________________________
____________________________
Contract Number
Date
_____________________________
Contract Number
_____________________________
Contract Number
Illinois Administrative Code › Title 50 - INSURANCE › Part 917 - LIFE INSURANCE AND ANNUITY REPLACEMENT › Exhibit B - Notice Regarding Proposed Replacement of Life Insurance or Annuity

Current through Register Vol. 48, No. 28, July 12, 2024
(Name of Existing Insurer)
(Address)
(City, State, Zip Code )
(Salutation)
You are herewith given notice that we are in receipt of
				application(s) for life insurance or annuity(ies) for an individual presently
				insured with your company.
Identification
Name of Insured
_____________________
Address
_____________________
_____________________
Contract Number
_____________________
_____________________
" "
_____________________
_____________________
" "
_____________________
_____________________
" "
_____________________
_____________________
This notice is given pursuant to 50 Ill. Adm. Code
				917.70(c)
____________________________
____________________________
(Insurance Producer's Signature)
(Closure)
Illinois Administrative Code › Title 50 - INSURANCE › Part 919 - IMPROPER CLAIMS PRACTICE › Section 919.10 - Authority

Current through Register Vol. 48, No. 28, July 12, 2024
This Part is promulgated by the Director of Insurance
				(Director) pursuant to Sections 154.5, 154.6 and 401 of the Illinois Insurance
				Code [215 ILCS 5/154.5, 154.6 and 401], Section 10 of the Voluntary Health
				Services Plans Act [215 ILCS
				165/10 ], Section 25 of the Dental Service Plan Act
				[215 ILCS
				110/25 ] and Section 5-3 of the Health Maintenance
				Organization Act [215 ILCS
				125/5-3 ], which empower the Director of
				Insurance...to make reasonable rules and regulations as may be necessary for
				making effective...the insurance and related laws of this
				State.
Illinois Administrative Code › Title 50 - INSURANCE › Part 919 - IMPROPER CLAIMS PRACTICE › Section 919.20 - Scope and Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
a) This Part
			 shall apply to all insurance companies authorized to transact in this State the
			 kind or kinds of business described in Section 4, Class 1, Class 2 and Class 3
			 of the Illinois Insurance Code [215 ILCS
			 5/4 ] except fidelity and surety, ocean marine and
			 worker's compensation; to all producers licensed under Article XXXI of the
			 Illinois Insurance Code [215 ILCS 5 /Art. XXXI]; to all Voluntary Health
			 Service Plan Corporations; to all Dental Service Plan Corporations; to all
			 Health Maintenance Organizations; and to any individual association,
			 corporation, partnership, insurance company or other legal entity licensed
			 under the Illinois Insurance Code which acts as a third party administrator.
			 This Part shall apply to all claims handling activity occurring on or after the
			 effective date of this Part and to all pertinent policy forms on file or
			 hereafter filed with the Illinois Department of Insurance after the effective
			 date of this Part.
b) The purpose
			 of this Part is to set forth minimum standards for the investigation and
			 disposition of claims arising under contracts and certificates issued to
			 residents of Illinois. The provisions of the Part establish the general
			 criteria to be used by the Director in selecting companies to be examined and
			 the minimum standards for record keeping to be followed by the companies
			 subject to the Part. The various provisions of the Part are intended to define
			 procedures and practices that committed with such frequency as to indicate a
			 general practice will ultimately be the basis for a regulatory finding of
			 unfair claims practices.
Illinois Administrative Code › Title 50 - INSURANCE › Part 919 - IMPROPER CLAIMS PRACTICE › Section 919.30 - Examinations

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each company's
			 claim files for policies or certificates on Illinois risks are subject to
			 examination and inspection by the Director of Insurance or by his duly
			 appointed designees. Examples of the criteria which may be used to determine
			 the frequency of examinations include but are not limited to:
1) High ratio of written complaints to
			 premium volume or units of exposure or enrollment;
2) Examination of a percent of a particular
			 market;
3) Examination of a
			 particular specialty line for which claims handling, underwriting or marketing
			 practices or procedures raise questions of compliance with any insurance laws
			 or rule;
4) Examination of a
			 particular company whose practice or procedure for the handling of claims,
			 underwriting or the marketing of policies raise questions of compliance with
			 any insurance laws or rules.
Illinois Administrative Code › Title 50 - INSURANCE › Part 919 - IMPROPER CLAIMS PRACTICE › Section 919.50 - Required Practices for all Insurance Companies

Current through Register Vol. 48, No. 28, July 12, 2024
a) The company shall affirm or deny liability
			 on claims within a reasonable time and shall offer payment within 30 days after
			 affirmation of liability, if the amount of the claim is determined and not in
			 dispute. For those portions of the claim which are not in dispute and for which
			 the payee is known, the company shall tender payment within said 30 days.
1) On first party claims if a settlement of a
			 claim is less than the amount claimed, or if the claim is denied, the company
			 shall provide to the insured a reasonable written explanation of the basis of
			 the lower offer or denial within 30 days after the investigation and
			 determination of liability is completed. This explanation shall clearly set
			 forth the policy definition, limitation, exclusion or condition upon which
			 denial was based. Notice of Availability of the Department of Insurance shall
			 accompany this explanation.
2)
			 Within 30 days after the initial determination of liability is made, if the
			 claim is denied, the company shall provide the third party a reasonable written
			 explanation of the basis of the denial.
Illinois Administrative Code › Title 50 - INSURANCE › Part 919 - IMPROPER CLAIMS PRACTICE › Section 919.60 - Improper Practices or Procedures for all Insurance Companies

Current through Register Vol. 48, No. 28, July 12, 2024
a) No company shall
			 indicate to an insured on a payment draft, check or in any accompanying letter
			 that said payment is "final" or "a release" of any claim unless the policy
			 limit has been paid or there is a bonafide dispute either over coverage or the
			 amount payable under the policy.
b)
			 No company shall make any statement, written or oral, requiring an insured to
			 complete a proof of loss in less time than is provided in the policy.
c) No company shall make any statement
			 requiring an insured to give written notice of loss within a specified time so
			 that the company is relieved of its obligations under a policy if such time
			 limit is not complied with, unless such a statement is made after the insured's
			 unreasonable failure to give written notice.
d) No company shall request or require any
			 insured to submit to a polygraph examination. The use of examinations under
			 oath, sworn statements or similar procedures shall not be so restricted, if
			 authorized under the applicable insurance contracts.
Illinois Administrative Code › Title 50 - INSURANCE › Part 919 - IMPROPER CLAIMS PRACTICE › Section 919.70 - Required Claims Practices - Life, Accident and Health Companies

Current through Register Vol. 48, No. 28, July 12, 2024
a) Required
			 Practices.
1) Insurance companies shall
			 utilize the following guidelines to search for additional policies or insurance
			 coverages on the life of an insured upon notification of death of the insured.
			 Companies selling group life insurance policies or credit life insurance
			 policies for which the company does not maintain records of the certificate
			 holders shall be exempt from the requirements of this subsection (a)(1).
A) Upon submission of a death claim form
			 pursuant to an insurance contract, insurers shall conduct a search for other
			 policies on the decedent's life.
B)
			 The company shall investigate additional policy files identified by the search,
			 for which liability is not immediately verified, and complete a determination
			 of liability no later than 6 months following the claim filing date.
C) Where such other policies exist, the
			 insurer shall notify the policy owner (if different than the insured) and the
			 beneficiary and arrange for payment pursuant to the policies.
D) Insurers shall adopt a written claim
			 processing standard and methodology that will allow the company to process a
			 death or endowment or other claim being presented against a life insurance or
			 accidental death or dismemberment policy.
E) The company, as a part of its claim
			 processing standard and methodology, shall inquire for every claim filed with
			 the company for death benefits about other names by which the insured may have
			 been known, such as maiden name, hyphenated name, nickname, derivative form of
			 first and middle name or an alias. If the filer of the claim form includes such
			 additional name information on the claim form or if the company otherwise knows
			 about other names by which the insured may have been known, the company shall
			 include this information as a part of its search criteria to determine whether
			 additional policies exist.
F) Claim
			 records shall be maintained that demonstrate that the insurer has followed the
			 written claim processing standard and methodology required by this subsection
			 (a)(1).