reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 50 - INSURANCE › Part 919 - IMPROPER CLAIMS PRACTICE › Section 919.80 - Required Claim Practices - Private Passenger Automobile - Property and Casualty Companies

Current through Register Vol. 48, No. 28, July 12, 2024
a) All
			 companies shall report vexatious or unreasonable delay findings by a court of
			 law to the Director within 30 days after such findings and enclose with that
			 report a copy of said findings and penalties, if any, pursuant to Section 155
			 of the Code [215 ILCS 5/155
			 ].
b) Unreasonable Delays.
1) The period used in computing the "median
			 payment period" shall mean the period measured from the date of notification of
			 loss to the date of final payment or the rendering of the repaired automobile
			 to the insured or third party claimant.
2) An unreasonable delay to pay automobile
			 collision claims exists when the median payment period exceeds 40 calendar
			 days. If a first party physical damage automobile claim remains unresolved for
			 more than 40 calendar days from the date it is reported, the company shall
			 provide a reasonable written explanation for the delay to the insured. Notice
			 of Availability of the Department of Insurance shall accompany the written
			 explanation.
3) An unreasonable
			 delay to pay automobile property damage liability claims exists when a median
			 payment period exceeds 60 calendar days. If an automobile property damage
			 liability claim remains unresolved in excess of 60 calendar days from the date
			 it is reported, the company shall provide a reasonable written explanation for
			 the delay to the third party claimant. Notice of Availability of the Department
			 of Insurance shall accompany the written explanation.
4) Written explanations under subsections
			 (b)(2) and (3) shall be considered reasonable if they exhibit a rational basis
			 for the delay and are not frivolous.
Illinois Administrative Code › Title 50 - INSURANCE › Part 919 - IMPROPER CLAIMS PRACTICE › Section 919.90 - Improper Practices or Procedures - Property and Casualty Companies

Current through Register Vol. 48, No. 28, July 12, 2024
a) A claim shall
			 not be denied on the basis of failure to exhibit property unless there is
			 documentation of breach of the policy provisions in the claim file.
b) No company shall make any statement,
			 written or oral, requiring a liability claimant to complete a proof of loss
			 form, accident description, or release of claim for damages, which indicates
			 that the claimant's rights may be impaired if such forms are not completed
			 within a specified time, unless such statement is given for the purpose of
			 notifying the claimant of the provisions of the statute of
			 limitations.
c) No company shall
			 advise liability claimants to make claims under their own policies in cases
			 where liability is reasonably clear.
d) No company shall fail to effect settlement
			 on first party claims on the basis that responsibility for payment should be
			 assumed by other persons or insurers.
e) No company issuing a motor vehicle
			 insurance policy covering damages to a motor vehicle shall abandon the salvage
			 of a motor vehicle to a towing service and/or storage yard service in lieu of
			 the towing and storage charges, without the agreed permission of the towing
			 service or storage yard service.
f)
			 No company shall deny a claim for storage charges on actual cash value fire and
			 extended coverage losses when the personal property limits have been exhausted,
			 if coverage exists under additional living expense.
Illinois Administrative Code › Title 50 - INSURANCE › Part 919 - IMPROPER CLAIMS PRACTICE › Section 919.100 - Severability Provision

Current through Register Vol. 48, No. 28, July 12, 2024
If any provision of this Part or an application thereof to any
				person or circumstance is held invalid by a court of competent jurisdiction,
				the other provisions or applications of this Part which can be given effect
				without the invalid provision or application shall not be thereby affected, and
				to this extent the provision of this Part are severable.
Illinois Administrative Code › Title 50 - INSURANCE › Part 919 - IMPROPER CLAIMS PRACTICE › Exhibit A - Total Loss Automobile Claims

Current through Register Vol. 48, No. 28, July 12, 2024
1) Total Loss Claims
When you are involved in an automobile accident, one of the
				first things you may have to do is file a claim for damages to your vehicle. If
				your car is a total loss, this procedure can sometimes be confusing.
Your automobile insurance policy requires both you and your
				insurance company to follow certain steps after a loss occurs. This publication
				summarizes those requirements and outlines your rights.
The Illinois Department of Insurance has established
				regulations to protect you when you file an insurance claim. It is also
				important that you read your policy carefully so that you clearly understand
				your responsibilities.
If you still have questions, you can contact our Consumer
				Services Section by phone at (866) 445-5364 or at one of the following
				locations:
320 West Washington Street
Springfield, Illinois 62767
OR
122 S. Michigan Ave.,
				19th Floor
Chicago, Illinois 60603
2) Your Duties
1. You must immediately report all losses
			 directly to your insurance producer or company.
2. If you suspect theft or vandalism, you
			 must also report it immediately to the police. If you fail to do so, your
			 company may deny your claim.
3. You
			 must protect your automobile from further damage. For example, if you fail to
			 cover a broken windshield and the upholstery is damaged by rain, your company
			 can refuse to repair the seat.
4.
			 Most insurance policies require that, within 91 days after the loss, you must
			 submit a sworn proof of loss. A sworn proof of loss usually states the date of
			 loss, how it happened, and for what purpose the automobile was being used. If
			 you fail to submit a proof of loss your company may deny your claim.
5. You must cooperate with the insurance
			 company, submit to examination under oath, if so requested, and show them the
			 damaged property. If you fail to cooperate your company may deny your
			 claim.
6. You should review the
			 Conditions section of your policy for other possible requirements.
Illinois Administrative Code › Title 50 - INSURANCE › Part 920 - IMPROPER CLAIMS PRACTICE › Section 920.10 - Scope

Current through Register Vol. 48, No. 28, July 12, 2024
This Part applies to all life insurance companies and fraternal
				benefit societies authorized to transact in this State the kind or kinds of
				business that are described in Class 1(a) of Section 4 of the Code. These rules
				provide guidance and instructions regarding specific provisions of the Act and
				may be supplemented in the future if additional clarification is required. They
				are intended to be consistent with the requirements of the Act and do not
				relieve insurers of their obligation to comply with any requirements of the Act
				not specifically addressed in this Part.
Illinois Administrative Code › Title 50 - INSURANCE › Part 920 - IMPROPER CLAIMS PRACTICE › Section 920.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
Unless the context requires otherwise, terms used in this Part
				have the meanings ascribed in Section 10 of the Act.
"Act" means the Unclaimed Life Insurance Benefits Act [ 215
				ILCS 185 ].
"Affiliate" has the meaning ascribed in Section 131.1(a) of the
				Code.
"Beneficiary" or "Beneficiaries" means the party or parties
				entitled or contingently entitled to receive the proceeds from a policy,
				annuity contract, or retained asset account.
"Code" means the Illinois Insurance Code [ 215 ILCS 5 ].
"Department" means the Illinois Department of Insurance.
"Electronic Searchable File" means any electronic record stored
				in a format that, using the insurer's existing capabilities, can be read by an
				algorithm that electronically searches and retrieves alphanumeric data from the
				record that satisfy parameters specified by the end-user or administrator, or
				that are integrated into the algorithm or the program that runs it, or both.
				The term excludes any record that must be reconstructed before being searched,
				as well as any record that can only be searched by visually inspecting the
				physical attributes of the storage medium containing the record, such as paper
				or microform.
"In-Force" means a situation in which any policy, annuity
				contract, or retained asset account is in force, within the applicability
				parameters established in Section 35 of the Act. This includes policies for
				which the insured or the insurer has exercised a non-forfeiture benefit option,
				policies that have lapsed due to nonpayment of premium, and policies with a
				cash value that has been depleted below the amount needed to keep the policy in
				force.
"Insured" means an individual identified in a policy, annuity
				contract or retained asset account whose death obligates the insurer to pay
				benefits or proceeds.
"Insurer" means a life insurance company or fraternal benefit
				society authorized to transact in this State the kind or kinds of life
				insurance products that are described in Class 1(a) of Section 4 of the
				Code.
"Subsidiary" has the meaning ascribed in Section 131.1(g) of
				the Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 920 - IMPROPER CLAIMS PRACTICE › Section 920.30 - Insurer Conduct

Current through Register Vol. 48, No. 28, July 12, 2024
a) Upon a date
			 of death notice of an insured, the date of death notice is deemed to apply to
			 all of the insurer's lines of business. The insurer shall check its records to
			 determine whether the insurer has any other policies, annuity contracts, or
			 retained asset accounts for that insured.
b) Upon a date of death notice of an insured,
			 the insurer shall:
1) Forward each United
			 States affiliate, parent or subsidiary, as appropriate, and any entity with
			 which the insurer contracts that might maintain or control records related to
			 policies, annuity contracts, or retained asset accounts to which this Part
			 applies, a copy of the information or record giving rise to the date of death
			 notice; and
2) Make a reasonable
			 effort to ensure that each affiliate, parent, subsidiary or other entity
			 performs a check of its records for purposes of subsection (a).
Illinois Administrative Code › Title 50 - INSURANCE › Part 920 - IMPROPER CLAIMS PRACTICE › Section 920.40 - Lost Policy Finder - Insurer Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) Insurers shall register for the Lost
			 Policy Finder service offered by the Department within the later of 30 days
			 after becoming authorized to offer life insurance products in this State or
			 September 1, 2019.
b) Each insurer
			 must designate an individual as a Primary Policy Search Coordinator to manage
			 the insurer's compliance with the requirements for the Lost Policy Finder
			 service under this Part and Section 25 of the Act.
1) The Primary Policy Search Coordinator
			 shall:
A) ensure the proper execution of the
			 insurer's responses to requestors and the insurer's reports to the Department;
			 and
B) have the ability to
			 designate other employees as Secondary Coordinators to complete requests
			 received by the insurer.
Illinois Administrative Code › Title 50 - INSURANCE › Part 920 - IMPROPER CLAIMS PRACTICE › Section 920.50 - Lost Policy Finder - Inactive Insurers

Current through Register Vol. 48, No. 28, July 12, 2024
Any insurer can request to be made inactive in the Lost Policy
				Finder System. The request must include certification by the insurer's
				President, Chief Executive Officer, or Chief Operating Officer that no In-Force
				policies, annuity contracts, or retained asset accounts exist in
				Illinois.
Illinois Administrative Code › Title 50 - INSURANCE › Part 920 - IMPROPER CLAIMS PRACTICE › Section 920.60 - Lost Policy Finder - Requestor Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
Requestors may submit Lost Policy Finder requests in paper
				using Illustration A or may use the Department's website (
http://insurance.illinois.gov/Applications/LostPolicyFinder/
).
				The Department, in its sole discretion, will reject any request it deems to be
				incomplete, frivolous or unduly burdensome.
Illinois Administrative Code › Title 50 - INSURANCE › Part 920 - IMPROPER CLAIMS PRACTICE › Section 920.70 - Enforcement/Penalties

Current through Register Vol. 48, No. 28, July 12, 2024
a) Failure of an
			 insurer to meet any requirement of this Part with such frequency as to
			 constitute a general business practice is considered an unfair method of
			 competition and unfair or deceptive practice as defined in Section 424 of the
			 Code and may result in disciplinary action by the Department.
b) Failure of an insurer to accurately and
			 completely respond to Lost Policy Finder requests received within the 30 or 45
			 day period, as applicable under Section 25 of the Act, is deemed to be a
			 general business practice constituting an unfair method of competition and
			 unfair or deceptive practice as defined in Section 424 of the Code and may
			 result in disciplinary action by the Department.
Illinois Administrative Code › Title 50 - INSURANCE › Part 921 - EXCLUSION PROVISIONS - AUTOMOBILE › Section 921.10 - Authority

Current through Register Vol. 48, No. 28, July 12, 2024
This Rule is promulgated by the Director of Insurance under
				Section 401 of the Illinois Insurance Code which empowers the Director "...to
				make reasonable rules and regulations as may be necessary for making
				effective..." the insurance laws of this State. It is the purpose of this Rule
				to implement Section 143(2) and Article IX of the Illinois Insurance
				Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 921 - EXCLUSION PROVISIONS - AUTOMOBILE › Section 921.20 - Scope

Current through Register Vol. 48, No. 28, July 12, 2024
This Rule shall apply to any insurance company licensed to do
				business in this State which is transacting the kind or kinds of business
				described as Class 2 (b) or Class 3 (e) of Section 4 of the Illinois Insurance
				Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 921 - EXCLUSION PROVISIONS - AUTOMOBILE › Section 921.30 - Exclusions

Current through Register Vol. 48, No. 28, July 12, 2024
On and after June 1, 1972, no automobile insurance policy
				issued or renewed in this State shall contain a provision excluding a class of
				persons solely as a consideration of the rate class applied thereto.
				Furthermore, no company shall include such a provision in any automobile
				insurance policy unless the insured, because of unusual hazards or exposures,
				would not otherwise meet the company's normal underwriting standards for
				acceptance.
Illinois Administrative Code › Title 50 - INSURANCE › Part 924 - EQUIPMENT EXCLUSION › Section 924.10 - Authority

Current through Register Vol. 48, No. 28, July 12, 2024
This Rule is promulgated by the Director of Insurance under
				Section 401 of the Illinois Insurance Code (Ill. Rev. Stat. 1981, ch. 73 par.
				1013) which empowers the Director "...to make reasonable rules and regulations
				as may be necessary for making effective..." the insurance laws of this State.
				It is the purpose of this Part to implement Section 143(2) of Article IX of the
				Illinois Insurance Code (Ill. Rev. Stat. 1981, ch. 73, par.
				755(2)).
Illinois Administrative Code › Title 50 - INSURANCE › Part 924 - EQUIPMENT EXCLUSION › Section 924.20 - Scope

Current through Register Vol. 48, No. 28, July 12, 2024
This Part shall apply to any insurance company licensed to do
				business in this State which is transacting the kind or kinds of business
				described as class 2(b) or class 3(e) of Section 4 of the Illinois Insurance
				Code (Ill. Rev. Stat. 1981, ch. 73, par. 616), and issuing policies under which
				the insured vehicles therein designated are motor vehicles of the private
				passenger or station wagon type.
Illinois Administrative Code › Title 50 - INSURANCE › Part 924 - EQUIPMENT EXCLUSION › Section 924.30 - Exclusions

Current through Register Vol. 48, No. 28, July 12, 2024
a) On or after
			 April 30, 1974, no automobile insurance policy issued or renewed in this State
			 shall contain a provision excluding any item or items of equipment except in
			 the manner herein provided.
b)
			 Items of equipment may be excluded only by special endorsement signed by the
			 named insured and attached to and made a part of the policy and policy file.
			 For purposes of this rule, equipment shall be defined as standard or optional
			 equipment which is available from the manufacturer of the automobile named in
			 the policy for that make, model and model year.
Illinois Administrative Code › Title 50 - INSURANCE › Part 924 - EQUIPMENT EXCLUSION › Section 924.40 - The Endorsement

Current through Register Vol. 48, No. 28, July 12, 2024
Each endorsement must contain the following information:
a) The named insured's signature.
b) The date the endorsement was signed by the
			 named insured.
c) The policy
			 number.
d) Identification of the
			 specific item or items to be excluded from the named insured's policy as a
			 result of the endorsement.
e)
			 Specific identification of the automobile to which the endorsement
			 applies.
Illinois Administrative Code › Title 50 - INSURANCE › Part 924 - EQUIPMENT EXCLUSION › Section 924.50 - Exception

Current through Register Vol. 48, No. 28, July 12, 2024
Nothing in this Part shall apply to:
a) loss of or damage to any device or
			 instrument designed for the recording, reproduction, receiving, or transmittal
			 of sound, radio waves, microwaves or television signals unless such device or
			 instrument is permanently installed in the dash or console opening specified by
			 the manufacturer of the motor vehicle for the installation of such
			 equipment.
b) loss or damage to any
			 type, wire, record disc or other medium for use with any device or instrument
			 designed for the recording, reproduction, or recording and reproduction of
			 sound.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.20 - Purpose and Scope

Current through Register Vol. 48, No. 28, July 12, 2024
a) The purpose
			 of this Part is to improve the Director's surveillance of the financial
			 condition of insurers by requiring:
1) An
			 annual audit of financial statements reporting the financial position and the
			 results of operations of insurers by independent certified public
			 accountants;
2) Communication of
			 Internal Control Related Matters Noted in an Audit; and
3) Management's Report of Internal Control
			 over Financial Reporting.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.40 - General Requirements Related to Filing and Extensions for Filing of Annual Audited Financial Report and Audit Committee Appointment

Current through Register Vol. 48, No. 28, July 12, 2024
a) All insurers
			 shall have an annual audit performed by an independent certified public
			 accountant and shall file an annual audited financial report with the Director
			 on or before June 1 for the year ended December 31 immediately preceding. The
			 Director may require an insurer to file an annual audited financial report
			 earlier than June 1 with 90 days advance notice to the insurer.
b) Extensions of the June 1 filing date may
			 be granted by the Director for 30 day periods upon a showing by the insurer and
			 its independent certified public accountant of the reasons for requesting such
			 extension and a determination by the Director of good cause for an extension.
			 Examples of "good cause" include, but are not limited to, an Act of God or
			 fortuitous or unintentional destruction of documents. The request for extension
			 must be submitted in writing not less than 10 days prior to the due date and
			 must provide sufficient detail to permit the Director to make an informed
			 decision with respect to the requested extension.
c) If an extension is granted in accordance
			 with the provisions in Section
			 925.40(b),
			 a similar extension of 30 days is granted to the filing of Management's Report
			 of Internal Control over Financial Reporting.
d) Every insurer required to file an annual
			 audited financial report pursuant to this Part shall designate a group of
			 individuals as constituting its audit committee, as defined in Section
			 925.30. The audit
			 committee of an entity that controls an insurer may be deemed to be the
			 insurer's audit committee for purposes of this Part at the election of the
			 controlling person.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.50 - Contents of Annual Audited Financial Report

Current through Register Vol. 48, No. 28, July 12, 2024
a) The annual audited financial report shall
			 report the financial position of the insurer as of the end of the most recent
			 calendar year and the results of its operations, cash flows and changes in
			 capital and surplus for the report year in conformity with statutory accounting
			 practices for preparation of the annual statement as described in Section 136
			 of the Code, or as otherwise permitted by the insurance regulatory authority of
			 the insurer's state of domicile.
b)
			 The annual audited financial report shall include the following:
1) Report of the independent certified public
			 accountant.
2) Balance sheet
			 reporting admitted assets, liabilities, capital and surplus or net
			 worth.
3) Statement of operations
			 or statement of revenues and expenses and net worth.
4) Statement of cash flows.
5) Statement of changes in capital and
			 surplus or net worth.
6) Notes to
			 financial statements. These notes shall be those required by the appropriate
			 NAIC Annual Statement Instructions and the NAIC Accounting Practices and
			 Procedures Manual, pursuant to Section 136 of the Code.
The notes shall include a reconciliation with a written
				description of differences, if any, between the annual audited financial report
				and the annual statement filed pursuant to Section 136 of the
				Code.
7) The financial
			 statements included in the annual audited financial report shall be prepared in
			 a format using language and groupings substantially the same as the relevant
			 sections of the annual statement of the insurer filed with the Director and:
A) The financial statements shall be
			 comparative, presenting the amounts as of December 31 of the current year and
			 the amounts as of the immediately preceding December 31. (However, in the first
			 year in which an insurer is required to file an annual audited financial
			 report, the comparative data may be omitted.)
B) Amounts may be rounded to the nearest
			 thousand dollars.
8)
			 Supplementary Data and Information. This shall include any additional
			 clarifying information or data which the Director may require to be
			 disclosed.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.70 - Qualifications of Independent Certified Public Accountant

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Director shall not recognize any
			 person or firm as a qualified independent certified public accountant if the
			 person or firm:
1) Is not in good standing
			 with the AICPA and in all states in which the accountant is licensed to
			 practice or, for a Canadian or British company, that is not a chartered
			 accountant; or
2) Has either
			 directly or indirectly entered into an agreement of indemnity or release from
			 liability (collectively referred to as indemnification) with respect to the
			 audit of the insurer; or
3) Has
			 repeatedly failed to timely comply with the written requests of the Director's
			 examiners for copies of the workpapers as required pursuant to Sections
			 925.120
			 and
			 925.130
			 of this Part.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.80 - Consolidated or Combined Audits

Current through Register Vol. 48, No. 28, July 12, 2024
a) An
			 insurer may make written application to the Director for approval to file a
			 consolidated or combined annual audited financial report in lieu of separate
			 annual audited financial reports if the insurer is part of a group of insurance
			 companies which utilizes a pooling or 100% reinsurance agreement that affects
			 the solvency and integrity of the insurer's reserves and the insurer cedes all
			 of its direct and assumed business to the pool. In these cases, a columnar
			 consolidating or combining worksheet shall be bound into and filed with the
			 report as follows:
1) Amounts shown on the
			 consolidated or combined annual audited financial report shall be shown on the
			 worksheet;
2) Amounts for each
			 insurer subject to this Section shall be stated separately;
3) Noninsurance operations may be shown on
			 the worksheet on a combined or individual basis;
4) Explanations of consolidating and
			 eliminating entries shall be included; and
5) A reconciliation shall be included of any
			 differences between the amounts shown in the individual insurer columns of the
			 worksheet and comparable amounts shown on the annual statements of the
			 insurers.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.100 - Notification of Adverse Financial Condition

Current through Register Vol. 48, No. 28, July 12, 2024
a) The insurer required to furnish the annual
			 audited financial report shall require the independent certified public
			 accountant to report, in writing within 5 business days, to the board of
			 directors or its audit committee, any determination by the independent
			 certified public accountant that the insurer has materially misstated its
			 financial condition as reported to the Director as of the balance sheet date
			 currently under audit, or of any other determination that the insurer does not
			 meet the minimum capital and surplus requirements of the Code and the net worth
			 requirements of the Health Maintenance Organization Act, Dental Service Plan
			 Act, or the Limited Health Service Organization Act, as of that date.
b) An insurer who has received a report
			 pursuant to subsection (a) shall forward a copy of the report to the Director
			 within 5 business days after receipt of the report and shall provide the
			 independent certified public accountant making the report with evidence of the
			 report being furnished to the Director. If the independent certified public
			 accountant fails to receive the evidence within the required 5 business day
			 period, the independent certified public accountant shall furnish to the
			 Director a copy of the accountant's report within the next 5 business
			 days.
c) No independent certified
			 public accountant shall be liable in any manner to any person for any statement
			 made in connection with subsections (a) and (b) if the statement is made in
			 good faith in compliance with subsections (a) and (b).
d) If the accountant, subsequent to the date
			 of the annual audited financial report filed pursuant to this Part, becomes
			 aware of facts that might have affected the accountant's report, the Director
			 notes the obligation of the accountant to take action as prescribed in AU-C
			 Section 560, Subsequent Events and Subsequently Discovered Facts, AICPA
			 Professional Standards (as of June 1, 2014 (no later amendments or editions),
			 by American Institute of Certified Public Accountants, Inc., 1211 Avenue of the
			 Americas, New York NY 10036-8775; website
www.aicpa.org
).
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.110 - Communication of Internal Control Related Matters Noted in an Audit

Current through Register Vol. 48, No. 28, July 12, 2024
In addition to the annual audited financial report, each
				insurer shall furnish the Director with a written communication as to any
				unremediated material weaknesses in its internal control over financial
				reporting noted during the audit. The communication shall be prepared by the
				accountant within 60 days after the filing of the annual audited financial
				report, and shall contain:
a) A
			 description of any unremediated material weaknesses (as the term material
			 weakness is defined by AU-C Section 265, Communicating Internal Control Related
			 Matters Identified in an Audit, AICPA Professional Standards (as of June 1,
			 2014 (no later amendments or editions), by American Institute of Certified
			 Public Accountants, Inc., 1211 Avenue of the Americas, New York NY 10036-8775;
			 website
www.aicpa.org
), Statement on
			 Auditing Standard 60, Communication of Internal Control Related Matters Noted
			 in an Audit as of December 31 immediately preceding (so as to coincide with the
			 audited financial report discussed in Section
			 925.40(a)
			 ) in the insurer's internal control over financial reporting noted by the
			 accountant during the course of the audit of the financial statements. If no
			 unremediated material weaknesses were noted, the communication should so
			 state.
b) The insurer is required
			 to provide a description of remedial actions taken or proposed to correct
			 unremediated material weaknesses, if the actions are not described in the
			 accountant's communication.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.120 - Accountant's Letter of Qualifications

Current through Register Vol. 48, No. 28, July 12, 2024
The accountant shall furnish the insurer, in connection with,
				and for inclusion in, the filing of the annual audited financial report, a
				letter stating that:
a) The accountant
			 is independent with respect to the insurer and conforms to the standards of the
			 profession as contained in the AICPA Code of Conduct and Rules of Professional
			 Ethics and pronouncements (September 30, 2014 (no later amendments or
			 editions), by American Institute of Certified Public Accountants, Inc., 1211
			 Avenue of the Americas, New York NY 10036-8775; website
www.aicpa.org
) or similar code.
b) The background and experience in general,
			 and the experience in audits of insurers, of the staff assigned to the
			 engagement and whether each is an independent certified public accountant.
			 Nothing within this Part shall be construed as prohibiting the accountant from
			 utilizing such staff as deemed appropriate when that use is consistent with the
			 standards prescribed by generally accepted auditing standards.
c) The accountant understands the annual
			 audited financial report and the accountant's opinion on that report will be
			 filed in compliance with this Part and that the Director will be relying on
			 this information in the monitoring and regulation of the financial position of
			 insurers.
d) The accountant
			 consents to the requirements of Section
			 925.130
			 and consents and agrees to make available to the Director, the Director's
			 designee or the Director's appointed agent the workpapers, as defined in
			 Section 925.130, in hard copy or electronic format.
e) A representation that the accountant is
			 properly licensed by an appropriate state licensing authority and is a member
			 in good standing of the AICPA.
f) A
			 representation that the accountant is in compliance with the requirements of
			 Section
			 925.70.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.130 - Definition, Availability and Maintenance of Independent Certified Public Accountant Workpapers

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Workpapers are the records kept by the independent certified public accountant
			 of the procedures followed, the tests performed, the information obtained, and
			 the conclusions reached pertinent to the accountant's audit of the financial
			 statements of an insurer. Workpapers, accordingly, may include audit planning
			 documentation, work programs, analyses, memoranda, letters of confirmation and
			 representation, abstracts of company documents and schedules or commentaries
			 prepared or obtained by the independent certified public accountant in the
			 course of its audit of the financial statements of an insurer and that support
			 the accountant's opinion.
b) Every
			 insurer required to file an annual audited financial report pursuant to this
			 Part shall require the accountant to make available for review by the
			 Director's examiners all workpapers prepared in the conduct of the accountant's
			 audit and any communications related to the audit between the accountant and
			 the insurer, at the offices of the insurer, at the offices of the Director, or
			 at any other reasonable place designated by the Director. The insurer shall
			 require that the accountant retain the audit workpapers and communications
			 until the Director has filed a report on examination covering the period of the
			 audit, but no longer than 7 years from the date of the audit report.
c) In the conduct of the aforementioned
			 periodic review by the Director's examiners, it shall be agreed that
			 photocopies of pertinent audit workpapers may be made and retained by the
			 Director's examiners. The review by the Director's examiners shall be
			 considered an investigation and all workpapers and communications obtained
			 during the course of the investigation shall be afforded the same
			 confidentiality as other examination workpapers generated by the Director's
			 examiners, pursuant to Section 132.5(e) and (f) of the Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.141 - Internal Audit Function Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) Exemption. An insurer is exempt from the
			 requirements of this Section if the insurer:
1) has annual direct written and unaffiliated
			 assumed premiums, including international direct and assumed premiums, but
			 excluding premiums reinsured with the Federal Crop Insurance Corporation and
			 Federal Flood Program, of less than $500,000,000; or
2) is a member of a group of insurers that
			 has annual direct written and unaffiliated assumed premiums, including
			 international direct and assumed premiums, but excluding premiums reinsured
			 with the Federal Crop Insurance Corporation and Federal Flood Program, of less
			 than $1,000,000,000.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.150 - Conduct of Insurer in Connection with the Preparation of Required Reports and Documents

Current through Register Vol. 48, No. 28, July 12, 2024
a) No
			 director or officer of an insurer shall, directly or indirectly:
1) Make or cause to be made a materially
			 false or misleading statement to an accountant in connection with any audit,
			 review or communication required under this Part; or
2) Omit to state, or cause another person to
			 omit to state, any material fact necessary in order to make statements made, in
			 light of the circumstances under which the statements were made, not misleading
			 to an accountant in connection with any audit, review or communication required
			 under this Part.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.160 - Management's Report of Internal Control over Financial Reporting

Current through Register Vol. 48, No. 28, July 12, 2024
a) Every insurer
			 required to file an audited financial report pursuant to this Part that has
			 annual direct written and assumed premiums, excluding premiums reinsured with
			 the Federal Crop Insurance Corporation and Federal Flood Program, of
			 $500,000,000 or more shall prepare a report of the insurer's or group of
			 insurers' internal control over financial reporting, as these terms are defined
			 in Section
			 925.30. The report
			 shall be filed with the Director along with the Communication of Internal
			 Control Related Matters Noted in an Audit described under Section
			 925.110. Management's
			 Report of Internal Control over Financial Reporting shall be as of December 31
			 immediately preceding.
b)
			 Notwithstanding the premium threshold in subsection (a), the Director may
			 require an insurer to file a Management's Report of Internal Control over
			 Financial Reporting if the insurer is in any RBC level event, or meets any one
			 or more of the standards of an insurer deemed to be in hazardous financial
			 condition as referenced in Section 186.1 of the Code.
c) An insurer or a group of insurers that is
			 directly subject to Section 404, part of a holding company system whose parent
			 is directly subject to Section 404, not directly subject to Section 404 but is
			 a SOX Compliant Entity, or a member of a holding company system whose parent is
			 not directly subject to Section 404 but is a SOX Compliant Entity may file its
			 or its parent's Section 404 Report and an addendum in satisfaction of this
			 requirement, provided that those internal controls of the insurer or group of
			 insurers having a material impact on the preparation of the insurer's or group
			 of insurers' audited statutory financial statements (those items included in
			 Section
			 925.50(b)(2)
			 through (8) ) were included in the scope of
			 the Section 404 Report. The addendum shall be a positive statement by
			 management that there are no material processes with respect to the preparation
			 of the insurer's or group of insurers' audited statutory financial statements
			 (those items included in Section
			 925.50(b)(2)
			 through (8) ) excluded from the Section 404
			 Report. If there are internal controls of the insurer or group of insurers that
			 have a material impact on the preparation of the insurer's or group of
			 insurers' audited statutory financial statements and those internal controls
			 were not included in the scope of the Section 404 Report, the insurer or group
			 of insurers may file either:
1) a Section
			 925.160
			 Report; or
2) the Section 404
			 Report and a Section
			 925.160
			 Report for those internal controls that have a material impact on the
			 preparation of the insurer's or group of insurers' audited statutory financial
			 statements not covered by the Section 404 Report.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.170 - Exemptions and Effective Dates

Current through Register Vol. 48, No. 28, July 12, 2024
a) Upon
			 written application of any domestic insurer, the Director may grant an
			 exemption from compliance with any and all provisions of this Part if the
			 Director finds, upon review of the application, that compliance with this Part
			 would constitute a financial or organizational hardship upon the insurer. An
			 exemption may be granted at any time, and from time to time, for a specified
			 period or periods. Within 10 days after a denial of an insurer's written
			 request for an exemption from this Part, the insurer may request in writing a
			 hearing on its application for an exemption. The hearing shall be held in
			 accordance with the rules of the Department pertaining to administrative
			 hearing procedures (50 Ill. Adm. Code 2402).
b) Domestic insurers retaining a certified
			 public accountant who qualifies as independent shall comply with the January 1,
			 2010 revisions for the year ending December 31, 2010 and each year thereafter,
			 unless the Director permits otherwise.
c) Domestic insurers not retaining a
			 certified public accountant on the effective date of this regulation who
			 qualifies as independent shall meet the following schedule for compliance
			 unless the Director permits otherwise.
1) As
			 of December 31, 2010, file with the Director an audited financial
			 report.
2) For the year ending
			 December 31, 2010 and each year thereafter, these insurers shall file with the
			 Director all reports and communication required by this Part.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.180 - Canadian and British Companies

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 In the case of Canadian and British insurers, the annual audited financial
			 report shall be defined as the annual statement of total business on the form
			 filed by those companies with their supervision authority, duly audited by an
			 independent chartered accountant.
b) For these insurers, the letter required in
			 Section
			 925.60
			 shall state that the accountant is aware of the requirements relating to the
			 annual audited financial report filed with the Director pursuant to Section
			 925.40
			 and shall affirm that the opinion expressed is in conformity with those
			 requirements.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.190 - Penalties

Current through Register Vol. 48, No. 28, July 12, 2024
Failure of a company to meet any provisions of this Part shall
				subject the company to penalty provisions of Sections 139 and 403A of the Code,
				or other such action as the Director may deem necessary.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.200 - 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 of that Section or portion of a Section to any person or
				circumstance is held invalid by a court, the remainder of the Part or the
				applicability of the provision to other persons or circumstances shall not be
				affected by that determination of invalidity.
Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Exhibit A - CPA Letter of Representation

Current through Register Vol. 48, No. 28, July 12, 2024
Upon completion of the review by the Department's examiners,
				the accountant shall submit a CPA Letter of Representation in this
				format.
CPA LETTER OF REPRESENTATION
Date: ______________
Attention: Illinois Department of Insurance
Financial Examination Section
Attn: (Examiner-in-Charge)
122 South Michigan Avenue, 19th FloorChicago,
				Illinois 60603
(312) 814-2423
Re: Examination of (Insurance Company Name)
As of December 31, 20__
Dear (Examiner-in-Charge)
(CPA Firm) confirms the following information related to your
				review of our 20__ audit workpapers for (Insurance Company Name).
(CPA Firm) have made available for review to the Examiners of
				the Department of Insurance all workpapers prepared during the course of the
				audit of the financial position of the insurer, and the results of its
				operations, cash flows and changes in capital and surplus of (Insurance Company
				Name) for the period ending December 31, 20__. Workpapers include, but are not
				limited to, all electronic and paper schedules, analyses, reconciliations,
				memorandums (including emails), permanent files, budgets, progress reports,
				engagement letters, audit programs, planning documents, internal audit reports,
				letters of representation, legal liability correspondence, letters of
				confirmation, summaries of audit differences, and other supporting audit
				evidence.
The photocopies of workpapers that were requested by the
				Examiners of the Department are true and complete copies of those
				workpapers.
Sincerely,
(CPA Partner)
(CPA Firm)
Illinois Administrative Code › Title 50 - INSURANCE › Part 926 - INSURANCE DEPARTMENT CONSUMER COMPLAINTS › Section 926.20 - Purpose and Scope

Current through Register Vol. 48, No. 28, July 12, 2024
a) The purpose
			 of this Part is to establish guidelines for the handling of complaints received
			 by the Department of Insurance against insurers, insurance producers or any
			 other entity or individual licensed, registered, certified, or granted a
			 Certificate of Authority as described in this Section. This Part also sets
			 forth minimum complaint recordkeeping requirements.
b) This Part applies to any insurance company
			 licensed to do business in this State that is transacting the kind or kinds of
			 business described as Class 1, Class 2, or Class 3 in Section 4 of the Code.
			 This Part also applies to any entity or individual that the Director of
			 Insurance licenses, registers or grants a Certificate of Authority under
			 Chapter 215 of the Illinois Compiled Statutes.
Illinois Administrative Code › Title 50 - INSURANCE › Part 926 - INSURANCE DEPARTMENT CONSUMER COMPLAINTS › Section 926.30 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Code" means the Illinois Insurance Code [ 215 ILCS 5 ].
"Complaint" means any written communication primarily
				expressing a grievance.
"Department" means the Illinois Department of
				Insurance.
Illinois Administrative Code › Title 50 - INSURANCE › Part 926 - INSURANCE DEPARTMENT CONSUMER COMPLAINTS › Section 926.40 - Complaint Handling Procedure

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Notification and Response Requirements
When the Department receives a complaint against an entity or
				individual identified in Section
				926.20(respondent),
				and the Department determines that the complaint falls under its authority to
				investigate, the Department will notify the respondent of the complaint. The
				Department will, in its notification, specify the date when a report is to be
				received from the respondent, which, in most instances, will be 21 calendar
				days after notification is sent to the respondent.
b) Contents of Response or Report or Both
1) Each respondent shall supply adequate
			 documentation that explains all actions taken or not taken and that were the
			 basis for the complaint;
2)
			 Documents necessary to support the respondent's position, or information
			 requested by the Department, shall be furnished with the respondent's reply;
			 and
3) The Department will 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.
Illinois Administrative Code › Title 50 - INSURANCE › Part 926 - INSURANCE DEPARTMENT CONSUMER COMPLAINTS › Section 926.50 - Maintenance of Complaint Records

Current through Register Vol. 48, No. 28, July 12, 2024
Insurance companies to which this Part applies shall maintain
				records containing the minimum information as outlined in Exhibit A and as
				defined in Exhibit B of this Part. The complaint record shall be kept on a
				calendar year basis and shall be maintained for 7 years after the complaint has
				been closed, and shall apply to complaints received from the Department, as
				well as those received directly from the consumer by the
				company.
Illinois Administrative Code › Title 50 - INSURANCE › Part 926 - INSURANCE DEPARTMENT CONSUMER COMPLAINTS › Exhibit A - Complaint Record

Current through Register Vol. 48, No. 28, July 12, 2024
COMPLAINT RECORD
Column A
Column B
Column C
Column D
Column E
Column F
Column G
Column H
Identification Number
Reason Code
Coverage Code
Disposition after Complaint
						  Receipt
Date Received
Date Closed
Insurance Department Complaint
State of Origin