reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 50 - INSURANCE › Part 3120 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 3120.50 - Duties of Insurers and Insurance Producers

Current through Register Vol. 48, No. 28, July 12, 2024
a) Best Interest Obligations. An insurance
			 producer, when making a recommendation of an annuity, shall act in the best
			 interest of the consumer under the circumstances known at the time the
			 recommendation is made without placing the insurance producer's or the
			 insurer's financial interest ahead of the consumer's interest. An insurance
			 producer has acted in the best interest of the consumer if the insurance
			 producer has satisfied the following obligations regarding care, disclosure,
			 conflict of interest, and documentation:
1)
			 Care obligation
A) The insurance producer, in
			 making a recommendation, shall exercise reasonable diligence, care, and skill
			 to:
i) Know the consumer's financial
			 situation, insurance needs and financial objectives;
ii) Understand the available recommendation
			 options after making a reasonable inquiry into options available to the
			 insurance producer;
iii) Have a
			 reasonable basis to believe the recommended option effectively addresses the
			 consumer's financial situation, insurance needs, and financial objectives over
			 the life of the product, as evaluated in light of the consumer profile
			 information; and
iv) Communicate to
			 the consumer the basis or bases of the recommendation.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3120 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 3120.70 - Compliance Mitigations; Penalties

Current through Register Vol. 48, No. 28, July 12, 2024
a) An insurer is responsible for compliance
			 with this Part. If a violation occurs, either because of the action or inaction
			 of the insurer or its insurance producer, the Director may order:
1) An insurer to take reasonably appropriate
			 corrective action for any consumer harmed by a failure to comply with this Part
			 by the insurer, an entity contracted to perform the insurer's supervisory
			 duties or by the insurance producer;
2) A general agency, an independent agency or
			 the insurance producer to take reasonably appropriate corrective action for any
			 consumer harmed by the insurance producer's violation; and
3) Appropriate penalties and sanctions as set
			 forth in Section 3120.90.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3120 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 3120.80 - Recordkeeping

Current through Register Vol. 48, No. 28, July 12, 2024
a) Insurers,
			 general agents, independent agencies, and insurance producers shall maintain
			 and be able to make available to the Director records of the information
			 collected from the consumer, disclosures made to the consumer, including
			 summaries of oral disclosures, and other information used in making the
			 recommendations that were the basis for insurance transactions for 7 years
			 after the insurance transaction is completed by the insurer. An insurer is
			 permitted, but shall not be required, to maintain documentation on behalf of an
			 insurance producer.
b) Records
			 required to be maintained by this Part may be maintained in paper,
			 photographic, microprocess, magnetic, mechanical, or electronic media, or by
			 any process that accurately reproduces the original document.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3120 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 3120.90 - Noncompliance

Current through Register Vol. 48, No. 28, July 12, 2024
Violation of the requirements of this Part may be considered
				evidence of misrepresentation under Section 149 of the Illinois Insurance Code
				and/or a deceptive act or practice prohibited under Sections 423 and 424 of the
				Illinois Insurance Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3120 - SUITABILITY IN ANNUITY TRANSACTIONS › Appendix B - Consumer Refusal to Provide Information

Current through Register Vol. 48, No. 28, July 12, 2024
Do Not Sign Unless You Have Read and Understand the Information
				in this Form
Why are you being given this form?
You're buying a
				financial product - an annuity.
To recommend a product that effectively meets your needs,
				objectives, and situation, the insurance producer, broker, or company needs
				information about you, your financial situation, insurance needs, and financial
				objectives.
If you sign this form, it means you have not given the
				insurance producer, broker, or company some or all the information needed to
				decide if the annuity effectively meets your needs, objectives, and situation.
				You may lose protections under the Illinois Insurance Code if you sign this
				form or provide inaccurate information.
Statement of Purchaser:
I REFUSE to provide this information at this
				time.
I have chosen to provide LIMITED information at
				this time.
__________________
Customer Signature
__________________
Date
Illinois Administrative Code › Title 50 - INSURANCE › Part 3120 - SUITABILITY IN ANNUITY TRANSACTIONS › Appendix C - Consumer Decision to Purchase an Annuity Not Based on a Recommendation

Current through Register Vol. 48, No. 28, July 12, 2024
Do Not Sign This Form Unless You Have Read and Understand
				It.
Why are you being given this form?
You are buying
				a financial product - an annuity.
To recommend a product that effectively meets your needs,
				objectives, and situation, the insurance producer, broker or company has the
				responsibility to learn about you, your financial situation, insurance needs,
				and financial objectives.
If you sign this form, it means you know that you're buying an
				annuity that was not recommended.
Statement of Purchaser:
I understand that I am buying an annuity, but the insurance
				producer, broker, or company did not recommend that I buy it. If I buy it
				without a recommendation, I understand I may lose protections under the
				Illinois Insurance Code.
__________________
Customer Signature
__________________
Date
__________________
Insurance Producer Signature
__________________
Date
Illinois Administrative Code › Title 50 - INSURANCE › Part 3121 - PRODUCER LICENSING › Section 3121.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is to establish requirements for
				individual insurance producers and business entity producers that the Director
				deems necessary to carry out the provisions of Sections 500-10 through 500-155
				of the Illinois Insurance Code. Failure to adhere to the standards set forth in
				this Part will subject the offender, in addition to any other penalties or
				remedies provided by law, to proceedings under Article XXXI of the Code.
				Specifically, this Part establishes the following:
a) defines the term "resident";
b) requires the Designated Responsible
			 Licensed Producer (DRLP) of a business entity to be an owner, member, partner,
			 officer or director of the business entity;
c) sets the expiration date of a business
			 entity license to be reciprocal with the NAIC resident business
			 rules;
d) defines the expiration
			 date of a first time individual insurance license as that person's birth
			 month;
e) allows the Department
			 five business days to receive and distribute reported pre-licensing and
			 continuing education before an applicant can apply or renew a
			 license;
f) requires individual and
			 business entities to provide an email address on their Insurance Producer and
			 Business Entity Producer applications; and
g) requires that the individual or business
			 entity notify the Director within 30 days after an email address
			 change.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3121 - PRODUCER LICENSING › Section 3121.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
For the purposes of this Part, the following definitions shall
				apply:
"Business Entity Producer" means a corporation, association,
				partnership, limited liability company, limited liability partnership, or other
				legal entity.
"Code" means the Illinois Insurance Code [215 ILCS 5 ].
"Department" means the Department of Insurance.
"Designated Responsible Licensed Producer" or "DRLP" means the
				individual responsible for the business entity's compliance with the insurance
				laws, rules and regulations of this State.
"Director" means the Director of the Department of Insurance of
				the State of Illinois or anyone to whom the Director's responsibilities and
				authority are lawfully delegated.
"Insurance Producer" means a person required to be licensed
				under the laws of this State to sell, solicit or negotiate insurance.
"Resident" means an individual who is in this State for other
				than a temporary or transitory purpose during the taxable year for at least 51%
				of the year.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3121 - PRODUCER LICENSING › Section 3121.30 - Insurance Producer

Current through Register Vol. 48, No. 28, July 12, 2024
a) A first time
			 applicant for an insurance producer license will receive a prorated fee for the
			 initial insurance license so that the license's biennial expiration date can be
			 set for the applicant's birth month. This date shall be no less than 18 months
			 and no more than 29 months after the date of issuance.
b) All individual applicants must allow five
			 business days for the Department to receive and distribute reported
			 pre-licensing and continuing education documentation before an applicant can
			 apply or renew a license with the Department.
c) Applicants must provide an email address
			 on their insurance producer applications and notify the Director, through U.S.
			 mail sent to the Department of Insurance, Licensing Unit, 320 West Washington
			 Street, Springfield, Illinois 62767 and/or through contacting NIPR.com, of a
			 change of email address within 30 days after the change.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3121 - PRODUCER LICENSING › Section 3121.40 - Business Entity Producer

Current through Register Vol. 48, No. 28, July 12, 2024
a) A business
			 entity producer license will expire on May 31 biennially.
b) Each business entity, at the time of
			 application, shall designate at least one individual as the entity's DRLP. The
			 DRLP must have an active resident or nonresident producer license in Illinois
			 and must be an owner, member, partner, officer or director of the business
			 entity who is responsible for the business entity's compliance with the
			 insurance laws and rules of this State.
c) If the business entity or its officers,
			 directors, members or partners acting in behalf of the business entity commits
			 an act or acts that could cause an insurance producer to be subject to the
			 provisions of Section 500-70 of the Code, then any officer, director, member or
			 partner engaged in those acts will be subject to the terms set forth in Section
			 500-70.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3121 - PRODUCER LICENSING › Section 3121.50 - Severability

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 to other persons or
				circumstances, shall not be affected.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3145 - PHARMACY BENEFIT MANAGERS › Section 3145.20 - Registration

Current through Register Vol. 48, No. 28, July 12, 2024
a) All pharmacy
			 benefit managers doing business in this State shall register with the Director
			 of Insurance (Director). Each applicant for registration shall:
1) Make application for registration through
			 the National Insurance Producer Registry (NIPR) at
www.nipr.com
;
2) Place a copy of its corporate charter,
			 articles of incorporation, or other charter documents in the NIPR attachment
			 warehouse;
3) Place in the
			 attachment warehouse the name, address and official position of each officer
			 and director of the registration; and
4) Pay the fee established by Section
			 3145.30.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3145 - PHARMACY BENEFIT MANAGERS › Section 3145.30 - Registration and Renewal Fee

Current through Register Vol. 48, No. 28, July 12, 2024
Each pharmacy benefit manager doing business in this State
				shall pay a registration fee of $500.00 on the initial application for
				registration and biennially thereafter on or before its expiration date, as
				long as the registration remains active.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3150 - THIRD Y PRESCRIPTION ADMINISTRATORS › Section 3150.20 - Purpose and Scope

Current through Register Vol. 48, No. 28, July 12, 2024
The purposes of this Part are to establish criteria for
				registration in accordance with the terms of Article XXXI1/2 of the Illinois
				Insurance Code (Code) [215 ILCS 5] and to establish an annual registration fee
				for all third party prescription programs and administrators doing business in
				this State.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3150 - THIRD Y PRESCRIPTION ADMINISTRATORS › Section 3150.30 - Registration

Current through Register Vol. 48, No. 28, July 12, 2024
Each applicant for registration shall file with the Director of
				Insurance (Director) the following documents for each program to be
				administered:
a) One of the following:
1) A certification that includes the location
			 and identification number of the account that the third party prescription
			 program administrator has established and will maintain to comply with Section
			 512-5(1) of the Code;
2) A bond in
			 compliance with Section 512-5(2) of the Code; or
3) A certification setting forth the basis on
			 which the applicant is exempted from subsection (a)(1) or (2) in accordance
			 with Section 512-5 of the Code;
Illinois Administrative Code › Title 50 - INSURANCE › Part 3150 - THIRD Y PRESCRIPTION ADMINISTRATORS › Section 3150.40 - Annual Registration Fee

Current through Register Vol. 48, No. 28, July 12, 2024
Each third party administrator doing business in this State
				shall pay to the Director a registration fee of $50.00 on the initial date of
				application for registration and each annual renewal of the
				registration.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3301 - FAIR PLAN CREDIT PROGRAM › Section 3301.10 - Authority

Current through Register Vol. 48, No. 28, July 12, 2024
This Rule is promulgated by the Director of Insurance pursuant
				to Section 401 of the Illinois Insurance Code (Ill. Rev. Stat. 1981 ch. 73,
				para. 1013), which empowers 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. The purpose of this Rule is to
				implement Section 525.1 of the Illinois Insurance Code as amended by P.A.
				81-1426, eff. Sept. 3, 1980, (Ill. Rev. Stat. 1981, ch. 73, pars. 1065.72
				-
1).
Illinois Administrative Code › Title 50 - INSURANCE › Part 3301 - FAIR PLAN CREDIT PROGRAM › Section 3301.20 - Purpose and Scope

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is to establish procedures for
				determining the net level of participation in the Illinois FAIR Plan (Fair
				Access to Insurance Requirements) required of each insurer. This Part shall
				apply to all insurers engaged in writing in this State, on a direct basis,
				basic property insurance or any property insurance component in multi-peril
				policies, other than local district, county and township mutual
				companies.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3301 - FAIR PLAN CREDIT PROGRAM › Section 3301.30 - Participation Parameters

Current through Register Vol. 48, No. 28, July 12, 2024
a) Gross
			 Participation.
The gross participation shall apply uniformly to all property
				insurance and shall be based on the FAIR Plan participation formula which shall
				be filed with and approved by the Director of Insurance.
b) Credits.
Credits will be given for 1-4 family building Residential Fire
				and Homeowners policies and for Residential Fire and Homeowners policies
				written on personal contents in any structure. (Residential Property
				Insurance).
c) Net
			 Participation.
Net participation is equal to gross participation adjusted by
				voluntary credits. There shall be no maximum applicable to net
				participation.
d) Market
			 Penetration.
FAIR Plan market penetration shall be based only on residential
				building and contents policies. Residential contents policies will not be
				considered.
e) Credit
			 Eligible Areas (CEA's)
1) As of the effective
			 date of this Part Credit Eligible Areas will be all zip codes in FAIR Plan
			 eligible areas as designated from time to time by the Illinois Department of
			 Insurance.
2) Beginning in July of
			 1981 and annually thereafter, the Department of Insurance shall review all
			 Credit Eligible Areas and determine which CEA's have a FAIR Plan market
			 penetration (FAIR Plan policies divided by the total of FAIR Plan policies plus
			 voluntary policies) which is 15% or greater.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3301 - FAIR PLAN CREDIT PROGRAM › Section 3301.40 - Credit Formula

Current through Register Vol. 48, No. 28, July 12, 2024
a) The FAIR
			 Plan shall compute the gross participation for all companies as set forth in
			 their formula filed with and approved by the Director.
b) Beginning with calendar year 1981 and each
			 calendar year thereafter, companies shall report to the FAIR Plan on or before
			 April 1st of the following year residential property insurance written premiums
			 as follows:
1) All premiums written in CEA's
			 during the year for which the immediate previous writer was the FAIR
			 Plan.
2) All premiums written in
			 CEA's where the FAIR Plan's market penetration exceeds 15% as determined in
			 Section
			 3301.30(e)
			  including new and renewal business as
			 defined in (f) below.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3301 - FAIR PLAN CREDIT PROGRAM › Section 3301.50 - 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 circumstances is held invalid by a
				court, the remainder of the Part or the applicability of such provision to
				other persons or circumstances shall not be affected thereby.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3401 - SUMMARY DOCUMENT AND DISCLAIMER › Section 3401.10 - Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
This Part shall apply to member insurers that offer policies or
				contracts described in Section 531.03 of the Illinois Insurance Code
				[215 ILCS
				5/531.03 ].
Illinois Administrative Code › Title 50 - INSURANCE › Part 3401 - SUMMARY DOCUMENT AND DISCLAIMER › Section 3401.20 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is to establish the form and content
				of the Summary Document and Disclaimer required by Section 531.19 of the
				Illinois Insurance Code [215
				ILCS 5/531.19 ] for use prior to, or at the time of,
				delivery of a policy or contract which is covered by the Illinois Life and
				Health Insurance Guaranty Association.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3401 - SUMMARY DOCUMENT AND DISCLAIMER › Section 3401.30 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
Disclaimer means the language required by Section 531.19(c) of
				the Illinois Insurance Code [215
				ILCS 5/531.19(c) ], which shall
				appear conspicuously on the face of the Summary Document. The Summary Document
				and Disclaimer are established by Illustration A.
Insurer, for purposes of this Part, means a "Member insurer" as
				defined in Section 531.05 of the Illinois Insurance Code [215 ILCS
				5/531.05 ].
Summary Document means a document required by Section 531.19(b)
				of the Illinois Insurance Code [215
				ILCS 5/531.19(b) ] that describes the
				general purposes and current limitations of the Illinois Life and Health
				Insurance Guaranty Association Law. The Summary Document shall be prepared and
				revised, as necessary, by the Illinois Life and Health Insurance Guaranty
				Association. Subsequent revisions will require approval by the Director of
				Insurance. The Summary Document shall contain, on its face, the Disclaimer. The
				Summary Document and Disclaimer are established in Illustration
				A.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3401 - SUMMARY DOCUMENT AND DISCLAIMER › Section 3401.40 - Delivery of Documents Required

Current through Register Vol. 48, No. 28, July 12, 2024
Sixty days after the effective date of this Part, no insurer
				shall deliver a policy or contract described in Section 531.03(2)(a) of the
				Illinois Insurance Code [215 ILCS
				5/531.03(2)(a) ], and not excluded
				under Section 531.03(2)(b) of the Illinois Insurance Code [215 ILCS
				5/531.03(2)(b) ] to a policy or
				contract holder unless the Summary Document and Disclaimer required by this
				Part are delivered to the policy or contract holder prior to, or at the time
				of, delivery of such policy or contract.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3501 - INTERNAL SECURITY STANDARDS AND FIDELITY BONDS › Section 3501.7 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Act" means the Farm Mutual Insurance Company Act of 1986 [ 215
				ILCS 120 ].
"Company" means any company described in Section 1 of the
				Act.
"Department" means the Illinois Department of Insurance.
"Director" means the Director of the Illinois Department of
				Insurance.
"Security" has the meaning ascribed in Section 2.1 of the
				Illinois Securities Law of 1953 [ 815 ILCS 5 ].
Illinois Administrative Code › Title 50 - INSURANCE › Part 3501 - INTERNAL SECURITY STANDARDS AND FIDELITY BONDS › Section 3501.10 - Registration of Securities

Current through Register Vol. 48, No. 28, July 12, 2024
a) All
			 securities belonging to or in the possession, custody or control of any company
			 shall be registered, issued to, and carried in the name of the company except:
1) Securities pledged or hypothecated with
			 the company as security for indebtedness or obligations to the
			 company;
2) Securities that are
			 only issuable in bearer form, i.e., securities that cannot be issued in
			 registered form;
3) Securities in
			 "custodial" accounts maintained with a bank or trust company, licensed by the
			 United States or any state thereof, that is regularly examined by the licensing
			 authority; provided the custodial accounts shall be the undivided
			 responsibility of the depository and provided further that the custodial
			 account shall be established conformably with and conducted in compliance with
			 Section
			 3501.20;
4) Securities in vaults or other repositories
			 on the premises of the company, or in safe deposit boxes leased in the name of
			 the company, access to which is controlled as required by Section
			 3501.20;
5) Securities in street
			 form and in the custody of a registered dealer in securities, for a period not
			 exceeding 30 days as to any security, provided that the registered dealer in
			 securities shall not be an officer, director, agent or employee of the owner of
			 those securities and provided further that accounts with registered dealers
			 shall be established conformably with and conducted in compliance with Section
			 3501.20;
6) Money shall not be
			 loaned to any officer, director, employee, policyholder of the company or any
			 other individual.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3501 - INTERNAL SECURITY STANDARDS AND FIDELITY BONDS › Section 3501.20 - Custody Care and Disposition of Securities

Current through Register Vol. 48, No. 28, July 12, 2024
a) Transfer, sale, assignment or disposition
			 of any security belonging to any company, other than upon the surrender of the
			 security for payment at maturity or under an option of the maker to prepay the
			 same, shall first have been authorized by the Board of Directors or by a Board
			 committee charged with the duty of supervising investments and loans.
b) Any instrument for the assignment, sale,
			 transfer or disposition of any securities and all checks or other orders for
			 disbursement of funds of the company in connection with the purchase of any
			 securities shall require the signature of at least two officers or employees
			 authorized by the Board of Directors or by a Board committee charged with the
			 duty of supervising investments and loans.
c) Access to any and all vaults or other
			 repositories on the premises of any company containing securities of the
			 company and access to any safe deposit boxes containing those securities shall
			 be limited to officers and employees designated by the Board of Directors. The
			 designation shall require that at least two of the designated persons be
			 present at the time of entry and during the access to the vault, repository or
			 safe deposit box.
d) All securities
			 and original records of the company shall be kept in fire resistant files or
			 vaults.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3501 - INTERNAL SECURITY STANDARDS AND FIDELITY BONDS › Section 3501.30 - Signature to Checks-Facsimile Signatures

Current through Register Vol. 48, No. 28, July 12, 2024
a) All checks issued for the disbursement of
			 funds belonging to a company shall require the signature of at least two
			 officers or employees of the company who have been authorized by its Board of
			 Directors. All checks shall be numbered and recorded consecutively in an
			 original record of cash disbursements.
b) All collections made by agents or
			 representatives of the company must be turned over to the company at least
			 every three months or more often if the volume of cash warrants.
c) All receipts of the company must be
			 deposited in the bank intact in the name of the company. Receipts must not be
			 deposited in the name of an officer of the company.
d) Companies must retain a duplicate deposit
			 slip covering all bank deposits and listing all checks in detail, in addition
			 to an original record of all cash receipts.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3501 - INTERNAL SECURITY STANDARDS AND FIDELITY BONDS › Section 3501.40 - Bank Balance Verification

Current through Register Vol. 48, No. 28, July 12, 2024
Verification of bank account balances and reconciliation of
				bank account statements shall be made by an officer or employee not empowered
				or authorized to approve payment of drafts or to make withdrawals from or
				charges against such accounts.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3501 - INTERNAL SECURITY STANDARDS AND FIDELITY BONDS › Section 3501.50 - Bond Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) All
			 companies shall procure and maintain in force the surety bonds required under
			 Section 8(6) of the Act in accordance with the standards provided in 50 Ill.
			 Adm. Code
			 904.50(a).
b) Surety bonds procured or maintained under
			 this Section shall include all persons handling company funds and all officers,
			 directors and employees for the following perils, which may be covered under
			 separate policies:
1) Dishonesty of persons
			 handling company funds and of officers, directors and employees;
2) Robbery, burglary, larceny, theft, false
			 pretense, holdup, misplacement, mysterious disappearance, and damage or
			 destruction while property is in any bank or any recognized place of safe
			 deposit, or in transit; and
3)
			 Forgery or alteration.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3501 - INTERNAL SECURITY STANDARDS AND FIDELITY BONDS › Section 3501.60 - Records

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each company
			 shall keep its books, records, documents, accounts and vouchers in such manner
			 that its financial condition can be ascertained, its financial statements filed
			 with the Director can be readily verified, and its compliance with the law can
			 be determined.
b) The books of the
			 company must be closed as of December 31. (See Section 13 of the
			 Act.)
c) Original records may not
			 be destroyed without first securing authority of the Director. (See 50 Ill.
			 Adm. Code 3502.)
d) A policy
			 register that properly reflects all changes in the policy during its term
			 should be maintained.
e) Original
			 records shall be kept in fire resistant files.
f) A petty cash fund, if maintained, shall be
			 for the payment of small bills or for making change only. Each disbursement
			 from the fund must be supported by a signed voucher or receipted invoice. The
			 total of the cash, checks and paid vouchers in the fund shall at all times
			 equal the total of the fund as originally set up. The petty cash fund should be
			 reimbursed at regular intervals and always on the last business day of each
			 year.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3502 - DISPOSAL AND DESTRUCTION OF RECORDS › Section 3502.25 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Non-Record" means:
Material not filed as evidence of the company's administrative
				or business activities or for the informational content of the
				activities;
Extra copies of documents or reproductions of documents
				maintained for convenience or reference;
Stocks of printed or reproduced documents kept for supply
				purposes, where file copies have been retained for record purposes;
Books, periodicals, newspapers, posters, pamphlets, and other
				materials made or acquired and preserved solely for reference or exhibition
				purposes;
Private materials neither made nor received by a company
				pursuant to law or in connection with the transaction of its business;
				or
Company dailies more than 6 months after the expiration or
				cancellation date of the policy if the data is, to the extent that it is
				material or necessary to the determination of the company's financial
				condition, contained in other records.
"Records" means all books, papers, and documentary materials,
				regardless of physical form or characteristics, made, produced, executed, or
				received by any farm mutual company pursuant to law or in connection with the
				transaction of its business and preserved or appropriate for preservation by
				such company or its successors as evidence of the organization, function,
				policies, decisions, procedures, obligations, and business activities of the
				company or because of the informational data contained therein. If doubt arises
				as to whether certain materials are non-records, the materials must be treated
				as records.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3502 - DISPOSAL AND DESTRUCTION OF RECORDS › Section 3502.30 - Disposal and Destruction of Records

Current through Register Vol. 48, No. 28, July 12, 2024
a) The company is authorized to dispose of or
			 destroy records in its custody that do not have sufficient administrative,
			 legal or fiscal value to warrant their further preservation and are not needed:
1) in the transaction of current
			 business;
2) for the final
			 settlement or disposition of any claim arising out of a policy of insurance
			 issued by the company, except that these records must be maintained for the
			 current year plus 5 years; or
3) to
			 determine the company's financial condition for the period since the date of
			 the last examination report of the company officially filed with the Illinois
			 Department of Insurance, except that these records must be maintained for at
			 least the current year plus 5 years.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3601 - REQUIREMENTS › Section 3601.10 - Authority and Scope

Current through Register Vol. 48, No. 28, July 12, 2024
This Part is promulgated by the Director of Insurance pursuant
				to Section 20 of the Religious and Charitable Risk Pool Act (Ill. Rev. Stat.
				1981, ch. 148, par. 200 et seq.), hereinafter the Act, which empowers the
				Director to make reasonable rules and regulations as may be necessary for the
				administration of the Act. The purpose of this Part is to establish standards
				for the establishment, operation and administration of trusts authorized by the
				Act.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3601 - REQUIREMENTS › Section 3601.20 - Applications for Approval

Current through Register Vol. 48, No. 28, July 12, 2024
a) Any person
			 filing a trust instrument for approval of the Director of Insurance pursuant to
			 the Act shall file duplicate originals containing the following:
1) the trust instrument together with all
			 necessary exhibits.
2) a proposed
			 benefit schedule, including the rating contribution formula and the obligations
			 of each beneficiary.
3) detailed
			 biographies of all initial trustees including educational experience,
			 professional designations and criminal convictions; similar biographies shall
			 be filed with the Director within 14 days of appointment for any trustees
			 appointed after the filing of the trust instrument.
4) identification of independent CPA for
			 auditing purposes and a copy of the letter of engagement.
5) a letter of transmittal which identifies
			 an individual to whom all official notices, correspondence and complaints may
			 be sent.
6) copies of the
			 certificates of authorities of each of the proposed beneficiaries.
7) all solicitation and/or advertising
			 materials.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3601 - REQUIREMENTS › Section 3601.30 - Examinations

Current through Register Vol. 48, No. 28, July 12, 2024
All trusts established and approved pursuant to the Act shall
				be subject to financial and/or performance examinations conducted by the
				Director of Insurance as often as he shall deem necessary. The examinations
				shall be conducted in accordance with the provisions of Sections 132, 401, 402
				and 403 of the Illinois Insurance Code (Ill. Rev. Stat. 1981, ch. 73, pars.
				744, 1013, 1014 and 1015). All books, records, correspondence and papers of
				each trust shall be available for examination at any time and shall be located
				within the State of Illinois.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3601 - REQUIREMENTS › Section 3601.40 - Benefit Schedules

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each
			 trust established and approved pursuant to the Act shall establish benefit
			 schedules for each type of protection against the risk of financial loss
			 available to each beneficiary. Each benefit schedule shall clearly indicate
			 that evaluations of each request for payment shall be conducted in accordance
			 with a standardized written procedure. Each beneficiary shall receive the
			 appropriate benefit schedule together with any amendments or modifications made
			 to those schedules.
b) All benefits
			 payable in accordance with the benefit schedules shall be subject to all claims
			 practice standards contained in the Illinois Insurance Code and any Rule
			 promulgated thereunder. The trust administrator shall maintain a file for each
			 payment request made by each beneficiary and the file shall contain all
			 relevant documents necessary to clearly reconstruct all events surrounding the
			 request for payment.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3601 - REQUIREMENTS › Section 3601.50 - Solicitation and Advertising

Current through Register Vol. 48, No. 28, July 12, 2024
Each trust approved pursuant to the Act shall solicit
				beneficiaries in accordance with the following standards:
a) No solicitation or advertising material
			 may contain any indication that the trust program or benefit schedule is
			 endorsed by the Illinois Department of Insurance.
b) The words, "insurance", "indemnity",
			 "insurance trust", or any other similar words may not be used in any
			 solicitation or advertising material to indicate that the trust is an insurance
			 company or that benefits are being provided by an insurance company unless that
			 is the case.
c) Each solicitator
			 shall be a salaried employee of the trust or trust administrator and shall be
			 subject to examination by the Director of Insurance.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3601 - REQUIREMENTS › Section 3601.60 - Investments

Current through Register Vol. 48, No. 28, July 12, 2024
Each trust approved pursuant to the Act shall invest its funds
				only in securities permitted by the law of this State for the investment of
				assets by insurance companies. All such investments shall be subject to
				valuation in accordance with Section 124.6 of the Illinois Insurance
				Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3601 - REQUIREMENTS › Section 3601.70 - Financial Statements

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each
			 trust approved pursuant to the Act shall file audited financial statements in
			 accordance with the requirements of Section 14 of the Act containing or
			 accompanied by the following information:
1) A
			 balance sheet listing all assets and liabilities presented on an accrual basis
			 which provides for an estimate of the ultimate net cost of all losses and
			 related loss adjustment expenses incurred as of the statement date. Liabilities
			 for such incurred losses and loss adjustment expenses shall be presented on an
			 undiscounted basis; provided however, that a trust may present such reserves on
			 a discounted basis in accordance with Section
			 5601.75
			 of this Part.
2) A statement of
			 income, expenses and fund balance.
3) A complete and detailed listing of each
			 investment or asset held, such listing similar to the appropriate investment
			 schedules contained in the Convention Annual Statement of the National
			 Association of Insurance Commissioners for insurance companies.
4) A statement of cash flows.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3601 - REQUIREMENTS › Section 3601.80 - Liquidation

Current through Register Vol. 48, No. 28, July 12, 2024
Each trust is required to adhere to reasonable standards of
				financial solvency. Should the Director, within his discretion and based upon
				examination or investigation, determine that any trust is no longer adhering to
				reasonable standards of financial solvency, he may undertake appropriate
				proceedings in order to liquidate the trust entity.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3601 - REQUIREMENTS › Section 3601.90 - Amendments to the Trust Instrument

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 All amendments or modifications to the originally approved trust instrument
			 shall be made in writing and filed in duplicate with the Director of Insurance
			 and approved by the Director of Insurance to their taking effect.
b) All trustees selected as successors to the
			 original trustees set forth in the application required by Section
			 5601.20
			 of this Part shall submit complete biographical data to the Director of
			 Insurance within 14 days of their appointment. This requirement may be
			 satisfied by the filing of such data by the trust or trust administrator and
			 shall be kept as a part of the permanent records of the trust.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3601 - REQUIREMENTS › Section 3601.100 - Pooling Among Several Trusts

Current through Register Vol. 48, No. 28, July 12, 2024
a) No
			 trust established and approved pursuant to the provisions of this Act shall
			 enter into any written agreements with any other trust fund for the pooling and
			 sharing of risks unless such other trust funds have been established and
			 approved pursuant to the provisions of this Act.
b) No trust established and approved pursuant
			 to the provisions of this Act shall pool or share risks with any other trust
			 established by the laws of any state of the United States other than Illinois.
			 It is the specific intention of this provision to limit the pooling and sharing
			 of risks among religious and charitable risk pooling trusts to trust funds
			 approved pursuant to the Act and located in Illinois.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3601 - REQUIREMENTS › Section 3601.110 - Administrators

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each trust
			 approved pursuant to the Act may engage an administrator for the purpose of
			 administrating and operating the trust fund. Such administrator shall be a
			 resident of the State of Illinois with its principal office located within the
			 State of Illinois. Such administrator may be a natural person, partnership or
			 corporate entity.
b) All persons
			 administering a trust approved pursuant to the provisions of the Act shall be
			 subject to the examination of the Director of Insurance in accordance with
			 Section 132 of the Illinois Insurance Code and shall maintain all trust records
			 within the State of Illinois.
c)
			 All administrators of trusts approved pursuant to the provisions of the Act
			 must adhere to all standards of fiduciary conduct required by the laws of the
			 State of Illinois and must adhere to all standards of claims practices and
			 procedures set forth in the Illinois Insurance Code and all Rules promulgated
			 thereunder.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3601 - REQUIREMENTS › Section 3601.120 - Severability

Current through Register Vol. 48, No. 28, July 12, 2024
If any provision of this Rule or the application thereof to any
				person or circumstance is held invalid, the invalidity shall not effect other
				provisions or applications of this Act which can be given affect without the
				invalid provision or application, and to this end the provisions of the Part
				are severable.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3701 - VIATICAL SETTLEMENT PROVIDER AND BROKER REQUIREMENTS › Section 3701.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is to implement the Viatical
				Settlements Act of 2009, which, in part, establishes registration requirements
				for viatical settlement providers and viatical settlement brokers and requires
				the Director to prescribe reporting requirements for viatical settlement
				providers and viatical settlement brokers.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3701 - VIATICAL SETTLEMENT PROVIDER AND BROKER REQUIREMENTS › Section 3701.30 - Filing Procedures for Viatical Settlement Providers

Current through Register Vol. 48, No. 28, July 12, 2024
a) Forms Review. Each viatical settlement
			 provider shall file with the Director for approval each new viatical settlement
			 provider form before it is issued or delivered. Each filing shall be submitted
			 directly through SERFF. The filing shall include each of the following:
1) A letter of submission giving a detailed
			 description of the purpose for the viatical settlement provider forms and the
			 manner in which they will be marketed;
2) The viatical settlement provider forms.
			 The text of each viatical settlement provider form shall reflect the bracketing
			 of any appropriate variable material. The form number shall appear in the lower
			 left-hand corner of the policy form to be approved and shall not exceed 30
			 characters.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3701 - VIATICAL SETTLEMENT PROVIDER AND BROKER REQUIREMENTS › Section 3701.40 - Filing Procedures for Viatical Settlement Brokers

Current through Register Vol. 48, No. 28, July 12, 2024
a) Forms Review. Each viatical settlement
			 broker shall file with the Director for approval each new viatical settlement
			 broker form before it is issued or delivered. Each filing shall be submitted
			 directly through SERFF. The filing shall include each of the following:
1) A letter of submission giving a detailed
			 description of the purpose for the viatical settlement broker forms and the
			 manner in which they will be marketed;
2) The viatical settlement broker forms. The
			 text of each viatical settlement broker form shall reflect the bracketing of
			 any appropriate variable material. The form number shall appear in the lower
			 left-hand corner of the policy form to be approved and shall not exceed 30
			 characters.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3701 - VIATICAL SETTLEMENT PROVIDER AND BROKER REQUIREMENTS › Section 3701.50 - Standards for Evaluation of Reasonable Payments for Terminally or Chronically Ill Insureds

Current through Register Vol. 48, No. 28, July 12, 2024
a) In order to
			 assure that viators receive a reasonable return for viaticating an insurance
			 policy, the return for viaticating a policy shall be no less than the following
			 payouts for insureds who are terminally or chronically ill:
Insured's Life Expectancy
Minimum Percentage of
						Face Value Less Outstanding Loans Received by Viator
25 months or less
[75%]
b)
			 Except when the cash surrender value is paid, the percentage may be reduced by
			 5% for viaticating a policy written by an insurer rated less than the highest 4
			 categories by A.M. Best, or a comparable rating by another rating
			 agency.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3701 - VIATICAL SETTLEMENT PROVIDER AND BROKER REQUIREMENTS › Section 3701.60 - General Rules

Current through Register Vol. 48, No. 28, July 12, 2024
a) Payment of
			 the proceeds of a viatical settlement pursuant to Section 45(2)(j) of the Act
			 shall be by means of wire transfer to an account designated by the viator or by
			 certified check or cashier's check.
b) Payment of the proceeds to the viator
			 pursuant to a viatical settlement shall be made in a lump sum. Retention of a
			 portion of the proceeds not disclosed or described in the viatical settlement
			 contract by the viatical settlement provider or escrow agent is not
			 permissible.
c) A viatical
			 settlement provider or viatical settlement broker shall not pay or offer to pay
			 any finder's fee, commission or other compensation to any insured's physician,
			 or to an attorney, accountant or other person providing medical, legal or
			 financial planning services to the viator, or to any other person acting as an
			 agent of the viator, other than a viatical settlement broker, with respect to
			 the viatical settlement.
d) A
			 viatical settlement provider (or viatical settlement investment agent) shall
			 not knowingly solicit purchasers who have treated or have been asked to treat
			 the illness of the viator whose coverage would be the subject of the
			 investment.
e) If a viatical
			 settlement provider enters into a viatical settlement contract that allows the
			 viator to retain an interest in the policy, the viatical settlement contract
			 shall contain the following provisions:
1) A
			 provision that the viatical settlement contract will effect the transfer of the
			 amount of the death benefit to the extent or portion of the amount viaticated.
			 Benefits in excess of the amount viaticated shall be paid directly to the
			 viator's beneficiary by the insurance company;
2) A provision that the viatical settlement
			 provider will, upon acknowledgment of the perfection of the transfer, either:
A) Advise the insured, in writing, that the
			 insurance company has confirmed the viator's interest in the policy;
			 or
B) Send a copy of the instrument
			 sent from the insurance company to the viatical settlement provider that
			 acknowledges the viator's interest in the policy; and
3) A provision that apportions the premiums
			 to be paid by the viatical settlement provider and the viator, provided that
			 the contract provides premium payment terms and nonforfeiture options no less
			 favorable, on a proportional basis, than those included in the
			 policy.