Illinois Administrative Code › Title 50 - INSURANCE › Part 754 - RULES AND RATE FILINGS › Section 754.50 - Prohibited Acts and Practices

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
			 purpose of Article XXVI of the Illinois Insurance Code, entitled "Unfair
			 Methods of Competition and Unfair and Deceptive Acts and Practices", according
			 to Section 421 of the Code, is to regulate trade practices in the business of
			 insurance by prohibiting those trade practices.
b) Violation of any regulations adopted by
			 the Director of Insurance in implementing Article XXVI and Article VII-4, is a
			 violation of the Articles themselves and subjects the violators to the
			 procedures and penalties provided by those Articles.
c) Acts and practices related to activities
			 authorized or permitted by Article VII-A and this Part that are prohibited by
			 Article XXVI of the Act as constituting unfair methods of competition or unfair
			 and deceptive acts and practices, whether committed or practiced by a company,
			 an advisory organization or companies constituting a group, association or
			 organization authorized to engage in joint underwriting or joint reinsurance
			 activities include the following:
1) Two or
			 more companies, unless permitted or authorized by Article VII-A of the Code or
			 this Part, may not act in concert with each other with respect to the
			 compilation of insurance statistics; the preparation of insurance policies,
			 bond forms, and underwriting rules; and the furnishing of that which it
			 compiles and prepares to insurance companies, nor with respect to the
			 activities of making rates.
2) Two
			 or more companies engaged in authorized joint underwriting or joint reinsurance
			 activities, unless permitted or authorized by Article VII-A of the Code or this
			 Part, may not act in concert with each other with respect to the activities
			 enumerated in subsection (c)(1) nor with respect to the activity of making
			 rates.
3) All companies making rate
			 level changes that require the filing of Company Rate Information under Section
			 754.10(e)(2)
			  are prohibited from continuing to use the
			 new rate level if the Company Rate Information has not been received by the
			 Department within 10 days after its effective date.
4) Groups, associations, organizations of
			 companies authorized to engage in joint underwriting and joint reinsurance
			 activities are prohibited from establishing rules that in any way unreasonably
			 inhibit a company from individually underwriting any risks.
5) All companies, advisory organizations, and
			 groups, associations, or organizations of companies authorized to engage in
			 joint underwriting activities are prohibited from practicing or sanctioning any
			 plan or act of boycott or intimidation tending to result in the unreasonable
			 restraint of trade or in a monopoly in the business of insurance.
6) All companies, advisory organizations, and
			 groups, associations, or organizations of companies authorized to engage in
			 joint underwriting activities are prohibited from willfully withholding
			 information from, or knowingly giving false information or misleading
			 information to, the Director or to any organization authorized by the Director
			 to receive information relative to underwriting rules, rating systems or rate
			 filings required by Article VII-A of the Act or this Part.
7) All companies required by Section
			 754.30(d)(2)
			 to file an individual risk authorization letter are prohibited from using the
			 rate developed unless or until the individual risk authorization letter has
			 been submitted to the Department.