Section 754.10  Companies Must File

 

a)         All companies are subject to this filing requirement that write any of the following kinds of insurance:

 

1)         Motor Vehicle, as used in this Section, includes only Private Passenger Automobiles, Taxicabs and Motorcycles;

 

2)         Homeowners, including Mobile Homeowners;

 

3)         Dwelling Fire and Allied Lines;

 

4)         Workers' Compensation (see 50 Ill. Adm. Code 2902);

 

5)         Medical Malpractice (see 50 Ill. Adm. Code 929); and

 

6)         Group Inland Marine (see 50 Ill. Adm. Code 2302).

 

b)         The following must be filed:

 

1)         All Companies – All underwriting rule manuals that contain rules for applying rates or rating plans, plans for reporting statistics to statistical agencies, classifications, or other such schedules used in writing the kinds of insurance in subsections (a)(1) through (a)(3)

 

2)         All Companies – All rates applied to the writing of the kinds of insurance in subsections (a)(1) through (a)(3); and

 

3)         All Advisory Organizations – All underwriting rule manuals that contain rules for applying rates or rating plans, plans for reporting statistics to statistical agencies, classifications, or other such schedules used in writing the kinds of insurance enumerated in Section 4 of the Illinois Insurance Code [215 ILCS 5] (Code), Class 2, except paragraphs (a), (d) and (g) of Class 2, and Class 3.

 

c)         The filing requirement of subsection (b)(1) can be met by:

 

1)         A company making a direct filing on its own behalf; or

 

2)         A company making a rule reference filing on its own behalf by utilizing its advisory organization's data relative to subsection (b)(1); or

 

3)         A company authorizing the advisory organization of which it is a member or subscriber to make the filing on the company's behalf.

 

d)         All filings required under subsection (b)(1) must be submitted using the System for Electronic Rate and Form Filing (SERFF) and must include:

 

1)         The name of the advisory organization or company making the filing;

 

2)         Identification of the rule with the manual or kind of insurance to which it applies;

 

3)         Notification as to whether the filing is new or supersedes a present filing.  Identification of all changes in all superseding filings, as well as identification of all superseded filings, is required. The preferred format is to underline the new wording and overstrike the deleted or changed language and give an explanation for the changes being made, but alternative methods of indicating changes will also be accepted; and

 

4)         The effective date of use.

 

e)         The filing requirement of subsection (b)(2) can be met by:

 

1)         A company making a direct filing on its own behalf; and

 

2)         Company rate information being completed for each company for which a filing is being submitted.  The rate information shall include:

 

A)        Overall % indicated change;

 

B)        Overall % rate impact – This is the statewide average percentage change to the accepted rates for the coverages included for each company;

 

C)        Written premium change for this program – This is the statewide change in written premium based on the proposed overall percentage rate impact for each company;

 

D)        Number of policyholders affected for this program – This is the number of policyholders affected by the overall percentage rate impact for each company;

 

E)        Written premium for this program – This is the statewide written premium for each company;

 

F)         Maximum % change; and

 

G)        Minimum % change.

 

f)         All filings required under subsection (b)(2) must be submitted using SERFF and shall include:

 

1)         The name of the company making the filing;

 

2)         Identification of the kinds of insurance to which the filing applies;

 

3)         Notification of whether the filing is new or supersedes a present filing. Identification of all changes in superseding filings, as well as identification of all superseded filing, is required; and

 

4)         The effective date of use.

 

g)         A company making a filing under subsection (b)(2) must maintain documentary data for rate changes in its files so that it will be available for review by the Department's Property and Casualty Compliance Unit.

 

h)         A company making a filing under subsection (c)(2) or Section 754.10(c)(3) that wants to vary from advisory organization rules must file:

 

1)         The manual rule number, which must be the same as the rule number being replaced; and

 

2)         The effective date of use.

 

i)          A company making a filing under subsection (c)(2) or (c)(3) that wants an effective date different from that of the advisory organization's advisory effective date must notify the Department of Insurance, using SERFF, of an automatic uniform delayed effective date applicable to all future advisory organization rule revisions. 

 

j)          A company authorizing its advisory organization to file on the company's behalf under subsection (c)(3) must have the organization notify the Department of Insurance electronically of that authorization.

 

(Source:  Amended at 39 Ill. Reg. 8266, effective May 26, 2015)

 

Section 754.20  Other Company Filings (Repealed)

 

(Source:  Repealed at 39 Ill. Reg. 8266, effective May 26, 2015)

 

Section 754.30  Documentation – Individual Risks

 

a)         A company is not required to file under Section 754.10 for individual risks in this State that cannot be rated in the normal course of business rating because of special or unusual characteristics and that must be rated on the basis of underwriting judgment.  This procedure does not apply to Workers' Compensation insurance.

 

b)         A company must maintain documentary information regarding rates determined in subsection (a) for review by the Department's Property and Casualty Compliance Unit.

 

c)         A company is not required to file rates on individual risks in this State when the development of the rate for the individual risk is dependent upon an inspection of improvements on real property and an application of a schedule, the elements of which include loss ratio, hazard analysis, risk analysis and classification of municipal fire defenses.

 

d)         A company must, however, maintain documentary information for the rates in subsection (c) by:

 

1)         Maintaining the information in files and records in its offices that will be available for review by the Department's Property and Casualty Compliance Unit; or

 

2)         Authorizing an advisory organization by use of an individual risk authorization letter to maintain documentary information for all rates in subsection (c) in its files and records that will be available for review by the Department's Property and Casualty Compliance Unit; and

 

3)         Filing an authorization letter that includes:

 

A)        The name of its authorized advisory organization;

 

B)        The kind of insurance for which the information will be maintained;

 

C)        Authorization clause or language; and

 

D)        Effective date of authorization.

 

(Source:  Amended at 39 Ill. Reg. 8266, effective May 26, 2015)

 

Section 754.40  Submission of Filings

 

a)         All rule and rate filings required in Sections 754.10 and 754.30 must be received no later than 10 days after their stated effective date or the stated effective date of the rule or rate filing to which the information or authorization relates.

 

b)         All filings required in Sections 754.10 and 754.30 must be submitted using SERFF.

 

(Source:  Amended at 39 Ill. Reg. 8266, effective May 26, 2015)

 

Section 754.50  Prohibited Acts and Practices

 

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.

 

(Source:  Amended at 39 Ill. Reg. 8266, effective May 26, 2015)

Section 754.EXHIBIT A   Summary Sheet (Form RF-3) (Repealed)

 

(Source:  Repealed at 39 Ill. Reg. 8266, effective May 26, 2015)

Section 754.EXHIBIT B   Automobile Annual Premium Comparison (Form RF-4) (Repealed)

 

(Source:  Repealed at 39 Ill. Reg. 8266, effective May 26, 2015)

Section 754.EXHIBIT C   Homeowners Annual Premium Comparison (Form RF-5) (Repealed)

 

(Source:  Repealed at 39 Ill. Reg. 8266, effective May 26, 2015)