Public Act 098-0819
 
SB2608 EnrolledLRB098 13676 RPM 48202 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Insurance Code is amended by adding
Section 155.45 as follows:
 
    (215 ILCS 5/155.45 new)
    Sec. 155.45. Certificates of insurance.
    (a) In this Section:
        "Certificate of insurance" means a document prepared
    by an insurer or insurance producer as evidence of property
    or casualty insurance coverage. "Certificate of insurance"
    does not include a policy of insurance, an insurance
    binder, a policy endorsement, or a motor vehicle insurance
    identification or information card.
        "Department" means the Department of Insurance.
        "Director" means the Director of Insurance.
        "Insurance producer" means a person required to be
    licensed under the laws of this State to sell, solicit, or
    negotiate insurance.
        "Insurer" means a company, firm, partnership,
    association, order, society, or system making any kind or
    kinds of insurance and shall include associations
    operating as Lloyds, reciprocal or inter-insurers, or
    individual underwriters.
        "Person" means any individual, aggregation of
    individuals, trust, association, partnership, or
    corporation, or any affiliate thereof.
        "Property or casualty insurance" means the kinds of
    insurance described in either or both Class 2 or Class 3 of
    Section 4 of this Code.
    (b) This Section applies to a certificate of insurance that
is issued in connection with a contract related to property,
operations, or risks located in this State, regardless of the
location of the policyholder, insurer, insurance producer, or
person that requests or requires the issuance of the
certificate of insurance.
    (c) The use of a certificate of insurance form that is
unfair, misleading, or deceptive or violates any law is an
unfair and deceptive act or practice in the business of
insurance under Article XXVI of this Code.
    (d) A certificate of insurance may not amend, extend, or
alter the coverage provided under, or confer to a person any
rights in addition to the rights expressly provided in, the
policy of property or casualty insurance to which the
certificate of insurance refers.
    (e) A person may not prepare, issue, request, or require
the issuance of a certificate of insurance that:
        (1) contains false or misleading information
    concerning the policy of property or casualty insurance to
    which the certificate of insurance refers; or
        (2) alters, amends, or extends the coverage provided by
    the policy of property or casualty insurance to which the
    certificate of insurance refers.
    (f) A certificate of insurance may not contain a warranty
that the policy of property or casualty insurance to which the
certificate of insurance refers complies with the insurance or
indemnification requirements of a contract. The inclusion of a
contract number or contract description in a certificate of
insurance does not warrant that the policy of property or
casualty insurance to which the certificate of insurance refers
complies with the insurance or indemnification requirements of
the contract.
    (g) A person is not entitled to notice of, cancellation of,
nonrenewal of, or a material change in a policy of property or
casualty insurance unless the person has notice rights under
the terms of the policy of property or casualty insurance or an
endorsement to the policy. The terms and conditions of notice
described in this subsection (g) are governed by the policy of
property or casualty insurance or an endorsement to the policy
and are not altered by a certificate of insurance.
    (h) A certificate of insurance or any other document that
is prepared, issued, requested, or required in violation of
this Section is void.
    (i) The Director may refer a matter to the Department of
Financial and Professional Regulation for review pursuant to
the rules of that department if the Director has reason to
believe that a certificate of insurance form as described in
subsection (c) of this Section has been provided by a financial
institution.
    (j) The Director may examine and investigate the activities
of a person that the Director reasonably believes has violated
the provisions of this Section. The Director shall have the
power to enforce the provisions of this Section and impose any
authorized penalty or remedy as provided under Section 401 of
this Code upon any person who violates the provisions of this
Section.
    (k) The Department may adopt rules to implement the
provisions of this Section.