Illinois General Assembly - Full Text of SB3072
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Full Text of SB3072  99th General Assembly




SB3072 EngrossedLRB099 17350 EGJ 41708 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 143 as follows:
6    (215 ILCS 5/143)  (from Ch. 73, par. 755)
7    Sec. 143. Policy forms.
8    (1) Life, accident and health. No company transacting the
9kind or kinds of business enumerated in Classes 1 (a), 1 (b)
10and 2 (a) of Section 4 shall issue or deliver in this State a
11policy or certificate of insurance or evidence of coverage,
12attach an endorsement or rider thereto, incorporate by
13reference bylaws or other matter therein or use an application
14blank in this State until the form and content of such policy,
15certificate, evidence of coverage, endorsement, rider, bylaw
16or other matter incorporated by reference or application blank
17has been filed electronically with the Director, either through
18the System for Electronic Rate and Form Filing (SERFF) or as
19otherwise prescribed by the Director, and approved by the
20Director. Any such endorsement or rider that unilaterally
21reduces benefits and is to be attached to a policy subsequent
22to the date the policy is issued must be filed with, reviewed,
23and formally approved by the Director prior to the date it is



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1attached to a policy issued or delivered in this State. It
2shall be the duty of the Director to withhold approval of any
3such policy, certificate, endorsement, rider, bylaw or other
4matter incorporated by reference or application blank filed
5with him if it contains provisions which encourage
6misrepresentation or are unjust, unfair, inequitable,
7ambiguous, misleading, inconsistent, deceptive, contrary to
8law or to the public policy of this State, or contains
9exceptions and conditions that unreasonably or deceptively
10affect the risk purported to be assumed in the general coverage
11of the policy. In all cases the Director shall approve or
12disapprove any such form within 60 days after submission unless
13the Director extends by not more than an additional 30 days the
14period within which he shall approve or disapprove any such
15form by giving written notice to the insurer of such extension
16before expiration of the initial 60 days period. The Director
17shall withdraw his approval of a policy, certificate, evidence
18of coverage, endorsement, rider, bylaw, or other matter
19incorporated by reference or application blank if he
20subsequently determines that such policy, certificate,
21evidence of coverage, endorsement, rider, bylaw, other matter,
22or application blank is misrepresentative, unjust, unfair,
23inequitable, ambiguous, misleading, inconsistent, deceptive,
24contrary to law or public policy of this State, or contains
25exceptions or conditions which unreasonably or deceptively
26affect the risk purported to be assumed in the general coverage



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1of the policy or evidence of coverage.
2    If a previously approved policy, certificate, evidence of
3coverage, endorsement, rider, bylaw or other matter
4incorporated by reference or application blank is withdrawn for
5use, the Director shall serve upon the company an order of
6withdrawal of use, either personally or by mail, and if by
7mail, such service shall be completed if such notice be
8deposited in the post office, postage prepaid, addressed to the
9company's last known address specified in the records of the
10Department of Insurance. The order of withdrawal of use shall
11take effect 30 days from the date of mailing but shall be
12stayed if within the 30-day period a written request for
13hearing is filed with the Director. Such hearing shall be held
14at such time and place as designated in the order given by the
15Director. The hearing may be held either in the City of
16Springfield, the City of Chicago or in the county where the
17principal business address of the company is located. The
18action of the Director in disapproving or withdrawing such form
19shall be subject to judicial review under the Administrative
20Review Law.
21    This subsection shall not apply to riders or endorsements
22issued or made at the request of the individual policyholder
23relating to the manner of distribution of benefits or to the
24reservation of rights and benefits under his life insurance
26    (2) Casualty, fire, and marine. The Director shall require



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1the filing of all policy forms issued or delivered by any
2company transacting the kind or kinds of business enumerated in
3Classes 2 (except Class 2 (a)) and 3 of Section 4 in an
4electronic format either through the System for Electronic Rate
5and Form Filing (SERFF) or as otherwise prescribed and approved
6by the Director. In addition, he may require the filing of any
7generally used riders, endorsements, certificates, application
8blanks, and other matter incorporated by reference in any such
9policy or contract of insurance. Companies that are members of
10an organization, bureau, or association may have the same filed
11for them by the organization, bureau, or association. If the
12Director shall find from an examination of any such policy
13form, rider, endorsement, certificate, application blank, or
14other matter incorporated by reference in any such policy so
15filed that it (i) violates any provision of this Code, (ii)
16contains inconsistent, ambiguous, or misleading clauses, or
17(iii) contains exceptions and conditions that will
18unreasonably or deceptively affect the risks that are purported
19to be assumed by the policy, he shall order the company or
20companies issuing these forms to discontinue their use. Nothing
21in this subsection shall require a company transacting the kind
22or kinds of business enumerated in Classes 2 (except Class 2
23(a)) and 3 of Section 4 to obtain approval of these forms
24before they are issued nor in any way affect the legality of
25any policy that has been issued and found to be in conflict
26with this subsection, but such policies shall be subject to the



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1provisions of Section 442.
2    (3) This Section shall not apply (i) to surety contracts or
3fidelity bonds, (ii) to policies issued to an exempt commercial
4purchaser or industrial insured as defined in Section 121-2.08
5except for workers' compensation policies, nor (iii) to riders
6or endorsements prepared to meet special, unusual, peculiar, or
7extraordinary conditions applying to an individual risk.
8(Source: P.A. 97-486, eff. 1-1-12; 98-226, eff. 1-1-14.)
9    Section 99. Effective date. This Act takes effect upon
10becoming law.