State of Illinois
92nd General Assembly
Legislation

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[ Senate Amendment 001 ]


92_HB0800

 
                                               LRB9207630JSpc

 1        AN ACT concerning insurance.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Insurance  Code  is  amended  by
 5    adding Section 507.2 as follows:

 6        (215 ILCS 5/507.2 new)
 7        Sec.   507.2.  Policyholder   information  and  exclusive
 8    ownership of expirations.
 9        (a)  As used in this  Section,  "expirations"  means  all
10    information  relative  to  an insurance policy including, but
11    not limited to, the name and  address  of  the  insured,  the
12    location  and  description of the property insured, the value
13    of  the  insurance  policy,  the  date  of  expiration,   the
14    premiums,  limits,  terms,  and  coverage  of  the  insurance
15    policy, and any other confidential information compiled by an
16    insurance producer or furnished by the insured to the insurer
17    or any agent, contractor, or representative of the insurer.
18        (b)  Except  as  otherwise  provided in this Section, for
19    purposes of soliciting, selling, or negotiating  the  renewal
20    or   sale  of  insurance  coverage,  insurance  products,  or
21    insurance services or for any  other  marketing  purpose,  an
22    insurance  producer  shall  own and have the exclusive use of
23    expirations, records, and  other  written  or  electronically
24    stored   information   directly   related   to  an  insurance
25    application submitted by,  or  an  insurance  policy  written
26    through,   the  insurance  producer.  No  insurance  company,
27    managing  general  agent,  surplus  lines  insurance  broker,
28    wholesale broker,  group  self-insurance  fund,  third  party
29    administrator,   or   any   other   entity   shall  use  such
30    expirations, records,  or  other  written  or  electronically
31    stored information to solicit, sell, or negotiate the renewal
 
                            -2-                LRB9207630JSpc
 1    or   sale  of  insurance  coverage,  insurance  products,  or
 2    insurance services to the insured or for any other  marketing
 3    purposes, either directly or by providing such information to
 4    others,  without  the  express written consent of the insured
 5    and without, separate from the general agency  contract,  the
 6    written  consent  of  the  insurance  producer. However, such
 7    expirations, records,  or  other  written  or  electronically
 8    stored  information may be used for any purpose necessary for
 9    placing  such  business  through   the   insurance   producer
10    including  reviewing an application and issuing or renewing a
11    policy.
12        (c)  This Section shall not apply:
13             (1)  when   the   insured   requests   in    writing
14        individually or through another agent, that the insurance
15        company   renew  the  policy  or  write  other  insurance
16        business;
17             (2)  to  the  Illinois  Fair  Plan,   the   Illinois
18        Automobile  Insurance Plan, or the Illinois Assigned Risk
19        Plan for coverage under the Workers' Compensation Act and
20        the Workers' Occupational Diseases Act;
21             (3)  when the insurance producer is employed by  and
22        has agreed to act exclusively for one company or group of
23        affiliated insurance companies; or
24             (4)  to   policies   providing   life   and   health
25        insurance.
26        This  subsection  does  not prohibit an insurance company
27    with respect to  items  (3)  and  (4)  from  conveying  to  a
28    producer the ownership of expirations on any policy issued.
29        (d)  The  Director  may  adopt  rules  in accordance with
30    Section 401 of this Code for the enforcement of this Section.
31    Any person who violates this Section  or  the  rules  adopted
32    pursuant  to  this  Section  shall be subject to disciplinary
33    action by the Director.
34        (e)  An insurance producer harmed by a violation of  this
 
                            -3-                LRB9207630JSpc
 1    Section  shall have a right to claim for lost commissions and
 2    any other relief.

 3        Section 99.  Effective date. This Act takes  effect  upon
 4    becoming law.

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