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Public Act 100-0475 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by | ||||
changing Sections 132.5, 143.14, 143.15, 143.16, 143.17, and | ||||
143.17a as follows:
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(215 ILCS 5/132.5) (from Ch. 73, par. 744.5)
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Sec. 132.5. Examination reports.
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(a) General description. All examination reports shall be | ||||
comprised of
only facts appearing upon the books, records, or | ||||
other documents of the
company, its agents, or other persons | ||||
examined or as ascertained from the
testimony of its officers, | ||||
agents, or other persons examined concerning its
affairs and | ||||
the conclusions and recommendations as the examiners find
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reasonably warranted from those facts.
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(b) Filing of examination report. No later than 60 days | ||||
following
completion of the examination, the examiner in charge | ||||
shall file with the
Department a verified written report of | ||||
examination under oath. Upon
receipt of the verified report, | ||||
the Department shall transmit the report to
the company | ||||
examined, together with a notice that affords the company | ||||
examined
a reasonable opportunity of not more than 30 days to | ||||
make a written
submission or rebuttal with respect to any |
matters contained in the examination report.
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(c) Adoption of the report on examination. Within 30 days | ||
of the end of the
period allowed for the receipt of written | ||
submissions or rebuttals, the
Director shall fully consider and | ||
review the report, together with any
written submissions or | ||
rebuttals and any relevant portions of the examiners
work | ||
papers and enter an order:
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(1) Adopting the examination report as filed or with | ||
modification or
corrections. If the examination report | ||
reveals that the company is
operating in violation of any | ||
law, regulation, or prior order of the
Director, the | ||
Director may order the company to take any action the
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Director considers necessary and appropriate to cure the | ||
violation.
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(2) Rejecting the examination report with directions | ||
to the examiners
to reopen the examination for purposes of | ||
obtaining additional data,
documentation, or information | ||
and refiling under subsection (b).
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(3) Calling for an investigatory hearing with no less | ||
than 20 days
notice to the company for purposes of | ||
obtaining additional documentation,
data, information, and | ||
testimony.
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(d) Order and procedures. All orders entered under | ||
paragraph (1) of
subsection (c) shall be accompanied by | ||
findings and conclusions resulting
from the Director's | ||
consideration and review of the examination report,
relevant |
examiner work papers, and any written submissions or rebuttals.
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The order shall be considered a final administrative decision | ||
and may be
appealed in accordance with the Administrative | ||
Review Law. The order shall
be served upon the company by | ||
certified mail, together with a copy of the
adopted examination | ||
report. Within 30 days of the issuance of the adopted
report, | ||
the company shall file affidavits executed by each of its | ||
directors
stating under oath that they have received a copy of | ||
the adopted report and
related orders.
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Any hearing conducted under paragraph (3) of subsection (c) | ||
by the
Director or an authorized representative shall be | ||
conducted as a
nonadversarial confidential investigatory | ||
proceeding as necessary for the
resolution of any | ||
inconsistencies, discrepancies, or disputed issues
apparent | ||
upon the face of the filed examination report or raised by or | ||
as a
result of the Director's review of relevant work papers or | ||
by the written
submission or rebuttal of the company.
Within 20 | ||
days of the conclusion of any hearing, the Director shall enter
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an order under paragraph (1) of subsection (c).
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The Director shall not appoint an examiner as an authorized
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representative to conduct the hearing. The hearing shall | ||
proceed
expeditiously with discovery by the company limited to | ||
the examiner's work
papers that tend to substantiate any | ||
assertions set forth in any written
submission or rebuttal. The | ||
Director or his representative may issue
subpoenas for the | ||
attendance of any witnesses or the production of any
documents |
deemed relevant to the investigation, whether under the control
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of the Department, the company, or other persons. The documents | ||
produced
shall be included in the record, and testimony taken | ||
by the Director or his
representative shall be under oath and | ||
preserved for the record. Nothing
contained in this Section | ||
shall require the Department to disclose any
information or | ||
records that would indicate or show the existence or content
of | ||
any investigation or activity of a criminal justice agency.
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The hearing shall proceed with the Director or his | ||
representative
posing questions to the persons subpoenaed. | ||
Thereafter the company and the
Department may present testimony | ||
relevant to the investigation.
Cross-examination shall be | ||
conducted only by the Director or his representative.
The | ||
company and the Department shall be permitted to make closing
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statements and may be represented by counsel of their choice.
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(e) Publication and use. Upon the adoption of the | ||
examination report
under paragraph (1) of subsection (c), the | ||
Director shall continue to hold
the content of the examination | ||
report as private and confidential
information for a period of | ||
35 days, except to the extent provided in
subsection (b). | ||
Thereafter, the Director may open the report for public
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inspection so long as no court of competent jurisdiction has | ||
stayed its publication.
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Nothing contained in this Code shall prevent or be | ||
construed as
prohibiting the Director from disclosing the | ||
content of an examination
report, preliminary examination |
report or results, or any matter relating
thereto, to the | ||
insurance department of any other state or country or to law
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enforcement officials of this or any other state or agency of | ||
the federal
government at any time, so long as the agency or | ||
office receiving the
report or matters relating thereto agrees | ||
in writing to hold it
confidential and in a manner consistent | ||
with this Code.
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In the event the Director determines that regulatory action | ||
is
appropriate as a result of any examination, he may initiate | ||
any
proceedings or actions as provided by law.
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(f) Confidentiality of ancillary information. All working | ||
papers,
recorded information, documents, and copies
thereof | ||
produced by, obtained by, or disclosed to the Director or any | ||
other
person in the course of any examination must be given | ||
confidential
treatment, are not subject to subpoena, and may | ||
not be made public by the
Director or any other persons, except | ||
to the extent provided in subsection
(e). Access may also be | ||
granted to the National Association of Insurance | ||
Commissioners.
Those parties must agree in writing before | ||
receiving the information to
provide to it the same | ||
confidential treatment as required by this Section,
unless the | ||
prior written consent of the company to which it pertains has | ||
been obtained.
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This subsection (f) applies to market conduct examinations | ||
described in Section 132 of this Code. | ||
(Source: P.A. 87-108.)
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(215 ILCS 5/143.14) (from Ch. 73, par. 755.14)
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Sec. 143.14. Notice of cancellation.
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(a) No notice of cancellation of any
policy of insurance, | ||
to which
Section 143.11 applies, shall be effective unless | ||
mailed by the company
to the named insured and the mortgage or | ||
lien holder, at the last mailing
address known by the company.
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The company shall maintain proof of mailing of such notice on a | ||
recognized
U.S. Post Office form or a form acceptable to the U. | ||
S. Post Office or
other commercial mail delivery service. | ||
Notification A
copy of all such
notices shall also be sent to | ||
the insured's broker if known, or the agent of
record, if | ||
known, and to the mortgagee or lien holder listed on the policy | ||
at the last mailing
address
known to the company . For purposes | ||
of this Section, the mortgage or lien holder, insured's broker, | ||
if known, or the agent of record may opt to accept notification | ||
electronically.
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(b) Whenever a financed insurance contract is cancelled, | ||
the insurer
shall return
whatever gross unearned premiums are | ||
due
under the insurance contract or contracts not to exceed the | ||
unpaid balance
due the premium finance company directly to the | ||
premium finance
company effecting the cancellation for the | ||
account of the named insured.
The return premium must be mailed | ||
to the premium finance company within
60 days.
The request for | ||
the unearned premium by the premium finance company shall
be in | ||
the manner of a monthly account, current accounting by |
producer,
policy number, unpaid balance and name of insured for | ||
each cancelled amount.
In the event the insurance contract or | ||
contracts are subject to audit, the
insurer shall retain the | ||
right to withhold the return of the portion of
premium that can | ||
be identified to the contract or contracts until the audit
is | ||
completed. Within 30 days of the completion of the audit, if a | ||
premium
retained by the insurer after crediting the earned | ||
premium would result in
a surplus, the insurer shall return the | ||
surplus directly to the premium
finance company. If the audit | ||
should result in an additional premium due
the insurer, the | ||
obligation for the collection of this premium shall fall
upon | ||
the insurer and not affect any other contract or contracts | ||
currently
being financed by the premium finance company for the | ||
named insured.
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(c) Whenever a premium finance agreement contains a power | ||
of attorney
enabling the premium finance company to cancel any | ||
insurance contract or contracts
in the agreement, the insurer | ||
shall honor the date of cancellation as set
forth in the | ||
request from the premium finance company without requiring the
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return of the insurance contract or contracts. The insurer may | ||
mail to the
named insured an acknowledgment of the notice of | ||
cancellation from the
premium finance company but the named | ||
insured shall not incur any
additional premium charge for any | ||
extension of coverage. The insurer need
not maintain proof of | ||
mailing of this notice.
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(d) All statutory regulatory and contractual restrictions |
providing that
the insurance contract may not be cancelled | ||
unless the required notice is
mailed to a governmental agency, | ||
mortgagee, lienholder, or other third
party shall apply where | ||
cancellation is effected under a power of
attorney under a | ||
premium finance agreement. The insurer shall have the
right for | ||
a premium charge for this extension of coverage.
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(Source: P.A. 93-713, eff. 1-1-05.)
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(215 ILCS 5/143.15) (from Ch. 73, par. 755.15)
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Sec. 143.15. Mailing of cancellation notice. All notices of
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cancellation of insurance as
defined in subsections (a), (b) | ||
and (c) of Section 143.13 must
be mailed at least 30 days prior | ||
to the effective date of
cancellation to the named insured ; | ||
however, if cancellation is for nonpayment of premium, the | ||
notice of cancellation must be mailed at least 10 days before | ||
the effective date of the cancellation to and mortgagee or lien | ||
holder,
if known, at the last mailing address known to the | ||
company. All
notices of cancellation to the named insured shall | ||
include a specific explanation of
the reason or reasons for | ||
cancellation. However, where cancellation
is for nonpayment of | ||
premium, the notice of
cancellation must be mailed at least 10 | ||
days before the effective date of the
cancellation. For | ||
purposes of this Section, the mortgagee or lien holder, if | ||
known, may opt to accept notification electronically.
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(Source: P.A. 93-713, eff. 1-1-05.)
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(215 ILCS 5/143.16) (from Ch. 73, par. 755.16)
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Sec. 143.16. Mailing of cancellation notice. All notices of
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cancellation of insurance to which Section
143.11 applies, | ||
except for those defined in subsections (a), (b) and (c) of
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Section 143.13 must be mailed at least 30 days prior to the | ||
effective date
of cancellation during the first 60 days of | ||
coverage. After the coverage
has been effective for 61 days or | ||
more, all notices must be mailed at least
60 days prior to the | ||
effective date of cancellation. However, where cancellation is | ||
for nonpayment of premium, the notice of cancellation must be | ||
mailed at least 10 days before the effective date of the | ||
cancellation. All such notices shall
include a specific | ||
explanation of the reason or reasons for cancellation
and shall | ||
be mailed to the named insured and mortgagee or lien holder, if
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known, at the last mailing address known to the company. | ||
However, where
cancellation is for nonpayment of premium, the | ||
notice
of
cancellation must be mailed at least 10 days before | ||
the
effective date of the cancellation. For purposes of this | ||
Section, the mortgagee or lien holder, if known, may opt to | ||
accept notification electronically.
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(Source: P.A. 93-713, eff. 1-1-05.)
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(215 ILCS 5/143.17) (from Ch. 73, par. 755.17)
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Sec. 143.17. Notice of intention not to renew.
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a. No company shall fail
to renew any policy of insurance, | ||
as defined in subsections (a), (b),
(c), and (h) of Section |
143.13, to which Section 143.11 applies, unless it
shall
send | ||
by mail to the named insured at least 30 days advance notice of | ||
its
intention not to renew. The company shall maintain proof of | ||
mailing of
such notice on a recognized U.S. Post Office form or | ||
a form acceptable to
the U. S. Post Office or other commercial | ||
mail delivery service. The nonrenewal shall not become | ||
effective until at least 30 days from the proof of mailing date | ||
of the notice to the name insured. Notification An exact
and | ||
unaltered copy of such notice shall also be sent to the | ||
insured's
broker, if known, or the agent of record ,if known, | ||
and to the last known mortgagee or lien
holder at the last | ||
mailing address known by the company . For purposes of this | ||
Section, the mortgagee or lien holder, insured's broker, or the | ||
agent of record may opt to accept notification electronically. | ||
However, where
cancellation is for nonpayment of premium, the | ||
notice
of
cancellation must be mailed at least 10 days before | ||
the
effective date of the cancellation.
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b. This Section does not apply if the company has | ||
manifested its
willingness to renew directly to the named | ||
insured.
Such written notice shall specify the premium amount | ||
payable, including
any premium payment plan available, and the | ||
name of any person or persons,
if any, authorized to receive | ||
payment on behalf of the company. If no
person is so | ||
authorized, the premium notice shall so state. The notice of
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nonrenewal and the proof of mailing shall be effected on the | ||
same date.
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b-5. This Section does not apply if the company manifested | ||
its
willingness to renew directly to the named insured. | ||
However, no company may
impose changes in deductibles or | ||
coverage for any policy forms applicable to an
entire line of | ||
business enumerated in subsections (a), (b), (c), and (h) of
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Section 143.13 to which Section 143.11 applies unless the | ||
company mails to the
named insured written notice of the change | ||
in deductible or coverage at least
60 days prior to the renewal | ||
or anniversary date. Notice An exact and unaltered copy
of the | ||
notice shall also be sent to the insured's broker, if known, or | ||
the
agent of record.
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c. Should a company fail to comply with (a) or (b) of this | ||
Section,
the policy shall terminate only on the effective date | ||
of any similar
insurance procured by the insured with respect | ||
to the same subject or
location designated in both policies.
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d. Renewal of a policy does not constitute a waiver or | ||
estoppel with
respect to grounds for cancellation which existed | ||
before the effective
date of such renewal.
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e. In all notices of intention not to renew any policy of | ||
insurance,
as defined in Section 143.11 the company shall | ||
provide the named insured a specific
explanation of the reasons | ||
for nonrenewal.
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f. For purposes of this Section, the insured's broker, if | ||
known, or the agent of record and the mortgagee or lien holder | ||
may opt to accept notification electronically.
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(Source: P.A. 93-713, eff. 1-1-05.)
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(215 ILCS 5/143.17a) (from Ch. 73, par. 755.17a)
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Sec. 143.17a. Notice of intention not to renew.
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(a) A company intending to nonrenew any policy of insurance | ||
to which Section 143.11 applies, except for those defined in | ||
subsections (a), (b), (c), and (h) of Section 143.13, must mail | ||
written notice to the named insured at least 60 days prior to | ||
the expiration date of the current policy. The notice to the | ||
named insured shall provide a specific explanation of the | ||
reasons for nonrenewal. In all notices of intention not to | ||
renew any policy of insurance, as defined in Section 143.11, | ||
the company shall provide a specific explanation of the reasons | ||
for nonrenewal. A company may not extend the current policy | ||
period for purposes of providing notice of its intention not to | ||
renew required under this subsection (a).
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(b) A company intending to renew any policy of insurance to | ||
which Section 143.11 applies, except for those defined in | ||
subsections (a), (b), (c), and (h) of Section 143.13, with an | ||
increase in premium of 30% or more or with changes in | ||
deductibles or coverage that materially alter the policy must | ||
mail or deliver to the named insured written notice of such | ||
increase or change in deductible or coverage at least 60 days | ||
prior to the renewal or anniversary date. If a company has | ||
failed to provide notice of intention to renew required under | ||
this subsection (b) at least 60 days prior to the renewal or | ||
anniversary date, but does so no less than 31 days prior to the |
renewal or anniversary date, the company may extend the current | ||
policy at the current terms and conditions for the period of | ||
time needed to equal the 60 day time period required to provide | ||
notice of intention to renew by this subsection (b). The | ||
increase in premium shall be the renewal premium based on the | ||
known exposure as of the date of the quotation compared to the | ||
premium as of the last day of coverage for the current year's | ||
policy, annualized. The premium on the renewal policy may be | ||
subsequently amended to reflect any change in exposure or | ||
reinsurance costs not considered in the quotation.
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(c) A company that has failed to provide notice of | ||
intention to nonrenew under subsection (a) of this Section and | ||
has failed to provide notice of intention to renew as | ||
prescribed under subsection (b) of this Section must renew the | ||
expiring policy under the same terms and conditions for an | ||
additional year or until the effective date of any similar | ||
insurance is procured by the insured, whichever is earlier. The | ||
company may increase the renewal premium. However, such | ||
increase must be less than 30% of the expiring term's premium | ||
and notice of such increase must be delivered to the named | ||
insured on or before the date of expiration of the current | ||
policy period.
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(d) Under subsection (a), the company shall maintain proof | ||
of mailing of the notice of intention not to renew to the named | ||
insured on one of the following forms: a recognized U.S. Post | ||
Office form or a form acceptable to the U.S. Post Office or |
other commercial mail delivery service. Under subsections (b) | ||
and (c), proof of mailing or proof of receipt of the notice of | ||
intention to renew to the named insured may be proven by a | ||
sworn affidavit by the company as to the usual and customary | ||
business practices of mailing notice pursuant to this Section | ||
or may be proven consistent with Illinois Supreme Court Rule | ||
236. For all notice requirements under this Section, an exact | ||
and unaltered copy of the notice to the named insured shall | ||
also be sent to the named insured's producer, if known, or the | ||
producer of record. Notification For notices of intention to | ||
not renew, an exact and unaltered copy of the notice to the | ||
named insured shall also be sent to the mortgagee or lien | ||
holder listed on the policy at the last mailing address known | ||
by the company .
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(e) Renewal of a policy does not constitute a waiver or | ||
estoppel with respect to grounds for cancellation that existed | ||
before the effective date of such renewal.
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(f) For purposes of this Section, the named insured's | ||
producer, if known, or the producer of record and the mortgagee | ||
or lien holder may opt to accept notification electronically.
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(Source: P.A. 95-533, eff. 6-1-08 .)
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Section 99. Effective date. This Act takes effect January | ||
1, 2018.
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