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Public Act 92-0005
SB333 Enrolled LRB9200974JSpcB
AN ACT concerning insurance.
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 507.2 as follows:
(215 ILCS 5/507.2 new)
Sec. 507.2. Policyholder information and exclusive
ownership of expirations.
(a) As used in this Section, "expirations" means all
information relative to an insurance policy including, but
not limited to, the name and address of the insured, the
location and description of the property insured, the value
of the insurance policy, the inception date, the renewal
date, and the expiration date of the insurance policy, the
premiums, the limits and a description of the terms and
coverage of the insurance policy, and any other personal and
privileged information, as defined by Section 1003 of this
Code, compiled by a registered firm or furnished by the
insured to the insurer or any agent, contractor, or
representative of the insurer.
For purposes of this Section only, a registered firm also
includes a sole proprietorship that transacts the business of
insurance as an insurance agency.
(b) All "expirations" as defined in subsection (a) of
this Section shall be mutually and exclusively owned by the
insured and the registered firm. The limitations on the use
of expirations as provided in subsections (c) and (d) of this
Section shall be for mutual benefit of the insured and the
registered firm.
(c) Except as otherwise provided in this Section, for
purposes of soliciting, selling, or negotiating the renewal
or sale of insurance coverage, insurance products, or
insurance services or for any other marketing purpose, a
registered firm shall own and have the exclusive use of
expirations, records, and other written or electronically
stored information directly related to an insurance
application submitted by, or an insurance policy written
through, the registered firm. No insurance company, managing
general agent, surplus lines insurance broker, wholesale
broker, group self-insurance fund, third-party administrator,
or any other entity, other than a financial institution as
defined in Section 1402 of this Code, shall use such
expirations, records, or other written or electronically
stored information to solicit, sell, or negotiate the renewal
or sale of insurance coverage, insurance products, or
insurance services to the insured or for any other marketing
purposes, either directly or by providing such information to
others, without, separate from the general agency contract,
the written consent of the registered firm. However, such
expirations, records, or other written or electronically
stored information may be used for any purpose necessary for
placing such business through the insurance producer
including reviewing an application and issuing or renewing a
policy and for loss control services.
(d) With respect to a registered firm, this Section
shall not apply:
(1) when the insured requests either orally or in
writing that another registered firm obtain quotes for
insurance from another insurance company or when the
insured requests in writing individually or through
another registered firm, that the insurance company renew
the policy;
(2) to policies in the Illinois Fair Plan, the
Illinois Automobile Insurance Plan, or the Illinois
Assigned Risk Plan for coverage under the Workers'
Compensation Act and the Workers' Occupational Diseases
Act;
(3) when the insurance producer is employed by or
has agreed to act exclusively or primarily for one
company or group of affiliated insurance companies or to
a producer who submits to the company or group of
affiliated companies that are organized to transact
business in this State as a reciprocal company, as
defined in Article IV of this Code, every request or
application for insurance for the classes and lines
underwritten by the company or group of affiliated
companies;
(4) to policies providing life and accident and
health insurance;
(5) when the registered firm is in default for
nonpayment of premiums under the contract with the
insurer or is guilty of conversion of the insured's or
insurer's premiums or its license is revoked by or
surrendered to the Department;
(6) to any insurance company's obligations under
Sections 143.17 and 143.17a of this Code; or
(7) to any insurer that, separate from a producer
or registered firm, creates, develops, compiles, and
assembles its own, identifiable expirations as defined in
subsection (a).
For purposes of this Section, an insurance producer shall
be deemed to have agreed to act primarily for one company or
a group of affiliated insurance companies if the producer (i)
receives 75% or more of his or her insurance related
commissions from one company or a group of affiliated
companies or (ii) places 75% or more of his or her policies
with one company or a group of affiliated companies.
Nothing in this Section prohibits an insurance company,
with respect to any items herein, from conveying to the
insured or the registered firm any additional benefits or
ownership rights including, but not limited to, the ownership
of expirations on any policy issued or the imposition of
further restrictions on the insurance company's use of the
insured's personal information.
(e) Nothing in this Section prevents a financial
institution, as defined in Section 1402 of this Code, from
obtaining from the insured, the insurer, or the registered
firm the expiration dates of an insurance policy placed on
collateral or otherwise used as security in connection with a
loan made or serviced by the financial institution when the
financial institution requires the expiration dates for
evidence of insurance.
(f) For purposes of this Section, "financial
institution" does not include an insurance company,
registered firm, managing general agent, surplus lines
broker, wholesale broker, group self-funded insurance fund,
or third-party administrator.
(g) The Director may adopt rules in accordance with
Section 401 of this Code for the enforcement of this Section.
(h) This Section applies to the expirations relative to
all policies of insurance bound, applied for, sold, renewed,
or otherwise taking effect on or after the effective date of
this amendatory Act of the 92nd General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 22, 2001.
Approved June 01, 2001.
Effective June 01, 2001.
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