Illinois Administrative Code

Section 939.30 Penalties Failure of a company to timely file the report which may be required by the Director under this Part and Section 155.25 of the Illinois Insurance Code shall subject the company to the provisions of Section 403A of the Illinois Insurance Code (Ill. Rev. St…

Section 939.ILLUSTRATION A Policies Covering Physicians and Surgeons-Claims Payments Illinois Medical Liability Insurance Loss Report Format – Policies Covering Physicians and Surgeons – Claim Payments Year In Which Losses Were Incurred Loss Payments For Closed Claims As of Diffe…

Section 940.10 Purpose This Part is issued pursuant to Section 401 of the Code in order to implement Section 143.16a(e) of the Code by establishing standards and procedures for the filing and acceptance of certifications of the loss of reinsurance by the Illinois Director of Insu…

Section 940.20 Definitions "Code" means the Illinois Insurance Code [215 ILCS 5]. "Department" means the Illinois Department of Insurance. "Director" means the Illinois Director of Insurance. (Source: Amended at 42 Ill. Reg. 20108, effective October 29, 2018)

Section 940.30 Certification a) No notice of cancellation may be issued by any insurer under authority of Section 143.16a(e) of the Code unless the insurer has filed the certification and documents described by this Section and received notification of its acceptance from the Dir…

Section 941.10 Applicability No misrepresentation or false warranty made by the insured or in the insured's behalf in the negotiation for a policy of insurance, or breach of a condition of the policy, shall defeat or avoid the policy or prevent its attaching unless such misrepres…

Section 941.20 Misrepresentation If the company opts not to obtain readily available information about the named insureds and drivers listed on the application to underwrite the risk prior to issuing the policy, the company shall not defeat, avoid or rescind the policy of insuran…

Section 1051.10 Credit Life Insurance a) Only Decreasing Term Insurance may be written in connection with an indebtedness which is repayable in substantially equal installments. b) Level Term Insurance may be written only in connection with an indebtedness not repayable in substa…

Section 1051.30 Purpose and Scope The purpose of this Part is to establish a procedure and methodology for the review of Credit Life Insurance rates by the Director of Insurance, and to establish standards for the review of such rates. This Part does not apply to Credit Accident …

Section 1051.40 Definitions "Credit life insurance" means insurance as defined in Section 155.52(a) of the Illinois Insurance Code. "Code" means the Illinois Insurance Code [215 ILCS 5]. "Department" means the Department of Insurance of the State of Illinois. "Director" means the…

Section 1051.50 Credit Life Insurance Rates A credit life insurance rate shall be considered prima facie reasonable in relation to the benefits provided if the rate is not greater than that set forth below in subsection (a) for coverage containing no more restrictive exclusions t…

Section 1051.60 Experience Reports and Adjustment of Prima Facie Rates a) Each insurer doing credit insurance business in this state shall annually file with the Director and the National Association of Insurance Commissioners (NAIC) Support & Services Office a report of credit l…

Section 1051.70 Credit Life Rate Adjustments a) No insurance company may charge or collect a credit life insurance premium which would not be considered reasonable under this Part. Unless otherwise approved by the Director pursuant to this Section, no insurance company writing cr…

Section 1051.80 Effective Date Approval of all forms not in compliance with this Part are hereby withdrawn as of 60 days subsequent to the effective date of this Part, and may not be used unless an approved rider has been attached bringing such form into compliance with this Part…

Section 1052.15 Purpose The purpose of this Part is to establish procedures and standards for the review and approval of credit accident and health insurance policy forms. (Source: Added at 20 Ill. Reg. 830, effective January 2, 1996)

Section 1052.20 Definitions "Credit accident and health insurance" means insurance on a debtor to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy [215 ILCS 5/155.52(b)]. (Source: Adde…

Section 1052.30 Credit Accident and Health Insurance Coverage If coverage for credit accident and health insurance is contingent upon the insured working a minimum amount of hours a week, then the application for insurance must contain a question eliciting a response indicating t…

Section 1052.40 Filing and Approval of Premiums In determining whether or not the benefits in any policy form submitted by an insurer for approval are "reasonable" in relation to the premium, an ultimate loss ratio of fifty percent (50%) will be deemed to provide benefits reasona…

Section 1053.10 Computation of Premium Refunds a) The refund of return premiums in the case of Decreasing Term Insurance issue under Article IX½ of the Illinois Insurance Code shall be computed by the "Sum of Digits" formula, commonly known as the "Rule of Seventy Eighths". b) Th…

Section 1103.10 Preamble a) The Department of Financial and Professional Regulation-Division of Insurance (Division) recognizes that licensed insurers routinely enter into reinsurance agreements that yield legitimate relief to the ceding insurer from strain to surplus. b) However…

Section 1103.20 Scope This Part shall apply to all domestic life, accident and health insurers and to all other licensed life and health insurers who are not subject to the same regulation in their domiciliary state. This Part shall also apply to licensed property and casualty in…

Section 1103.25 Definitions Department means the Illinois Department of Financial and Professional Regulation. Director means the Director of the Illinois Department of Financial and Professional Regulation-Division of Insurance. Division means the Department of Financial and Pro…

Section 1103.30 Accounting Requirements a) No insurer subject to this Part shall, for reinsurance ceded, reduce any liability or establish any asset in any financial statement filed with the Division if, by the terms of the reinsurance agreement, in substance or effect, any of th…

Section 1103.40 Written Agreements a) No reinsurance agreement or amendment to any agreement shall be used to reduce any liability or to establish any asset in any financial statement filed with the Division, unless the agreement or amendment or a binding letter of intent has bee…

Section 1103.50 Existing Agreements On or before December 31, 2011, all insurers that are subject to this Part must be able to certify that they have reduced to zero any reserve credits or assets established with respect to reinsurance agreements entered into prior to December 31…

Section 1103.EXHIBIT A Risk Category Risk Categories: a) Morbidity b) Mortality c) Lapse This is the risk that a policy will voluntarily terminate prior to the recoupment of a statutory surplus strain experienced at issue of the policy. d) Credit Quality (C1) This is the risk tha…

Section 1104.10 Purpose The purpose of this Part is to set forth procedural requirements the Director deems necessary to carry out the provisions of Article XI of the Code. (Source: Amended at 43 Ill. Reg. 14133, effective November 19, 2019)

Section 1104.100 Reinsurance Contract Credit will not be granted to a ceding insurer for reinsurance effected with assuming insurers meeting the requirements of Section 1104.20, 1104.30, 1104.35, 1104.40, 1104.45, 1104.47 or 1104.60 or otherwise in compliance with Section 173.1(1…

Section 1104.110 Contracts Affected All new and renewal reinsurance transactions entered into after January 1, 1996 shall conform to the requirements of this Part if credit is to be given to the ceding insurer for such reinsurance.

Section 1104.120 Severability If any provisions of this Part, or their application to any person or circumstance is held invalid, such determination shall not affect other provisions or applications of this Part which can be given effect without the invalid provision or applicati…

Section 1104.15 Definitions "Code" means the Illinois Insurance Code [215 ILCS 5]. "Covered Agreement" means an agreement entered into pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (31 U.S.C. 313 and 314) that is currently in effect or in a period of p…

Section 1104.20 Credit for Reinsurance – Reinsurer Licensed in this State Pursuant to Section 173.1(1)(A) of the Code, the Director shall allow credit for reinsurance ceded by a domestic insurer to assuming insurers which were licensed in this State as of the date of the ceding i…

Section 1104.30 Credit for Reinsurance – Accredited Reinsurers a) Pursuant to Section 173.1(1)(B) of the Code, the Director shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is accredited as a reinsurer in this State as of the date of the …

Section 1104.35 Credit for Reinsurance – Reinsurer Domiciled in Another State a) As part of complying with Section 173.1(1)(B-5)(1)(b) of the Code, an assuming insurer or U.S. branch of an alien assuming insurer must file with the Director a properly executed Form AR-1 found in A…

Section 1104.40 Credit for Reinsurance – Reinsurers Maintaining Trust Funds a) Pursuant to Section 173.1(1)(C) of the Code, the Director shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that, as of the date of the ceding insurer's most recent …

Section 1104.45 Credit for Reinsurance – Certified Reinsurers a) Pursuant to Section 173.1 of the Code, the Director shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that has been certified as a reinsurer in Illinois at all times for which sta…

Section 1104.47 Credit for Reinsurance - Reciprocal Jurisdictions a) Pursuant to Section 173.1(1)(C-10) of the Code, the Director shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is licensed to write reinsurance by, and has its head offic…

Section 1104.50 Credit for Reinsurance Required by Law The Director shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Section 173.1(1)(A), (B), (B-5), (C), (C-5) or (C-10) of the Code but only with respect to the…

Section 1104.60 Reduction from Liability for Reinsurance Ceded to an Unauthorized Assuming Insurer Pursuant to Section 173.1(2) of the Code, the Director shall allow a reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requ…

Section 1104.70 Trust Agreements Qualified Under Section 1104.60 a) As used in this Section: 1) Beneficiary means the entity for whose sole benefit the trust has been established and any successor of the beneficiary by operation of law. If a court of law appoints a successor in i…

Section 1104.80 Letters of Credit Qualified Under Section 1104.60 a) The letter of credit must be clean, irrevocable and unconditional and issued or confirmed by a qualified U.S. financial institution as defined in Section 173.1(3)(A) of the Code. The letter of credit shall conta…

Section 1104.90 Other Security A ceding insurer may take credit for unencumbered funds withheld by the ceding insurer in the United States subject to withdrawal solely by the ceding insurer and under its exclusive control.

Section 1104.APPENDIX C Form RJ-1 Certificate of Reinsurer Domiciled in Reciprocal Jurisdiction FORM RJ-1 CERTIFICATE OF REINSURER DOMICILED IN RECIPROCAL JURISDICTION I, , (name of officer) (title of officer) of , the Assuming Insurer (name of Assuming Insurer) under a reinsuran…

Section 1250.10 Purpose a) The purpose of this Part is to set forth the standards the Director may use for identifying insurers found to be in such condition as to render the continuance of their business hazardous to their policyholders, creditors or the general public. b) This …

Section 1250.15 Definitions Actuarial Standards of Practice means the actuarial standards used in keeping with current professional practice by the Actuarial Standards Board (1100 Seventeenth Street, NW, Seventh Floor, Washington DC 20036) that are to be utilized by actuaries in …

Section 1250.20 Standards Depending upon an examination of the factual circumstances, applicable law and financial situation of the company involved, the following standards, either singly or a combination of two or more, may be considered by the Director to determine whether the…

Section 1250.30 Director's Authority a) For purposes of making a determination of an insurer's financial condition under this Part, the Director may: 1) Disregard any credit or amount receivable resulting from transactions with a reinsurer that is insolvent, impaired or otherwise…