Illinois Administrative Code

Section 2500.40 Definitions Except as stated and unless a different meaning of a term is clear from its context, the definitions of terms used in this Part that are not defined in this Section shall be the same as those used in any of the Acts in Chapter 215 of the Illinois Compi…

Section 2500.50 Audit Any person or company who has paid a fee, charge or tax pursuant to this Part may request an audit pursuant to Section 412(1)(a) of the Code for the purpose of determining if the amount paid was in excess of the amount legally chargeable against it. a) A req…

Section 2500.60 Computation of Time and Time of Filing a) Computation of Time. The time within which any act provided by law is to be done or a payment is due shall be computed by excluding the first day and including the last. However, if the last day is a Saturday, Sunday or St…

Section 2500.70 Payment, Forms and Returns a) The payment of fees or charges shall be made by separate check, or other payment method approved by the Director, for each invoice issued by the Department pursuant to Section 408 of the Code. b) The payment of taxes owed pursuant to …

Section 2500.80 Calculation Guidelines a) All calculations shall be rounded to whole numbers by rounding down if the first decimal place is five or less and rounding up otherwise. b) For all calculated amounts owed, a whole dollar amount shall be reported and any amount calculate…

Section 2500.90 Fees and Charges a) The Director shall charge and collect the payment of fees and charges pursuant to Section 408(1) and 500-35(d) of the Code. b) If any person, company or business entity issues a check or other draft to the Director as required by the Code, and …

Section 2601.10 Authority The Rule is promulgated by the Director of Insurance under Section 401 of the Illinois Insurance Code which empowers the Director "...to make reasonable rules and regulations as may be necessary for making effective ..." the insurance laws of this State.…

Section 2601.20 Effective Date – Requirements Effective September 1, 1972, all companies issuing any "policy of automobile liability insurance" (as defined in Section 143(2) of the Illinois Insurance Code) on one or more private passenger automobiles in this State shall clearly i…

Section 2601.30 Applicable only to Private Passenger Automobile Coverages For policies also affording coverages to vehicles not defined herein as a "private passenger automobile", this rule is applicable only to those coverages or portions of coverages pertaining to specifically …

Section 2601.40 Definition of Private Passenger Automobile As used in this Rule, the term "private passenger automobile" means a sedan, station wagon, or jeep-type vehicle not used as a public livery conveyance for passenger, nor rented to others, and includes any other utility a…

Section 2602.10 Authority This Rule is promulgated by the Director of Insurance under Section 401 (Ill. Rev. Stat. 1981, ch. 73, Section 1013) of the Illinois Insurance Code which empowers the Director ". . . to make reasonable rules and regulations as may be necessary for making…

Section 2602.20 Purpose The purpose of this Rule is to establish as an Unfair and Deceptive Act and Practice the reduction or denial of any claim to satisfy a previous overpayment except in accordance with this Rule. Compliance with this Rule shall be accomplished as set forth in…

Section 2602.30 Scope This Rule shall apply to all companies authorized to write the class or classes of business set forth in Clause b of Class 1 or Clause a of Class 2 of Section 4 (Ill. Rev. Stat. 1981, ch. 73, par. 616) of the Illinois Insurance Code as they apply to those sp…

Section 2602.40 Standards No company shall withhold any portion of any benefit payable as the result of a claim on the basis that the sum withheld is an adjustment or correction for an overpayment made on a prior claim arising under the same policy unless: a) The company has with…

Section 2602.50 Limitation A company may use the procedure set forth in Section 2602.40(b) of this Rule provided that the claim used to adjust the first overpayment is made no later than 3 years after the date of the error. Nothing herein shall be in any way interpreted as a limi…

Section 2602.60 Exemptions This Rule shall not apply to any group or blanket contracts or to adjustments between different payments on the same claim.

Section 2602.70 Effective Date This Rule shall become effective April 1, 1976, and shall apply to all claims made on or after that date.

Section 2603.10 Authority This Part is promulgated by the Director of Insurance pursuant to Section 401 of the Illinois Insurance Code (Code), which empowers the Director "to make reasonable rules and regulations as may be necessary for making effective" the insurance laws of thi…

Section 2603.20 Purpose and Scope The purpose of this Part is to eliminate unfair discrimination based upon sex, gender identity, sexual orientation or marital status in the terms and conditions of insurance contracts and in the underwriting criteria of insurance carriers. This P…

Section 2603.25 Definitions "ACA" means the Patient Protection and Affordable Care Act (42 USC 18001 et seq.). "Code" means the Illinois Insurance Code [215 ILCS 5]. "Director" means the Director of the Illinois Department of Insurance. "Department" means the Illinois Department …

Section 2603.30 Prohibited Practices No company shall refuse to issue any contract of insurance, certificate of insurance, notices of proposed insurance, policies, endorsements or riders or decline to renew a contract, certificate, notice, policy, endorsement or rider because of …

Section 2603.35 Prohibited Gender Identity Discrimination a) A company that offers or provides group or individual health insurance coverage that is neither a grandfathered plan nor a plan offering excepted benefits shall not discriminate on the basis of an insured's or prospecti…

Section 2603.40 Rates a) No insurance company shall place a risk in a rating classification on the basis of sex, sexual orientation or marital status or otherwise differentiate in rates on the basis of sex, sexual orientation or marital status unless that classification or differ…

Section 2603.50 Severability Provision If any Section or portion of a Section of this Part, or the applicability thereof to any person or circumstance is held invalid by a court, the remainder of the Part, or the applicability of such provision or circumstance, shall not be affec…

Section 2603.60 Effective Date (Repealed) (Source: Repealed at 39 Ill. Reg. 409, effective July 1, 2015)

Section 2605.10 Purpose a) The purpose of this Part is to set forth standards to protect active duty service members of the United States Armed Forces from dishonest and predatory insurance sales practices by declaring certain identified practices to be false, misleading, decepti…

Section 2605.20 Scope This Part shall apply only to the solicitation or sale of any life insurance or annuity product by an insurer or insurance producer to an active duty service member of the United States Armed Forces.

Section 2605.30 Exemptions a) This Part shall not apply to solicitations or sales involving: 1) Credit insurance; 2) Group life insurance or group annuities when there is no in-person, face-to-face solicitation of individuals by an insurance producer or when the contract or certi…

Section 2605.40 Definitions For purposes of this Part: Active Duty means full-time duty in the active military service of the United States and includes members of the reserve component (National Guard and Reserve) while serving under published orders for active duty or full-time…

Section 2605.50 Practices Declared False, Misleading, Deceptive or Unfair on a Military Installation a) The following acts or practices, when committed on a military installation by an insurer or insurance producer with respect to the in-person, face-to-face solicitation of life …

Section 2605.60 Practices Declared False, Misleading, Deceptive or Unfair Regardless of Location a) The following acts or practices by an insurer or insurance producer constitute corrupt practices or improper influences or inducements and are declared to be false, misleading, dec…

Section 2605.70 Noncompliance a) Failure of an insurer to comply with the requirements of this Part shall subject the insurer to the applicable provisions of Section 403A of the Code; or b) Failure of an insurance producer to comply with requirements of this Part shall be an unfa…

Section 2701.10 Policies or Contracts of Insurance Policies or contracts of insurance may not be placed with insurers not authorized to do business in Illinois other than through surplus line producers licensed pursuant to Section 445 of the Illinois Insurance Code (the Code) [21…

Section 2701.100 License Rejection or Renewal Refusal Application for a surplus line producer license shall be rejected, or renewal thereof refused, for failure: a) to pay the tax required by Section 445 of the Illinois Insurance Code and by Section 12 of the Fire Investigation A…

Section 2701.110 Service of Process a) Service of process relating to any surplus line insurance that the Surplus Line Association receives from the Director shall be delivered to the surplus line producer for delivery to the unauthorized insurer. The surplus line producer shall …

Section 2701.120 Required Surplus Line Policy Notice a) Each policy or contract for insurance procured from an unauthorized insurer, other than a domestic surplus line insurer, in conformity with Section 445 of the Code shall have stamped or imprinted on the first page, in not le…

Section 2701.130 Taxes a) The surplus line producer shall pay to the Director as a surplus line tax a sum equal to the gross premiums less returned premiums multiplied by the surplus line tax rate set forth in Section 445 of the Code upon all surplus line insurance. The payment i…

Section 2701.140 Classes not Subject to Surplus Line Law Sections 445 and 445.5 inclusive of the Illinois Insurance Code do not apply to insurance of property and operations of railroads or aircraft engaged in interstate or foreign commerce, insurance of vessels, crafts or hulls,…

Section 2701.20 License Expiration A surplus line producer license issued pursuant to Section 445 of the Illinois Insurance Code shall expire twelve (12) calendar months after its issuance unless the license is renewed as permitted by Section 2701.100 of this Part. (Source: Amend…

Section 2701.30 Unauthorized Insurers a) Procurement of Insurance by a Surplus Line Producer 1) A surplus line producer may procure insurance from an unauthorized insurer domiciled in the United States: A) that, based upon information available to the surplus line producer, has a…

Section 2701.40 Maintenance of Funds in Illinois Nothing contained in this Part shall be construed to prohibit an unauthorized insurer from maintaining funds in Illinois to service its business. (Source: Amended at 40 Ill. Reg. 216, effective December 21, 2015)

Section 2701.50 Procurement of Policies or Contracts a) The surplus line producer must exert diligent effort to procure the policies or contracts required by the insureds from insurers that are authorized to transact business in Illinois (Section 445 of the Code). Diligent effort…

Section 2701.60 Record of Efforts to Procure Policies or Contracts The surplus line producer must maintain, with the copy of the insurance that was placed, a record of the diligent effort, which must state the name of the authorized insurers and the individuals contacted at each …

Section 2701.70 Declinations of Artificial Coverage not Acceptable a) Declinations by authorized insurers for the following reasons do not qualify insurance to be placed under the surplus line law: 1) Artificial division of one coverage into two or more proposed contracts; 2) Dif…

Section 2701.80 Surplus Line Association of Illinois a) All surplus line insurance must be submitted to the Surplus Line Association if Illinois is the insured's home state, as that term is defined in Section 445. The Surplus Line Association will process and countersign the insu…

Section 2701.90 Separate Records and Accounts Each surplus line producer must keep separate accounts and records of the business transacted under its surplus line license for 7 years from the policy effective date, and these separate accounts and records shall be open at all time…

Section 2701.ILLUSTRATION A Written Warning to Insureds TO: RE: (Name of Unauthorized Insurer) (Type of Coverage) In accordance with Section 445 of the Illinois Insurance Code, I hereby provide you with a written WARNING that the above-captioned unauthorized insurer with which I …

Section 2902.10 Authority (Repealed) (Source: Repealed at 46 Ill. Reg. 6583, effective April 11, 2022)

Section 2902.20 Purpose and Scope a) This Part establishes a uniform format for the filing of every manual of classifications, every manual of rules and rates, every rating plan, every schedule rating plan, loss cost multipliers, dividend plan and every modification that is inten…

Section 2902.30 Filings Required All companies subject to this Section shall file the following materials with the Illinois Department of Insurance (Department): a) All Manuals – Every manual of classifications, every manual of rules, every rating plan, every schedule rating plan…