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| | SB2608 Enrolled | | LRB098 13676 RPM 48202 b |
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| 1 | | AN ACT concerning regulation.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Insurance Code is amended by adding |
| 5 | | Section 155.45 as follows:
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| 6 | | (215 ILCS 5/155.45 new) |
| 7 | | Sec. 155.45. Certificates of insurance. |
| 8 | | (a) In this Section: |
| 9 | | "Certificate of insurance"
means a document prepared |
| 10 | | by an insurer or insurance producer
as evidence of property |
| 11 | | or casualty insurance coverage.
"Certificate of insurance" |
| 12 | | does not include a policy of insurance, an
insurance |
| 13 | | binder, a policy endorsement, or a motor vehicle
insurance |
| 14 | | identification or information card. |
| 15 | | "Department" means the Department of Insurance. |
| 16 | | "Director" means the Director of Insurance. |
| 17 | | "Insurance producer" means a person required to be |
| 18 | | licensed under the laws of this State to sell, solicit, or |
| 19 | | negotiate insurance. |
| 20 | | "Insurer" means a company, firm, partnership, |
| 21 | | association, order, society, or system making any kind or |
| 22 | | kinds of insurance and shall include associations |
| 23 | | operating as Lloyds, reciprocal or inter-insurers, or |
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| 1 | | individual underwriters. |
| 2 | | "Person" means any individual, aggregation of |
| 3 | | individuals, trust, association, partnership, or |
| 4 | | corporation, or any affiliate thereof. |
| 5 | | "Property or casualty insurance"
means the kinds of |
| 6 | | insurance described in either or both Class 2 or Class 3 of |
| 7 | | Section 4 of this Code. |
| 8 | | (b) This Section applies to a certificate of insurance that |
| 9 | | is
issued in connection with a contract related to property,
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| 10 | | operations, or risks located in this State, regardless of the |
| 11 | | location of
the policyholder, insurer, insurance producer, or |
| 12 | | person that
requests or requires the issuance of the |
| 13 | | certificate of insurance. |
| 14 | | (c) The use of a certificate of insurance form that is |
| 15 | | unfair, misleading, or deceptive or
violates any law
is an |
| 16 | | unfair and deceptive act or practice in the business of
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| 17 | | insurance under Article XXVI of this Code. |
| 18 | | (d) A certificate of insurance may not amend, extend, or |
| 19 | | alter the coverage provided under, or
confer to a person any |
| 20 | | rights in addition to the rights
expressly provided in,
the |
| 21 | | policy of property or casualty insurance to which the |
| 22 | | certificate
of insurance refers. |
| 23 | | (e) A person may not prepare, issue, request, or
require |
| 24 | | the issuance of a certificate of insurance that: |
| 25 | | (1) contains false or misleading information |
| 26 | | concerning the policy of property or casualty insurance to |
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| 1 | | which the certificate
of insurance refers; or |
| 2 | | (2) alters, amends, or extends the coverage provided by
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| 3 | | the policy of property or casualty insurance to which the |
| 4 | | certificate
of insurance refers. |
| 5 | | (f) A certificate of insurance may not contain a
warranty |
| 6 | | that the policy of property or casualty insurance to which
the |
| 7 | | certificate of insurance refers complies with the insurance or
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| 8 | | indemnification requirements of a contract. The inclusion of a |
| 9 | | contract number or contract description
in a certificate of |
| 10 | | insurance does not warrant that the policy of
property or |
| 11 | | casualty insurance to which the certificate of insurance
refers |
| 12 | | complies with the insurance or indemnification requirements
of |
| 13 | | the contract. |
| 14 | | (g) A person is not entitled to notice of, cancellation of, |
| 15 | | nonrenewal of, or
a material change in
a policy of property or |
| 16 | | casualty insurance unless the person has
notice rights under |
| 17 | | the terms of the policy of property or casualty
insurance or an |
| 18 | | endorsement to the policy.
The terms and conditions of notice |
| 19 | | described in this subsection
(g) are governed by the policy of |
| 20 | | property or casualty insurance or
an endorsement to the policy |
| 21 | | and are not altered by a certificate of
insurance. |
| 22 | | (h) A certificate of insurance or any other document that |
| 23 | | is
prepared, issued, requested, or required in violation of |
| 24 | | this Section
is void. |
| 25 | | (i) The Director may refer a matter to the Department of |
| 26 | | Financial and Professional Regulation for review pursuant to |
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| 1 | | the rules of that department if the Director has reason to |
| 2 | | believe that a certificate of
insurance form as described in |
| 3 | | subsection (c) of this Section has been provided by a
financial |
| 4 | | institution. |
| 5 | | (j) The Director may examine and investigate the
activities |
| 6 | | of a person that the Director reasonably believes has
violated |
| 7 | | the provisions of this Section. The Director shall have the |
| 8 | | power to enforce the provisions of this Section and impose any |
| 9 | | authorized penalty or remedy as provided under Section 401 of |
| 10 | | this Code upon any person who violates the provisions of this |
| 11 | | Section. |
| 12 | | (k) The Department may adopt rules to
implement the |
| 13 | | provisions of this Section.
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