Section 902.10  Authority

 

This Part is promulgated by the Director of the Department of Insurance under Section 401 of the Illinois Insurance Code [215 ILCS 5/401] that empowers the Director to make reasonable rules and regulations as may be necessary for making effective the insurance laws of this State. Further, this Part implements Section 4-30(b) of the Payday Loan Reform Act [815 ILCS 122/4‑30(b)] that requires the Director to promulgate rules to implement that Act.

 

Section 902.20  Purpose and Applicability

 

The purpose of this Part is to establish standards for products and/or services regulated by the Payday Loan Reform Act [815 ILCS 122] when offered by insurance companies. This Part applies to insurance companies, as that term is defined in Section 902.30 of this Part.

 

Section 902.30  Definitions

 

Act means the Payday Loan Reform Act [815 ILCS 122].

 

Code means the Illinois Insurance Code [215 ILCS 5].

 

Department means the Illinois Department of Insurance.

 

Director means the Director of the Illinois Department of Insurance.

Insurance Company means one that is organized, chartered, or holding a certificate of authority to do business under the laws of this State or any other state or under the laws of the United States.  (See 815 ILCS 122/1-15(d).)

 

Payday loan or loan means a loan with a finance charge exceeding an annual percentage rate of 36% and with a term that does not exceed 120 days, including any transaction conducted via any medium whatsoever, including, but not limited to, paper, facsimile, Internet, or telephone, in which:

 

A lender accepts one or more checks dated on the date written and agrees to hold them for a period of days before deposit or presentment, or accepts one or more checks dated subsequent to the date written and agrees to hold them for deposit; or

 

A lender accepts one or more authorizations to debit a consumer's bank account; or

 

A lender accepts an interest in a consumer's wages, including, but not limited to, a wage assignment.  

 

 

Section 902.40  Insurance Companies Originating Payday Loans

 

All insurance companies offering payday loans, as that term is defined in Section 902.30 of this Part, including any insurance products and/or services that constitute a payday loan, as defined in Section 902.30 of this Part, must offer such products and/or services in a manner consistent with the Act.  Insurance companies shall ensure that any payday loan products and/or services are offered in a manner that will not jeopardize the insurance company's financial solvency pursuant to Article IIA of the Code [215 ILCS 5/Art. IIA].

 

Section 902.50  Enforcement 

 

The Director may take any appropriate regulatory action authorized by Article XXIV of the Code [215 ILCS 5/Art. XXIV] or any other provision of the Code or rule against any insurance company whose products and/or services are inconsistent with the Act or Code.