SB2608 EnrolledLRB098 13676 RPM 48202 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by adding
5Section 155.45 as follows:
 
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
9is issued in connection with a contract related to property,
10operations, or risks located in this State, regardless of the
11location of the policyholder, insurer, insurance producer, or
12person that requests or requires the issuance of the
13certificate of insurance.
14    (c) The use of a certificate of insurance form that is
15unfair, misleading, or deceptive or violates any law is an
16unfair and deceptive act or practice in the business of
17insurance under Article XXVI of this Code.
18    (d) A certificate of insurance may not amend, extend, or
19alter the coverage provided under, or confer to a person any
20rights in addition to the rights expressly provided in, the
21policy of property or casualty insurance to which the
22certificate of insurance refers.
23    (e) A person may not prepare, issue, request, or require
24the 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
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
6that the policy of property or casualty insurance to which the
7certificate of insurance refers complies with the insurance or
8indemnification requirements of a contract. The inclusion of a
9contract number or contract description in a certificate of
10insurance does not warrant that the policy of property or
11casualty insurance to which the certificate of insurance refers
12complies with the insurance or indemnification requirements of
13the contract.
14    (g) A person is not entitled to notice of, cancellation of,
15nonrenewal of, or a material change in a policy of property or
16casualty insurance unless the person has notice rights under
17the terms of the policy of property or casualty insurance or an
18endorsement to the policy. The terms and conditions of notice
19described in this subsection (g) are governed by the policy of
20property or casualty insurance or an endorsement to the policy
21and are not altered by a certificate of insurance.
22    (h) A certificate of insurance or any other document that
23is prepared, issued, requested, or required in violation of
24this Section is void.
25    (i) The Director may refer a matter to the Department of
26Financial and Professional Regulation for review pursuant to

 

 

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1the rules of that department if the Director has reason to
2believe that a certificate of insurance form as described in
3subsection (c) of this Section has been provided by a financial
4institution.
5    (j) The Director may examine and investigate the activities
6of a person that the Director reasonably believes has violated
7the provisions of this Section. The Director shall have the
8power to enforce the provisions of this Section and impose any
9authorized penalty or remedy as provided under Section 401 of
10this Code upon any person who violates the provisions of this
11Section.
12    (k) The Department may adopt rules to implement the
13provisions of this Section.