Section 2402.10  Authority

 

This Rule is issued by the Director of Insurance pursuant to 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.  This Rule implements Section 402 and 403 of the Illinois Insurance Code by establishing guidelines and procedures for the conduct of hearings under the jurisdiction of the Department of Insurance.

 

Section 2402.20  Applicability

 

This Rule shall apply to all hearings conducted under the jurisdiction of the Director of Insurance.

 

Section 2402.30  Definitions

 

"Department" means the Department of Insurance and the staff and employees of the Department.

 

"Director" means the Director of the Illinois Department of Insurance.

 

"Hearing" means any hearing authorized by the Illinois Insurance Code.

 

"Hearing Officer" means the presiding official designated by the Director to conduct a hearing.

 

"License" means the whole or part of any Department permit, certificate, approval, registration, charter, membership, statutory exemption, or any other form of permission.

 

"Licensing" means the Department process of granting, renewing, denying, revoking, suspending, annulling, withdrawing, limiting, amending, modifying or conditioning a license.

 

"Order" means the whole or any part of the final decision of the Director in any hearing.

 

"Party" means individuals, partnerships, corporations, associations, or public or private organizations of any character or any other governmental agency properly seeking and entitled to intervene in any Department proceeding.

 

(Source:  Amended at 38 Ill. Reg. 19943, effective September 30, 2014)

 

Section 2402.40  Filing

 

a)         Documents and requests permitted or required to be filed with the Department in connection with a hearing shall be addressed to and mailed to or filed in person with the Department of Insurance, 320 W. Washington Street, Springfield IL 62767, or 122 S. Michigan Ave., 19^th Floor, Chicago IL 60603, in duplicate. The offices of the Department are open for filing, inspection and copying of public documents from 8:30 a.m. to 5:00 p.m., Monday through Friday, except on National and State legal holidays.

 

b)         By agreement of the parties or by order of the hearing officer, filing of these documents may also be accomplished by email or facsimile to the office of the Department and opposing party (or opposing party's counsel).  Any filings by email or facsimile must be received by the recipient no later than 5:00 p.m. on the date filing is due.

 

(Source:  Amended at 38 Ill. Reg. 19943, effective September 30, 2014)

 

Section 2402.50  Form of Documents

 

a)         Documents shall clearly show the file Hearing Number and the title of the proceedings in connection with which they are filed.

 

b)         Except as otherwise provided, 2 copies of all documents including notices, motions, and petitions, shall be filed with the Department.

 

c)         Documents shall be typewritten or reproduced from typewritten copy on letter or legal size white paper.

 

d)         One copy of each document filed shall be signed by the party or by his authorized representative or attorney.

 

Section 2402.60  Computation of Time

 

a)         Computation of any period of time prescribed by this rule shall begin with the first business day following the day on which the act, event or development initiating such period of time occurs, and shall run until the end of the last day, or the next following business day if the last day is a Saturday, Sunday, or legal holiday.  Where the period of time is five days or less, Saturdays, Sundays and legal holidays shall be excluded in the computation of time.

 

b)         Notice requirements shall be construed to mean notice received but proof that notice was dispatched by means reasonably calculated to be received by the prescribed date shall be prima facie proof that notice was timely received.

 

Section 2402.70  Appearances

 

a)         Any person entitled to participate in proceedings may appear as follows:

 

1)         A natural person may appear on his or her own behalf or by an attorney at law licensed to practice in the State of Illinois, or both.

 

2)         A business, nonprofit or government organization may appear by any bona fide officer, employee or representative, or may be represented by an attorney licensed to practice in the State of Illinois, or both.

 

b)         Attorneys not licensed to practice in the State of Illinois may appear on motion. After December 31, 2014, an out-of-state attorney shall include with the motion an affidavit stating that, pursuant to Section 5.720 of the Civil Administrative Code of Illinois [20 ILCS 5/5-720], he or she is in compliance with Supreme Court Rule 707.

 

c)         An attorney appearing in a representative capacity shall file a written notice of appearance.

 

(Source:  Amended at 38 Ill. Reg. 19943, effective September 30, 2014)

 

Section 2402.80  Notice of Hearing

 

All administrative hearings shall be initiated by the issuance by the Department of a written Notice of Hearing, which shall be served upon all known parties to the Hearing, and which shall clearly state facts which inform the Respondent of the particular acts complained of by the Department and the statutes or rules upon which the allegations in the Notice are based.

 

Section 2402.90  Service of the Notice of Hearing

 

Service shall be complete when the Notice of Hearing is served in person or deposited in the United States mail, postage prepaid, registered or certified, addressed to the last known address of the persons, partnerships, associations or companies involved, not less than 10 days before the date designated for the Hearing.

 

(Source:  Amended at 38 Ill. Reg. 19943, effective September 30, 2014)

 

Section 2402.100  Motion and Answer

 

a)         Any party receiving a Notice of Hearing may file an answer not later than five days prior to the date of hearing.  All answers or motions preliminary to a hearing shall be presented to the Department and to the Hearing Officer at least five days prior to the date of hearing, or on such other date as the Hearing Officer shall designate and shall be served personally or by registered or certified United States mail.

 

b)         Unless made orally on the record during a hearing, or unless the Hearing Officer directs otherwise, an answer or motion shall be in writing and shall be accompanied by any affidavits or other evidence relied upon and, as appropriate, by a proposed order.  At least two copies of all such motions shall be filed with the Department (one for the Department attorney and one for the Hearing Officer) and at least one copy served on each additional party, if any, to the Hearing.

 

c)         Within five days after service of a written motion, or such other period as the Hearing Officer may prescribe, a party may file a response in support of or in opposition to the motion, accompanied by affidavits or other evidence. If no response is filed, the parties shall be deemed to have waived objection to the granting of the motion.  The moving party shall have no right to reply, except as permitted by the Hearing Officer.

 

d)         No oral argument will be heard on a motion unless the Hearing Officer directs otherwise.  A written brief may be filed with a motion or an answer to a motion, stating the arguments and authorities relied upon.

 

e)         A written motion will be disposed of by written order and on notice to all parties.

 

f)         The Hearing Officer shall rule upon all motions, except that he shall have no authority to dismiss or decide a hearing on the merits without granting all parties to the proceeding a right to be heard and to establish a record.

 

g)         Unless otherwise ordered, the filing of an answer or motion shall not stay the proceeding or extend the time for the performance of any act.

 

h)         A party may participate in the proceedings without forfeiting any jurisdictional objection, if such objection is raised at or before the time the party files his answer or motion, or, if no answer or motion is made, before the commencement of the hearing.

 

Section 2402.110  Consolidation and Severance of Matters − Additional Parties

 

In the interests of convenient, expeditious, and complete determination of matters, the Hearing Officer may consolidate or sever hearing proceedings involving any number of parties, and may order additional parties to be brought in.

 

Section 2402.120  Intervention

 

a)         Upon timely written application, the Hearing Officer shall permit any party to intervene in a hearing proceeding, subject to the necessity for conducting an orderly and expeditious hearing, when either of the following conditions is met:

 

1)         when the party is so situated that he may be adversely affected by a final order arising from the hearing; or

 

2)         when a party's circumstances and the hearing proceeding have a question of law or fact in common.

 

b)         Two copies of a petition for intervention shall be filed with the Department (one for the Department attorney and one for the Hearing Officer) and one copy served on each additional party no later than 48 hours prior to the date set for hearing of the matters set forth in the Notice of Hearing. The Hearing Officer may permit later intervention when there is good cause for the delay.

 

c)         An intervenor shall have all the rights of an original party, except that the Hearing Officer may, in his Order allowing intervention, provide that the applicant shall be bound by Orders theretofore entered or by evidence theretofore received, that the applicant shall not raise issues which might more properly have been raised at an earlier stage of the proceeding, that the applicant shall not raise new issues or add new parties, or that in other respects the applicant shall not interfere with the control of the Hearing, as justice and the avoidance of undue delay may require.

 

Section 2402.130  Postponement on Continuance of Hearing

 

A hearing may be postponed or continued for due cause by the Director or the Hearing Officer upon their own motion or upon motion of a party to the hearing.  Notice of any postponement or continuance shall be given in writing to all parties to the hearing within a reasonable time in advance of the previously scheduled Hearing date.  All parties involved in a hearing shall attempt to avoid undue delay caused by repetitive postponements or continuances so that the subject matter of the hearing may be resolved expeditiously.

 

Section 2402.140  Authority of a Hearing Officer

 

The Hearing Officer has the authority to conduct a hearing, take all necessary action to avoid delay, maintain order, and insure the development of clear and complete record.  He shall have all powers necessary to conduct a hearing including the power to:

 

a)         Administer oaths and affirmations;

 

b)         Regulate the course of hearings, set the time and place for continued hearings, fix time for filing of documents, provide for the taking of testimony by deposition if necessary, and generally conduct the proceeding according to generally recognized administrative law and this Rule.

 

c)         Examine witnesses and direct witnesses to testify, limit the number of times any witness may testify, limit repetitious or cumulative testimony, and set reasonable limits on the amount of time each witness may testify;

 

d)         Rule upon offers of proof and receive relevant evidence;

 

e)         Sign and issue subpoenas that require attendance, giving testimony and the production of books, papers and other documentary evidence;

 

f)         Direct parties to appear and confer for the settlement or simplification of issues, and to otherwise conduct prehearing conferences;

 

g)         Dispose of procedural requests or similar matters;

 

h)         Render Findings of Fact, Opinions and Recommendations for an Order of the Director; and

 

i)          Enter any Order that further carries out the purpose of this Rule.

 

Section 2402.150  Bias or Disqualification of Hearing Officer

 

a)         Any interested party may file a timely and sufficient affidavit setting forth allegations of personal bias, prejudice, or disqualification of a presiding Hearing Officer.  The Director shall determine this issue as part of the record of the case.  When a Hearing Officer is disqualified, or it becomes impractical for him to continue, another presiding officer may be assigned unless it is further shown that substantial bias or prejudice will result from the assignment.

 

b)         The Hearing Officer may at any time voluntarily disqualify himself.

 

Section 2402.160  Prehearing Conferences

 

a)         Upon written notice by the Hearing Officer in any proceeding, or upon written request by any party, the Hearing Officer may direct parties or their Attorneys to appear at a specified time and place for a conference, prior to or during the course of hearing, for the purpose of formulating issues and considering:

 

1)         the simplification of issues;

 

2)         The necessity or desirability of amending the pleadings for the purpose of clarification, amplification or limitation;

 

3)         The possibility of making admissions of certain averments of facts or stipulations concerning the use by either or both parties of matters of public record to avoid unnecessary introduction of proof;

 

4)         the limitation of the number of witnesses;

 

5)         the propriety of prior mutual exchange between or among the parties of prepared testimony and exhibits; and

 

6)         such other matters as may aid in the simplification of the evidence and disposition of the proceeding.

 

b)         Opportunity shall be afforded all parties to be represented by legal counsel and to dispose of the case by stipulation, agreed settlement or consent order, unless otherwise precluded by law.  Any stipulation, agreed settlement, or consent order reached before a final determination by the Department shall be submitted in writing to the Hearing Officer and shall become effective only if approved by the Hearing Officer or the Director.

 

c)         Only if all parties to a controversy agree, a record of the pre-hearing conference shall be kept.  It must be certified to by the parties, then filed with the case material in the Department files.

 

Section 2402.170  Discovery

 

a)         The following discovery procedures shall be ordered by the Hearing Officer upon the written request of any party when necessary to expedite the proceedings, to ensure a clear or concise record, to ensure a fair opportunity to prepare for the hearing, or to avoid surprise at the hearing:

 

1)         production of documents or things;

 

2)         depositions;

 

3)         interrogatories.

 

b)         The Hearing Officer may restrict discovery when necessary to prevent undue delay or harassment.

 

c)         The Hearing Officer shall order the following discovery upon written request of any party:

 

1)         list of persons who may have knowledge of facts concerning the subjects of inquiry at the hearing;

 

2)         reasonable inspection of books, records and documents by experts.

 

d)         Any person, including a party, who is deposed, interrogated or required to submit documents or things under this Section may be examined regarding any matter, not privileged, that is relevant to the subject matter of the hearing or that may lead to the discovery of relevant information.

 

e)         All depositions and interrogatories taken pursuant to this Section shall be for purpose of discovery only, except as provided in this subsection.  The depositions and interrogatories may be used for purpose of impeachment and as admissions of the deposed or interrogated party.  Upon application to the Hearing Officer either before or after the taking of the deposition or interrogatories, and upon a showing that, at the time of the hearing, the party deposed or interrogated will not be available to participate in the hearing because of death, age, sickness, infirmity, absence from the country or other exceptional circumstances, the Hearing Officer may order that the deposition or interrogatories be used as evidence in the hearing.

 

(Source:  Amended at 38 Ill. Reg. 19943, effective September 30, 2014)

 

Section 2402.180  Subpoenas

 

a)         Upon application to the Hearing Officer by any party, the Hearing Officer may issue a subpoena for attendance at deposition or hearing, which may include a command to produce books, papers, documents or tangible things designated in those materials and reasonably necessary to resolve the matter under consideration, subject to the limitations on discovery prescribed by this Section.

 

b)         Every subpoena shall state the title of the action and shall command each person to whom it is directed to attend and give testimony at the time and place specified in the subpoena.

 

c)         The Hearing Officer or the Director, upon motion made promptly, and in any event at or before the time specified in the subpoena for compliance, may quash or modify the subpoena if it is unreasonable and oppressive.

 

(Source:  Amended at 38 Ill. Reg. 19943, effective September 30, 2014)

 

Section 2402.190  Conduct of the Hearing

 

a)         All hearings shall be public unless required by statute to be otherwise. Any person may submit written statements relevant to the subject matter of the hearing.  Any person submitting such a statement shall be subject to cross-examination by any party.  If such person is not available for cross-examination upon timely request, the written statement shall be stricken from the record.  The Hearing Officer may permit any person to offer oral testimony whether or not such person is a party to the proceedings.

 

b)         The following shall be the order of proceedings of all hearings, subject to modification by the Hearing Officer for good cause:

 

1)         presentation, argument and disposition of motions preliminary to a hearing on the merits of the matters raised in the Notice or Answer;

 

2)         presentation of opening statements;

 

3)         complainant's case in chief;

 

4)         respondent's case in chief;

 

5)         complainant's case in rebuttal;

 

6)         statements from interested citizens, if authorized by the Hearing Officer;

 

7)         complainant's closing statement, which may include legal argument;

 

8)         respondent's closing statement, which may include legal argument;

 

9)         presentation and argument of all motions prior to final order.

 

Section 2402.200  Default

 

Failure of a party to appear on the date set for hearing, or failure to proceed as ordered by the Hearing Officer, shall constitute a default. The Hearing Officer shall thereupon enter such Findings, Opinions, and Recommendations as is appropriate under the pleadings and such evidence as he shall receive into the record.

 

Section 2402.210  Evidence

 

a)         The Hearing Officer shall receive evidence which is admissible under the law of the rules of evidence of Illinois pertaining to civil actions. In addition, the Hearing Officer may receive material, relevant evidence, which would be relied upon by a reasonably prudent person in the conduct of serious affairs, which is reasonably reliable and reasonably necessary to resolution of the issue for which it is offered; provided that the rules relating to privileged communications and privileged topics shall be observed.

 

b)         The Hearing Officer shall exclude immaterial, irrelevant, and repetitious evidence.

 

c)         When the admissibility of disputed evidence depends upon an arguable interpretation of substantive law, the Hearing Officer shall admit such evidence.

 

d)         A party may conduct examinations or cross-examinations without rigid adherence to formal rules of evidence, provided the examination or cross-examination can be shown to be necessary and pertinent to a full and fair disclosure of the subject matters of the hearing.

 

Section 2402.220  Official Notice

 

Official notice may be taken of all facts of which judicial notice may be taken and of other facts, of a technical nature,  within the specialized knowledge and experience of the Department.

 

Section 2402.230  Hostile Witnesses

 

a)         If the Hearing Officer determines that a witness is hostile or unwilling, he may be examined by the party calling him as if under cross-examination.

 

b)         The party calling an occurrence witness, upon the showing that he called the witness in good faith and is surprised by his testimony, may impeach the witness by proof of prior inconsistent statements.

 

Section 2402.240  Transcription of Proceedings

 

a)         Oral proceeding at which evidence is presented shall be recorded either by a certified court reporter or a mechanical recording device, but need not be transcribed unless requested by a party, who shall pay for the transcription of the portion requested, except as otherwise provided by the Department or by law.  Any transcription will be retained through and including the time allotted for appeal, revision, rehearing or other manner of review prior to final deposition as provided for by the Department or by law.

 

b)         The record in an administrative hearing shall include:

 

1)         pre-hearing records;

 

2)         all pleadings (including all notices and answers, motions, briefs and rulings);

 

3)         transcript of proceedings;

 

4)         evidence admitted;

 

5)         a statement of matters officially noticed;

 

6)         offers of proof, objections and rulings; and

 

7)         Findings, Opinions and Recommendations of the Hearing Officer.

 

(Source:  Amended at 38 Ill. Reg. 19943, effective September 30, 2014)

 

Section 2402.250  Briefs

 

The parties may submit written briefs to the Hearing Officer within ten days after the close of the hearing, or such other reasonable time as the Hearing Officer shall determine consistent with the Director's responsibility for expeditious decision.

 

Section 2402.260  Hearing Officer's Findings, Opinions, and Recommendations

 

a)         The Hearing Officer's Findings, Opinions, and Recommendations shall be in writing and shall include findings of fact and conclusions of law, or opinions separately stated when possible.  Findings of Fact shall be based exclusively on the evidence presented at the hearing or known to all parties, including matters officially noticed.  Findings of Fact, if set forth in statutory language, shall be accompanied by a statement of the underlying supporting facts. If a party submits proposed Findings of Fact which may control the decision or order, the decision or order shall include a ruling upon each proposed finding.  Each conclusion of law shall be supported by authority or reasoned opinion.  A decision or order shall not be made except upon consideration of the record as a whole or such portion thereof as may be supported by competent material and substantial evidence.

 

b)         The Hearing Officer shall then submit his Findings, Opinions, and Recommendations to the Director.

 

Section 2402.270  Order of the Director

 

a)         The Director of Insurance shall review the Hearing Officer's Findings, Opinions and Recommendations and shall issue an Order as set forth by applicable statutes or within a reasonable time.

 

b)         The decision in the case will become effective immediately upon the execution of a written Order, or as otherwise specified by either the Order or applicable statute.

 

c)         Parties shall be immediately notified of the order, either personally or by mail, postage prepaid, certified or registered, addressed to the last known address of the person, partnership, association or company involved. A copy of the Order shall be delivered or mailed to each party or to his or her attorney of record.

 

d)         The Director may, as part of the Order, require any party to the proceeding to pay part or all of the costs of the hearing, including, but not limited to:  witness fees, court reporter fees, hearing officer fees, and the cost of the transcript.

 

(Source:  Amended at 38 Ill. Reg. 19943, effective September 30, 2014)

 

Section 2402.280  Rehearings

 

a)         Except as otherwise provided by law, and for good cause shown, the Director may in his discretion, order a rehearing in a contested case on petition of an interested party.

 

b)         Where the record of testimony made at the hearing is found by the Director to be inadequate for purposes of judicial review, the Director may order a reopening of the hearing.

 

c)         A motion for a rehearing or a motion for the reopening of a hearing shall be filed within 10 days of the date of mailing of the Director's Order. A rehearing shall be noticed and conducted in the same manner as an original hearing.  The evidence received at the rehearing shall be included in the record for Director's reconsideration and for judicial review.  A decision or order may be amended or vacated after rehearing.

 

Section 2402.290  Ex Parte Contacts

 

a)         Except as to such matters which by law are subject to disposition on an ex parte basis, the Hearing Officer, any employee (or superior thereof) of the Department Division involved in the hearing, and any party to a hearing shall not make an unauthorized ex parte communication directly or indirectly about any matter which is the subject of a pending hearing.  This prohibition shall commence with the issuance of a Notice of Hearing.

 

b)         Unauthorized ex parte communications shall consist of:

 

1)         any written communication of any kind about the hearing unless copies thereof are served by the communicator, contemporaneously with the transmittal of the communication, upon all parties to the hearing,

 

2)         any oral communication of any kind about the hearing unless:

 

A)        48 hours advance written notice that it will be made is given by the communicator to all parties to the hearing (including the Department counsel); or

 

B)        its contents are disclosed by the communicator at the time of its presentation to all the parties to the hearing (including the Department counsel); or

 

C)        the substance of the contents of the oral communication is reduced to writing and personal or telegraphic service of copies thereof is made by the communicator within 24 hours following the presentation of the oral communication upon all parties to the hearing (including the Department counsel).

 

c)         Authorized ex parte communications shall consist of:

 

1)         any communication made openly or on the record at a scheduled hearing, regardless of whether all the parties are present;

 

2)         any oral or written communication which is authorized by statute or Department rule, or to which all parties agree, or which the Director formally rules may be made on an ex parte basis;

 

3)         any oral or written request for information solely with respect to the status of a hearing;

 

4)         any communication made with respect to a hearing about which no public notice has been issued, if the communicator has no actual notice of the pendency of the hearing;

 

5)         any oral or written communication of facts or contentions which have general significance for the insurance industry and which the communicator cannot reasonably be expected to know that the facts or contentions are material to a substantive or procedural issue in a pending hearing;

 

6)         any communication by persons other than:

 

A)        a party seeking to intervene in a hearing; or

 

B)        a party who might be adversely affected by a determination in the hearing; or

 

C)        a party who intercedes in a hearing by volunteering a communication which he may reasonably be expected to know might advance or adversely affect the interest of a particular participant in a hearing, whether or not he acts with the knowledge or consent of any participant or participant's agent; or

 

D)        an agent of any of the foregoing parties described in Section 2402.290(c)(6).

 

7)         any oral or written communication between employees of the Department. The Hearing Officer or the Director may communicate with employees of the Department to obtain their aid and advice of technical matters which fall within the area of expertise of the employee consulted.

 

d)         If the Hearing Officer or any employee of the Department or any party to a hearing receives a written communication which he knows is unauthorized, or which he concludes, in fairness, should be brought to the attention of all parties to the hearing, he shall transmit the communication promptly to the Director, together with a written statement of the circumstances under which it was made, if they are not apparent from the communication itself.  Upon receiving the communication, the Director shall place it and any accompanying statement in the Department file concerning the hearing to which the communication relates, and he shall send copies of the communication to all parties to the hearing, to the Hearing Officer, and to the Department counsel, and he shall notify the communicator of the provisions of this Rule prohibiting ex parte communications.  He may also institute such sanctions against the communicator as he may deem appropriate and in accordance with the sanction provisions of this Rule.  Whenever the Director determines that the communications he receives are either so voluminous or of a borderline relevance to the issues in the hearing so as to constitute the procedure of sending copies to all parties too burdensome, he may instead notify all parties to the hearing that the communications have been received and placed in the Department files where they are available for examination.

 

e)         If the Hearing Officer or any employee of the Department or any party to a Hearing receives an oral communication which he knows is unauthorized, or which he concludes, in fairness, should be brought to the attention of all parties to the Hearing, he shall put the substance of the communication in writing and transmit the writing promptly to the Director, together with a written statement of the circumstances under which the communication was made.  Upon receiving the writing, the Director shall place it and any accompanying statement in the Department files concerning the Hearing to which the communication relates, and he shall send copies of the writing to all parties to the Hearing, to the Hearing Officer, and to the Department counsel, and he shall notify the communicator of the provisions of this Rule prohibiting ex parte communications. He may also institute such sanctions against the communicator as he may deem appropriate and in accordance with the sanction provisions of this Rule.  Whenever the Director determines that writings containing the substance of the communications are either so voluminous or of a borderline relevance to the issues in the Hearing so as to constitute the procedure for sending copies to all parties too burdensome, he may instead notify all parties to the hearing that the communications have been received and placed in the Department file where they are available for examination.

 

f)         All parties to a hearing, including Department Counsel, may request of the Hearing Officer an opportunity to answer any allegations or contentions contained in any unauthorized ex parte communication or in any other ex parte communication brought to the attention of the parties in accordance with the provisions of this Rule.  The Hearing Officer will grant such requests whenever he determines  that the dictates of fairness so require.

 

g)         The Director may, to the extent not prohibited by law, institute and enforce any or all of the following sanctions against any party who makes, or solicits the making of, an authorized ex parte communication or who fails to report to the Director such a communication:

 

1)         deny the relief, benefit or action sought by the party or parties to the hearing;

 

2)         report any such unauthorized communication made by licensed professional persons to the appropriate disciplinary authorities  of the respective profession of the person involved;

 

3)         censure, suspend, or dismiss any Department employee in accordance with the provisions of the Illinois Civil Service Code, when applicable.

 

Section 2402.295  Cancellation/Non-Renewal Hearing

 

a)         Any Section of this Part to the contrary notwithstanding, the procedures set out in this Section shall apply for all hearings conducted on the cancellation/non-renewal of an insurance policy pursuant to Section 143.23 of the Illinois Insurance Code [215 ILCS 5/143.23].

 

1)         Parties − The parties to a cancellation/non-renewal hearing shall be the individual insureds named on the policy that has been cancelled or non-renewed and the insurance company that issued the policy.  No intervention by any other party or persons shall be allowed.

 

2)         Attorneys − An attorney shall not be required.  If an attorney is engaged, an appearance in accordance with Section 2402.70 is required.

 

3)         Motion − All motions shall be presented at the commencement of the hearing. All motions shall become part of the record.

 

4)         Conduct of Hearing − The Hearing Officer shall conduct the hearing in the following manner:

 

A)        The insured shall proceed first and present his or her case in the narrative. The company may ask relevant questions at the conclusion of the insured's narrative.  The company shall then proceed and present its case in the narrative. The insured may ask relevant questions at the conclusion of the company's narrative.

 

B)        At the conclusion of all narratives and questions, if any, the Hearing Officer shall take the matter under advisement and enter his or her recommendations to the Director within 5 days.

 

5)         Record − The record of the hearing shall be comprised of the Hearing Officer's notes and all documents and motions introduced, if no transcription of the proceedings is requested.  The Hearing Officer may use a tape recorder to assist in the taking of notes.  A party may request that the proceedings be transcribed by a court reporter as provided in Section 2402.240.  This request shall be made at least one week before the hearing date, or less if a court reporter can be scheduled.

 

6)         Hearing Officer's Recommendations − The Hearing Officer shall provide written recommendations and findings to the Director within 5 days after the close of the hearing.  The Hearing Officer's recommendations shall be limited to one of the following:

 

A)        The actions of the insurance company were incorrect and the company must retain the risk; or

 

B)        The actions of the insurance company were correct and the company need not retain the risk.

 

b)         The procedures set forth in this Section are intended to provide a less formal setting for cancellation/non-renewal hearings.  These procedures shall apply only to cancellation/non-renewal hearings and no others.  Any Section of this Part that does not conflict with these procedures is to be followed, with careful attention given to the overall informality of cancellation/non-renewal hearings.

 

(Source:  Amended at 38 Ill. Reg. 19943, effective September 30, 2014)

 

Section 2402.300  Existing Statutory or Department Procedures and Practices

 

This Rule shall not be construed to limit or repeal additional requirements imposed by Statute or otherwise, nor to charge existing Department procedures which are equivalent to or exceed the standards of administrative procedure prescribed in this Rule.