Public Act 098-0819
 
SB2608 EnrolledLRB098 13676 RPM 48202 b


  
    AN ACT concerning regulation.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Illinois Insurance Code is amended  by adding 
Section 155.45 as follows:
 
    (215 ILCS 5/155.45 new)
    Sec. 155.45. Certificates of insurance.
    (a) In this Section:
        "Certificate of insurance"
means a document prepared 
    by an insurer or insurance producer
as evidence of property 
    or casualty insurance coverage.
"Certificate of insurance" 
    does not include a policy of insurance, an
insurance 
    binder, a policy endorsement, or a motor vehicle
insurance 
    identification or information card.
        "Department" means the Department of Insurance.
        "Director" means the Director of Insurance.
        "Insurance producer" means a person required to be 
    licensed under the laws of this State to sell, solicit, or 
    negotiate insurance. 
        "Insurer" means a company, firm, partnership, 
    association, order, society, or system making any kind or 
    kinds of insurance and shall include associations 
    operating as Lloyds, reciprocal or inter-insurers, or 
    individual underwriters. 
        "Person" means any individual, aggregation of 
    individuals, trust, association, partnership, or 
    corporation, or any affiliate thereof. 
        "Property or casualty insurance"
means the kinds of 
    insurance described in either or both Class 2 or Class 3 of 
    Section 4 of this Code.
    (b) This Section applies to a certificate of insurance that 
is
issued in connection with a contract related to property,

operations, or risks located in this State, regardless of the 
location of
the policyholder, insurer, insurance producer, or 
person that
requests or requires the issuance of the 
certificate of insurance.
    (c) The use of a certificate of insurance form that is 
unfair, misleading, or deceptive or
violates any law
is an 
unfair and deceptive act or practice in the business of

insurance under Article XXVI of this Code.
    (d) A certificate of insurance may not amend, extend, or 
alter the coverage provided under, or
confer to a person any 
rights in addition to the rights
expressly provided in,
the 
policy of property or casualty insurance to which the 
certificate
of insurance refers.
    (e) A person may not prepare, issue, request, or
require 
the issuance of a certificate of insurance that:
        (1) contains false or misleading information 
    concerning the policy of property or casualty insurance to 
    which the certificate
of insurance refers; or
        (2) alters, amends, or extends the coverage provided by

    the policy of property or casualty insurance to which the 
    certificate
of insurance refers.
    (f) A certificate of insurance may not contain a
warranty 
that the policy of property or casualty insurance to which
the 
certificate of insurance refers complies with the insurance or

indemnification requirements of a contract. The inclusion of a 
contract number or contract description
in a certificate of 
insurance does not warrant that the policy of
property or 
casualty insurance to which the certificate of insurance
refers 
complies with the insurance or indemnification requirements
of 
the contract.
    (g) A person is not entitled to notice of, cancellation of, 
nonrenewal of, or
a material change in
a policy of property or 
casualty insurance unless the person has
notice rights under 
the terms of the policy of property or casualty
insurance or an 
endorsement to the policy.
The terms and conditions of notice 
described in this subsection
(g) are governed by the policy of 
property or casualty insurance or
an endorsement to the policy 
and are not altered by a certificate of
insurance.
    (h) A certificate of insurance or any other document that 
is
prepared, issued, requested, or required in violation of 
this Section
is void.
    (i) The Director may refer a matter to the Department of 
Financial and Professional Regulation for review pursuant to 
the rules of that department if the Director has reason to 
believe that a certificate of
insurance form as described in 
subsection (c) of this Section has been  provided by a
financial 
institution.
    (j) The Director may examine and investigate the
activities 
of a person that the Director reasonably believes has
violated 
the provisions of this Section. The Director shall have the 
power to enforce the provisions of this Section and impose any 
authorized penalty or remedy as provided under Section 401 of 
this Code upon any person who violates the provisions of this 
Section.
    (k) The Department may adopt rules to
implement the 
provisions of this Section.