Full Text of HB0316 94th General Assembly
HB0316ham001 94TH GENERAL ASSEMBLY
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Insurance Committee
Filed: 2/16/2005
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09400HB0316ham001 |
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LRB094 06684 LJB 41233 a |
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| AMENDMENT TO HOUSE BILL 316
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| AMENDMENT NO. ______. Amend House Bill 316 by replacing the | 3 |
| title with the following:
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| "AN ACT in relation to insurance."; and | 5 |
| by replacing everything after the enacting clause with the | 6 |
| following:
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| "Section 5. The Illinois Insurance Code is amended by | 8 |
| changing Section
500-77 as follows:
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| (215 ILCS 5/500-77)
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| Sec. 500-77. Policyholder information and exclusive | 11 |
| ownership
of expirations.
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| (a) As used in this Section, "expirations" means all | 13 |
| information relative to
an insurance policy including, but not | 14 |
| limited to, the name and address of the
insured, the location | 15 |
| and description of the property insured, the value of the
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| insurance policy, the inception date, the renewal date, and the | 17 |
| expiration date
of the insurance policy, the premiums, the | 18 |
| limits and a description of the
terms and coverage of the | 19 |
| insurance policy, and any other personal and
privileged | 20 |
| information, as defined by Section 1003 of this Code, compiled | 21 |
| by a
business entity
registered firm or furnished by the | 22 |
| insured to the
insurer or any agent,
contractor, or | 23 |
| representative of the insurer.
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LRB094 06684 LJB 41233 a |
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| For purposes of this Section only, a business entity
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| registered firm
also includes a sole
proprietorship that | 3 |
| transacts the business of insurance as an insurance agency.
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| (b) All "expirations" as defined in subsection (a) of this | 5 |
| Section shall be
mutually and exclusively owned by the insured | 6 |
| and the business entity
registered firm . The
limitations on the | 7 |
| use of expirations as provided in subsections (c) and (d)
of | 8 |
| this Section shall be for mutual benefit of the insured and the | 9 |
| business
entity
registered
firm .
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| (c) Except as otherwise provided in this Section, for
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| purposes of soliciting, selling, or negotiating the renewal or
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| sale of insurance coverage, insurance products, or insurance
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| services or for any other marketing purpose, a business entity
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| registered
firm shall own
and have the exclusive
use of | 15 |
| expirations, records, and other written or electronically
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| stored information directly related to an insurance | 17 |
| application
submitted by, or an insurance policy written | 18 |
| through, the
business entity
registered firm . No insurance | 19 |
| company, managing
general agent, surplus
lines insurance | 20 |
| broker, wholesale broker, group self-insurance
fund, | 21 |
| third-party administrator, or any other entity, other than a | 22 |
| financial
institution as defined in Section 1402 of this Code, | 23 |
| shall use such
expirations, records, or other written or | 24 |
| electronically stored information
to solicit, sell, or | 25 |
| negotiate the renewal or sale of insurance coverage,
insurance | 26 |
| products, or insurance services to the insured or for
any other | 27 |
| marketing purposes, either directly or by providing such
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| information to others,
without, separate from the general | 29 |
| agency
contract, the written consent of the business entity
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| registered firm .
However, such
expirations,
records, or other | 31 |
| written or electronically stored information may be used
for | 32 |
| any purpose necessary for placing such business through the
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| insurance producer including reviewing an application and | 34 |
| issuing
or renewing a policy and for loss control services.
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LRB094 06684 LJB 41233 a |
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| (d) With respect to a business entity
registered firm , this | 2 |
| Section
shall not apply:
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| (1) when the insured requests either orally or in | 4 |
| writing that another
business entity
registered firm | 5 |
| obtain quotes for insurance from
another insurance company | 6 |
| or
when the insured requests in writing individually or
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| through another business entity
registered firm , that the | 8 |
| insurance
company renew
the policy;
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| (2) to policies in the Illinois Fair Plan, the Illinois | 10 |
| Automobile
Insurance Plan, or
the Illinois Assigned Risk | 11 |
| Plan for coverage under the Workers' Compensation
Act and | 12 |
| the Workers' Occupational Diseases Act;
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| (3) when the insurance producer is employed by or has
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| agreed to act exclusively or primarily for one company or | 15 |
| group of
affiliated insurance companies or to a producer | 16 |
| who submits to the company or
group of affiliated companies | 17 |
| that are organized to transact business in this
State as a | 18 |
| reciprocal company, as defined in Article IV of this Code, | 19 |
| every
request or
application for insurance for the classes | 20 |
| and lines underwritten by the company
or group of | 21 |
| affiliated companies;
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| (4) to policies providing life and accident and health | 23 |
| insurance;
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| (5) when the business entity
registered firm is in | 25 |
| default for
nonpayment
of premiums under the contract with | 26 |
| the insurer or is guilty of conversion of
the insured's or | 27 |
| insurer's premiums or its license is revoked by or
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| surrendered to the Department;
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| (6) to any insurance company's obligations under | 30 |
| Sections 143.17 and
143.17a of this Code; or
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| (7) to any insurer that, separate from a producer or | 32 |
| business entity
registered firm ,
creates, develops, | 33 |
| compiles, and assembles its own, identifiable expirations | 34 |
| as
defined in subsection (a).
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LRB094 06684 LJB 41233 a |
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| For purposes of this Section, an insurance producer shall | 2 |
| be deemed to
have
agreed to act primarily for one company or a | 3 |
| group of affiliated insurance
companies if the producer (i) | 4 |
| receives 75% or more of his or her insurance
related | 5 |
| commissions from one company or a group of affiliated companies | 6 |
| or (ii)
places 75% or more of his or her policies with one | 7 |
| company or a group of
affiliated companies.
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| Nothing in this Section prohibits an insurance company, | 9 |
| with respect to any
items herein, from conveying to the insured | 10 |
| or the business entity
registered firm any
additional benefits | 11 |
| or ownership rights including, but not limited to, the
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| ownership of expirations on any policy issued or the imposition | 13 |
| of further
restrictions on the insurance company's use of the | 14 |
| insured's personal
information.
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| (e) Nothing in this Section prevents a financial | 16 |
| institution, as defined
in Section 1402 of this Code, from | 17 |
| obtaining from the insured, the insurer, or
the business entity
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| registered firm the expiration dates of an
insurance policy | 19 |
| placed on
collateral or otherwise used as security in | 20 |
| connection with a loan made or
serviced by the
financial | 21 |
| institution when the financial institution requires the | 22 |
| expiration
dates for evidence of insurance.
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| (f) For purposes of this Section, "financial institution" | 24 |
| does not include
an insurance company, business entity
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| registered firm , managing general
agent, surplus lines
broker, | 26 |
| wholesale broker, group self-funded insurance fund, or | 27 |
| third-party
administrator.
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| (g) The Director may adopt rules in accordance with Section
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| 401 of this Code for the enforcement of this Section.
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| (h) This Section applies to the expirations relative to all | 31 |
| policies of
insurance bound, applied for, sold, renewed, or | 32 |
| otherwise taking effect on or
after
June 1, 2001
the effective | 33 |
| date of this amendatory Act of the 92nd
General Assembly .
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| (Source: P.A. 92-5, eff. 6-1-01; 92-651, eff. 7-11-02.)
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LRB094 06684 LJB 41233 a |
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| Section 99. Effective date. This Act takes effect upon | 2 |
| becoming law.".
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