Full Text of SB2608 98th General Assembly
SB2608eng 98TH GENERAL ASSEMBLY |
| | SB2608 Engrossed | | LRB098 13676 RPM 48202 b |
|
| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Insurance Code is amended by adding | 5 | | Section 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 |
| | | SB2608 Engrossed | - 2 - | LRB098 13676 RPM 48202 b |
|
| 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 | 9 | | is
issued in connection with a contract related to property,
| 10 | | operations, or risks located in this State, regardless of the | 11 | | location of
the policyholder, insurer, insurance producer, or | 12 | | person that
requests or requires the issuance of the | 13 | | certificate of insurance. | 14 | | (c) The use of a certificate of insurance form that is | 15 | | unfair, misleading, or deceptive or
violates any law
is an | 16 | | unfair and deceptive act or practice in the business of
| 17 | | insurance under Article XXVI of this Code. | 18 | | (d) A certificate of insurance may not amend, extend, or | 19 | | alter the coverage provided under, or
confer to a person any | 20 | | rights in addition to the rights
expressly provided in,
the | 21 | | policy of property or casualty insurance to which the | 22 | | certificate
of insurance refers. | 23 | | (e) A person may not prepare, issue, request, or
require | 24 | | the issuance of a certificate of insurance that: | 25 | | (1) contains false or misleading information | 26 | | concerning the policy of property or casualty insurance to |
| | | SB2608 Engrossed | - 3 - | LRB098 13676 RPM 48202 b |
|
| 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 | 6 | | that the policy of property or casualty insurance to which
the | 7 | | certificate of insurance refers complies with the insurance or
| 8 | | indemnification requirements of a contract. The inclusion of a | 9 | | contract number or contract description
in a certificate of | 10 | | insurance does not warrant that the policy of
property or | 11 | | casualty insurance to which the certificate of insurance
refers | 12 | | complies with the insurance or indemnification requirements
of | 13 | | the contract. | 14 | | (g) A person is not entitled to notice of, cancellation of, | 15 | | nonrenewal of, or
a material change in
a policy of property or | 16 | | casualty insurance unless the person has
notice rights under | 17 | | the terms of the policy of property or casualty
insurance or an | 18 | | endorsement to the policy.
The terms and conditions of notice | 19 | | described in this subsection
(g) are governed by the policy of | 20 | | property or casualty insurance or
an endorsement to the policy | 21 | | and are not altered by a certificate of
insurance. | 22 | | (h) A certificate of insurance or any other document that | 23 | | is
prepared, issued, requested, or required in violation of | 24 | | this Section
is void. | 25 | | (i) The Director may refer a matter to the Department of | 26 | | Financial and Professional Regulation for review pursuant to |
| | | SB2608 Engrossed | - 4 - | LRB098 13676 RPM 48202 b |
|
| 1 | | the rules of that department if the Director has reason to | 2 | | believe that a certificate of
insurance form as described in | 3 | | subsection (c) of this Section has been provided by a
financial | 4 | | institution. | 5 | | (j) The Director may examine and investigate the
activities | 6 | | of a person that the Director reasonably believes has
violated | 7 | | the provisions of this Section. The Director shall have the | 8 | | power to enforce the provisions of this Section and impose any | 9 | | authorized penalty or remedy as provided under Section 401 of | 10 | | this Code upon any person who violates the provisions of this | 11 | | Section. | 12 | | (k) The Department may adopt rules to
implement the | 13 | | provisions of this Section.
|
|