(215 ILCS 5/500-110)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-110.
Regulatory examinations.
(a) The Director may examine any applicant for or holder of an insurance
producer
license, limited line producer license or
temporary insurance producer license or any business
entity.
(b) All persons being examined, as well
as their officers, directors, insurance
producers, limited lines producers, and temporary
insurance producers must provide to the
Director convenient and free access, at all reasonable
hours at their offices, to all books, records,
documents, and other papers relating to the persons' insurance business
affairs. The officers,
directors, insurance producers, limited
lines producers, temporary insurance producers, and
employees must facilitate and aid
the Director in the examinations as much as it is in their power
to do so.
(c) The Director may designate an examiner or examiners to conduct any
examination under this Section. The Director or his or her designee may
administer oaths and
examine under oath any individual relative to the business of the person being
examined.
(d) The examiners designated by the Director under this Section may make
reports to
the Director. A report alleging substantive violations of this Article or any
rules prescribed by
the Director must be in writing and be based upon facts
ascertained from the books, records,
documents, papers, and other evidence obtained by the
examiners or from sworn or affirmed
testimony of or written affidavits from the person's
officers, directors, insurance producers,
limited lines producer, temporary insurance producers,
or employees or other individuals, as
given to the examiners. The report of an examination
must be verified by the examiners.
(e) If a report is made, the Director must either
deliver a duplicate of the report to the
person being examined or send the duplicate by
certified or registered mail to the person's
address of record. The Director shall afford
the person an opportunity to demand a hearing with
reference to the facts and other evidence contained
in the report. The person may request a
hearing within 14 calendar days after he or she receives
the duplicate of the examination report
by giving the Director written notice of that request,
together with a written statement of the
person's objections to the report. The Director must,
if requested to do so, conduct a hearing in
accordance with Sections 402 and 403 of this Code. The
Director must issue a written order
based upon the examination report and upon the hearing, if
a hearing is held, within 90 days after
the report is filed, or within 90 days after the hearing if
a hearing is held. If the report is refused
or otherwise undeliverable, or a hearing is not requested in
a timely fashion, the right to a hearing
is waived. After the hearing or the expiration of the time
period in which a person may request a
hearing, if the examination reveals that the person is operating
in violation of any law, rule, or
prior order, the Director in the written
order may require the person to take any action the
Director considers necessary or appropriate
in accordance with the report or examination hearing.
The order is subject to review under the
Administrative Review Law.
(f) The Director may adopt reasonable rules
to further the purposes of this Section.
(g) A person who violates or aids and abets
any violation of a written order
issued
under this Section shall be guilty of a business
offense and his or her license
may be revoked or
suspended pursuant to Section 500-70 of this
Article and he or she may be subjected to a civil penalty of
not more than
$20,000.
(Source: P.A. 92-386, eff. 1-1-02; 93-32, eff. 7-1-03.)
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