(215 ILCS 107/25)
Sec. 25.
Penalties.
(a) If the Director believes that the controlling producer or any other
person has not materially complied with this Act or any regulation or order
promulgated hereunder, after notice and opportunity to be heard, the Director
may order the controlling producer to cease placing business with the
controlled insurer. If it is found that the controlled insurer or any
policyholder thereof has suffered any loss or damage because of the material
noncompliance, the Director may maintain a civil action or intervene in an
action brought by or on behalf of the insurer or policyholder for recovery of
compensatory damages or other appropriate relief. This subsection (a) shall
not be construed to prevent any other person from taking civil action against a
controlling producer.
(b) If an order for liquidation or rehabilitation of the controlled
insurer has been entered under Article XIII of the Illinois Insurance Code
and the receiver appointed under that order believes that the controlling
producer or any other person has not materially complied with this Act or
any regulation or order promulgated hereunder and the insurer suffered any
loss or damage as a result, the receiver may maintain a civil action for
recovery of damages or other appropriate sanctions for the benefit of the
insurer.
(c) Nothing in this Section shall affect the right of the Director to
impose any other penalties authorized under the Illinois Insurance Code.
(d) Nothing in this Section is intended to, or shall in any manner,
alter or affect the rights of policyholder, claimants, creditors, or other
third parties.
(Source: P.A. 87-1090; 88-364.)
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