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Illinois Compiled Statutes

Information maintained by the Legislative Reference Bureau
Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.

INSURANCE
(215 ILCS 5/) Illinois Insurance Code.

215 ILCS 5/511.107

    (215 ILCS 5/511.107) (from Ch. 73, par. 1065.58-107)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.107. License suspension, revocation or denial.
    (a) Any license issued under this Article may be suspended or revoked, after notice to the licensee and an opportunity for hearing, and any application for a license may be denied, after notice and an opportunity for hearing, if the Director finds that the licensee or applicant:
        (1) has wilfully violated any applicable provisions
    
of the Illinois Insurance Code or applicable Part of Title 50 of the Illinois Administrative Code; or
        (2) has intentionally made a material misstatement in
    
its application for a license; or
        (3) has obtained or attempted to obtain a license
    
through misrepresentation or fraud; or
        (4) has misappropriated or converted to its own use,
    
or improperly withheld, money required to be held in a fiduciary capacity; or
        (5) has, in the transaction of business under its
    
license, used fraudulent, coercive or dishonest practices, or has demonstrated incompetence, untrustworthiness or financial irresponsibility; or is not of good personal and business reputation; or
        (6) has been, within the past 3 years, convicted of a
    
felony, unless the individual demonstrates to the Director sufficient rehabilitation to warrant the public trust; or
        (7) has failed to appear without reasonable cause or
    
excuse in response to a subpoena, examination warrant or any other order lawfully issued by the Director; or
        (8) is using such methods or practices in the conduct
    
of its business so as to render its further transaction of business in this State hazardous or injurious to covered individuals or the public; or
        (9) is affiliated with and is under the same general
    
management as another administrator which transacts business in this State without being licensed under this Article; or
        (10) has had its license suspended or revoked or its
    
application denied in any other state, district, territory or province on grounds similar to those stated in this Section; or
        (11) has failed to report under Section 511.108 a
    
felony conviction.
    (b) Denial of an application or suspension or revocation of a license, pursuant to this Section shall be by written order sent to the applicant or licensee by certified or registered mail at the address specified in the records of the Department. The written order shall state the grounds, charges or conduct on which denial, suspension or revocation is based. The applicant or licensee may in writing request a hearing within 30 days from the date of mailing. Upon receipt of a written request, the Director shall issue an order setting (i) a specific time for the hearing, which may not be less than 20 nor more than 30 days after receipt of the request and (ii) a specific place for the hearing, which may be in either the City of Springfield or in the county in Illinois where the applicant's or licensee's principal place of business is located. If no written request is received by the Director, such order shall be final upon the expiration of said 30 days.
    (c) Upon revocation of a license, the licensee or other person having possession or custody of such license shall deliver it to the Director in person or by mail within 30 days of such revocation.
    (d) Any administrator whose license is revoked or whose application is denied pursuant to this Section shall be ineligible to reapply for any license for 2 years. A suspension pursuant to this Section may be for a period of up to 2 years.
(Source: P.A. 84-887.)

215 ILCS 5/511.108

    (215 ILCS 5/511.108) (from Ch. 73, par. 1065.58-108)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.108. Felony convictions. Any administrator and any individual listed on the application as required by Section 511.103, who is convicted of a felony shall report such conviction to the Director within 30 days of the entry date of the judgment. Within that 30-day period, the administrator shall also provide the Director with a copy of the judgment, the probation or commitment order and any other relevant documents.
(Source: P.A. 96-328, eff. 8-11-09.)

215 ILCS 5/511.109

    (215 ILCS 5/511.109) (from Ch. 73, par. 1065.58-109)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.109. Examination.
    (a) The Director or his designee may examine any applicant for or holder of an administrator's license.
    (b) Any administrator being examined shall provide to the Director or his designee convenient and free access, at all reasonable hours at their offices, to all books, records, documents and other papers relating to such administrator's business affairs.
    (c) The Director or his designee may administer oaths and thereafter examine any individual about the business of the administrator.
    (d) The examiners designated by the Director pursuant to this Section may make reports to the Director. Any report alleging substantive violations of this Article, any applicable provisions of the Illinois Insurance Code, or any applicable Part of Title 50 of the Illinois Administrative Code shall be in writing and be based upon facts obtained by the examiners. The report shall be verified by the examiners.
    (e) If a report is made, the Director shall either deliver a duplicate thereof to the administrator being examined or send such duplicate by certified or registered mail to the administrator's address specified in the records of the Department. The Director shall afford the administrator an opportunity to request a hearing to object to the report. The administrator may request a hearing within 30 days after receipt of the duplicate of the examination report by giving the Director written notice of such request together with written objections to the report. Any hearing shall be conducted in accordance with Sections 402 and 403 of this Code. The right to hearing is waived if the delivery of the report is refused or the report is otherwise undeliverable or the administrator does not timely request a hearing. After the hearing or upon expiration of the time period during which an administrator may request a hearing, if the examination reveals that the administrator is operating in violation of any applicable provision of the Illinois Insurance Code, any applicable Part of Title 50 of the Illinois Administrative Code or prior order, the Director, in the written order, may require the administrator to take any action the Director considers necessary or appropriate in accordance with the report or examination hearing. If the Director issues an order, it shall be issued within 90 days after the report is filed, or if there is a hearing, within 90 days after the conclusion of the hearing. The order is subject to review under the Administrative Review Law.
(Source: P.A. 84-887.)

215 ILCS 5/511.110

    (215 ILCS 5/511.110) (from Ch. 73, par. 1065.58-110)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.110. Administrative fine.
    (a) If the Director finds that one or more grounds exist for the revocation or suspension of a license issued under this Article, the Director may, in lieu of or in addition to such suspension or revocation, impose a fine upon the administrator.
    (b) With respect to any knowing and wilful violation of a lawful order of the Director, any applicable portion of the Illinois Insurance Code or Part of Title 50 of the Illinois Administrative Code, or a provision of this Article, the Director may impose a fine upon the administrator in an amount not to exceed $10,000 for each such violation. In no event shall such fine exceed an aggregate amount of $50,000 for all knowing and wilful violations arising out of the same action.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/511.111

    (215 ILCS 5/511.111) (from Ch. 73, par. 1065.58-111)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.111. Insurance Producer Administration Fund. All fees and fines paid to and collected by the Director under this Article shall be paid promptly after receipt thereof, together with a detailed statement of such fees, into a special fund in the State Treasury to be known as the Insurance Producer Administration Fund. The monies deposited into the Insurance Producer Administration Fund shall be used only for payment of the expenses of the Department and shall be appropriated as otherwise provided by law for the payment of such expenses. Moneys in the Insurance Producer Administration Fund may be transferred to the Professions Indirect Cost Fund, as authorized under Section 2105-300 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.
(Source: P.A. 98-463, eff. 8-16-13.)

215 ILCS 5/511.112

    (215 ILCS 5/511.112) (from Ch. 73, par. 1065.58-112)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.112. Fiduciary accounts and duties.
    (a) Administrators shall hold in a fiduciary capacity all contributions and premiums received or collected on behalf of a plan sponsor or insurer. Such funds shall not be used as general operating funds of the administrator. All contributions and premiums received or collected by the administrator from residents of this State, which the Administrator holds more than 15 days or deposits into an account which is not under the control of the plan sponsor or insurer, shall be placed in a special fiduciary account, which account shall be designated an "Administrator Trust Fund Account" ("ATF"). All resident and quasi-resident licensees required to maintain an ATF pursuant to this Section shall maintain such ATF with one or more financial institutions located within the State of Illinois and subject to jurisdiction of the Illinois courts. Funds belonging to 2 or more plans may be held in the same ATF, provided the administrator's records clearly indicate the funds belonging to each plan. Checks drawn on the ATF shall indicate on their face that they are drawn on the ATF of the administrator.
    (b) The administrator may make the following disbursements from the ATF:
        (1) contributions and premiums due insurers or other
    
persons providing life, accident and health coverage for a plan;
        (2) return contributions and premiums to a plan or
    
covered individual;
        (3) commissions or administrative fees due to the
    
administrator when earned pursuant to written agreement; and
        (4) transfers into the CASA of the administrator.
    (c) For each plan where an ATF is required, the balance in the ATF shall at all times be the amount deposited plus accrued interest, if any, less authorized disbursements. If the balance at the financial institution with respect to the ATF is less than the amount deposited plus accrued interest, if any, less authorized disbursements, the administrator shall be deemed to have misappropriated fiduciary funds and to have acted in a financially irresponsible manner.
    (d) If the ATF is interest bearing or income producing, the full nature of the account must first be disclosed to the plan sponsors or insurers on whose behalf the funds are or will be held. The administrator must secure written consent and authorization from the plan sponsors or insurers for the investment of the money and disposition of the interest or earnings. No investment shall be made which assumes any risk other than the risk that the obligor shall not pay the principal when due. The use of specialized techniques or strategies which incur additional risks to generate higher returns or to extend maturities is not permitted. Such techniques would include, but not be limited to, the following: Use of financial futures or options, buying on margins and pledging of ATF balances.
    (e) Administrators may place ATF funds in interest bearing or income producing investments and retain the interest or income thereon, providing the administrator obtains the prior written authorization of the plan sponsors or insurers on whose behalf the funds are to be held. In addition to savings and checking accounts, an administrator may invest in the following:
        (1) direct obligations of the United States of
    
America or U.S. Government agency securities with maturities of not more than one year;
        (2) certificates of deposit, with a maturity of not
    
more than one year, issued by financial institutions which are insured by the Federal Deposit Insurance Corporation (FDIC) or Federal Savings and Loan Insurance Corporation (FSLIC), so long as any such deposit does not exceed the maximum level of insurance protection provided to certificates of deposits held by such institutions;
        (3) repurchase agreements with financial institutions
    
or government securities dealers recognized as primary dealers by the Federal Reserve System provided:
            (A) the value of the repurchase agreement is
        
collateralized with assets which are allowable investments for ATF funds; and
            (B) the collateral has a market value at the time
        
the repurchase agreement is entered into at least equal to the value of the repurchase agreement; and
            (C) the repurchase agreement does not exceed 30
        
days.
        (4) commercial paper, provided the commercial paper
    
is rated at least P-1 by Moody's Investors Service, Inc. or at least A-1 by Standard & Poor's Corporation;
        (5) money market funds, provided the money market
    
fund invests exclusively in assets which are allowable investments pursuant to (1) through (4) above for ATF funds;
        (6) each investment transaction must be made in the
    
name of the administrator's ATF. The administrator must maintain evidence of any such investments. Each investment transaction must flow through the administrator's ATF.
    (f) The administrator shall hold in a fiduciary capacity all moneys which the administrator receives to pay claims and claim adjustment expenses. All resident and quasi-resident licensees shall place all such money for claims and claim adjustment expenses for residents of this State, whether received from a plan sponsor or insurer or from the ATF of the administrator, in a special fiduciary account in a financial institution located in this State. The account shall be designated a "Claims Administration Service Account" ("CASA"). Funds belonging to 2 or more plans may be held in the same CASA, provided the administrator's records clearly indicate the funds belonging to each plan. Checks drawn on the CASA shall indicate on their face that they are drawn on the CASA of the administrator.
    (g) No deposit shall be made into a CASA and no disbursement shall be made from a CASA except for claims and claims adjustment expenses. For each plan where a CASA is required, the balance in the CASA shall at all times be the amount deposited less claims and claims adjustment expenses paid. If the CASA balance is less than such amount, the administrator shall be deemed to have misappropriated fiduciary funds and to have acted in a financially irresponsible manner.
    (h)(1) Administrators shall maintain detailed books and records which reflect all transactions involving the receipt and disbursement of:
        (i) contributions and premiums received on behalf of
    
a plan sponsor or insurer; and
        (ii) claims and claim adjustment expenses received
    
and paid on behalf of a plan sponsor or insurer.
    (2) The detailed preparation, journalizing and posting of such books and records must be maintained on a timely basis and all journal entries for receipts and disbursements shall be supported by evidential matter, which must be referenced in the journal entry so that it may be traced for verification. Administrators shall prepare and maintain monthly financial institution account reconciliations of any ATF and CASA established by the administrator. The minimum detail required shall be as follows:
        (i) The sources, amounts and dates of any moneys
    
received and deposited by the administrator.
        (ii) The date and person to whom a disbursement is
    
made. If the amount disbursed does not agree with the amount billed or authorized, the administrator shall prepare a written record as to the reason.
        (iii) A description of the disbursement in such
    
detail to identify the source document substantiating the purpose of the disbursement.
    (i) Failure to maintain accurately and timely the books and records required above shall be deemed untrustworthy, hazardous or injurious to participants in the plan or the public and financially irresponsible.
    (j) This Section shall not apply to nonresident administrators who are subject to substantially similar requirements in their state of domicile.
(Source: P.A. 84-1431.)

215 ILCS 5/511.113

    (215 ILCS 5/511.113) (from Ch. 73, par. 1065.58-113)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.113. Unauthorized Activities. Nothing in this Article shall be construed to permit any person or entity to receive, or collect charges, contributions or premiums for, or adjust or settle claims in connection with any type of life or accident or health benefit unless such person or entity is authorized through the insurance laws of a state or the ERISA of 1974, 29 USC par. 1001 et seq. as amended, to provide such benefits.
(Source: P.A. 84-887.)

215 ILCS 5/511.114

    (215 ILCS 5/511.114)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.114. Drug formulary; notice. All administrators must comply with Section 155.37 of this Code.
(Source: P.A. 92-440, eff. 8-17-01.)

215 ILCS 5/511.118

    (215 ILCS 5/511.118)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.118. Managed Care Reform and Patient Rights Act. All administrators are subject to the provisions of Sections 55 and 85 of the Managed Care Reform and Patient Rights Act.
(Source: P.A. 91-617, eff. 1-1-00.)

215 ILCS 5/Art. XXXI.5

 
    (215 ILCS 5/Art. XXXI.5 heading)
ARTICLE XXXI 1/2.
THIRD PARTY PRESCRIPTION PROGRAMS

215 ILCS 5/512-1

    (215 ILCS 5/512-1) (from Ch. 73, par. 1065.59-1)
    Sec. 512-1. Short Title. This Article shall be known and may be cited as the "Third Party Prescription Program Act".
(Source: P.A. 82-1005.)

215 ILCS 5/512-2

    (215 ILCS 5/512-2) (from Ch. 73, par. 1065.59-2)
    Sec. 512-2. Purpose. It is hereby determined and declared that the purpose of this Article is to regulate certain practices engaged in by third-party prescription program administrators.
(Source: P.A. 82-1005.)

215 ILCS 5/512-3

    (215 ILCS 5/512-3) (from Ch. 73, par. 1065.59-3)
    Sec. 512-3. Definitions. For the purposes of this Article, unless the context otherwise requires, the terms defined in this Article have the meanings ascribed to them herein:
    (a) "Third party prescription program" or "program" means any system of providing for the reimbursement of pharmaceutical services and prescription drug products offered or operated in this State under a contractual arrangement or agreement between a provider of such services and another party who is not the consumer of those services and products. Such programs may include, but need not be limited to, employee benefit plans whereby a consumer receives prescription drugs or other pharmaceutical services and those services are paid for by an agent of the employer or others.
    (b) "Third party program administrator" or "administrator" means any person, partnership or corporation who issues or causes to be issued any payment or reimbursement to a provider for services rendered pursuant to a third party prescription program, but does not include the Director of Healthcare and Family Services or any agent authorized by the Director to reimburse a provider of services rendered pursuant to a program of which the Department of Healthcare and Family Services is the third party.
(Source: P.A. 95-331, eff. 8-21-07.)

215 ILCS 5/512-4

    (215 ILCS 5/512-4) (from Ch. 73, par. 1065.59-4)
    Sec. 512-4. Registration. All third party prescription programs and administrators doing business in the State shall register with the Director of Insurance. The Director shall promulgate regulations establishing criteria for registration in accordance with the terms of this Article. The Director may by rule establish an annual registration fee for each third party administrator.
(Source: P.A. 82-1005.)

215 ILCS 5/512-5

    (215 ILCS 5/512-5) (from Ch. 73, par. 1065.59-5)
    Sec. 512-5. Fiduciary and Bonding Requirements. A third party prescription program administrator shall (1) establish and maintain a fiduciary account, separate and apart from any and all other accounts, for the receipt and disbursement of funds for reimbursement of providers of services under the program, or (2) post, or cause to be posted, a bond of indemnity in an amount equal to not less than 10% of the total estimated annual reimbursements under the program.
    The establishment of such fiduciary accounts and bonds shall be consistent with applicable State law. If a bond of indemnity is posted, it shall be held by the Director of Insurance for the benefit and indemnification of the providers of services under the third party prescription program.
    An administrator who operates more than one third party prescription program may establish and maintain a separate fiduciary account or bond of indemnity for each such program, or may operate and maintain a consolidated fiduciary account or bond of indemnity for all such programs.
    The requirements of this Section do not apply to any third party prescription program administered by or on behalf of any insurance company, Health Care Service Plan Corporation or Pharmaceutical Service Plan Corporation authorized to do business in the State of Illinois.
(Source: P.A. 82-1005.)

215 ILCS 5/512-6

    (215 ILCS 5/512-6) (from Ch. 73, par. 1065.59-6)
    Sec. 512-6. Notice. Notice of any change in the terms of a third party prescription program, including but not limited to drugs covered, reimbursement rates, co-payments, and dosage quantity, shall be given to each enrolled pharmacy at least 30 days prior to the time it becomes effective.
(Source: P.A. 82-1005.)

215 ILCS 5/512-7

    (215 ILCS 5/512-7) (from Ch. 73, par. 1065.59-7)
    Sec. 512-7. Contractual provisions.
    (a) Any agreement or contract entered into in this State between the administrator of a program and a pharmacy shall include a statement of the method and amount of reimbursement to the pharmacy for services rendered to persons enrolled in the program, the frequency of payment by the program administrator to the pharmacy for those services, and a method for the adjudication of complaints and the settlement of disputes between the contracting parties.
    (b)(1) A program shall provide an annual period of at
    
least 30 days during which any pharmacy licensed under the Pharmacy Practice Act may elect to participate in the program under the program terms for at least one year.
        (2) If compliance with the requirements of this
    
subsection (b) would impair any provision of a contract between a program and any other person, and if the contract provision was in existence before January 1, 1990, then immediately after the expiration of those contract provisions the program shall comply with the requirements of this subsection (b).
        (3) This subsection (b) does not apply if:
            (A) the program administrator is a licensed
        
health maintenance organization that owns or controls a pharmacy and that enters into an agreement or contract with that pharmacy in accordance with subsection (a); or
            (B) the program administrator is a licensed
        
health maintenance organization that is owned or controlled by another entity that also owns or controls a pharmacy, and the administrator enters into an agreement or contract with that pharmacy in accordance with subsection (a).
            (4) This subsection (b) shall be inoperative
        
after October 31, 1992.
    (c) The program administrator shall cause to be issued an identification card to each person enrolled in the program. The identification card shall include:
        (1) the name of the individual enrolled in the
    
program; and
        (2) an expiration date if required under the
    
contractual arrangement or agreement between a provider of pharmaceutical services and prescription drug products and the third party prescription program administrator.
(Source: P.A. 95-689, eff. 10-29-07.)

215 ILCS 5/512-8

    (215 ILCS 5/512-8) (from Ch. 73, par. 1065.59-8)
    Sec. 512-8. Cancellation procedures. (a) The administrator of a program shall notify all pharmacies enrolled in the program of any cancellation of the coverage of benefits of any group enrolled in the program at least 30 days prior to the effective date of such cancellation. However, if the administrator of a program is not notified at least 45 days prior to the effective date of such cancellation, the administrator shall notify all pharmacies enrolled in the program of the cancellation as soon as practicable after having received notice.
    (b) When a program is terminated, all persons enrolled therein shall be so notified, and the employer shall make every reasonable effort to gain possession of any plan identification cards in such persons' possession.
    (c) Any person who intentionally uses a program identification card to obtain services from a pharmacy after having received notice of the cancellation of his benefits shall be guilty of a Class C misdemeanor. Persons shall be liable to the program administrator for all monies paid by the program administrator for any services received pursuant to any improper use of the identification card.
(Source: P.A. 82-1005.)

215 ILCS 5/512-9

    (215 ILCS 5/512-9) (from Ch. 73, par. 1065.59-9)
    Sec. 512-9. Denial of Payment. (a) No administrator shall deny payment to any pharmacy for covered pharmaceutical services or prescription drug products rendered as a result of the misuse, fraudulent or illegal use of an identification card unless such identification card had expired, been noticeably altered, or the pharmacy was notified of the cancellation of such card. In lieu of notifying pharmacies which have a common ownership, the administrator may notify a party designated by the pharmacy to receive such notice, in which case, notification shall not become effective until 5 calendar days after the designee receives notification.
    (b) No program administrator may withhold any payment to any pharmacy for covered pharmaceutical services or prescription drug products beyond the time period specified in the payment schedule provisions of the agreement, except for individual claims for payment which have been returned to the pharmacy as incomplete or illegible. Such returned claims shall be paid if resubmitted by the pharmacy to the program administrator with the appropriate corrections made.
(Source: P.A. 82-1005.)

215 ILCS 5/512-10

    (215 ILCS 5/512-10) (from Ch. 73, par. 1065.59-10)
    Sec. 512-10. Failure to Register. Any third party prescription program or administrator which operates without a certificate of registration or fails to register with the Director and pay the fee prescribed by this Article shall be construed to be an unauthorized insurer as defined in Article VII of this Code and shall be subject to all penalties contained therein.
    The provisions of the Article shall apply to all new programs established on or after January 1, 1983. Existing programs shall comply with the provisions of this Article on the anniversary date of the programs that occurs on or after January 1, 1983.
(Source: P.A. 82-1005.)

215 ILCS 5/Art. XXXI.75

 
    (215 ILCS 5/Art. XXXI.75 heading)
ARTICLE XXXI 3/4 PUBLIC INSURANCE ADJUSTERS
AND REGISTERED FIRMS
(Article scheduled to be repealed on January 1, 2027)

215 ILCS 5/512.51

    (215 ILCS 5/512.51) (from Ch. 73, par. 1065.59-51)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.51. Scope of Article. This Article shall apply to all Public Insurance Adjusters and Registered Firms as defined in Section 512.52.
(Source: P.A. 84-832.)

215 ILCS 5/512.52

    (215 ILCS 5/512.52) (from Ch. 73, par. 1065.59-52)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.52. Definitions. As used in this Article unless the context clearly otherwise requires:
    (a) "Adjusting insurance claims" means representing an insured with an insurer for compensation, and while representing that insured either negotiating values, damages, or depreciation, or applying the loss circumstances to insurance policy provisions.
    (b) "Public Insurance Adjuster" means a person engaged in the business of adjusting insurance claims who is licensed pursuant to this Article.
    (c) "Registered Firm" means a person registered with the Director under Section 512.57.
    (d) "Compensation" shall include, but need not be limited to, the following:
        1. any assignment of insurance proceeds or a
    
percentage thereof;
        2. any agreement to make repairs for the amount of
    
the insurance proceeds payable;
        3. assertion of any lien against insurance proceeds
    
payable.
    (e) "Person" embraces both natural persons and business entities of whatever type.
(Source: P.A. 95-213, eff. 1-1-08.)

215 ILCS 5/512.53

    (215 ILCS 5/512.53) (from Ch. 73, par. 1065.59-53)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.53. License required.
    (a) No person may engage in the business of adjusting insurance claims, nor advertise, solicit or hold himself out to be in the business of adjusting insurance claims, solicit or hold himself out to be a Public Insurance Adjuster, nor attempt to obtain a contract for Public Adjusting services, unless licensed or registered in accordance with the provisions of this Article, except that the provisions of this paragraph do not apply to a person admitted to the practice of law in this State, to a licensed agent adjusting loss or damage under a policy within his control or to a marine surveyor or average adjuster.
    (b) In addition to any other penalty set forth in this Article, any person violating paragraph (a) of this Section shall be guilty of a Class A misdemeanor, and any person misappropriating or converting any monies collected as a Public Insurance Adjuster, whether licensed or not, shall be guilty of a Class 4 felony.
    (c) All contracts entered into by any person violating subsection (a) of this Section are void and invalid.
(Source: P.A. 95-213, eff. 1-1-08.)

215 ILCS 5/512.54

    (215 ILCS 5/512.54) (from Ch. 73, par. 1065.59-54)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.54. Application and examination.
    (a) Each application for a Public Insurance Adjuster license shall be made on a form specified by the Director. The application shall be signed by the applicant and shall contain the applicant's declaration, under penalty of refusal, suspension or revocation of the Public Insurance Adjuster license, that the statements made in the application are true, correct and complete to the best of the applicant's knowledge and belief. Before approving the application, the Director shall be satisfied that the applicant (1) is an individual at least 18 years of age, and (2) is competent, trustworthy and of good business reputation.
    (b) Applicants for a Public Insurance Adjuster licensee shall pass a written examination. The examination shall reasonably test the knowledge of the applicant concerning the applicable insurance laws and rules and regulations of the Director and the duties and responsibilities of a Public Insurance Adjuster. All examinations provided for by this Section shall be conducted under rules and regulations prescribed from time to time by the Director, and the Director may make such arrangements as may be appropriate, including contracting with an outside testing service for administering such examinations. Any charges assessed by any such testing service for administering such examinations shall be paid directly by the individual applicants.
    Each person subject to an examination shall at the time of request for examination enclose with the application a non-refundable application fee made payable to the Director as provided in Section 512.63, plus a separate remittance if applicable made payable to the designated testing service for the total of such fees as the testing service charges for each of the various services being requested by the applicant. In the event an applicant appears and fails to pass, such person shall not be entitled to any refund and shall be required to submit a new request for examination together with all of the requisite fees before being rescheduled at a later date.
    (c) An applicant who becomes a resident of this State and who has filed with the Director certification by a public official having supervision of Public Insurance Adjusters in the prior state of residency evidencing that the applicant has passed a written examination and has held a public insurance adjuster license in good standing for the prior 24 months is not required to complete the examination required by paragraph (b). However, the Director may require the applicant to take that portion of the examination pertaining to Illinois law and rules and regulations of the Director.
    (d) The Director may issue a Public Insurance Adjuster license to any applicant who is not an Illinois resident without an examination only if (1) the applicant holds a like license from his state of residence, and (2) the applicant's state of residence accepts Illinois residents for licensing, and (3) the state in which the applicant resides requires no examination of Illinois resident Public Insurance Adjusters, and (4) the public official having supervision of Public Insurance Adjusters in the applicant's state of residence certifies that the applicant has passed a written examination.
    (e) The Director may issue a Public Insurance Adjuster license to any applicant who is not an Illinois resident and who cannot meet the requirements of paragraph (d) if the applicant passes a written examination in Illinois.
(Source: P.A. 84-832.)

215 ILCS 5/512.55

    (215 ILCS 5/512.55) (from Ch. 73, par. 1065.59-55)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.55. Public Insurance Adjuster license.
    (a) The Director shall issue a Public Insurance Adjuster license to an applicant who has:
        (1) met the requirements of Section 512.54; and
        (2) paid the fee as set forth in Section 512.63; and
        (3) filed with the Director a bond as prescribed in
    
Section 512.56.
    (b) Every Public Insurance Adjuster license shall remain in effect for one year from the date of its issuance.
    (c) Each Public Insurance Adjuster license shall contain the name, business address, resident address and personal identification number of the Public Insurance Adjuster, the date of issue, general conditions relative to expiration or termination and any other information the Director considers proper.
    (d) The holder of a Public Insurance Adjuster license shall notify the Director, in writing, of a change of either business or residence address within 30 days of such change.
    (e) Each Public Insurance Adjuster license shall remain in effect as long as the holder of the license maintains in force and effect the bond required by Section 512.56 and pays the annual fee required by Section 512.63 by the date due as prescribed by the Director, unless the license is revoked or suspended pursuant to Section 512.61.
    The Department may refuse to issue or may suspend the license of any person who fails to file a return, or to pay the tax, penalty or interest shown in a filed return, or to pay any final assessment of tax, penalty or interest, as required by any tax Act administered by the Illinois Department of Revenue, until such time as the requirements of any such tax Act are satisfied.
(Source: P.A. 95-213, eff. 1-1-08.)

215 ILCS 5/512.56

    (215 ILCS 5/512.56) (from Ch. 73, par. 1065.59-56)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.56. Bonds. Every applicant for a Public Insurance Adjuster license shall file a bond, in a form approved by the Director and executed by a surety company authorized to do business in this State, in favor of the people of the State of Illinois and payable to any party injured under the terms of the bond. The bond shall be filed with the application for a Public Insurance Adjuster license and shall remain in force while the applicant is licensed. The bond shall be continuous in form and in the amount of $5,000. The bond shall be conditioned upon full accounting and due payment, to the person entitled thereto, of funds coming into the Public Insurance Adjuster's possession incident to a transaction under his license. The Director shall be notified by the surety company 30 days in advance of any cancellation of the bond. A Public Insurance Adjuster license shall automatically terminate when a bond is not in force.
(Source: P.A. 83-1362.)

215 ILCS 5/512.57

    (215 ILCS 5/512.57) (from Ch. 73, par. 1065.59-57)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.57. Registered Firms.
    (a) No person shall engage in the business of adjusting insurance claims unless such person is licensed pursuant to this Article and registered with the Director under subsection (b) of this Section.
    No Public Insurance Adjuster may form or participate in any association, partnership or other business entity for the purpose of engaging in the business of adjusting insurance claims, unless such business entity is registered with the Director under subsection (b) of this Section.
    (b) To become a Registered Firm, a person must submit to the Director an application, on a form specified by the Director, and the fee required by Section 512.63. The Director may require any documents reasonably necessary to verify the information contained in the application.
    (c) Each Registered Firm must notify the Director, in writing, of any change in its business or residence address within 30 days of such change.
    (d) Each Registered Firm must notify the Director of each Public Insurance Adjuster who is a member, officer, director or employee of the Registered Firm, and report any changes in such status of any such Public Insurance Adjuster to the Director within 30 days thereof.
    (e) Each Registered Firm shall appoint one or more Public Insurance Adjusters who is an officer, director or member of the Firm to be responsible for the compliance of the Registered Firm with the laws of this State and the rules and regulations of the Director. The Registered Firm shall be responsible for the actions of its officers, directors, members and employees.
    (f) Each Registered Firm which, for any of the causes listed in Section 512.61, terminates its relationship with a Public Insurance Adjuster who is an officer, director, employee or member of the Registered Firm shall notify the Director, in writing, within 30 days of such termination of the specific reasons for such termination. The Registered Firm shall provide the Director with information, documents, records or statements pertaining to the termination. Any materials provided may be used by the Director in any action taken pursuant to Section 512.62. There shall be no liability on the part of, nor any cause of action against, the Director or the Registered Firm, or any authorized representative of either, for any statement made or materials provided pursuant to this paragraph.
    (g) The Director shall terminate any registration which does not comply with the requirements of this Article.
    (h) A registered firm may only be comprised of licensed Public Insurance Adjusters. All shareholders, officers, and directors of registered firms must be licensed pursuant to this Act. Any Public Insurance Adjuster who has a license that has been revoked, suspended, or not renewed, whether voluntarily or not, must withdraw from a registered firm within 30 days and give written notice of his or her resignation to the licensed firm within 30 days.
(Source: P.A. 95-213, eff. 1-1-08.)

215 ILCS 5/512.58

    (215 ILCS 5/512.58) (from Ch. 73, par. 1065.59-58)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.58. Rate schedules and contract forms.
    (a) A Public Insurance Adjuster shall not provide services until a written contract with the insured has been executed, on a form filed with and approved by the Director. At the option of the insured, any such contract which is executed within 5 business days after conclusion of the loss-producing occurrence shall be voidable for 10 days after execution. The insured may void the contract by notifying the Public Insurance Adjuster in writing by (i) registered or certified mail, return receipt requested, to the address shown on the contract; or (ii) personally serving the notice on the Public Insurance Adjuster.
    (b) The written contract required by paragraph (a) shall constitute the entire agreement between the Public Insurance Adjuster and the insured. A copy of the contract shall be given to the insured when the contract is executed. Such contract forms may not include any hold harmless agreement which provides indemnification to the Public Insurance Adjuster by the insured for liability resulting from the Public Insurance Adjuster's negligence, nor any power-of-attorney by which the Public Insurance Adjuster can act in the place and instead of the insured.
(Source: P.A. 95-213, eff. 1-1-08.)

215 ILCS 5/512.59

    (215 ILCS 5/512.59) (from Ch. 73, par. 1065.59-59)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.59. Performance standards applicable to all Public Insurance Adjusters.
    (a) A Public Insurance Adjuster shall not represent that he is a representative of an insurance company, a fire department, or the State of Illinois, or that he is a fire investigator, or that his services are required for the insured to submit a claim to the insured's insurance company, or that he may provide legal advice or representation to the insured. A Public Insurance Adjuster may represent that he has been licensed by the State of Illinois.
    (b) A Public Insurance Adjuster shall not agree to any loss settlement without the insured's knowledge and consent and shall provide the insured with a document setting forth the scope, amount, and value of the damages prior to requesting the insured for authority to settling any loss.
    (c) If the Public Insurance Adjuster refers the insured to a contractor, the Public Insurance Adjuster warrants that all work will be performed in a workmanlike manner and conform to all statutes, ordinances and codes. Should the work not be completed in a workmanlike manner, the Public Insurance Adjuster shall be responsible for any and all costs and expense required to complete or repair the work in a workmanlike manner.
    (d) In all cases where the loss giving rise to the claim for which the Public Insurance Adjuster was retained arise from damage to a personal residence, the insurance proceeds shall be delivered in person to the named insured or his or her designee. Where proceeds paid by an insurance company are paid jointly to the insured and the Public Insurance Adjuster, the insured shall release such portion of the proceeds which are due the Public Insurance Adjuster within 30 calendar days after the insured's receipt of the insurance company's check, money order, draft, or release of funds. If the proceeds are not so released to the insured within 30 calendar days, the insured shall provide the Public Insurance Adjuster with a written explanation of the reason for the delay.
    (e) A Public Insurance Adjuster may not propose or attempt to propose to any person that the Public Insurance Adjuster represent that person while a loss-producing occurrence is continuing nor while the fire department or its representatives are engaged at the damaged premises nor between the hours of 7:00 p.m. and 8:00 a.m.
    (f) A Public Insurance Adjuster shall not advance money or any valuable consideration to an insured pending adjustment of a claim.
    (g) A Public Insurance Adjuster shall not provide legal advice or representation to the insured, or engage in the unauthorized practice of law.
(Source: P.A. 99-642, eff. 7-28-16.)

215 ILCS 5/512.60

    (215 ILCS 5/512.60) (from Ch. 73, par. 1065.59-60)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.60. Maintenance of records.
    (a) All Public Insurance Adjusters shall maintain a complete record of each of their transactions as a Public Insurance Adjuster. The records required by this Section shall include:
        (1) name of the insured;
        (2) date, location and amount of loss;
        (3) copy of the contract between the Public Insurance
    
Adjuster and insured;
        (4) name of the insurer, amount, expiration date and
    
number of each policy carried with respect to the loss;
        (5) itemized statement of the insured's recoveries;
        (6) name of the Public Insurance Adjuster who
    
executed the contract;
        (7) name of the attorney representing the insured, if
    
applicable, and the name of the representative of the insurance company; and
        (8) copy of the statement provided to the insured
    
explaining the amount and value of the damages to the insured premises, the amount of insurance proceeds recovered from the insured, and the amount and values of all expenses incurred to adjust the claim and the amount and value of the Public Insurance Adjuster's fees and charges.
    (b) Records shall be maintained for at least three years after the termination of the transaction with an insured and shall be open to examination by the Director at any time.
    (c) A Public Insurance Adjuster shall not divulge information regarding any insured without written consent from the insured, except that the Public Insurance Adjuster may divulge such information to an insurance company or its representative which insures the insured, to the Department of Insurance, or upon a court order or an Internal Revenue Service subpoena.
    (d) Where a Public Insurance Adjuster is engaged or employed by a Registered Firm, the records required by this Section may be maintained by such Registered Firm on behalf of the Public Insurance Adjuster.
(Source: P.A. 95-213, eff. 1-1-08.)

215 ILCS 5/512.61

    (215 ILCS 5/512.61) (from Ch. 73, par. 1065.59-61)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.61. License suspension, revocation or denial.
    (a) Any license issued under this Article may, be suspended or revoked, and any application for a license may be denied, if the Director finds that the holder of or applicant for a license has:
        (1) willfully violated any provision of this Code or
    
any rule or regulation promulgated by the Director; or
        (2) intentionally made a material misstatement in an
    
application for a license as a Public Insurance Adjuster; or
        (3) obtained or attempted to obtain a license as a
    
Public Insurance Adjuster through misrepresentation or fraud; or
        (4) misappropriated, converted to his own use or
    
improperly withheld money due others; or
        (5) intentionally misrepresented the terms of any
    
insurance policy; or
        (6) used fraudulent, coercive or dishonest practices,
    
or demonstrated incompetence, untrustworthiness or financial irresponsibility in the transaction of business as a Public Insurance Adjuster; or
        (7) been convicted of any felony or misdemeanor
    
involving dishonesty or fraud, unless the individual demonstrates to the Director sufficient rehabilitation to warrant the public trust; or
        (8) knowingly transacted the business of a Public
    
Insurance Adjuster in conjunction with an individual who was not licensed at the time; or
        (9) failed to appear without reasonable cause or
    
excuse in response to a subpoena lawfully issued by the Director; or
        (10) a license as a Public Insurance Adjuster
    
suspended or revoked or an application denied in any other state, district, territory or province on a ground similar to one of the grounds stated in this Section; or
        (11) failed to comply with or violated any of the
    
standards set forth in Section 512.59; or
        (12) failed to maintain the records required by
    
Section 512.60; or
        (13) engaged in the unauthorized practice of law.
    (b) Revocation, suspension, or the denial of an application pursuant to this Section shall be by written notice served upon the applicant by certified or registered mail sent to the address specified in the application. The applicant may request a hearing in writing within 30 days from the date of mailing as provided in Section 402. The hearing shall be held pursuant to Section 2402 of Title 50 of the Code.
    (c) Upon notification of the issuance of an order suspending or revoking a Public Insurance Adjuster's license, the licensee or other person having possession or custody of such license shall promptly deliver it to the Director in person or by mail. The Director shall publish the name of each Public Insurance Adjuster whose license is suspended or revoked, after such suspension or revocation becomes final, in a manner designed to notify interested insurance companies and other persons.
    (d) Any individual whose Public Insurance Adjuster's license is revoked or whose application is denied pursuant to this Section shall be ineligible to apply for a Public Insurance Adjuster's license for 5 years. A suspension pursuant to this Section may be for any period of time up to 5 years.
(Source: P.A. 95-213, eff. 1-1-08.)

215 ILCS 5/512.61a

    (215 ILCS 5/512.61a) (from Ch. 73, par. 1065.59-61a)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.61a. In addition to other grounds specified in this Act, the Director may refuse to issue or may suspend the license of any person who has failed to file a return; or to pay the tax, penalty or interest shown on a filed return; or to pay any final assessment of any tax due to the Department of Revenue, until such time as the requirements of any such tax Act are satisfied.
(Source: P.A. 86-905.)

215 ILCS 5/512.62

    (215 ILCS 5/512.62) (from Ch. 73, par. 1065.59-62)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.62. Examinations.
    (a) The Director shall have the power to examine any applicant or any person licensed or registered pursuant to this Article.
    (b) Every person being examined and its officers, directors and members must provide to the Director convenient and free access, at all reasonable hours, to all books, records, documents and other papers relating to its Public Insurance Adjusting affairs. The officers, directors, members and employees must facilitate and aid in such examinations so far as it is in their power to do so.
    (c) Examiners may be designated by the Director. Such examiners shall make their reports to the Director pursuant to this Section. Any report alleging substantive violations shall be in writing and shall be based upon the facts ascertained from the books, records, documents, papers and other evidence obtained by the examiners or ascertained from the testimony of the officers, directors, members or other individuals examined under oath or ascertained by notarized affidavits received by the examiners. The report of examination shall be verified by the examiners.
    (d) If a report is made, the Director shall cause the report to be delivered to the person being examined either in person or by certified or registered mail to the last known address specified in the records of the Department of Insurance. The Director must afford the person an opportunity to request a hearing with reference to the facts and other evidence and allegations therein contained. The person may request a hearing within 14 calendar days after receipt of the examination report by giving the Director written notice of such request, together with a written statement of its objections. The Director must conduct the hearing in accordance with Sections 402 and 403, and must issue a written order based upon the examination report and upon the hearing within 90 days after hearing. If the report is refused or otherwise undeliverable or a hearing is not requested within 14 days, the right to a hearing shall be deemed waived. After such hearing, if the examination reveals that the person is operating in violation of any law, regulation or prior order, the Director in the written order may require the person to take any action he considers necessary or appropriate in accordance with the report of examination.
    (e) Any person who violates or aids and abets any violation of a written order issued pursuant to this Section shall be guilty of a business offense and may be fined not more than $5,000.
(Source: P.A. 83-1362.)

215 ILCS 5/512.63

    (215 ILCS 5/512.63) (from Ch. 73, par. 1065.59-63)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.63. Fees. The fees required by this Article are as follows:
        (1) Public Insurance Adjuster license annual fee,
    
$100;
        (2) registration of firms, $100;
        (3) application fee for processing each request to
    
take the written examination for a Public Adjuster license, $20.
(Source: P.A. 100-863, eff. 8-14-18.)

215 ILCS 5/512.64

    (215 ILCS 5/512.64) (from Ch. 73, par. 1065.59-64)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 512.64. Injunctive relief. Any person who acts as or holds himself out to be either engaged in the business of adjusting insurance claims or a Public Insurance Adjuster without holding a valid and current Public Insurance Adjuster's license is hereby declared to be inimical to the public welfare and to constitute a public nuisance. The Director may report such practice to the Attorney General of the State of Illinois, whose duty it is to apply forthwith by complaint on relation of the Director in the name of the people of the State of Illinois, as plaintiff, for injunctive relief in the circuit court of the county where such practice occurred to enjoin such person from engaging in such practice; and, upon the filing of a verified petition in such court, the court, if satisfied by affidavit or otherwise that such person has been engaged in such practice without a valid and current license to do so, may enter a temporary restraining order without notice or bond, enjoining the defendant from such further practice. A copy of the verified complaint shall be served upon the defendant and the proceedings shall thereafter be conducted as in other civil cases. If it is established that the defendant has been or is engaged in such unlawful practice, the court may enter an order or judgment perpetually enjoining the defendant from further such practice. In all proceedings hereunder the court, in its discretion, may apportion the costs among the parties interested in the action, including cost of filing the complaint, service of process, witness fees and expenses, court reporter charges and reasonable attorney fees. In case of violation of any injunctive order entered under the provisions of this Section, the court may try and punish the offender for contempt of court. Such injunction proceedings shall be in addition to, and not in lieu of, all penalties and other remedies.
(Source: P.A. 95-213, eff. 1-1-08.)

215 ILCS 5/Art. XXXIIA

 
    (215 ILCS 5/Art. XXXIIA heading)
ARTICLE XXXIIA. PREMIUM FINANCE REGULATION

215 ILCS 5/513a1

    (215 ILCS 5/513a1) (from Ch. 73, par. 1065.60a1)
    Sec. 513a1. Scope of Article.
    (a) Except as provided in subsection (b), this Article applies to all persons engaged in the business of financing insurance premiums, entering into premium finance agreements, or otherwise acquiring premium finance agreements, and insurance companies and insurance producers as defined in this Code, except in connection with premiums on the kinds of business described as Class 1(a) or Class 1(b) of Section 4.
    (b) Except for the provisions of Section 513a11 that apply to all premium financing agreements in which the right to cancel one or more policies of insurance on behalf of the named has been assigned to the lender, this Article does not apply to the following entities:
        (1) Credit unions, as defined in the Illinois Credit
    
Union Act.
        (2) Banks, as defined in the Illinois Banking Act.
        (3) Savings and loan associations, as defined in the
    
Illinois Savings and Loan Act of 1985.
        (4) Persons operating under the provisions of Section
    
4a of the Interest Act.
        (5) Persons operating under the Consumer Installment
    
Loan Act or the Consumer Finance Act.
        (6) Persons that acquire premium finance agreements
    
from insurance companies and entities described in paragraphs (1) through (5).
(Source: P.A. 87-811.)

215 ILCS 5/513a2

    (215 ILCS 5/513a2) (from Ch. 73, par. 1065.60a2)
    Sec. 513a2. Definitions.
    (a) "Accepted agreement" means a premium finance agreement deemed to be accepted by a premium finance company when a binder number or policy number is provided for each policy premium listed on the premium finance agreement and premium payment book or when the first premium payment notice has been sent to the named insured.
    (b) "Financing insurance premiums" means to be engaged in the practice of:
        (1) advancing monies directly or indirectly to an
    
insurer pursuant to the terms of an acquired premium finance agreement; or
        (2) allowing 10% or more of a producer's or
    
registered firm's premium accounts receivable to be more than 90 days past due.
    (c) "Premium finance agreement" means a promissory note, loan contract, or agreement by which an insured or prospective insured promises to pay to another person an amount advanced or to be advanced thereunder to an insurer in payment of premiums on an insurance contract together with a service charge and which contains an assignment of or is otherwise secured by the unearned premium payable by the insurer upon cancellation of the insurance contract; provided, however, that a premium finance agreement shall not include an installment sale contract, lease agreement, security agreement, or mortgage covering personal or real property that includes a charge for insurance or pursuant to which the vendor, lessor, lienholder, or mortgagee is authorized to pay or advance the premium for insurance with respect to that property.
    (d) "Premium finance company" means any person engaged in the business of financing insurance premiums, of entering into premium finance agreements with insureds, or of acquiring premium finance agreements.
(Source: P.A. 90-655, eff. 7-30-98.)

215 ILCS 5/513a3

    (215 ILCS 5/513a3) (from Ch. 73, par. 1065.60a3)
    Sec. 513a3. License required.
    (a) No person may act as a premium finance company or hold himself out to be engaged in the business of financing insurance premiums, either directly or indirectly, without first having obtained a license as a premium finance company from the Director.
    (b) An insurance producer shall be deemed to be engaged in the business of financing insurance premiums if 10% or more of the producer's total premium accounts receivable are more than 90 days past due.
    (c) In addition to any other penalty set forth in this Article, any person violating subsection (a) of this Section may, after hearing as set forth in Article XXIV of this Code, be required to pay a civil penalty of not more than $2,000 for each offense.
    (d) In addition to any other penalty set forth in this Article, any person violating subsection (a) of this Section is guilty of a Class A misdemeanor. Any individual violating subsection (a) of this Section, and misappropriating or converting any monies collected in conjunction with the violation, is guilty of a Class 4 felony.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/513a4

    (215 ILCS 5/513a4) (from Ch. 73, par. 1065.60a4)
    Sec. 513a4. Application and license.
    (a) Each application for a premium finance license shall be made on a form specified by the Director and shall be signed by the applicant declaring under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the applicant's knowledge and belief. The Director shall cause to be issued a license to each applicant that has demonstrated to the Director that the applicant:
        (1) is competent and trustworthy and of a good
    
business reputation;
        (2) has a minimum net worth of $50,000; and
        (3) has paid the fees required by this Article.
    (b) Each applicant at the time of request for a license or renewal of a license shall:
        (1) certify that no charge for financing premiums
    
shall exceed the rates permitted by this Article;
        (2) certify that the premium finance agreement or
    
other forms being used are in compliance with the requirements of this Article;
        (3) certify that he or she has a minimum net worth of
    
$50,000; and
        (4) attach with the application a non-refundable
    
annual fee of $400.
    (c) An applicant who has met the requirements of subsection (a) and subsection (b) shall be issued a premium finance license.
    (d) Each premium finance license shall remain in effect as long as the holder of the license annually continues to meet the requirements of subsections (a) and (b) by the due date unless the license is revoked or suspended by the Director.
    (e) The individual holder of a premium finance license shall inform the Director in writing of a change in residence address within 30 days of the change, and a corporation, partnership, or association holder of a premium finance license shall inform the Director in writing of a change in business address within 30 days of the change.
    (f) Every partnership or corporation holding a license as a premium finance company shall appoint one or more partners or officers to be responsible for the firm's compliance with the Illinois Insurance Code and applicable rules and regulations. Any change in the appointed person or persons shall be reported to the Director in writing within 30 days of the change.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/513a5

    (215 ILCS 5/513a5) (from Ch. 73, par. 1065.60a5)
    Sec. 513a5. Insurance Producer Administration Fund. All fees and penalties paid to and collected by the Director under this Article shall be paid promptly after receipt, together with a detailed statement of the fees, into the Insurance Producer Administration Fund.
(Source: P.A. 98-463, eff. 8-16-13.)

215 ILCS 5/513a6

    (215 ILCS 5/513a6) (from Ch. 73, par. 1065.60a6)
    Sec. 513a6. Felony convictions. Any person or authorized member of a partnership or corporation who, while licensed as a premium finance company, is convicted of a felony shall report the conviction to the Director within 30 days of the entry date of the judgement. Within that 30 day period, the person shall also provide the Director with a copy of the judgement, the probation or commitment order, and any other relevant document.
(Source: P.A. 87-811.)

215 ILCS 5/513a7

    (215 ILCS 5/513a7) (from Ch. 73, par. 1065.60a7)
    Sec. 513a7. License suspension; revocation or denial.
    (a) Any license issued under this Article may be suspended, revoked, or denied if the Director finds that the licensee or applicant:
        (1) has wilfully violated any provisions of this Code
    
or the rules and regulations thereunder;
        (2) has intentionally made a material misstatement in
    
the application for a license;
        (3) has obtained or attempted to obtain a license
    
through misrepresentation or fraud;
        (4) has misappropriated or converted to his own use
    
or improperly withheld monies;
        (5) has used fraudulent, coercive, or dishonest
    
practices or has demonstrated incompetence, untrustworthiness, or financial irresponsibility;
        (6) has been, within the past 3 years, convicted of a
    
felony, unless the individual demonstrates to the Director sufficient rehabilitation to warrant public trust;
        (7) has failed to appear without reasonable cause or
    
excuse in response to a subpoena issued by the Director;
        (8) has had a license suspended, revoked, or denied
    
in any other state on grounds similar to those stated in this Section; or
        (9) has failed to report a felony conviction as
    
required by Section 513a6.
    (b) Suspension, revocation, or denial of a license under this Section shall be by written order sent to the licensee or applicant by certified or registered mail at the address specified in the records of the Department. The licensee or applicant may in writing request a hearing within 30 days from the date of mailing. If no written request is made the order shall be final upon the expiration of that 30 day period.
    (c) If the licensee or applicant requests a hearing under this Section, the Director shall issue a written notice of hearing sent to the licensee or applicant by certified or registered mail at his address, as specified in the records of the Department, and stating:
        (1) the grounds, charges, or conduct that justifies
    
suspension, revocation, or denial under this Section;
        (2) the specific time for the hearing, which may not
    
be fewer than 20 nor more than 30 days after the mailing of the notice of hearing; and
        (3) a specific place for the hearing, which may be
    
either in the City of Springfield or in the county where the licensee's principal place of business is located.
    (d) Upon the suspension or revocation of a license, the licensee or other person having possession or custody of the license shall promptly deliver it to the Director in person or by mail. The Director shall publish all suspensions and revocations after they become final in a manner designed to notify interested insurance companies and other persons.
    (e) Any person whose license is revoked or denied under this Section shall be ineligible to apply for any license for 2 years. A suspension under this Section may be for a period of up to 2 years.
    (f) In addition to or instead of a denial, suspension, or revocation of a license under this Section, the licensee may be subjected to a civil penalty of up to $2,000 for each cause for denial, suspension, or revocation. The penalty is enforceable under subsection (5) of Section 403A of this Code.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/513a8

    (215 ILCS 5/513a8) (from Ch. 73, par. 1065.60a8)
    Sec. 513a8. Examinations.
    (a) The Director may examine any applicant for or holder of a premium finance license.
    (b) All persons being examined, as well as their officers and directors, shall 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 person's insurance and premium financing business affairs. The licensee or its officers, directors, and employees shall 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 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. Any report alleging substantive violations of this Code or the rules and regulations thereunder shall be in writing and be based upon facts obtained by the examiners. The report of examination shall be verified by the examiners.
    (e) If a report is made, the Director shall either deliver a duplicate thereof to the licensee being examined or send the duplicate by certified or registered mail to the licensee's address of record. The Director shall afford the licensee an opportunity to request a hearing with reference to the facts and other evidence contained in the report. The licensee may request a hearing within 14 calendar days after he receives the duplicate of the examination report by giving the Director written notice of that request, together with written statement of the licensee's objection to the report. The Director shall, if requested to do so, conduct a hearing in accordance with Sections 402 and 403. The Director shall issue a written order based upon the examination report 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 licensee may request a hearing, if the examination reveals that the licensee is operating in violation of any law, this Code or rules and regulations promulgated thereunder, or prior order, the Director in the written order may require the licensee 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) Any licensee 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 license may be revoked or suspended under Section 513a7, and he may be fined not less than $501 nor more than $5,000.
(Source: P.A. 87-811.)

215 ILCS 5/513a9

    (215 ILCS 5/513a9) (from Ch. 73, par. 1065.60a9)
    Sec. 513a9. Premium finance agreement.
    (a) A premium finance agreement must be dated and signed by or on behalf of the named insured, and the printed portion shall be in at least 8-point type. The following items must be set forth on the first page of the accepted finance agreement:
        (1) the total amount of the premiums;
        (2) the amount of the down payment;
        (3) the principal balance (the difference between
    
items (1) and (2));
        (4) the amount of the finance charges expressed in
    
dollars and as an annual percentage rate;
        (5) the balance payable by the insured (sum of items
    
(3) and (4));
        (6) the number of installments, the due dates
    
thereof, and the amount of each installment expressed in dollars; and
        (7) the policy numbers or binder numbers.
    (b) The premium finance company is required to furnish full and complete disclosure of the terms and conditions of the premium finance agreement including, but not limited to, the specific insurance coverages financed to the named insured no later than the date that the first premium payment notice is sent to the insured.
    (c) As to policies written primarily for personal, family, or household use, the premium finance company must:
        (1) deliver or mail the premium check or checks in
    
the amount of the principal balance directly to the insurer or insurers unless the insurer or insurers have given written authority to the premium finance company to deliver the checks to the producer;
        (2) issue the premium check or checks payable to the
    
insurer, insurers, or, if the insurer gives written authority to the premium finance company, to the producer; and
        (3) properly identify the premium check or checks by
    
policy number or binder number when the premium is paid to the insurer or insurers.
    (d) As to all other policies the premium finance company may:
        (1) deliver or mail the premium check or checks in
    
the amount of the principal balance directly to the producer; and
        (2) issue the premium check or checks payable to the
    
producer.
    (e) A premium finance company that pays the financed premium to the producer pursuant to subsection (d) establishes the producer as the agent of the premium finance company for payment of the premium and for receipt of any return premium.
(Source: P.A. 89-265, eff. 1-1-96; 90-381, eff. 8-14-97.)

215 ILCS 5/513a10

    (215 ILCS 5/513a10) (from Ch. 73, par. 1065.60a10)
    Sec. 513a10. Maximum service charge.
    (a) No service charge shall be made for financing premiums other than as permitted by this Article.
    (b) The service charge is to be computed on the principal balance from the effective date of the insurance coverage for which the premiums are being advanced to and including the date when the final installment of the premium finance agreement is payable.
    (c) The service charge shall be a maximum of $10 per $100 per year plus an allowable charge as follows:
Allowable ChargeAmount of Principal
Per Finance AgreementBalance
$20$0 to $499
$30$500 to $999
$40$1000 or more
    (d) The service charge or any other charge made by the licensee does not have to be refunded upon cancellation or prepayment. The allowable charge is considered to be part of the service charge.
    (e) A premium finance agreement may provide for a delinquency charge of not less than $1 nor more than 5% of any installment in default for more than 5 days.
    (f) Any other charges shall be disclosed in the premium finance agreement.
(Source: P.A. 87-811.)

215 ILCS 5/513a11

    (215 ILCS 5/513a11) (from Ch. 73, par. 1065.60a11)
    Sec. 513a11. Cancellation requirements upon default.
    (a) When a premium finance agreement contains a power of attorney enabling the premium finance company to cancel any insurance contract or contracts listed in the premium finance agreement, the insurance contract or contracts shall not be cancelled by the premium finance company unless the request for cancellation is effectuated under this Section.
    (b) Not less than 10 days written notice shall be mailed to the named insured of the intent of the premium finance company to cancel the insurance contract unless the default is cured within the 10 day period.
    (c) After expiration of the 10 day period, the premium finance company may request, in the name of the named insured, cancellation of the insurance contract or contracts by mailing or hand delivering to the insurer a request for cancellation, and the insurance contract shall be cancelled as if the request for cancellation had been submitted by the named insured, but without requiring the return of the insurance contract or contracts. The premium finance company shall also mail a copy of the request for cancellation to the named insured at his last known address.
    (d) All statutory, regulatory, and contractual restrictions providing that the insurance contract may not be cancelled unless notice is given to a governmental agency, mortgagee, or other third party shall apply where cancellation is effected under provisions of this Section. The insurer shall give the notice to any governmental agency, mortgagee, or other third party on or before the fifth business day after it receives the notice of cancellation from the premium finance company. For purposes of this Section, any governmental agency, mortgagee, or other third party may opt to receive notices electronically.
    (e) In the event that the collection of return premiums for the account of the named insured results in a surplus over the amount due from the named insured, the premium finance company shall refund the excess to the named insured; however, no refund is required if it amounts to less than $5.
    (f) All cancellation provisions required of the premium finance company and insurer are applicable to any policy to which Section 143.11 applies.
(Source: P.A. 93-713, eff. 1-1-05.)

215 ILCS 5/513a12

    (215 ILCS 5/513a12) (from Ch. 73, par. 1065.60a12)
    Sec. 513a12. Books and records.
    (a) Until payment in full and 3 years thereafter every licensee shall maintain each premium finance agreement or duplicate originals thereof and all original documents relating thereto (except those papers returned to the insured) so as to be readily available for examination by the Director.
    (b) Every licensee shall maintain a register, ledger, or combination of records for each premium finance agreement that can readily show:
        (1) the date of acquisition;
        (2) the name of the insured;
        (3) the identifying number;
        (4) the principal balance;
        (5) the amount of all charges assessed;
        (6) the balance; and
        (7) a distribution of proceeds showing the dates,
    
amounts, and names of the persons to whom any part of the proceeds were distributed.
(Source: P.A. 87-811.)

215 ILCS 5/513a13

    (215 ILCS 5/513a13)
    Sec. 513a13. Electronic delivery of notices and documents.
    (a) As used in this Section:
    "Delivered by electronic means" includes:
        (1) delivery to an electronic mail address at which a
    
party has consented to receive notices or documents; or
        (2) posting on an electronic network or site
    
accessible via the Internet, mobile application, computer, mobile device, tablet, or any other electronic device, together with separate notice of the posting, which shall be provided by electronic mail to the address at which the party has consented to receive notice or by any other delivery method that has been consented to by the party.
    "Party" means any recipient of any notice or document required as part of a premium finance agreement including, but not limited to, an applicant or contracting party. For the purposes of this Section, "party" includes the producer of record.
    (b) Subject to the requirements of this Section, any notice to a party or any other document required under applicable law in a premium finance agreement or that is to serve as evidence of a premium finance agreement may be delivered, stored, and presented by electronic means so long as it meets the requirements of the Electronic Commerce Security Act.
    (c) Delivery of a notice or document in accordance with this Section shall be considered equivalent to delivery by first class mail or first class mail, postage prepaid.
    (d) A notice or document may be delivered by electronic means by a premium finance company to a party under this Section if:
        (1) the party has affirmatively consented to that
    
method of delivery and has not withdrawn the consent;
        (2) the party, before giving consent, is provided
    
with a clear and conspicuous statement informing the party of:
            (A) the right of the party to withdraw consent to
        
have a notice or document delivered by electronic means, at any time, and any conditions or consequences imposed in the event consent is withdrawn;
            (B) the types of notices and documents to which
        
the party's consent would apply;
            (C) the right of a party to have a notice or
        
document delivered in paper form; and
            (D) the procedures a party must follow to
        
withdraw consent to have a notice or document delivered by electronic means and to update the party's electronic mail address;
        (3) the party:
            (A) before giving consent, is provided with a
        
statement of the hardware and software requirements for access to, and retention of, a notice or document delivered by electronic means; and
            (B) consents electronically, or confirms consent
        
electronically, in a manner that reasonably demonstrates that the party can access information in the electronic form that will be used for notices or documents delivered by electronic means as to which the party has given consent; and
        (4) after consent of the party is given, the premium
    
finance company, in the event a change in the hardware or software requirements needed to access or retain a notice or document delivered by electronic means creates a material risk that the party will not be able to access or retain a subsequent notice or document to which the consent applies:
            (A) provides the party with a statement that
        
describes:
                (i) the revised hardware and software
            
requirements for access to and retention of a notice or document delivered by electronic means; and
                (ii) the right of the party to withdraw
            
consent without the imposition of any condition or consequence that was not disclosed at the time of initial consent; and
            (B) complies with paragraph (2) of this
        
subsection (d).
    (e) Delivery of a notice or document in accordance with this Section does not affect requirements related to content or timing of any notice or document required under applicable law.
    (f) The legal effectiveness, validity, or enforceability of any premium finance agreement executed by a party may not be denied solely because of the failure to obtain electronic consent or confirmation of consent of the party in accordance with subparagraph (B) of paragraph (3) of subsection (d) of this Section.
    (g) A withdrawal of consent by a party does not affect the legal effectiveness, validity, or enforceability of a notice or document delivered by electronic means to the party before the withdrawal of consent is effective.
    A withdrawal of consent by a party is effective within a reasonable period of time after receipt of the withdrawal by the premium finance company.
    Failure by a premium finance company to comply with paragraph (4) of subsection (d) of this Section and subsection (j) of this Section may be treated, at the election of the party, as a withdrawal of consent for purposes of this Section.
    (h) This Section does not apply to a notice or document delivered by a premium finance company in an electronic form before the effective date of this amendatory Act of the 100th General Assembly to a party who, before that date, has consented to receive notice or document in an electronic form otherwise allowed by law.
    (i) If the consent of a party to receive certain notices or documents in an electronic form is on file with a premium finance company before the effective date of this amendatory Act of the 100th General Assembly and, pursuant to this Section, a premium finance company intends to deliver additional notices or documents to the party in an electronic form, then prior to delivering such additional notices or documents electronically, the premium finance company shall:
            (1) provide the party with a statement that
        
describes:
                (A) the notices or documents that shall be
            
delivered by electronic means under this Section that were not previously delivered electronically; and
                (B) the party's right to withdraw consent to
            
have notices or documents delivered by electronic means without the imposition of any condition or consequence that was not disclosed at the time of initial consent; and
            (2) comply with paragraph (2) of subsection (d)
        
of this Section.
    (j) A premium finance company shall deliver a notice or document by any other delivery method permitted by law other than electronic means if:
        (1) the premium finance company attempts to deliver
    
the notice or document by electronic means and has a reasonable basis for believing that the notice or document has not been received by the party; or
        (2) the premium finance company becomes aware that
    
the electronic mail address provided by the party is no longer valid.
    (k) The producer of record shall not be subject to civil liability for any harm or injury that occurs as a result of a party's election to receive any notice or document by electronic means or by a premium finance company's failure to deliver a notice or document by electronic means unless the harm or injury is caused by the willful and wanton misconduct of the producer of record.
    (l) This Section shall not be construed to modify, limit, or supersede the provisions of the federal Electronic Signatures in Global and National Commerce Act, as amended.
(Source: P.A. 100-495, eff. 1-1-18.)

215 ILCS 5/Art. XXXIIB

 
    (215 ILCS 5/Art. XXXIIB heading)
ARTICLE XXXIIB. PHARMACY BENEFIT MANAGERS
(Source: P.A. 101-452, eff. 1-1-20.)

215 ILCS 5/513b1

    (215 ILCS 5/513b1)
    Sec. 513b1. Pharmacy benefit manager contracts.
    (a) As used in this Section:
    "Biological product" has the meaning ascribed to that term in Section 19.5 of the Pharmacy Practice Act.
    "Maximum allowable cost" means the maximum amount that a pharmacy benefit manager will reimburse a pharmacy for the cost of a drug.
    "Maximum allowable cost list" means a list of drugs for which a maximum allowable cost has been established by a pharmacy benefit manager.
    "Pharmacy benefit manager" means a person, business, or entity, including a wholly or partially owned or controlled subsidiary of a pharmacy benefit manager, that provides claims processing services or other prescription drug or device services, or both, for health benefit plans.
    "Retail price" means the price an individual without prescription drug coverage would pay at a retail pharmacy, not including a pharmacist dispensing fee.
    (b) A contract between a health insurer and a pharmacy benefit manager must require that the pharmacy benefit manager:
        (1) Update maximum allowable cost pricing information
    
at least every 7 calendar days.
        (2) Maintain a process that will, in a timely manner,
    
eliminate drugs from maximum allowable cost lists or modify drug prices to remain consistent with changes in pricing data used in formulating maximum allowable cost prices and product availability.
        (3) Provide access to its maximum allowable cost list
    
to each pharmacy or pharmacy services administrative organization subject to the maximum allowable cost list. Access may include a real-time pharmacy website portal to be able to view the maximum allowable cost list. As used in this Section, "pharmacy services administrative organization" means an entity operating within the State that contracts with independent pharmacies to conduct business on their behalf with third-party payers. A pharmacy services administrative organization may provide administrative services to pharmacies and negotiate and enter into contracts with third-party payers or pharmacy benefit managers on behalf of pharmacies.
        (4) Provide a process by which a contracted pharmacy
    
can appeal the provider's reimbursement for a drug subject to maximum allowable cost pricing. The appeals process must, at a minimum, include the following:
            (A) A requirement that a contracted pharmacy has
        
14 calendar days after the applicable fill date to appeal a maximum allowable cost if the reimbursement for the drug is less than the net amount that the network provider paid to the supplier of the drug.
            (B) A requirement that a pharmacy benefit manager
        
must respond to a challenge within 14 calendar days of the contracted pharmacy making the claim for which the appeal has been submitted.
            (C) A telephone number and e-mail address or
        
website to network providers, at which the provider can contact the pharmacy benefit manager to process and submit an appeal.
            (D) A requirement that, if an appeal is denied,
        
the pharmacy benefit manager must provide the reason for the denial and the name and the national drug code number from national or regional wholesalers.
            (E) A requirement that, if an appeal is
        
sustained, the pharmacy benefit manager must make an adjustment in the drug price effective the date the challenge is resolved and make the adjustment applicable to all similarly situated network pharmacy providers, as determined by the managed care organization or pharmacy benefit manager.
        (5) Allow a plan sponsor contracting with a pharmacy
    
benefit manager an annual right to audit compliance with the terms of the contract by the pharmacy benefit manager, including, but not limited to, full disclosure of any and all rebate amounts secured, whether product specific or generalized rebates, that were provided to the pharmacy benefit manager by a pharmaceutical manufacturer.
        (6) Allow a plan sponsor contracting with a pharmacy
    
benefit manager to request that the pharmacy benefit manager disclose the actual amounts paid by the pharmacy benefit manager to the pharmacy.
        (7) Provide notice to the party contracting with the
    
pharmacy benefit manager of any consideration that the pharmacy benefit manager receives from the manufacturer for dispense as written prescriptions once a generic or biologically similar product becomes available.
    (c) In order to place a particular prescription drug on a maximum allowable cost list, the pharmacy benefit manager must, at a minimum, ensure that:
        (1) if the drug is a generically equivalent drug, it
    
is listed as therapeutically equivalent and pharmaceutically equivalent "A" or "B" rated in the United States Food and Drug Administration's most recent version of the "Orange Book" or have an NR or NA rating by Medi-Span, Gold Standard, or a similar rating by a nationally recognized reference;
        (2) the drug is available for purchase by each
    
pharmacy in the State from national or regional wholesalers operating in Illinois; and
        (3) the drug is not obsolete.
    (d) A pharmacy benefit manager is prohibited from limiting a pharmacist's ability to disclose whether the cost-sharing obligation exceeds the retail price for a covered prescription drug, and the availability of a more affordable alternative drug, if one is available in accordance with Section 42 of the Pharmacy Practice Act.
    (e) A health insurer or pharmacy benefit manager shall not require an insured to make a payment for a prescription drug at the point of sale in an amount that exceeds the lesser of:
        (1) the applicable cost-sharing amount; or
        (2) the retail price of the drug in the absence of
    
prescription drug coverage.
    (f) This Section applies to contracts entered into or renewed on or after July 1, 2020.
    (g) This Section applies to any group or individual policy of accident and health insurance or managed care plan that provides coverage for prescription drugs and that is amended, delivered, issued, or renewed on or after July 1, 2020.
(Source: P.A. 101-452, eff. 1-1-20.)

215 ILCS 5/513b2

    (215 ILCS 5/513b2)
    Sec. 513b2. Licensure requirements.
    (a) Beginning on July 1, 2020, to conduct business in this State, a pharmacy benefit manager must register with the Director. To initially register or renew a registration, a pharmacy benefit manager shall submit:
        (1) A nonrefundable fee not to exceed $500.
        (2) A copy of the registrant's corporate charter,
    
articles of incorporation, or other charter document.
        (3) A completed registration form adopted by the
    
Director containing:
            (A) The name and address of the registrant.
            (B) The name, address, and official position of
        
each officer and director of the registrant.
    (b) The registrant shall report any change in information required under this Section to the Director in writing within 60 days after the change occurs.
    (c) Upon receipt of a completed registration form, the required documents, and the registration fee, the Director shall issue a registration certificate. The certificate may be in paper or electronic form, and shall clearly indicate the expiration date of the registration. Registration certificates are nontransferable.
    (d) A registration certificate is valid for 2 years after its date of issue. The Director shall adopt by rule an initial registration fee not to exceed $500 and a registration renewal fee not to exceed $500, both of which shall be nonrefundable. Total fees may not exceed the cost of administering this Section.
    (e) The Department shall adopt any rules necessary to implement this Section.
(Source: P.A. 101-452, eff. 1-1-20.)

215 ILCS 5/513b3

    (215 ILCS 5/513b3)
    Sec. 513b3. Examination.
    (a) The Director, or his or her designee, may examine a registered pharmacy benefit manager.
    (b) Any pharmacy benefit manager being examined shall provide to the Director, or his or her designee, convenient and free access to all books, records, documents, and other papers relating to such pharmacy benefit manager's business affairs at all reasonable hours at its offices.
    (c) The Director, or his or her designee, may administer oaths and thereafter examine the pharmacy benefit manager's designee, representative, or any officer or senior manager as listed on the license or registration certificate about the business of the pharmacy benefit manager.
    (d) The examiners designated by the Director under this Section may make reports to the Director. Any report alleging substantive violations of this Article, any applicable provisions of this Code, or any applicable Part of Title 50 of the Illinois Administrative Code shall be in writing and be based upon facts obtained by the examiners. The report shall be verified by the examiners.
    (e) If a report is made, the Director shall either deliver a duplicate report to the pharmacy benefit manager being examined or send such duplicate by certified or registered mail to the pharmacy benefit manager's address specified in the records of the Department. The Director shall afford the pharmacy benefit manager an opportunity to request a hearing to object to the report. The pharmacy benefit manager may request a hearing within 30 days after receipt of the duplicate report by giving the Director written notice of such request together with written objections to the report. Any hearing shall be conducted in accordance with Sections 402 and 403 of this Code. The right to a hearing is waived if the delivery of the report is refused or the report is otherwise undeliverable or the pharmacy benefit manager does not timely request a hearing. After the hearing or upon expiration of the time period during which a pharmacy benefit manager may request a hearing, if the examination reveals that the pharmacy benefit manager is operating in violation of any applicable provision of this Code, any applicable Part of Title 50 of the Illinois Administrative Code, a provision of this Article, or prior order, the Director, in the written order, may require the pharmacy benefit manager to take any action the Director considers necessary or appropriate in accordance with the report or examination hearing. If the Director issues an order, it shall be issued within 90 days after the report is filed, or if there is a hearing, within 90 days after the conclusion of the hearing. The order is subject to review under the Administrative Review Law.
(Source: P.A. 101-452, eff. 1-1-20.)

215 ILCS 5/513b4

    (215 ILCS 5/513b4)
    Sec. 513b4. Denial, revocation, or suspension of registration; administrative fines.
    (a) Denial of an application or suspension or revocation of a registration in accordance with this Section shall be by written order sent to the applicant or registrant by certified or registered mail at the address specified in the records of the Department. The written order shall state the grounds, charges, or conduct on which denial, suspension, or revocation is based. The applicant or registrant may in writing request a hearing within 30 days from the date of mailing. Upon receipt of a written request, the Director shall issue an order setting: (i) a specific time for the hearing, which may not be less than 20 nor more than 30 days after receipt of the request; and (ii) a specific place for the hearing, which may be in either the city of Springfield or in the county in Illinois where the applicant's or registrant's principal place of business is located. If no written request is received by the Director, such order shall be final upon the expiration of said 30 days.
    (b) If the Director finds that one or more grounds exist for the revocation or suspension of a registration issued under this Article, the Director may, in lieu of or in addition to such suspension or revocation, impose a fine upon the pharmacy benefit manager as provided under subsection (c).
    (c) With respect to any knowing and willful violation of a lawful order of the Director, any applicable portion of this Code, Part of Title 50 of the Illinois Administrative Code, or provision of this Article, the Director may impose a fine upon the pharmacy benefit manager in an amount not to exceed $50,000 for each violation.
(Source: P.A. 101-452, eff. 1-1-20.)

215 ILCS 5/513b5

    (215 ILCS 5/513b5)
    Sec. 513b5. Failure to register. Any pharmacy benefit manager that operates without a registration or fails to register with the Director and pay the fee prescribed by this Article is an unauthorized insurer as defined in Article VII of this Code and shall be subject to all penalties provided for therein.
(Source: P.A. 101-452, eff. 1-1-20.)

215 ILCS 5/513b6

    (215 ILCS 5/513b6)
    Sec. 513b6. Insurance Producer Administration Fund. All fees and fines paid to and collected by the Director under this Article shall be paid promptly after receipt thereof, together with a detailed statement of such fees, into the Insurance Producer Administration Fund. The moneys deposited into the Insurance Producer Administration Fund may be transferred to the Professions Indirect Cost Fund, as authorized under Section 2105-300 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.
(Source: P.A. 101-452, eff. 1-1-20.)

215 ILCS 5/Art. XXXIII

 
    (215 ILCS 5/Art. XXXIII heading)
ARTICLE XXXIII. URBAN
PROPERTY INSURANCE

215 ILCS 5/522

    (215 ILCS 5/522) (from Ch. 73, par. 1065.69)
    Sec. 522. Purpose. This article is to make basic property insurance increasingly available to the citizens of this State, and to deter the insurance industry from geographically redlining urban areas of this State by requiring the restructuring of the Industry Placement Facility and administering the FAIR Plan (Fair Access to Insurance Requirements) to deliver residential property insurance to all citizens of this State on a reasonable access and marketing basis by offering homeowners insurance, by requiring immediate binding of eligible risks, by making use of premium installment payment plans, and by further establishing reasonable service standards in its plan of operation subject to the approval and review of the Director; and, to establish a central operation facility for the equitable distribution of losses and expenses in the writing of the basic property insurance and homeowners insurance in this State.
(Source: P.A. 80-1365.)

215 ILCS 5/523

    (215 ILCS 5/523) (from Ch. 73, par. 1065.70)
    Sec. 523. Definitions.) (1) "Basic Property Insurance" means the coverage against direct loss to real or tangible personal property at a fixed location provided in the Standard Fire Policy and Extended Coverage Endorsement and such vandalism and malicious mischief or such other classes of insurance as may be added with respect to the property by the Industry Placement Facility with the approval of the Director, except insurance on automobile, farm and manufacturing risks and it shall include homeowners insurance.
    (2) "Homeowners Insurance" means the personal multi-peril property coverages commonly known as Homeowners Insurance.
    (3) "Inspection Bureau(s)" means the organization or organizations designated by the Industry Placement Facility with the approval of the Director to make inspections to determine the condition of the properties for which basic property insurance is sought and to perform such other duties as may be authorized by the Industry Placement Facility;
    (4) "Industry Placement Facility" or "Facility" means the organization formed by insurers licensed to write and engaged in writing basic property insurance (including multi-peril policies) within the State of Illinois to assist applicants in urban areas in securing basic property insurance and to formulate and administer a program for the equitable apportionment among such insurers of such basic property insurance.
    (5) "Urban Area" means any community having a blighted, deteriorated or deteriorating area which the Facility has designated with the approval of the Director, or which the Secretary of the U.S. Department of Housing and Urban Development has approved for an urban renewal project after a local public agency has been formed in the community to avail itself of a U.S. Housing and Urban Renewal Program, or which the Director of Insurance has designated.
    (6) "Premiums Written" means the gross direct premiums charged with respect to property in this State on all policies of basic property insurance and the basic property insurance premium components of all multi-peril policies less return premiums, dividends paid or credited to policyholders, or the unused or unabsorbed portions of premium deposits.
(Source: P.A. 80-1365.)

215 ILCS 5/524

    (215 ILCS 5/524) (from Ch. 73, par. 1065.71)
    Sec. 524. FAIR Plan Procedure. (1) Any person having an insurable interest in real or tangible personal property at a fixed location in an urban area who, after diligent effort has been unable to obtain basic property insurance, as evidenced by 3 attempts to procure such insurance, is entitled upon application to the Facility to an inspection and evaluation of the property by representatives of the Inspection Bureau.
    (2) Any person who is an owner-resident of a one to four family dwelling unit at a fixed location in an urban area and whose residential real property insurance coverage has been nonrenewed through the voluntary insurance market shall be entitled to submit a binding application of coverage to the Facility for such period of time as is required by the Facility to conduct a reasonable inspection of the residential real property.
    (3) The manner and scope of the inspection and evaluation report for nonresidential property shall be prescribed by the Facility with the approval of the Director. The inspection must include, but need not be limited to, pertinent structural and occupancy features as well as the general condition of the building and surrounding structures. A representative photograph of the property may be taken as part of the inspection.
    (4) Promptly after the request for inspection is received an inspection must be made and an inspection report filed with the company or companies designated by the Facility. A copy of the completed inspection and evaluation report must be sent to the Facility and made available to the applicant and to insurers in the voluntary insurance market upon request.
    (5) If the Inspection Bureau finds that the residential property meets the reasonable underwriting standards established under Section 525, the applicant shall be so informed in writing. If the residential property does not meet the criteria, the applicant shall be informed, in writing, of the reasons for the failure of the residential property to meet the criteria.
    (6) If, at any time, the applicant makes improvements in the residential property or its condition which he or she believes are sufficient to make the residential property meet the criteria, a representative of the Inspection Bureau shall reinspect the residential property upon request. In any case, the applicant for residential property insurance shall be eligible for one reinspection any time beginning 60 days after his or her initial Fair plan inspection. If upon reinspection the residential property meets the reasonable underwriting standards established under Section 525, the applicant shall be so informed in writing.
(Source: P.A. 81-1430.)

215 ILCS 5/525

    (215 ILCS 5/525) (from Ch. 73, par. 1065.72)
    Sec. 525. Industry Placement Program.)
    (1) Within 30 days after the effective date of this Article, all insurers engaged in writing in this State, on a direct basis, basic property insurance or any property insurance component in multi-peril policies, other than local district, county and township mutual companies, must establish an Industry Placement Facility to formulate and administer a Program for the equitable apportionment among such insurers of basic property insurance which may be afforded applicants in urban areas whose property is insurable in accordance with reasonable underwriting standards, but who, after diligent efforts, are unable to procure such insurance through normal channels, as evidenced by 3 attempts to procure such insurance. The Program may also provide, with the approval of the Director, for the use of deductibles, percentage participation clauses and other underwriting devices and for assessment of all members in amounts sufficient to operate the Facility, and may establish maximum limits of liability to be placed through the Program, commissions to be paid to the license producer designated by the applicant and for relieving any company from accepting referrals under the FAIR Plan, in whole or in part, for reasonable cause. The Program may also provide that the Facility issue policies in its own name. The Program shall establish reasonable underwriting standards for determining insurability of a risk, subject to the approval of the Director.
    (2) The Industry Placement Program, through its plan of operation, shall provide reasonable access and marketing procedures for (a) immediate binding of eligible risks; (b) premium installment payment plans; and, (c) establishing adequate marketing and service facilities in all designated urban areas of this State.
    (3) Homeowners insurance coverage shall become part of the Industry Placement Program of basic property insurance. The Facility shall develop, with the consultation of the Director, a homeowners insurance contract(s) for urban areas. Such Program of homeowners insurance will be implemented through a plan of operation specifically entitling owner residents who have been nonrenewed through normal insurance channels of immediate binding coverage pending a reasonable period of time for the Facility to conduct an inspection of the premises to determine whether the premises comply with underwriting requirements set out in the Program.
    (4) Each insurer, as a condition of its authority to transact such kinds of insurance in this State, must participate in the Industry Placement Program in accordance with this Article and such a plan of operation as may be established by a Governing Committee of 6 insurers elected annually in a manner provided in a membership agreement to be executed by each participating insurer, 4 members who are not employees of or otherwise affiliated with the insurance industry appointed by the Director to represent the interest of insurance consumers, and one member who is an Illinois licensed insurance producer appointed by the Director, who shall serve for terms consistent with the terms served by their counterparts from the insurance industry.
(Source: P.A. 88-667, eff. 9-16-94.)