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92_HB0800eng HB0800 Engrossed LRB9207630JSpc 1 AN ACT concerning insurance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Insurance Code is amended by 5 adding Section 507.2 as follows: 6 (215 ILCS 5/507.2 new) 7 Sec. 507.2. Policyholder information and exclusive 8 ownership of expirations. 9 (a) As used in this Section, "expirations" means all 10 information relative to an insurance policy including, but 11 not limited to, the name and address of the insured, the 12 location and description of the property insured, the value 13 of the insurance policy, the inception date, the renewal 14 date, and the expiration date of the insurance policy, the 15 premiums, the limits and a description of the terms and 16 coverage of the insurance policy, and any other personal and 17 privileged information, as defined by Section 1003 of this 18 Code, compiled by a registered firm or furnished by the 19 insured to the insurer or any agent, contractor, or 20 representative of the insurer. 21 For purposes of this Section only, a registered firm also 22 includes a sole proprietorship that transacts the business of 23 insurance as an insurance agency. 24 (b) All "expirations" as defined in subsection (a) of 25 this Section shall be mutually and exclusively owned by the 26 insured and the registered firm. The limitations on the use 27 of expirations as provided in subsections (c) and (d) of this 28 Section shall be for mutual benefit of the insured and the 29 registered firm. 30 (c) Except as otherwise provided in this Section, for 31 purposes of soliciting, selling, or negotiating the renewal HB0800 Engrossed -2- LRB9207630JSpc 1 or sale of insurance coverage, insurance products, or 2 insurance services or for any other marketing purpose, a 3 registered firm shall own and have the exclusive use of 4 expirations, records, and other written or electronically 5 stored information directly related to an insurance 6 application submitted by, or an insurance policy written 7 through, the registered firm. No insurance company, managing 8 general agent, surplus lines insurance broker, wholesale 9 broker, group self-insurance fund, third party administrator, 10 or any other entity shall use such expirations, records, or 11 other written or electronically stored information to 12 solicit, sell, or negotiate the renewal or sale of insurance 13 coverage, insurance products, or insurance services to the 14 insured or for any other marketing purposes, either directly 15 or by providing such information to others, except in the 16 case of a financial institution as defined by Section 1402 of 17 this Code, without, separate from the general agency 18 contract, the written consent of the registered firm. 19 However, such expirations, records, or other written or 20 electronically stored information may be used for any purpose 21 necessary for placing such business through the insurance 22 producer including reviewing an application and issuing or 23 renewing a policy and for loss control services. 24 For purposes of this Section, "financial institution" 25 does not include an insurance company, registered firm, 26 managing general agent, surplus lines broker, wholesale 27 broker, group self-funded insurance fund, or third-party 28 administrator. 29 (d) With respect to a registered firm, this Section 30 shall not apply: 31 (1) when the insured requests either orally or in 32 writing that another registered firm obtain quotes for 33 insurance from another insurance company or when the 34 insured requests in writing individually or through HB0800 Engrossed -3- LRB9207630JSpc 1 another registered firm, that the insurance company renew 2 the policy; 3 (2) to policies in the Illinois Fair Plan, the 4 Illinois Automobile Insurance Plan, or the Illinois 5 Assigned Risk Plan for coverage under the Workers' 6 Compensation Act and the Workers' Occupational Diseases 7 Act; 8 (3) when the insurance producer is employed by or 9 has agreed to act exclusively or primarily for one 10 company or group of affiliated insurance companies or to 11 a producer who submits to the company or group of 12 affiliated companies that are organized to transact 13 business in this State as a reciprocal company, as 14 defined in Article IV of this Code, every request or 15 application for insurance for the classes and lines 16 underwritten by the company or group of affiliated 17 companies; 18 (4) to policies providing life and accident and 19 health insurance; 20 (5) when the registered firm is in default for 21 nonpayment of premiums under the contract with the 22 insurer or is guilty of conversion of the insured's or 23 insurer's premiums or its license is revoked by or 24 surrendered to the Department; 25 (6) to any insurance company's obligations under 26 Sections 143.17 and 143.17a of this Code; or 27 (7) to any insurer that, separate from a producer 28 or registered firm, creates, develops, compiles, and 29 assembles its own, identifiable expirations as defined in 30 subsection (a). 31 For purposes of this Section, an insurance producer shall 32 be deemed to have agreed to act primarily for one company or 33 a group of affiliated insurance companies if the producer (i) 34 receives 75% or more of his or her insurance related HB0800 Engrossed -4- LRB9207630JSpc 1 commissions from one company or a group of affiliated 2 companies or (ii) places 75% or more of his or her policies 3 with one company or a group of affiliated companies. 4 Nothing in this Section prohibits an insurance company, 5 with respect to any items herein, from conveying to the 6 insured or the registered firm any additional benefits or 7 ownership rights including, but not limited to, the ownership 8 of expirations on any policy issued or the imposition of 9 further restrictions on the insurance company's use of the 10 insured's personal information. 11 (e) The Director may adopt rules in accordance with 12 Section 401 of this Code for the enforcement of this Section. 13 (f) This Section applies to the expirations relative to 14 all policies of insurance bound, applied for, sold, renewed, 15 or otherwise taking effect on or after the effective date of 16 this amendatory Act of the 92nd General Assembly. 17 Section 99. Effective date. This Act takes effect upon 18 becoming law.