State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ Senate Amendment 001 ]


92_HB0800ham002

 










                                           LRB9207630JSpcam04

 1                     AMENDMENT TO HOUSE BILL 800

 2        AMENDMENT NO.     .  Amend House Bill 800, AS AMENDED, by
 3    replacing everything  after  the  enacting  clause  with  the
 4    following:

 5        "Section  5.  The  Illinois  Insurance Code is amended by
 6    adding Section 507.2 as follows:

 7        (215 ILCS 5/507.2 new)
 8        Sec.  507.2.  Policyholder  information   and   exclusive
 9    ownership of expirations.
10        (a)  As  used  in  this  Section, "expirations" means all
11    information relative to an insurance  policy  including,  but
12    not  limited  to,  the  name  and address of the insured, the
13    location and description of the property insured,  the  value
14    of  the  insurance  policy,  the  inception date, the renewal
15    date, and the expiration date of the  insurance  policy,  the
16    premiums,  the  limits  and  a  description  of the terms and
17    coverage of the insurance policy, and any other personal  and
18    privileged  information,  as  defined by Section 1003 of this
19    Code, compiled by a  registered  firm  or  furnished  by  the
20    insured   to   the  insurer  or  any  agent,  contractor,  or
21    representative of the insurer.
22        For purposes of this Section only, a registered firm also
 
                            -2-            LRB9207630JSpcam04
 1    includes a sole proprietorship that transacts the business of
 2    insurance as an insurance agency.
 3        (b)  All "expirations" as defined in  subsection  (a)  of
 4    this  Section  shall be mutually and exclusively owned by the
 5    insured and the registered firm.  The limitations on the  use
 6    of expirations as provided in subsections (c) and (d) of this
 7    Section  shall  be  for mutual benefit of the insured and the
 8    registered firm.
 9        (c)  Except as otherwise provided in  this  Section,  for
10    purposes  of  soliciting, selling, or negotiating the renewal
11    or  sale  of  insurance  coverage,  insurance  products,   or
12    insurance  services  or  for  any  other marketing purpose, a
13    registered firm shall own  and  have  the  exclusive  use  of
14    expirations,  records,  and  other  written or electronically
15    stored  information  directly   related   to   an   insurance
16    application  submitted  by,  or  an  insurance policy written
17    through, the registered firm. No insurance company,  managing
18    general  agent,  surplus  lines  insurance  broker, wholesale
19    broker, group self-insurance fund, third party administrator,
20    or any other entity shall use such expirations,  records,  or
21    other   written   or  electronically  stored  information  to
22    solicit, sell, or negotiate the renewal or sale of  insurance
23    coverage,  insurance  products,  or insurance services to the
24    insured or for any other marketing purposes, either  directly
25    or  by  providing  such  information to others, except in the
26    case of a financial institution as defined by Section 1402 of
27    this  Code,  without,  separate  from  the   general   agency
28    contract,   the  written  consent  of  the  registered  firm.
29    However, such  expirations,  records,  or  other  written  or
30    electronically stored information may be used for any purpose
31    necessary  for  placing  such  business through the insurance
32    producer including reviewing an application  and  issuing  or
33    renewing a policy and for loss control services.
34        For  purposes  of  this  Section, "financial institution"
 
                            -3-            LRB9207630JSpcam04
 1    does not  include  an  insurance  company,  registered  firm,
 2    managing  general  agent,  surplus  lines  broker,  wholesale
 3    broker,  group  self-funded  insurance  fund,  or third-party
 4    administrator.
 5        (d)  With respect to  a  registered  firm,  this  Section
 6    shall not apply:
 7             (1)  when  the  insured requests either orally or in
 8        writing that another registered firm  obtain  quotes  for
 9        insurance  from  another  insurance  company  or when the
10        insured  requests  in  writing  individually  or  through
11        another registered firm, that the insurance company renew
12        the policy;
13             (2)  to policies in  the  Illinois  Fair  Plan,  the
14        Illinois  Automobile  Insurance  Plan,  or  the  Illinois
15        Assigned  Risk  Plan  for  coverage  under  the  Workers'
16        Compensation  Act  and the Workers' Occupational Diseases
17        Act;
18             (3)  when the insurance producer is employed  by  or
19        has  agreed  to  act  exclusively  or  primarily  for one
20        company or group of affiliated insurance companies or  to
21        a  producer  who  submits  to  the  company  or  group of
22        affiliated  companies  that  are  organized  to  transact
23        business in  this  State  as  a  reciprocal  company,  as
24        defined  in  Article  IV  of  this Code, every request or
25        application for  insurance  for  the  classes  and  lines
26        underwritten  by  the  company  or  group  of  affiliated
27        companies;
28             (4)  to  policies  providing  life  and accident and
29        health insurance;
30             (5)  when the registered  firm  is  in  default  for
31        nonpayment  of  premiums  under  the  contract  with  the
32        insurer  or  is  guilty of conversion of the insured's or
33        insurer's premiums  or  its  license  is  revoked  by  or
34        surrendered to the Department;
 
                            -4-            LRB9207630JSpcam04
 1             (6)  to  any  insurance  company's obligations under
 2        Sections 143.17 and 143.17a of this Code; or
 3             (7)  to any insurer that, separate from  a  producer
 4        or  registered  firm,  creates,  develops,  compiles, and
 5        assembles its own, identifiable expirations as defined in
 6        subsection (a).
 7        For purposes of this Section, an insurance producer shall
 8    be deemed to have agreed to act primarily for one company  or
 9    a group of affiliated insurance companies if the producer (i)
10    receives  75%  or  more  of  his  or  her  insurance  related
11    commissions  from  one  company  or  a  group  of  affiliated
12    companies  or  (ii) places 75% or more of his or her policies
13    with one company or a group of affiliated companies.
14        Nothing in this Section prohibits an  insurance  company,
15    with  respect  to  any  items  herein,  from conveying to the
16    insured or the registered firm  any  additional  benefits  or
17    ownership rights including, but not limited to, the ownership
18    of  expirations  on  any  policy  issued or the imposition of
19    further restrictions on the insurance company's  use  of  the
20    insured's personal information.
21        (e)  The  Director  may  adopt  rules  in accordance with
22    Section 401 of this Code for the enforcement of this Section.
23        (f)  This Section applies to the expirations relative  to
24    all  policies of insurance bound, applied for, sold, renewed,
25    or otherwise taking effect on or after the effective date  of
26    this amendatory Act of the 92nd General Assembly.

27        Section  99.  Effective  date. This Act takes effect upon
28    becoming law.".

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