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[ 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.".