State of Illinois
92nd General Assembly
Legislation

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92_SB0333eng

 
SB333 Engrossed                               LRB9200974JSpcB

 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
 
SB333 Engrossed             -2-               LRB9200974JSpcB
 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
 
SB333 Engrossed             -3-               LRB9200974JSpcB
 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
 
SB333 Engrossed             -4-               LRB9200974JSpcB
 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.

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