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| Public Act 098-0819 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by adding | ||||
Section 155.45 as follows: | ||||
(215 ILCS 5/155.45 new) | ||||
Sec. 155.45. Certificates of insurance. | ||||
(a) In this Section: | ||||
"Certificate of insurance"
means a document prepared | ||||
by an insurer or insurance producer
as evidence of property | ||||
or casualty insurance coverage.
"Certificate of insurance" | ||||
does not include a policy of insurance, an
insurance | ||||
binder, a policy endorsement, or a motor vehicle
insurance | ||||
identification or information card. | ||||
"Department" means the Department of Insurance. | ||||
"Director" means the Director of Insurance. | ||||
"Insurance producer" means a person required to be | ||||
licensed under the laws of this State to sell, solicit, or | ||||
negotiate insurance. | ||||
"Insurer" means a company, firm, partnership, | ||||
association, order, society, or system making any kind or | ||||
kinds of insurance and shall include associations | ||||
operating as Lloyds, reciprocal or inter-insurers, or | ||||
individual underwriters. | ||
"Person" means any individual, aggregation of | ||
individuals, trust, association, partnership, or | ||
corporation, or any affiliate thereof. | ||
"Property or casualty insurance"
means the kinds of | ||
insurance described in either or both Class 2 or Class 3 of | ||
Section 4 of this Code. | ||
(b) This Section applies to a certificate of insurance that | ||
is
issued in connection with a contract related to property,
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operations, or risks located in this State, regardless of the | ||
location of
the policyholder, insurer, insurance producer, or | ||
person that
requests or requires the issuance of the | ||
certificate of insurance. | ||
(c) The use of a certificate of insurance form that is | ||
unfair, misleading, or deceptive or
violates any law
is an | ||
unfair and deceptive act or practice in the business of
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insurance under Article XXVI of this Code. | ||
(d) A certificate of insurance may not amend, extend, or | ||
alter the coverage provided under, or
confer to a person any | ||
rights in addition to the rights
expressly provided in,
the | ||
policy of property or casualty insurance to which the | ||
certificate
of insurance refers. | ||
(e) A person may not prepare, issue, request, or
require | ||
the issuance of a certificate of insurance that: | ||
(1) contains false or misleading information | ||
concerning the policy of property or casualty insurance to | ||
which the certificate
of insurance refers; or | ||
(2) alters, amends, or extends the coverage provided by
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the policy of property or casualty insurance to which the | ||
certificate
of insurance refers. | ||
(f) A certificate of insurance may not contain a
warranty | ||
that the policy of property or casualty insurance to which
the | ||
certificate of insurance refers complies with the insurance or
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indemnification requirements of a contract. The inclusion of a | ||
contract number or contract description
in a certificate of | ||
insurance does not warrant that the policy of
property or | ||
casualty insurance to which the certificate of insurance
refers | ||
complies with the insurance or indemnification requirements
of | ||
the contract. | ||
(g) A person is not entitled to notice of, cancellation of, | ||
nonrenewal of, or
a material change in
a policy of property or | ||
casualty insurance unless the person has
notice rights under | ||
the terms of the policy of property or casualty
insurance or an | ||
endorsement to the policy.
The terms and conditions of notice | ||
described in this subsection
(g) are governed by the policy of | ||
property or casualty insurance or
an endorsement to the policy | ||
and are not altered by a certificate of
insurance. | ||
(h) A certificate of insurance or any other document that | ||
is
prepared, issued, requested, or required in violation of | ||
this Section
is void. | ||
(i) The Director may refer a matter to the Department of | ||
Financial and Professional Regulation for review pursuant to | ||
the rules of that department if the Director has reason to | ||
believe that a certificate of
insurance form as described in | ||
subsection (c) of this Section has been provided by a
financial | ||
institution. | ||
(j) The Director may examine and investigate the
activities | ||
of a person that the Director reasonably believes has
violated | ||
the provisions of this Section. The Director shall have the | ||
power to enforce the provisions of this Section and impose any | ||
authorized penalty or remedy as provided under Section 401 of | ||
this Code upon any person who violates the provisions of this | ||
Section. | ||
(k) The Department may adopt rules to
implement the | ||
provisions of this Section.
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