Review Requirements Checklist

Page 1 of 32

Commercial Auto

Contact Person: Ben Rekart (217) 558-2960

Line(s) of Insurance/Business:

• Commercial Auto: filing code(s) 20.0000

• Business Auto: filing code 20.0001

• Garage: filing code 20.0002

• Other: filing code 20.0003

Links:

• Illinois Compiled Statutes Online

• Administrative Regulations Online

• Product Coding Matrix

All filings are public record in accordance with 215 ILCS 5/404 except where another provision of the

Insurance Code says otherwise. The only code section that allows for a filing to be a trade secret or confidential

is 215 ILCS 157/40 Use of Credit Information in Personal Insurance Act.

The Department’s checklists include summaries that do not provide detailed information about all laws,

regulations and bulletins. Therefore, the insurers should review the actual laws, regulations and bulletins to

ensure forms are fully compliant before filing with the Department.

A form filing fee is required pursuant to 215 ILCS 5/408 (1)(jj).

LINE OF AUTHORITY

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Must have proper Class and Clause

authority to conduct this line of

business in Illinois.

215 ILCS 5/4

List of

Classes/Clauses

To write Commercial auto no-fault (PIP) and other

commercial liability insurance in Illinois,

companies must be licensed to write:

1. Class 2, Clause (b).

Page 2 of 32

To write Commercial auto physical damage

insurance in Illinois, companies must be

authorized to write:

1. Class 2, Clause (b) or

2. Class 3, Clause (e).

To write combination commercial auto liability

and physical damage coverage in

Illinois,

companies must be licensed to write:

1. Class 2, clause (b), or

Class 2, Clause (b) and Class 3, Clause (e).

SERFF FILING

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

The submission letter must contain

specified information.

"Me too" filings are not allowed.

50 IL Adm.

Code 753

All companies must file, using the System for

Electronic Rate and Form Filing (SERFF):

1. Copies of all policy forms on these kinds

of business and, for mutual companies, a

separate proxy signature line for the

insured to sign, if applicable;

2. Copies of generally used endorsement

forms on these kinds of business;

3. Copies of all application forms used on

these kinds of business, including a

separate proxy signature line for the

insured to sign if applicable;

4. A copy of the declaration page, in non-

individualized, template form, absent

personal policyholder information; and

5. A copy of the policy jacket, if used by the

company.

All filings must be accompanied by a forms

submission letter that includes:

1. The name of the advisory organization or

company making the filing:

Page 3 of 32

2. Title, form number, and edition

identification for the forms;

3. Information as to what Class and Clause

coverage is written under:

4. Identification of all applicable

endorsements and applications as to the

policy forms for which the endorsements

and applications are used;

Notification as to whether the filing is new

or supersedes a present filing.

Identification of all changes in all

superseding filings, as well as

identification of all superseded forms, is

required; and

6. Effective date of use.

Companies under the same ownership or general

management are required to make separate

individual company filings.

Company Group (“Me too”) filings are

unacceptable.

FILING SUBMISSION

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

When forms must be filed.

50 IL Adm.

Code 753

Forms must be received by the Department no

later than their effective date of use.

Final printed forms must be filed.

50 IL Adm.

Code 753

Typed or printer's proof copies may be submitted

for review, but must be re

-filed in printed form.

Statements, provisions, or endorsements may not

be typed or superimposed on a policy or

endorsement.

Requirements for company FEIN

numbers.

Company must include all Federal Employer

Identification Numbers (FEINs) for companies

making the filing.

All forms submitted under the

same SERFF tracking

number must

have common coverage

relationship.

All forms under an assigned SERFF tracking

number must have a common coverage

relationship.

(e.g., all forms in an auto filing must

pertain only to auto, etc.)

NO FILE OR FILING

EXEMPTIONS

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Page 4 of 32

Commercial auto forms issued to

"industrial insureds" are not

required to be filed.

However, such forms must comply

with all laws, regulations, bulletins,

etc. unless specifically exempted

by the law, regulation, bulletin, etc.

215 ILCS

5/143(3)

215 ILCS

5/121

-2.08

Insurance policies issued to those qualifying as

industrial insureds are not subject to the policy

form filing

requirements of 215 ILCS 5/143(3).

215 ILCS 5/121

-2.08 applies to all authorized

companies. Definitions within 5/445 are

relied

upon to avoid duplication of those definitions.

This reliance is not intended to limit exemptions to

surplus lines carriers.

Manuscript endorsements are not

required to be filed.

215 ILCS

5/143(3)

Insurers are not required to file riders or

endorsements prepared to meet special, unusual,

peculiar, or extraordinary conditions applying to

an individual risk.

Because Section 143(3) exempts only riders or

endorsements, policy forms applying to an

indi

vidual risk must still be filed. In addition,

because Section 143(3) exempts only

endorsements applying to an individual risk, if a

company uses the same endorsement on more than

one risk, such form no longer qualifies for the

filing exemption and must be

filed.

SIDE BY SIDE COMPARISON

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Form changes must be highlighted.

50 IL Adm.

Code 753

Changes from currently filed forms must be

highlighted.

THIRD PARTY FILERS

AUTHORITY

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Insurer may authorize an advisory

organization to make a form filing

on its behalf.

Insurer may change or delay the

effective date of an advisory

organization form filing by

properly notifying the Department.

Insurer may authorize attorneys,

consulting firms, etc. to submit

form filings to the Department, as

50 IL Adm.

Code 75

Insurer may authorize an advisory organization, of

which it is a member or subscriber, to file forms

on its behalf, as long as the insurer has on file with

the Department a forms authorization letter which

includes:

1) the name of the authorized advisory

organization.

2) the kinds of business for which filings will be

made.

3) authorization clause or language.

4) effective date of authorization.

Page 5 of 32

long as the filing includes proper

authorization.

Insurer may change or delay the effective date of

an advisory

organization form filing by notifying

the Department. The notice shall include the

insurer name, FEIN number, line of insurance,

advisory organization name and filing number,

and effective date desired.

Insurer may authorize attorneys, consulting

firms,

etc. to submit form filings to the Department, as

long as the filing includes a notice, signed by an

authorized company officer, giving authority for

the entity to act on the insurer's behalf on any

issues related to the filing.

AMBIGUOUS & MISLEADING

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

The Director may disapprove a

form filing if it contains

inconsistent, ambiguous, or

misleading clauses.

215 ILCS

5/143(2)

Director may disapprove any form that contains

inconsistent, ambiguous, or misleading clauses.

APPLICATIONS

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Applications must be filed.

50 IL Adm.

Code 753

Applications must be filed including

online/electron

ic applications.

ARBITRATION

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Policy must contain arbitration

provision for UM and UMPD in

accordance with the law

requirements.

Applies only to policies issued for

vehicles designed for highway use.

215 ILCS

5/143a

Policies must contain specific arbitration language

with regard to Uninsured Motorist Bodily Injury

liability coverage (UM) and Uninsured Mot

orist

Property Damage coverage (UMPD). See specific

law for details to ensure that forms comply with

all requirements before filing with the Department.

Any decision made by the arbitrators shall be

binding for the amount of damages not exceeding

$75,000

for bodily injury to or death of any one

person, $150,000 for bodily injury to or death of 2

or more persons in any one motor vehicle

accident, or the corresponding policy limits for

bodily injury or death, whichever is less.

Page 6 of 32

Applies only to policies issued for vehicles

designed for highway use.

BANKRUPTCY PROVISIONS

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Policies that contain liability

coverage must include a

bankruptcy provision.

215 ILCS 5/388

All policies containing liability coverage must

include a provision stating that insolvency or

bankruptcy of the insured shall not release the

company from its duties to pay under the policy.

CANCELLATION & NON-

RENEWAL

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

May not refuse to issue a policy on

sole basis of previous refusal,

cancellation or nonrenewal by any

insurer.

215 ILCS

5/143.10

No company shall refuse to issue a policy on the

sole basis that the insured or applicant for such

policy was previously refused issuance or re

newal

of a policy by an insurer, or such insured's policy

was cancelled on a prior date by any insurer.

Loss information requested for

underwriting.

215 ILCS

5/143.10a

No prospective insurer shall request the insured to

provide more detailed loss information than

required by it to underwrite the same line or class

of insuran

ce.

Loss information required to be

provided.

215 ILCS

5/143.10a

Insurer shall provide the following loss

information to

the first named insured within 30

days of the insured's request, and at the same time

as any notice of cancellation or nonrenewal,

except where the policy has been cancelled for

nonpayment of premium, material

misrepresentations or fraud on the part of the

insured:

a) on closed claims, date and description of

occurrence, and total amounts of payments;

b) on open claims, date and description of

occurrence, total amount of payments and total

reserves, if any; and

c) for any occurrence not included in (a) or (b),

the date and description of occurrence and total

reserves, if any.

Insurer shall provide additional loss information,

including specific loss reserves, to the first named

insured as soon as possible, but in no event later

than 20 days of receipt of named insured's mailed

or delivered written request for such information

at the request of a prospective insurer.

Page 7 of 32

Insurer shall automatically extend coverage under

the existing policy, at the same terms and

conditions by the same number of days it takes the

insurer to provide the insured with this additional

information.

Policy must contain cancellation

provision.

215 ILCS

5/143.11

Policy must include a cancellation provision

setting out the manner in which the policy may be

cancelled.

Insurers may not refuse to insure

based on identity of prior carrier.

Applies only to policies issued for

vehicles designed for highway use.

215 ILCS

5/155.27

No insurer may refuse to insure the applicant

solely bas

ed upon the identity of the applicant's

prior carrier.

Applies only to policies issued for vehicles

designed for highway use.

CONDITIONAL RENEWAL

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Assignment or transfer of policies

among or between insurers within

an insurance holding company

system or insurers under common

management or control, or as a

result of a merger, acquisition, or

restructuring of an insurance

company, is not a nonrenewal f

purposes of the notification

requirements.

215 ILCS

5/143.11b

Assignment or transfer of policies among or

between insurers within an insurance holding

company system or insurers under common

management or control, or as a result of a merger,

acquisition, or restructuring of an insurance

company, is not a nonrenewal for pur

poses of the

notification requirements.

If the increase in the renewal premium is 30% or

more, contains a change in deductibles or change

in coverage that materially alters the policy, the

company must adhere to provisions in Section

143.17a as described

below.

A company making an assignment or transfer of a

policy among or between insurers as stated above,

must deliver to the named insured notice of such

assignment or transfer at least 60 days prior to the

renewal date.

An exact and unaltered copy of the

notice shall also be sent to the insured's producer,

if known, and agent of record.

Requirements for advance notice of

renewal with changes in

deductibles, changes in coverage

215 ILCS

5/143.17a

If an insurer offers to renew directly to the named

insured with a renewal increase of 30% or more,

or with a change in deductible or coverage that

Page 8 of 32

that materially alters the policy, or

increase of 30% or more.

Illinois

Sup

reme Court

Rule 236

materially alters the policy, the insurer must mail

or deliver to the named insured, written notice of

such premium increase or change at least 60 days

prior to the renewal or anniversary date.

The increase in premium shall be the renewal

premium based on the known exposure as of the

date of the quotation

compared to the premium as

of the last day of coverage for the current year's

policy, annualized. The premium may be

subsequently amended to reflect any change in

exposure or reinsurance costs not considered in the

quotation.

The renewal notice must provid

e the specific

dollar amount of the premium. Renewal notices

issued with the wording "your premium increase

will be 30% or more" do not comply with the

Code.

Notification must also be mailed to the insured's

broker, if known, or the agent of record and to

the

mortgage or lien holder listed on the policy.

If the insurer fails to provide 60 days notice in

advance of the renewal or anniversary date

but

provides notice at least 31 days prior to the

renewal or anniversary date

, the company must

extend the curre

nt policy under the same terms,

conditions and premium to allow 60 days notice,

and provide the actual renewal premium quotation

and any change in coverage or deductible on the

policy.

If the insurer fails to provide 31 days

advance notice as described ab

ove, the insurer

must renew the expiring policy under the same

terms and conditions for an additional year or until

the effective date of any similar coverage procured

by the insured, whichever is earlier.

The insurer

may increase the renewal premium, how

ever such

increase must be less than 30% of the expiring

term’s premium, and notice of such increase must

be delivered to the named insured on or before the

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date of expiration of the current policy period.

Proof of mailing or proof of receipt may be proven

by a sworn affidavit by the insurer as to the usual

and customary business practices of mailing

notices pursuant to Section143.17a or may be

proven consistent with Illinois Supreme Court

Rule 236.

NOTICE OF CANCELLATION

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Cancellation notice mailing

requirements and requirements for

canceling premium financed

insurance contracts.

215 ILCS

5/143.14

Insurer must mail cancellation notice to the named

insured at the last mailing address known by

insurer. Insurer must maintain proof of mailing on

a form

acceptable to U.S. Post Office or other

commercial mail delivery service. Notification

must also be mailed to the insured's broker, if

known, or the agent of record and to the mortgage

or lien holder listed on the policy.

Section 143.14 also contains requi

rements for

canceling premium financed insurance contracts

and procedures for returning unearned premium.

See law for specific details of requirements.

Number of days notice required for

cancellation of commercial policies

and notice requirements.

215 ILCS

5/1

43.16

Insurer must mail cancellation notice to the named

insured at least: 10 days prior to effective date of

cancellation for nonpayment of premium; 30 days

prior to effective date of cancellation during the

first 60 da

ys of coverage; 60 days prior to

effective date of cancellation after coverage has

been effective for 61 days or more.

All notices shall include a specific explanation of

the reason(s) for cancellation.

Cancellation notice must advise

insured of right to

request a

hearing.

215 ILCS

5/143.23

215 ILCS

5/143.16a

If an insurer cancels a commercial policy mid-

term per Section 143.16a, for any reason

except

non

-payment of premium, the cancellation notice

must advise the named insured of the right to

appeal and the procedure to follow for such

appeal.

Page 10 of 32

NOTICE OF NON-RENEWAL

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Number of days notice required for

nonrenewing a commercial policy

and other notice requirements.

215 ILCS

/143.17a

Nonrenewal notice must be mailed to the named

insured at least 60 days in advance of the

nonrenewal date.

Insurer must maintain proof of mailing of such

notice on a recognized U.S. Post Office form or a

form a

cceptable to the U.S. Post Office or other

commercial mail delivery service.

If the insurer fails to mail notice of nonrenewal to

the named insured at least 60 days in advance of

the nonrenewal date, the insurer must extend the

policy for an

additional year or until the effective

date of any similar insurance procured by the

insured, whichever is less, on the same terms and

conditions as the policy sought to be terminated,

unless the insurer has manifested its intention to

renew at a different

premium that represents an

increase not exceeding 30%.

Notification must also be mailed to the insured's

broker, if known, or the agent of record and to the

mortgage or lien holder listed on the policy.

Nonrenewal notice must provide a specific

explanatio

n of the reason(s) for nonrenewal.

PERMISSIBLE REASONS FOR

CANCELLATION

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

May not cancel because agent's

contract with insurer was

terminated.

215 ILCS

5/141.01

Insurers may not cancel any policy on the ground

that the company's contract with the agent through

whom the policy was obtained has been

terminated.

May not cancel a policy on sole

basis of previous refusal,

cancellation or nonrenewal by

any

insurer.

215 ILCS

5/143.10

Insurers may not cancel a policy on the sole basis

that the insured or applicant for such policy was

previously refused issuance or renewal of a policy

by an insurer, or such insured's policy was

cancelled on a prior date by any insurer.

Page 11 of 32

Reasons for canceling a

commercial policy that has been in

effect for 60 days or more.

215 ILCS

5/143.16a

50 IL Adm.

Code 940

After a policy has been in effect for 60 days,

insurer may only cancel for the following 6

reasons: (a) non

-payment of premium; (b) the

policy was obtained through a material

misrepresentation; (c) any insured violated any

terms and conditions of the polic

y; (d) the risk

originally accepted has measurably increased; (e)

the insurer certifies to the Director of the loss of

reinsurance for all or a substantial part of the

underlying risk; or (f) the Director determines that

continuation of the policy could pl

ace the insurer

in violation of Illinois insurance laws.

Rule 940 outlines requirements for certification of

loss of reinsurance.

PERMISSIBLE REASONS FOR

NON-RENEWAL

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

May not refuse to renew because

agent's contract with insurer was

terminated.

215 ILCS

5/141.01

Insurers may not refuse to renew any policy on the

ground

that the company's contract with the agent

through whom the policy was obtained has been

terminated.

May not refuse to renew a policy

on sole basis of previous refusal,

cancellation or nonrenewal by any

insurer.

215 ILCS

5/143.10

Insurers may not refuse to renew a policy on the

sole basis that the insured or applicant for

such

policy was previously refused issuance or renewal

of a policy by an insurer, or such insured's policy

was cancelled on a prior date by any insurer.

Insurers may nonrenew for almost

any reason(s) except those

specifically prohibited in other

Illinois

insurance laws or

regulations.

However, insurers must give a

specific explanation of the

reason(s) for nonrenewal.

215 ILCS

5/143.17a

Insurers may nonrenew for almost any reason(s)

except those specifically prohibited in other

Illinois insurance laws or regulations.

However, insurers must give a specific

explanation of the reason(s) for nonrenewal.

CONSUMER INFORMATION

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Page 12 of 32

Cancellation notice must advise

insured of right to request a

hearing.

215 ILCS

5/143.23

If an insurer cancels a policy mid-term per Section

143.16a, for any reason except non

-payment of

premium, the canc

ellation notice must advise the

named insured of the right to request a hearing to

appeal such decision, and the procedure to follow

for such appeal.

Written notice of company's

complaint Department and

Department of Insurance Public

Service Department.

215 ILCS

5/143c

50 IL Adm.

Code 931

No policy may be delivered unless the

policyholder or certificate holder is provided

written notice of the address of the complaint

Department of the insurance company, and the

address of the Public Service Department of

the

Department of Insurance or its successor.

Rule 931 provides more specific guidance that:

a) such notice shall accompany any newly issued

policy or binder;

b) "written notice" shall be satisfied by: any

printed notice delivered with a policy or

rtificate; any adhering label attached to a policy

or certificate; any computerized notice issued

concurrently with a computer issued policy or

certificate; or any other form of individual written

notice substantially similar to the above.

Notice of Availa

bility of the Department of

Insurance shall be no less informative than the

following: Illinois Department of Insurance,

Consumer Division, 122 S. Michigan Ave., 19th

Floor, Chicago, Illinois 60603 and Illinois

Department of Insurance 320 West Washington

treet, Springfield, Illinois 62767.

The address to be used for the company shall be

an office that can service all types of complaints.

If one office cannot service all types of

complaints, then the additional addresses of each

appropriate service office

must be given.

Page 13 of 32

In addition to providing the required addresses, the

notification should set forth the minimum amount

of information included in the following suggested

wording: "This notice is to advise you that should

any complaints arise regarding this i

nsurance, you

may contact the following."

CONTENT OF POLICIES

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Reasons for which the Director

may disapprove a form filing.

215 ILCS

5/143(2)

The Director may disapprove any form that (i)

violates a

ny provision of the Illinois Insurance

Code, (ii) contains inconsistent, ambiguous, or

misleading clauses, or (iii) contains exceptions and

conditions that will unreasonably or deceptively

affect the risks that are purported to be assumed by

the policy.

Requirements for form content and

readability.

50 IL Adm.

Code 753

There must be printed at the head of the policy the

name of the insurer or insurers issuing the policy,

the location of the Home Office thereof; a

statement of whether the insurer is a stock, mutual,

reciprocal, Lloyds, alien insurer, or an insurer

operati

ng under a charter by Special Act of the

Legislature of any state. There may be added

thereto such devices, emblems or designs and

dates as are appropriate for the insurer issuing the

policy.

All forms must be identified by a descriptive title,

form numbe

r and edition identification.

All forms must be printed in not less than eight

point type.

DEFENSE WITHIN LIMITS

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Defense costs may not be included

in limits of liability.

215 ILCS

5/143(2)

Defense costs must be paid as supplement to the

limits of liability. Defense costs may not be

included in the limits of liability. Any forms that

contain provisions to the contrary are deemed to

contain exceptions and conditions that

unreasonably or de

ceptively affect the risks that

Page 14 of 32

are purported to be assumed by the policy, in

violation of Section 143(2) and will be

disapproved accordingly.

DEFINITIONS

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Definition of "renewal" or "to

renew."

215 ILCS

5/143.13(d)

Definition of "renewal" or "to renew."

Definition of "nonpayment of

premium."

215 ILCS

5/143.13(e)

Definition of "nonpayment of premium."

Definition of "policy delivered or

issued for delivery in this State."

215 ILCS

5/143.13(f)

Definition of "policy delivered or issued for

delivery in this State."

Definition of "cancellation" or

"cancelled."

215 ILCS

5/143.13(g)

Definition of "cancellation" or "cancelled."

DISCRIMINATION

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

May not cancel certain policies, or

refuse to issue or renew certain

policies solely due to hate crimes.

215 ILCS

5/143.24c

Title 26 U.S

.C.

Sections

170(b)(1)(A)(i),

(ii), and (vi).

Insurers may not cancel a policy, or refuse to issue

or renew a policy solely on the basis that one or

more claims have been made against any policy

during the preceding 60 months, for a loss that is

the result of a hate crime, if the insured provides

evidence to the insurer that the act causing the loss

is identified as a hate crime on a police report.

Applies to policies issued to an individual, a

religious organization described in Section

170(b)(1)(A)(i) of Title 26 of the United States

Code, or an edu

cational organization described in

Section 170(b)(1)(A)(ii) of Title 26 of the United

States Code, or any other nonprofit organization

described in Section 170(b)(1)(A)(vi) of Title 26

of the United States Code that is organized and

operated for religious,

charitable, or educational

purposes.

Redlining -- When geographic

location of risk may be grounds for

refusing to insure.

215 ILCS

5/155.22

Insurer may not refuse to provide insurance solely

on the basis of the specific geographic location of

the risk unless such refusal is for a business

purpose which is not a mere pretext

for unfair

discrimination.

Page 15 of 32

Rating, claims handling, and

underwriting decisions based

solely on domestic violence.

215 ILCS

5/155.22b

No insurer that issues a property and casualty

policy may use the fact that an applicant or insured

incurred bodily injury as a result of a battery

committed against him/her by a spouse or per

son

in the same household as a sole reason for a rating,

underwriting, or claims handling decision.

Unfair methods of competition or

unfair or deceptive acts or practices

defined.

215 ILCS

5/424(3)

It is an unfair method of competition or unfair and

deceptive act or practice if a company makes or

permits any unfair discrimination between

individuals or risks of the same class or of

essentially the same hazard and expense

element

because of the race, color, religion, or national

origin of such insurance risks or applicants.

Unfair methods of competition or

unfair or deceptive acts or practices

defined.

215 ILCS

5/424(5)

It is an unfair method of competition or unfair and

deceptive act or practice if a company makes or

charges any rate for insurance against losses

arising from the use or ownership of a motor

vehicle which requires a higher premium of any

person by reason o

f his physical handicap, race,

color, religion, or national origin.

Procedure as to unfair methods of

competition or unfair or deceptive

acts or practices not defined.

215 ILCS 5/429

Outlines the procedures the Director follows when

he has reason to believe that a company is

engaging in unfair methods of competition or

unfair or deceptive acts or practices.

Civil Union Partnerships-effective

June 1, 2011

750 ILCS 75/1

Civil Union

Fact Sheet

The Religious Freedom Protection and Civil

Union Act (Public Act 96

-1513) will allow both

same

-sex and different-sex couples to enter into a

civil union with all of the obligations, protections,

and legal rights that Illinois provides to married

heterosexual couples.

Please note that whenever a p

olicy form,

application, or rating rule includes the terms

"spouse," "married," or "immediate family

member" it is required that parties to a civil union

be included in these definitions.

DOMESTIC ABUSE

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Rating, claims handling, and

underwriting decisions based

solely on domestic violence.

215 ILCS

5/155.22b

No insurer that issues a property and casualty

policy may use the fact that an applicant or insured

incurred bodily injury as a result of a battery

Page 16 of 32

committed against him/her by a spouse or person

in the same household as a sole reason for a rating,

underwriting, or claims handling decision.

Intentional acts exclusion --

exception for innocent co

-insured.

215 ILCS

5/155.22b

If a policy excludes property damage coverage for

intentional acts, the insurers may not deny

payment to an innocent co

-insured who did not

cooperate in or contribute to the creation of the

loss if the loss arose out of a pattern of criminal

domestic violence and the perpetrator of the loss is

criminally prosecuted for the act causing the loss.

EXCLUSIONS &

LIMITATIONS

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Exceptions to exclusions for bodily

injury for family members of the

insured.

215 ILCS

5/143.01

If a form includes an exclusion of coverage for

bodily injury for members of the family of the

insured, the form must contain a provision that

such exclusion shall not be applicable when a third

party acquires a right of contributi

on against a

member of the injured person's family, or when

any person not in the household of the insured was

driving the vehicle of the insured involved in the

accident which is the subject of the claim or

lawsuit.

Coverage for permissive drivers

215 ILCS

5/143.13a

(Effective

1/1/08)

Permissive drivers must have the same limits of

bodily injury liability, property damage liability,

uninsured and underinsured motorists liability and

medical payments as a named insured.

Communicable disease exclusions

must be specific.

215 ILCS

5/143(2)

Form may not exclude broad categories of

communicable disease. Form may exclude only

specific diseases, such as AIDS, or specific classes

of diseases, such as sexually transmitted diseases.

Any forms that contain provisions to the contrary

are deemed to conta

in exceptions and conditions

that unreasonably or deceptively affect the risks

that are purported to be assumed by the policy, in

violation of Section 143(2) and will be

disapproved accordingly.

Exclusions for unlicensed drivers

are prohibited.

215 ILCS

5/143(2)

Forms may not exclude unlicensed drivers,

whether underage or u

nder license suspension or

Page 17 of 32

revocation. Any forms that contain provisions to

the contrary are deemed to contain exceptions and

conditions that unreasonably or deceptively affect

the risks that are purported to be assumed by the

policy, in violation of Secti

on 143(2) and will be

disapproved accordingly.

Exclusions of coverage due to DUI

or other traffic offenses are

prohibited.

215 ILCS

5/143(2)

Forms may not exclude coverage because the

operator is convicted of a DUI or other traffic

offense. Any forms that contain provisions to the

contrary are deemed to contain exceptions a

conditions that unreasonably or deceptively affect

the risks that are purported to be assumed by the

policy, in violation of Section 143(2) and will be

disapproved accordingly.

Coverage for temporary substitute

vehicles is required.

215 ILCS

5/143(2)

Forms must provide, at a minimum, excess

liability and p

hysical damage coverage for

temporary substitute vehicles if the form would

have covered the out of service vehicle. Any forms

that contain provisions to the contrary are deemed

to contain exceptions and conditions that

unreasonably or deceptively affect t

he risks that

are purported to be assumed by the policy, in

violation of Section 143(2) and will be

disapproved accordingly.

Requirements for exclusions for

racing.

Applies only to forms issued for

vehicles designed for highway use.

215 ILCS

5/143(2)

Forms may not exclude coverage if vehicle was

involved in racing, except i

f racing event was

prearranged or organized. Any forms that contain

provisions to the contrary are deemed to contain

exceptions and conditions that unreasonably or

deceptively affect the risks that are purported to be

assumed by the policy, in violation of

Section

143(2) and will be disapproved accordingly.

Applies only to forms issued for vehicles designed

for highway use.

Requirements for radius

restrictions.

215 ILCS

5/143(2)

Forms that include a radius restriction may not

exclude liability coverage entirely when a vehicle

is outside of the radius, but must provide at least

the minimum financial responsibility limit as

Page 18 of 32

shown on the Certificate of Insurance. Any forms

that conta

in provisions to the contrary are deemed

to contain exceptions and conditions that

unreasonably or deceptively affect the risks that

are purported to be assumed by the policy, in

violation of Section 143(2) and will be

disapproved accordingly.

Named driver exclusions.

Applies only to policies issued for

vehicles designed for highway use.

Illinois court

cases

215 ILCS

5/143(2)

Illinois courts have upheld named-driver

exclusions if the form was signed by the named

insured. Any forms that contain provisions to the

contrary are deemed to contain exceptions and

conditions that unreasonably or dece

ptively affect

the risks that are purported to be assumed by the

policy, in violation of Section 143(2) and will be

disapproved accordingly.

Applies only to policies issued for vehicles

designed for highway use.

Diminution In Value (Property

Damage

- 3rd Party Liability)

215 ILCS

5/143(2)

Diminution in Value language is prohibited in

third party liability coverage. The proper measure

of damages is according to general tort law. In

Illinois the body of law controlling the measure of

damages in tort cases is set forth in the Illinois

Pattern Jury Instructions. In general, t

he measure

of damages in cases of property damage is the

reasonable value of necessary repairs and/or the

difference between the property's fair market value

immediately before and after the event causing the

damage. If after the repairs are performed to t

real property there is still a decrease in the fair

market value of the property then the plaintiff is

also entitled to the diminution in market value of

the property. Any forms that contain provisions to

the contrary are deemed to contain exceptions an

conditions that unreasonably or deceptively affect

the risks that are purported to be assumed by the

policy, in violation of Section 143(2) and will be

disapproved accordingly.

Page 19 of 32

Exception for excluding class of

persons.

50 IL Adm.

Code 921

Policy may not exclude a class of persons solely as

a consideration of the rate class applied thereto,

nor shall such a provision be included in a

automobile insurance policy unless the insured,

because of unusual hazards or exposures, would

not otherwise meet the company's normal

underwriting standards for acceptance.

Exclusions for certain kinds of

vehicle equipment are prohibited.

50 IL Adm.

Code 924

Policy may not exclude standard or optional

equipment available from the manufacturer of the

auto named in the policy for that make, model, and

model year unless the company issues an

endorsement signed by the named insured.

Any such endorsement must contain the following

information:

a) The named insured's signature.

b) The date the endorsement was signed by the

named insured.

c) The policy number.

d) Identification of the specific item or items to

be excluded from the named insured's policy a

s a

result of the endorsement.

e) Specific identification of the automobile to

which the endorsement applies.

This prohibition does not apply to:

a) loss of or damage to any device or instrument

designed for the recording, reproduction,

receiving, or

transmittal of sound, radio waves,

microwaves or television signals unless such

device or instrument is permanently installed in

the dash or console opening specified by the

manufacturer of the motor vehicle for the

installation of such equipment.

b) loss or damage to any tape, wire, record disc

or other medium for use with any device or

instrument designed for the recording,

Page 20 of 32

reproduction, or recording and reproduction of

sound.

Liability coverage for stated

drivers only is prohibited.

625 ILCS 5/7-

317(b) 2

The Financial Responsibility Act requires that all

veh

icle owners' policies insure every named

insured and any other person using the vehicle

with the express or implied permission of the

named insured. Stated or named driver forms are

prohibited.

MOLD

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Filing procedures and requirements

for exclusions and limitations

related to mold.

Company

Bulletin 2002

Please refer to Company Bulletin 2002-07 for

specific information and guidance.

TERRORISM

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Terrorism Risk Insurance Program

Reauthorization Act of 2015 and

Filing Procedures and

Requirements for Terrorism

Related Forms, Rules and Rates.

Company

Bulletin 2015

Please refer to Company Bulletin 2015-03 for

specific information and guidance.

GROUP POLICIES

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Group vehicle insurance defined.

Group vehicle policies may

provide coverage for physical

damage, liability or both.

group physical damage policy

and certificate incidental thereto

does not meet IL mandatory

insurance requirements and must

contain a warning to that effect.

215 ILCS

5/388a

Group vehicle insurance is vehicle insurance

covering not less than 10 employees, members or

employees of members, written under a master

policy issued to any governmental corporation,

unit, age

ncy or Department thereof, or to any

corporation, co

-partnership, individual employer,

or to any association upon application of an

executive officer or trustee of such association

having a constitution or by

-laws and formed in

good faith for purposes othe

r than that of

obtaining insurance, where officers, members,

employees, employees of members or classes or

Department thereof, may be insured for their

individual benefit.

Page 21 of 32

In addition, a group vehicle policy may be written

to insure any group which may be

insured under a

group life insurance policy.

The term "employees" shall include the officers,

managers and employees of subsidiary or affiliated

corporations, and the individual proprietors,

partners and employees of affiliated individuals

and firms, when the business of such subsidiary or

affiliated corporations, firms or individuals, is

controlled by a common employer through stock

ownership, contract or otherwise.

Group vehicle insurance policies may provide

physical damage coverage, liability coverage

, or a

combination of physical damage and liability.

A group physical damage policy and a certificate

incidental to that policy, issued in accordance with

this Section, does not meet the mandatory

insurance requirements under the IL Vehicle Code

and must

contain a warning to the consumer that

the policy does not comply with those

requirements.

Group vehicle insurance

authorized.

Insurers with Class 2(b) and/or

Class 3(e) authority may write

group vehicle.

Such policies must be filed in

accordance with Se

ction 143.

Such policies must comply with

Section 7

-317 of the IL Vehicle

Code.

215 ILCS

5/388b

215 ILCS 5/4

215 ILCS

5/143(2)

625 ILCS 7

-317

Any insurer authorized to write Class 2(b) and/or

Class 3(e) of Section 4 of the Code may issue

group vehicle policies.

Such policies must be filed per Section 143 and

shall include provisions required by Sections

388c

-388f.

A group vehicle insurance policy that provides

liability coverage must comply with the

requirements of Section 7

-317 of the IL Vehicle

Code.

"Entire contract" specified.

215 ILCS

5/388c

Group vehicle insurance policies shall provide that

the policy, the application of the employer, or

executive officer or trustee of any association, and

Page 22 of 32

the individual applications, if any, of the

employees, members, or employees of members

insured shall constitute the entire contract between

the parties, and that all statements made by the

employer, or the executive officer or trustee, or by

the individual employees, members, or employees

of members shall, in the absence of fraud, be

deemed representations

and not warranties, and

that no such statement shall be used in defense to a

claim under the policy, unless it is contained in a

written application.

Certificates required.

215 ILCS

5/388d

Each group vehicle insurance policy shall provide

that the insurer will issue to the employer, or to the

executive officer or trustee of the association, for

delivery to the employee, member, or employee of

a member, who is insured under such policy, an

individual certificate setting forth a statement as to

the insurance protection to which he is entitled and

to whom payable and, at the request of any

participating member or e

mployee that has

liability insurance coverage, will issue a certificate

of his vehicle insurance to the Secretary of State as

proof of the insured's financial responsibility in

compliance with the IL Vehicle Code.

New members of group.

215 ILCS

5/388e

Each group vehicle policy shall provide that, to the

group or class thereof originally insured, shall be

added f

rom time to time all new employees of the

employer, members of the association, or

employees of members eligible to and applying for

insurance in such group or class, but participation

in the group plan shall not be required as a

condition of employment, n

or shall any member

not participating in the plan be coerced or

discriminated against.

Conversion rights.

215 ILCS

5/388f

Each group vehicle insurance policy shall provide

that any member of the group shall have the right

to convert his group policy to an individual

standard policy of insurance in the same company

as offered by the insurer to the non

-group insur

eds

Page 23 of 32

upon termination of his connection with the group

extending him the same limits of coverage.

Cancellation restricted.

215 ILCS

5/388g

Insurer may not cancel the insurance of an

individual member of a group covered by a group

vehicle

insurance policy, except for the non-

payment of premium by such member, or unless

the insurance for the entire group is cancelled. In

such cases, notice of cancellation as provided in

-non-group policies shall be given to each

member and, when appropriate, to the Secretary of

State.

LIMITS

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Minimum limits for Bodily Injury

Liability and Property Damage

Liability

625 ILCS 5/7-

203

Minimum Bodily Injury liability limits are

$25,00

0 per person and $50,000 per accident.

Minimum Property Damage liability limits are

$20,000 per accident.

ACTION AGAINST COMPANY

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Requirements for forms that

contain provisions that limit time

for bringing suit against the

company for Underinsured

Motorists Bodily Injury (UIM)

coverage.

215 ILCS

5/143(2)

If the form contains a provision that limits time for

bringing suit against the company under the

Underinsured Motorists Bodily Injury (UIM)

coverage, t

he language must state that time for

bringing suit shall begin after a judgment is

rendered rather than after the accident, so as not to

conflict with the exhaustion clause. Any forms

that contain provisions to the contrary are deemed

to contain exceptions

and conditions that

unreasonably or deceptively affect the risks that

are purported to be assumed by the policy, in

violation of Section 143(2) and will be

disapproved accordingly.

Periods of limitation tolled.

215 ILCS

5/143.1

If the form contains a provision limiting the period

of time within which the insured may bring suit,

the provision must state that the running of such

period is tolled from the date proof of loss is filed

until the date the claim is denied in whole or in

part.

Page 24 of 32

DEFENSE COSTS

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Defense costs may not be included

in limits of liability.

215 ILCS

5/143(2)

Defense costs must be paid as supplement to the

limits o

f liability. Defense costs may not be

included in the limits of liability. Any forms that

contain provisions to the contrary are deemed to

contain exceptions and conditions that

unreasonably or deceptively affect the risks that

are purported to be assumed

by the policy, in

violation of Section 143(2) and will be

disapproved accordingly.

PAYMENT OF LOSS TIME

PERIOD

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

If a form states when a claim will

be paid, the language must

conform to this Rule.

50 IL Adm.

Code 919.50

If a form contains a provision stating when a claim

shall be paid, the provision must comply with this

Rule that states that the insurer shall affirm or

deny liability on claims within a reasonable time

and shall offer payment within 30 days of

affirmation of liability if the amo

unt of the claim

is determined and not in dispute. For those

portions of the claim which are not in dispute and

the payee is known, the insurer shall tender

payment within said 30 days.

MINIMUM STANDARDS FOR

CONTENT (POLICIES AND

STANDARD FORMS)

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Coverage for temporary substitute

vehicles is required.

215 ILCS

5/143(2)

Forms must provide, at a minimum, excess

liability and physical damage coverage for

temporary substitute vehicles if the form would

have covered the out of service vehicle. Any forms

that contain provisions to the contrary are deemed

to contain exceptions

and conditions that

unreasonably or deceptively affect the risks that

are purported to be assumed by the policy, in

violation of Section 143(2) and will be

disapproved accordingly.

Self-insured retention

endorsements.

625 ILCS 5/7-

502

Policies with self-insured retentions for liability

coverage may only be issued to

those persons with

more than 25 motor vehicles registered in their

Page 25 of 32

name and who have obtained a certificate of self-

insurance issued by the Director.

Liability deductible endorsements.

625 ILCS 5/7-

317

All liability deductible endorsements shall provide

first dollar payment by stating that the company

will p

ay the deductible to settle any claim. The

company may then seek reimbursement for the

deductible amount from the insured. Failure to

reimburse a deductible may not be construed as

nonpayment of premium for cancellation of the

policy.

Garage customer liability.

625 ILCS 5/5-

101,102

If a new or used vehicle dealer or an employee of

such dealer provides a vehicle to a customer as a

permissive user while the user's auto is being

repaired or evaluated, and such user has auto

liability coverage providing limits of at least

$100,000/300,00

0 bodily injury (BI) and $50,000

property damage (PD), the permissive user's

coverage shall be primary and the dealer's liability

coverage shall be secondary. However, if the

permissive user does not have liability coverage,

or has liability limits less th

an $100,000/300,000

BI and $50,000 PD, then the dealer's liability

coverage shall be primary and the permissive

user's liability coverage shall be secondary. If a

customer is test

driving a dealer's vehicle, then the

dealer's policy shall be primary.

Liability coverage for stated

drivers only is prohibited.

625 ILCS 5/7-

317(b) 2

The Financial Responsibility Act requires that all

vehicle owners' policies insure every named

insured and any other person using the vehicle

with the express or implied permission of the

named insured. Stated or named driver forms are

proh

ibited.

OTHER INSURANCE

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Requirements for "Other

Insurance" provisions.

215 ILCS

5/143(2)

"Other Insurance" provisions must state that

coverage und

er the policy will share

proportionately with other similar coverages.

However, coverage for non

owned autos may state

that coverage is excess. Any forms that contain

Page 26 of 32

provisions to the contrary are deemed to contain

exceptions and conditions that unreasona

bly or

deceptively affect the risks that are purported to be

assumed by the policy, in violation of Section

143(2) and will be disapproved accordingly.

PUNITIVE DAMAGES

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Punitive damages

95 IL. App. 34

3d 1122

215 ILCS

5/143(2)

An insurer may not reimburse an insured for

punitive damages assessed as a result of the

insured's own misconduct. If form excludes

verage for punitive damages, the form must

state that it provides a defense for claims

involving both compensatory and punitive

damages. Any forms that contain provisions to the

contrary are deemed to contain exceptions and

conditions that unreasonably or

deceptively affect

the risks that are purported to be assumed by the

policy, in violation of Section 143(2) and will be

disapproved accordingly.

REBATES

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Payments or acceptance of rebates

prohibited.

Rebates

-- penalties

215 ILCS 5/151

215 ILCS 5/152

No insurer, agent or broker shall offer, give, etc.,

any rebate of premium, agent's commission,

profits, dividends, or any special advantage in date

of policy or age of issue, or any other valuable

consideration or inducement, upon issuance or

renewal, whi

ch is not specified in the policy

contract of insurance.

However, insurers may pay a bonus to

policyholders or abate their premiums, in whole or

in part, out of surplus accumulated from

nonparticipating insurance.

Insurers may also offer a child passenger

restraint

system, or a discount from the purchase price of a

child passenger restraining system to

policyholders, when the purpose of such system is

Page 27 of 32

the safety of a child and compliance with the

"Child Passenger Protection Act."

No insured or applicant sh

all directly or indirectly

receive or accept any rebate of premium or agent's

or broker's commission, or any favor or advantage,

or any valuable consideration or inducement, other

than such as is specified in the policy.

Any company or person violating any

provision of

Section 151 shall be guilty of a Class B

misdemeanor.

UNINSURED/UNDERINSURED

MOTORISTS

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Requirements for Minimum

Uninsured Motorist Bodily Injury

(UM).

Applies only to policies issued for

vehicles designed for highway use.

215 ILCS

5/143a

Forms that include coverage for bodily injury

liability must also include coverage for Uninsured

Motorist Bodily Injury (UM) in amounts equal to

the Illinois financial responsi

bility limits

(currently $25,000 per person and $50,000 per

accident).

Also includes other requirements. See specific law

for details to ensure that all forms comply with

requirements.

Applies only to policies issued for vehicles

designed for

highway use.

Requirements for Increased Limits

of Uninsured Motorist Bodily

Injury (UM) Coverage and

Additional Underinsured Motorist

Bodily Injury (UIM) Coverage.

Applies only to policies issued for

vehicles designed for highway use.

215 ILCS

5/143a

-2

Forms that include bodily injury limits greater

than the minimum financial

responsibility limits

(currently $25,000 per person and $50,000 per

accident) must include Uninsured Motorists

Bodily Injury (UM) coverage equal to the

insured's BI limits, unless specifically rejected by

the insured. Applications must include space for

nsured's rejection of additional UM limits.

Forms that include coverage for additional UM

liability limits must include Underinsured

Page 28 of 32

Motorists Bodily Injury (UIM) coverage equal to

the insured's UM bodily injury limits.

See specific law for details to ensure that all forms

comply with requirements.

Applies only to policies issued for vehicles

designed for highway use.

Social Security benefits may not be

deducted from Underinsured

Motorist Bodily Injury (UIM)

limit.

Roberts v.

Northland

Illinois

Supreme Court

Case

IL Supreme Court decision. Social Security

disability benefits may not be deducted from

Underinsured Motorist Bodily Injury (UIM) limit.

Coverage for permissive drivers

215 ILCS

5/143.13a

(Effective

1/1/08)

Permissive drivers must have the same limits of

bodily injury liability, property damage liability,

uninsured and underinsured motorists liability and

medical payments as a named insured.

Requirements for forms that

contain provisions that limit time

for bringing suit against the

company for UIM coverage.

215 ILCS

5/143(2)

If the form contains a provision that limits time for

bringing suit against the company under the UIM

coverage, the language must state that time for

bringing suit shall begin after a judgmen

t is

rendered rather than after the accident, so as not to

conflict with the exhaustion clause. Any forms

that contain provisions to the contrary are deemed

to contain exceptions and conditions that

unreasonably or deceptively affect the risks that

are pur

ported to be assumed by the policy, in

violation of Section 143(2) and will be

disapproved accordingly.

VOIDANCE

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Requirements to rescind a policy

for misrepresentation or false

warranty.

215 ILCS 5/154

A policy may not be rescinded, defeated or

avoided unless the misrepresentation is stated in

the policy, endorsement or rider attached thereto,

or in the written application therefore, and was

made with the actual intent to deceive, or

materially affected

either the acceptance of the

risk or the hazard assumed by the company.

Page 29 of 32

MISCELLANEOUS

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Prejudgment interest.

215 ILCS

5/143(2)

Illinois courts do not award prejudgment interest.

However, if a form references payment of

prejudgment interest, then such payment must be a

pplementary coverage and not paid within the

policy limits. Any forms that contain provisions to

the contrary are deemed to contain exceptions and

conditions that unreasonably or deceptively affect

the risks that are purported to be assumed by the

policy,

in violation of Section 143(2) and will be

disapproved accordingly.

Post-judgment interest.

215 ILCS

5/143(2)

If a form references payment of post-judgment

interest, t

hen such payment must be a

supplementary coverage and not paid within the

policy limits. Any forms that contain provisions to

the contrary are deemed to contain exceptions and

conditions that unreasonably or deceptively affect

the risks that are purported

to be assumed by the

policy, in violation of Section 143(2) and will be

disapproved accordingly.

Endorsements that amend another

endorsement are prohibited.

215 ILCS

5/143(2)

An endorsement cannot be used to amend another

endorsement. Such endorsements are deemed to

result in inconsistent, ambiguous, or misleading

clauses,

in violation of Section 143(2) and will be

disapproved accordingly.

Requirements for termination of

line of business.

215 ILCS

5/143.11a

Insurers must notify the Director of the

termination of a line of insurance, as well as the

reasons for the action, 90 days before termination

of any policy is effective.

Negative response roll-ons are

prohibited.

215 ILCS 5/429

Form changes that are optional may not be applied

"automatically unless the insured rejects." Insureds

must be offered the option and must respond

affirmatively for the change to apply. To apply the

option automatically unless rejected is to engage

in an unfair or deceptive act or practice.

RATE, RULE, RATING PLAN,

CLASSIFICATION, AND

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Page 30 of 32

TERRITORY FILING

REQUIREMENTS

Taxicab rates and rules must be

filed no later than 10 days after the

stated effective date.

"Me too" filings are not allowed.

50 IL Adm.

Code 754

Taxicab rate and rule filings are use and file. Such

rate and rule filings must be received by the

Department no l

ater than 10 days after their stated

effective dates.

Company Rate Information shall be completed for

each company when a filing is being submitted

that includes:

A) Overall % Indicated Change.

B) Overall % Rate Impact –

This is the statewide

average percentage change to the accepted rates

for the coverages included for each company.

C) Written premium change for this program –

This is the statewide change in written premium

based on the prop

osed overall percentage rate

impact for each company.

D) Number of policyholders affected for this

program

– This is the number of policyholders

affected by the overall percentage rate impact for

each company.

Written premium for this program – This is the

statewide written premium for each company.

Maximum % Change.

Minimum % Change.

For all other lines of commercial

automobile insurance listed on

page 1 of this checklist, rates and

rules are not required to be filed in

Illinois.

For all other lines of commercial auto insurance

listed on page 1 of this checklist, rates and rules

are not required to

be filed in Illinois.

INDIVIDUAL RISK RATING

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Individual risks.

50 IL Adm.

Code 754

Insurers are not required to file rates for individual

Illinois risks which cannot be rated in the normal

course o

f business rating because of special or

Page 31 of 32

unusual characteristics and must be rated on the

basis of underwriting judgment.

Insurers must maintain documentary information

regarding such individual risk rates for review by

the Department's Property & Casualty

Compliance

Unit.

Insurers are not required to file rates on individual

risks where the development of the rate for the

individual risk is dependent on an inspection of

improvements on real property and an application

of a schedule, the elements of

which include loss

ratio, hazard analysis, risk analysis and

classification of municipal fire defenses.

However

, the company must maintain

documentary information and records in its

offices, which will be available for review by the

Department's Property &

Casualty Compliance

Unit.

DISCOUNTS

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Defensive driving discount

requirements.

215 ILCS

5/143.29

Auto liability policies must include rate/premium

reducti

ons for insureds over age 55 who

successfully complete a defensive driving course.

Also includes specific time frames for how long

the reduction must remain in effect.

Requirement does not apply to fleet policies or

commercial unless there is a regular

ly assigned

principal operator.

See specific law for details.

OTHER FEES

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Insurers may not surcharge or

charge a fee for making a Financial

filing.

625 ILCS 5/7-

317(l)

Insurers may not surcharge or impose fee for

having to file a Financial Responsibility

Certificate.

Page 32 of 32

Applies only to policies issued for

vehicles designed for highway use.

This section contains other requirements for

financial responsibility filings

-- see law for

specific information and guidance.

Applies only to policies issued for vehicles

designed for highway use.

OTHER

REFERENCE

DESCRIPTION OF REVIEW STANDARDS

REQUIREMENTS

Bodily injury liability base rates.

215 ILCS

5/155.17

The base rate for bodily injury liability must be the

same for all territories within a city with a

population of 2,000,000 or more. Currently in

Illinois, this applies only to the city of Chicago.

Rating decisions based solely on

domestic violence.

215 ILCS

5/155.22b

No insurer may that issues a property and casualty

policy may use the fact that an applicant or insured

incurred bodily injury as a result of a battery

committed against him/her by a spouse or person

in the same household as a sole reason for a rating

decision.

Unfair methods of competition or

unfair or deceptive acts or practices

defined.

215 ILCS

5/424(3)

It is an unfair method of competition or unfair and

deceptive act or practice if a company makes or

permits any unfair discrimination between

individuals or risks of the same class or of

essentially the same hazard and expense element

because of the race, color, religion,

or national

origin of such insurance risks or applicants.

Unfair methods of competition or

unfair or deceptive acts or practices

defined.

215 ILCS

5/424(5)

It is an unfair method of competition or unfair and

eceptive act or practice if a company makes or

charges any rate for insurance against losses

arising from the use or ownership of a motor

vehicle which requires a higher premium of any

person by reason of his physical handicap, race,

color, religion, or na

tional origin.

Procedure as to unfair methods of

competition or unfair or deceptive

acts or practices not defined.

215 ILCS 5/429

Outlines the procedures the Director follows when

he has reason to believe that a company is

engaging in unfair methods of competition or

unfair or deceptive acts or practices.

Revised 08/22/2023