Current through Register Vol. 48, No. 12, March 22, 2024
a)
The purpose of Article XXVI of the Illinois Insurance Code, entitled "Unfair
Methods of Competition and Unfair and Deceptive Acts and Practices", according
to Section 421 of the Code, is to regulate trade practices in the business of
insurance by prohibiting those trade practices.
b) Violation of any regulations adopted by
the Director of Insurance in implementing Article XXVI and Article VII-4, is a
violation of the Articles themselves and subjects the violators to the
procedures and penalties provided by those Articles.
c) Acts and practices related to activities
authorized or permitted by Article VII-A and this Part that are prohibited by
Article XXVI of the Act as constituting unfair methods of competition or unfair
and deceptive acts and practices, whether committed or practiced by a company,
an advisory organization or companies constituting a group, association or
organization authorized to engage in joint underwriting or joint reinsurance
activities include the following:
1) Two or
more companies, unless permitted or authorized by Article VII-A of the Code or
this Part, may not act in concert with each other with respect to the
compilation of insurance statistics; the preparation of insurance policies,
bond forms, and underwriting rules; and the furnishing of that which it
compiles and prepares to insurance companies, nor with respect to the
activities of making rates.
2) Two
or more companies engaged in authorized joint underwriting or joint reinsurance
activities, unless permitted or authorized by Article VII-A of the Code or this
Part, may not act in concert with each other with respect to the activities
enumerated in subsection (c)(1) nor with respect to the activity of making
rates.
3) All companies making rate
level changes that require the filing of Company Rate Information under Section
754.10(e)(2)
are prohibited from continuing to use the
new rate level if the Company Rate Information has not been received by the
Department within 10 days after its effective date.
4) Groups, associations, organizations of
companies authorized to engage in joint underwriting and joint reinsurance
activities are prohibited from establishing rules that in any way unreasonably
inhibit a company from individually underwriting any risks.
5) All companies, advisory organizations, and
groups, associations, or organizations of companies authorized to engage in
joint underwriting activities are prohibited from practicing or sanctioning any
plan or act of boycott or intimidation tending to result in the unreasonable
restraint of trade or in a monopoly in the business of insurance.
6) All companies, advisory organizations, and
groups, associations, or organizations of companies authorized to engage in
joint underwriting activities are prohibited from willfully withholding
information from, or knowingly giving false information or misleading
information to, the Director or to any organization authorized by the Director
to receive information relative to underwriting rules, rating systems or rate
filings required by Article VII-A of the Act or this Part.
7) All companies required by Section
754.30(d)(2)
to file an individual risk authorization letter are prohibited from using the
rate developed unless or until the individual risk authorization letter has
been submitted to the Department.